Apeejay to launch Typhoo in India

A year after acquiring UK's third largest tea brand, Typhoo, Apeejay Tea is mulling launch of the range in India, possibly next fiscal.

The company has already completed its consumer research, which would be the basis for the flow of decisions.

Deeapak Atal, managing director, Apeejay Tea said, it was still on the drawing board and the management of Typhoo would have to decide, which market it would tap first.

So far, Typhoo has focused on the UK market with sporadic export orders. If the company decides to launch the Typhoo range in India next year, it would have to plan for its launch.

For starters, a distribution channel for the product would have to be created, since Apeejay Tea was predominantly a bulk tea company. It has only two brands""Mantra and Mahamantra""catering to Punjab and Rajasthan.

Responding to queries, Atal said, Apeejay Tea could tap other companies having strong distribution for Typhoo.

He added the company would also require a team from the FMCG sector to manage the brands.

Apeejay Tea is looking to increase supply to Typhoo. The company is upgrading its Quality Assurance Process (QAP) since Typhoo follows the certification, with the hope of increased procurement.

Typhoo apart, Apeejay Tea has a diversified customer base and is a supplier to Tetley and smaller quantities to Harrods, Ringtons. Apeejay also supplies to Tazo in the US, the purchasing arm of Starbucks.

Orthodox teas are sold in Germany or at the auctions. "Our teas are also gaining popularity in Saudi Arabia. Total exports direct or indirect is approximately four million kg," said Atal.

The total production of the Apeejay Tea group will exceed 25 million kg in five years' time from the present 21 million kg. The company expects to produce 13.6 million kg in 2006-07 at Apeejay tea and 7.5 million kg in Empire & Singlo.

Atal said the company would look at acquiring gardens in upper Assam and Kenya. There were some proposals from Kenya, however, nothing was being discussed at present.