Ion Study Tea
Ion Study Tea
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INDUSTRY OVERVIEW
Tea is cultivated widely both in North and South India. Cultivation in India its roots
when Robert Kyd experimented with it first in India ground the year 1780. In 1823 Robert
Bruce discovered tea in Bhramputhra Valley and it was only in 1834 that large scale planting
started in North India.
In South India it was Dr.Chirsty who experimented in Nilgiris in the year 1852 and it
was in 1859 that tea planting actually started in Nilgiris.
Presently in India tea is grown in an area of 482 lakh hectors spread mainly over
Assam, West Bengal, Tamilnadu and Kerala. Besides these states Tripura, Karnataka,
Himachal Pradesh also grows tea on a limited scale. Manipur, Sikkim, Arunachal Pradesh
and Orissa are same of the non traditional tea growing areas which have taken up tea
cultivation.
The phenomenon growth in tea productivity of over 60% in the last two decades
suggests a dynamism unknown in other core in agricultural and Industrial sectors and what is
more, is what tea is on the threshold of yet another major break through in productivity.
Tea is grown in different countries or even in different parts of same country, vary in
last flavour and quality. To obtain the best tea each tea company employs tea teasters who
select only certain teas for purchase. These teas after being bleaded by the company have a
flavoured for which the firm is known. Every company sellers of blend of tea under etc. own
brand name
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QUALITIES OF TEA
In 1931, Mr.William Kerecher’s designing the C.T.C (Crush, tear and curl) machine
at Tocklai. It was only after 1950 that it gained popularity. Today 75% of Indians production
constitutes CTC manufacturing and 94% of are domestic consumption is of this variety.
The main features of CTC Tea is that it gives their the cuppage offered through the
conventional orthodox manufacturing. Also this process has gained popularity because of the
simplicity of manufacturing ability to handle coaress leaf and capacity to produce stronger
braw.
The great popularity of tea as a beverage may be due to the presence of its remarkable
content of polyphenols and methylaxanthine (Caffine and other purnies). There to groups of
combined which are mainly responsible for the unique taste of tea, in addition to various
compounds associated with tea aroma. The chemical composition of the tea short varies with
the plant variety, cultural practices and the conditions under which the plant is cultivated.
Proteins are significant constitutes of the tea plant. However, since proteins combine
with oxidation products of fermentation and load to insoluble product. A high protein content
in the leaf is a undersirable factor. Amino acids from aldehydes and brown red pigments in
the course of their oxidation during fermentation. This is very important for the formation of
aroma and colour of the infusion.
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TEA PRODUCTION IN INDIA
Growth of tea productivity over 60% in the last two decades suggests a dynamic
unknown in other areas of agricultural and industrial sector and what is more is that tea is on
the road to get another major break through in productivity presently in Indian tea is grown in
507196 hector spread mainly over Assam. Tamilnadu, West Bengal and Kerala. Besides
these states Tripura, Karnataka, Himachal Pradesh also grows tea on a limited scale.
Indian tea has a district presence in the world market with its Assam tea and
Darjelling boards commanding a significant position. India is the largest producer, consumer
and very recently the largest exporter too. In the present situation high prices of coffee lead to
shift in consumption pattern.
India is said to the largest producer consumer and exporter of tea in the world.
Though the share of India in global tea production has declined over the year, it is still retains
its status as the largest tea producer with 45% of the world output. Besides no other country
can be the best of producing so many varieties of tea Nilgiris, Assam, Darjelling are well
known for their different but distinctive characteristics.
India is also the largest consumer of tea nearly 24% of the global production and 75%
of the India’s total production is consumed in the country. There has been a significant
increase in productivity in the last 15 years. The number of gardens has up minified
registering and increase of 522 percent over 1951. Bulk of this increase particularly in the
small grows segment in Assam and North Bengal.
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Top 10 Tea Companies in India
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NILGIRI TEA
Nilgiri Tea plantation are represented by the Nilgiri planters Association, which is an
organizational member of the united planters association of South India (UPASI),
headquarters in Coonoor. UPASI is the peak body representing plantation owners in South
India. However, plantation only account for around 30% of tea production in Nilgiri district.
The vast majority of production is undertaken by small growers, who typically own less than
one hector each. The majority of Nilgiri tea small growers are Badagas people, a local
community of agriculturists.
Tea plantation in Nilgiri district typically own and operates their own processing
factors small growers sell their tea as green leaves “bought leaf factories”, which are
independently owned. After processing, most is sold through regularly scheduled auctions in
Coonoor, Coimbatore and Cochin. More than 50% of Nilgiri tea is exported, and usually
finds which way into blends used for tea bags.
The expensive hand-stored , full-leaf versions of the tea like the Orange Pekoe (O.P)
are highly sought after the International auctions making it unafforable for most locals. In
November 2006 a Nilgiri tea achieved top honours and fetched a world record price of $600
per kg. This was at the first ever tea auction held in Las Vegas.
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LIST OF ORGANISATION S ASSOCIATED WITH TEA PRODUCTION
.
United Planters' Association of Southern India
National Tea Research Foundation
National Bank for Agriculture and Rural Development
Assam Agricultural University, Jorhat.
Darjeeling Tea Research and Development Center,
Himachal Pradesh Krishi Viswavidyalaya, Palampur.
North Bengal University, Siliguri.
Darjeeling Tea Research & Management Association, Siliguri
Tamilnadu Agriculture University, Coimbatore.
University of Agricultural Science, Bangalore.
Kerala Agriculture University, Vellanikkara, Trichur.
M/s Neoland Technologies Laborotory, Guwahathi.
Tamil Nadu Tea Plantation Corporation Limited
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CHAPTER 2.
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COMPANY PROFILE.
During 1980’s where only coffee plantation in Erumad and 5000 people understand
the advantage of tea against coffee which gives regular income than coffee, which gives only
yearly yield.
The frontier industrial co-operative tea factory limited was started with 98 numbers of
small tea growers residing in the area of operation to improve their standard of liking by
paying an economic rate for he green leaves supplied by them. The area of operation of this
factory is Erumad Ayyankolly, Cherambadi,Kayyuunni, Munnanad,Kottur,Manavayal,
Thalur, and Kolapally revenue villages. The factory was constructed in government land in
S.N.157/1 to extent of 6.83 acres and remitted a sum of (i.e., capital) Rs.4.72 lakhs during
august 2004 and requested for the alienation of the land to this factory.
The cultivators become aware of the need of the factory in this locality which
may solve their difficulties. They formed an association and approached the Tamil Nadu
government authorities in 1981 in order to implement their ideas.
The government supported the association and the factory was registered under the
section 9(1) of the Tamilnadu co-operative societies act 1961 on 23/06/1981 and started on
27/06/1981 but it commenced its production from 12//10/1986 because of the lack of a
factory building.
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SERVICES RENDERED BY THE FACTORY
According to the seasonal needs, the factory is distributing Agricultural inputs like
fertilizers, plant protection chemicals, plant protection Equipment etc.,to the members tea
garden along with latest technical guidance for proper usage and implementation for
harvesting quality green leaf.
The factory got 6.83 acres of government land for its functioning. The land
layout is as follows.
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2.a COMPANY MISSION
To provide job opportunities to people in backward area and thereby increase their
standard of living
returns
Almost the target of The frontier industrial co-operative tea factory limited is
To promote,
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2.b ORGANISATIONAL STRUCTURE
JOINT DIRECTOR/SPECIALOFFICER
INDL.CO-OPERATIVE OFFICER
WORKERS
SECURITIES
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2.c. OWNERSHIP PATTERN
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2.d.AREA OF OPERATION
The area of operation of this factory is in the Nilgiris district which include the areas such as
Erumad
Ayyankolly,
Cherambadi,
Kayyuunni,
Munnanad,
Kottur,
Manavayal,
Thalur,
Kolapally revenue villages.
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2.f . PRODUCT MIX:
. The products that are generated from tea are classified according to the processing
methods,such as
1. Black tea
2. Green tea
3. Oolong tea
Black Tea
To make black tea, workers first spread the leaves on shelves called withering lacks.
Air is blown over the leaves to remove excess moisture leaving them soft and flexibile. Next
the leaves are crussed between the rollers of a machine to release their flavourful juices. Tea
in the fermenting room the leaves change chemically under controlled humidity and
temperature centill they turn brownish in colour finally the leave leaves are dried in oven and
become Brownish-Black.
Green Tea
It is made by steaming the leaves in large vass. The steaming prevents the leaves from
changing colour. The leaves are then crushed in a machine and dried in over.
Oolong Tea
Oolong tea is made by partially fermenting the leaves. This gives tea leaves a
gerreish-brown colour.
To sort the processed tea leaves by grade, they are passed through a class screens
with different size holes. The largest leaves selected for packing a loose tea are classified in
order of size as orange pekoe, pekoe and pekoe souchang the smaller or broken leaves
generally used in teabags are classified as broken orange peoe, broken orange pekoe funning
and funnings.
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2.g. FINANCIAL PERFORMANCE
The financial performance of the factory is evaluated on the basis of stability between
the production and sales
As far as the business turnover of the factory is concerned, the factory commemced its
production only from 12.08.86 onwards and the production and sales details for the past five
years are as below
The profit and loss made by the company in last five years is also listed below which help us
to evaluate the financial performance
1. 2004-05 (-)10.08
2. 2005-06 (-)21.07
3. 2006-07 (-)31.18
4. 2007-08 (+)45.12
5. 2008-09 (+)50.72
6. 2009-10 (+)20.82
(Upto feb 10th )
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2.h. HR POLICY:
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2.i. QUALITY POLICY
Quality Control
The frontier industrial co-operative tea factory limited they resolvedly trust,
quality does not come on the way. It’s a commitment that should be laid into hand work to
attain the land mark. It’s this credence that router the company’s approach to quality
assurance.
The quality assurance methods such as advanced product quality plan, Control
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CHAPTER-3
Head:
Analyzing the climatic changes as it would affect the cultivation which inturn
reduces the purchase of green leaves.
Provide funds to their members for purchasing fertilizers and equipments that
help the company to increase the purchase and production
Maintain the stability between the production and purchase.
To procure materials economically at a cost consistent with
the quality and service required
To promote source development
To develop and maintain good buyer-seller relationship.
Analyzing the rate.
Inspection of items .
Issue of Purchase Orders.
Members:
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PRODUCTION DEPARTMENT
Head:
Members:
Meet all customer commitments through the production of timely, efficient and high
quality products
Assures all work entered into production follows the order entry standards and
procedures
Organize workflow according to workload to meet delivery schedule and to complete
assigned jobs
Ensure the completion of all duties with a minimum of waste and abuse to equipment
Initiate hiring when needed to cope with expanding workload or for replacement of
substandard employees
To help the department in taking actions to manage production costs and improve
profitability
Inform the department head of about some production problem
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MARKETING & SALES DEPARTMENT
Head:
Preparation of product wise, month wise annual sales plan for each
area.
Publication of annual report of division
Monitoring and reporting of competitor's sales as per Performa Prescribed
Aggressive promotion efforts to establish brand name and gain market share
Create effective marketing mix
Establish company image of high quality, great value for money
Find distribution deal with main tea shops, supermarkets in India
Try to gain market share of competitors by converting their royal
customers.
Members:
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3.b. DEPARTMENT OPERATION
PURCHASE DEPARTMENT:
Production
Plan
The purchase procedure covers the following areas of procurement of all needs &
wants for the company.
Capital items (For project and other purposes).
Equipment and spares.
Raw material & Intermediary materials
Package items involving design, supply, and commissioning
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PRODUCTION DEPARTMENT
1.Production 6. Plant
targets Maintenance
Annual production targets for the next year are prepared based on installed
production capacity of the plant and production data for the previous year.
Necessary feedback is also taken from marketing department while fixing the
production targets.
The production and consumption ratios for the previous years are duly
considered. All the data are compiled to form the production budget.
A copy of the production budget is sent to the finance department for
preparing finance budget.
The production plan and budget are then presented to the govt. for approval.
Based on the production plan, purchase department initiates action for
procuring raw materials.
Production planning department receives data from all the plant and other
interfacing departments and compiles them.
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MARKETING & SALES DEPARTMENT
2. Calculating
Requirements
The distribution department finds out the various depots as per the Information
given by sales and sells the products and subsequently sales Report is prepared.
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3.c. SKILL SETS FOR EACH DEPARTMENT
PURCHASE DEPARTMENT
ACCOUNTS DEPARTMENT
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PRODUCTION DEPARTMENT
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CHAPTER-4
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4.a. Introduction
Marketing is all about identifying and meeting customer needs. Many Businesses
consider this so important that they are said to be marketing led. In this case, everyone in the
organisation is trained to put the customer first – from the production worker, who has to
produce high quality goods, to the accounts clerk, who must respond to a customer enquiry
promptly and accurately. Sales function deals with all aspects of selling to customers; the
marketing function carries out marketing research, organises advertising and product
promotion
OBJECTIVES
Monitoring of sales & distribution
Liaison with bulk buyers, retail outlets and customers
To offer consumer best health advantage through silver mist Tea.
To establish as market leader in tea industry
To enable silver mist Tea to satisfy, fulfill the consumer’s personality & lifestyle
To increase silver mist Tea’s popularity as an icon in Tea market.
MARKETING &
SALES MANAGER
ASST MANAGER
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4.c. MARKETING DEPARTMENT FUNCTIONS
Sales
Market Research
Preparation of sales report
Processing and sending replies to audit queries at the divisional level
Liaison with bulk buyers, retail outlets and customers
Sales force motivation through internal and external training
Carrying out market research to obtain feedback on potential of the tea
Analysing market research responses and advising senior managers of the
results and implications
Promoting silver mist tea through a variety of advertising and
promotional methods, e.g. press, TV, sponsorship and
trade shows or exhibitions
Obtaining and updating a profile of existing customers to target advertising
and promotions appropriately
Producing and distributing publicity materials, such as catalogues or
brochures
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The Marketing department consists of various sub departments organized
on the basis of their function. They are:
Sales Department
Distribution Department
SALES DEPARTMENT
The sales department is headed by a Sales Manager who is responsible for sales
coordination of function across various depots, conduct an effective market research for
analyzing market and calculating the demand and finally promote the sales of tea.
SALES FUNCTIONS:
DISTRIBUTION DEPARTMENT
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4.d. STP FOR THE SILVER MIST TEA
Segmenting:
According to buying power and purchase patterns, the market for tea can be classified
into three major segments
Lower segment:
This includes tea consumed in the rural areas and in the urban areas in the lower
households like office staff,labour etc.this segment accounts for almost 70%* of the total
market
Middle segment :
This includes middle upper income households in the urban areas. It accounts for
about 20%* of the total market
Upper segment:
This includes the tea consumers in the upper income segment of the society,
accounting for 10%* of the total.
Targeting:
The company targets the whole family ie anyone in the family can drink the tea.
Positioning:
The firm can position its product in various ways to develop or enhance it’s
value to the consume in according to
Product Characteristics / Consumer Benefits
Price Quality
Use or Application
Product User
Product Class
Culture Symbols
Competitors
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Product
Place
The final product may be distributed to
Supermarkets
Retail shops
Miscellaneous shops so the end consumer has easy access to it..
Place in supermarket:
On the middle and lower levels the Silver Mist Tea may be placed
according to the content of tea bags. 40 bags is placed higher than the ones
containing more bags.
Price
Silver Mist Tea is also competing against the main player on the
Indian Tea Market like Hindustan Unilever & Tata Tea. Various promotion
activities, giveaways and advertising on local television channels will help the
brand to gain market shares in rural and urban markets. Please refer price list
of select tea brands given in the next page. The company may adopt an
appropriate pricing strategy supported by further research.
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Price list of different tea grades:
Dust grade:
Leaf grade:
4.f. Promotion
Promotional offers during the year: If a customer buys a box of 150 bags,
(s)he will get a free cup or a spoon or a little kettle.
During two months, they can organize a game: when the customer buy Silver
Mist, they win some points and with certain numerous of points, they get a
present which represents the brand image.
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CHAPTER-5
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SUGGESTIONS
There are certain suggestions, which can help to improve the productions and sales of
1. Company can distribute free sample packets through public distribution system (PDS)
2. Company should take more interest in creating awareness about the products for the
3. Necessary technical training to the supervisors in the organization are needed so that
5. Pollution control measures should be adopted, in order to reduce the sound pollution
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CHAPTER-6
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CONCLUSION
The factory locations of Nilgiri are mainly helpful for its growth because in here raw
materials and Labour force are easily available. In this factory raw materials are collected
from the members of the firm. Various departments are functioning under this unit. This will
The training has helped me to interest in business side of this factory. It was a
pleasure for me to do training in this field. During this period of my training my knowledge
about the practical side of the business was boosted to a great extent.
It is recommended that the proposed ideas to market Silver Mist Tea would be of
great help in future for the company to increase the market potential of the this product
Further it would be advantages of the company would broader its sales distribution
network. So the company can maintain a stable demand from various carriers of the world.
On the whole, the sales activity’s of frontier tea factory producer on smoothly will
boosting up to the sales as years pass by the factory has steady and sustained growth.
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CHAPTER-7
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BIBILIOGRAPHY
Websites
www.niteaauction.com
www.teaandcoffeenet/resource
www.tamtea.co.in
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