The last week of October has started and the winter season is knocking. Tea consumption increases in this season but now you may have to spend more money for a sip of tea. Tata Tea, one of the leading tea companies in the country, is going to increase prices. Tata Tea is one of the best-selling tea brands in India and is also one of the oldest tea companies in the country. Let’s know about Tata Tea’s plans.
Tata Tea will increase prices
Tata Tea is considering increasing prices across its brand portfolio in the next few months. The company aims to increase its profit margins, which have been impacted by the recent rise in raw material costs. According to Sunil A D’Souza, CEO and Managing Director of Tata Consumer Products, the company expects overall volume growth, though it faces challenges such as urban flooding, a slowdown in the rural economy and a general slowdown in growth. Despite an 11 per cent rise in revenue in the July-September quarter, profits grew by only 1 per cent. D’Souza said tea prices have risen by more than 25 per cent this year, due to supply disruptions.
Market share of Tata Tea
Tata Tea has about 28 per cent market share in India’s tea retail market and competes with companies such as Hindustan Unilever. Elaborating on the reasons for the increase in tea prices, D’Souza said that the total tea production has come down by 20 per cent and exports have also increased. In addition, the Tea Board has decided to stop plucking tea leaves in mid-December as usual, which will further impact the supply.