Tea Industry
SWOT Analysis
Strength 1. Strong back end integration, it plants as well as process the tea
2. Very large installed capacity of tea factory of 1.5 million kg/annum
3. Operates its own wholesale outlets at Indore, Jaipur, Kanpur, Allahabad
4. Have a diversified portfolio of investments in various industries
5. Estates located in quality tea producing belts in Jorhat district in Assam
Weakness 1. No technology has been imported from abroad and the company thus lacks operational efficiencies
2. The Industry is highly labour intensive. The wages of workers are
3. determined according to periodic wage settlement agreements and company ends up paying higher labor cost
Opportunity 1. Efforts being made towards technology absorption, adaptation and innovation which will increase efficiency of production
2. Reduction in energy consumption by the installation of proper voltage controlling equipment’s will help in cost reduction
3. Export to other south east Asian countries
Threats 1. GOI gave notice to surrender its land
2. Highly seasonal industry and thus demand fluctuates and capacity is not utilized fully
3. Other beverages like coffee, juices and other regional traditional drinks pose a threat to the demand for tea products
4. The industry is subjected to stringent labour laws
5. Shortage of labour during peak season is a cause of concern
Strengths
The diverse agro-climatic conditions prevailing in the tea growing areas of India lend themselves to the production of a wide range of teas – black, (CTC, orthodox), green teas and organic teas.
A one-stop-shop for high quality specialty teas e.g. Darjeeling, Assam, orthodox, high range Nilgiris, etc.
Strong production base with 75 per cent of the production being accounted for by organised sector covering 1,600 gardens owned by nearly 1,100 entities.
Competent managerial manpower.
Strong research backing from well established research institutions. Availability of modernised
Strength 1. Strong back end integration, it plants as well as process the tea
2. Very large installed capacity of tea factory of 1.5 million kg/annum
3. Operates its own wholesale outlets at Indore, Jaipur, Kanpur, Allahabad
4. Have a diversified portfolio of investments in various industries
5. Estates located in quality tea producing belts in Jorhat district in Assam
Weakness 1. No technology has been imported from abroad and the company thus lacks operational efficiencies
2. The Industry is highly labour intensive. The wages of workers are
3. determined according to periodic wage settlement agreements and company ends up paying higher labor cost
Opportunity 1. Efforts being made towards technology absorption, adaptation and innovation which will increase efficiency of production
2. Reduction in energy consumption by the installation of proper voltage controlling equipment’s will help in cost reduction
3. Export to other south east Asian countries
Threats 1. GOI gave notice to surrender its land
2. Highly seasonal industry and thus demand fluctuates and capacity is not utilized fully
3. Other beverages like coffee, juices and other regional traditional drinks pose a threat to the demand for tea products
4. The industry is subjected to stringent labour laws
5. Shortage of labour during peak season is a cause of concern
Strengths
The diverse agro-climatic conditions prevailing in the tea growing areas of India lend themselves to the production of a wide range of teas – black, (CTC, orthodox), green teas and organic teas.
A one-stop-shop for high quality specialty teas e.g. Darjeeling, Assam, orthodox, high range Nilgiris, etc.
Strong production base with 75 per cent of the production being accounted for by organised sector covering 1,600 gardens owned by nearly 1,100 entities.
Competent managerial manpower.
Strong research backing from well established research institutions. Availability of modernised