TEA WATCH: Yule Tea to focus more on value-added products – mixing and matching Darjeeling’s best and still controlled from Calcutta for the benefit of Bengal ?!!
From The Statesman
KOLKATA, 9 JUNE (SNS): The tea division of Andrew Yule, known as Yule Tea, today said that it was enhancing its focus on value-added segments of tea, which included green tea, organic tea and speciality tea.
“Particularly, we are very bullish on high-value speciality tea as the demand for this products are climbing up in domestic markets as well as overseas,” Mr Sunil Munshi, chief executive of Andrew Yule’s tea division, said, while speaking at a launch function of its three tea products here today.
As regards green tea and organic tea, which are relatively new areas for the company, Mr Munshi said: “The response to the organic tea and green tea has been very good, and as we are increasing our base of retail, the orders are flowing in.”
He added that Yule was in talks with a retail chain as well as some renowned pharmacy stores for marketing its all three varieties in Kolkata.
In the speciality segment, the firm is targeting sales of 15 tons, including exports worth 70 per cent of the total, during this financial year compared with four tons during the last fiscal. “We have already sold about three tons in first two months of this fiscal,” Mr Munshi said.
However, he declined to give any revenue projection, which is expected to come from the speciality tea. “We are eying a substantial chunk of our business from this segment as the margin is quite good, price of theses product being high (roughly between Rs 1,000 and Rs 10,000 per kg),” he said.
Andrew Yule’s Mim tea estate in Darjeeling, having a total output of 1.15 lakh kg, produces all these three variants, and it aims at raising the output to 1.40 lakh kg in two years.
Yule in premium tea foray
FROM THE TELEGRAPH SPECIAL CORRESPONDENT
Calcutta, June 9: Andrew Yule has entered the high-margin premium tea segment with the launch of three variants today.
The company, which ranks among top five tea producers by production capacity, launched organic, green and limited edition “designer” tea.
Sushil Munshi, chief executive of the tea division, said the new products would be sold at a premium and add to the bottomline, making up for the small volume.
Yule produced 11 million kg from 15 gardens spread across Assam, the Dooars and Darjeeling.
Its sale of specialty tea was a meagre 4,000 kg. The company expected to sell 15,000 kg this year.
Yule is in the process of tying up with a retail chain to distribute the premium tea. It is also talking to a pharmacy chain.
The tea division contributed Rs 135 crore to the turnover of Yule.