Gujarat Tea Processors and Packers Limited: Case Study

Topics: Tea, Taj Mahal, Gujarat Pages: 3 (770 words) Published: February 28, 2013

Gujarat Tea Processors and Packers Limited

In 1992, Gujarat tea Processors and Packers Limited (GTPPL), manufacturer-cum-marketer of WAGH BAKRI brand of tea, introduced a new product into the market – tea Quik tea bags. GTPPL, a leading player in the Gujarat tea market has been in this business since 1893. Wagh Bakri range of products enjoyed 50-55 % of Ahmedabad dust tea market in 1994-95. But the market response to Tea Quik, as far as sales are concerned, had not been upto the mark. In 1994-95, GTPPL managed to sell 300 kg of Tea Quik in Ahmedabad market whereas Taj Mahal, its nearest and only rival, sold 1000 kg.

The size of tea market in Ahmedabad was approximately 40,000 Kg. Of this about 1300 kg (3.25% on volume terms) was that of tea bags and the remaining consisted of leaf tea and CTC. Tea was sold both in the loose form and packaged form. (The corresponding figures were 70% and 30% respectively – in volume terms). GTPPL procured tea from Calcutta auctions and blended it to suit the local (Gujarati) taste. GTPPL executives had no plans to enter the national market in the near future and wished to strengthen their leadership in the local market. Product superiority (the “Gujarati” blend) and consumer loyalty seemed to be the corner stone of the business for GTPPL. According to GTPPL sources, their long standing in the business had made WAGH BAKRI a household name. Moreover, Wagh Bakri had been able to enjoy continued acceptance from generation to generation in Gujarat.

The reasons for launching Tea Quik tea bags in 1992 were twofold:

1. The Merger of Lipton India Ltd. with Brooke Bond Ltd. to form BBLIL had further strengthened the position of these already strong corporate players. As fallout of this, the Red Label brand was revitalized and its share increased from 12.4% to 14.5% (by volume) at all India level and from 13% to 14.8% in the West.

Also because of the sheer size of their operations and the financial strength, the...
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