INDUSTRY PROFIL

The tea industry in India is about 160 year old. It occupies an important place and plays a useful part in the national economy. Tea cultivation on commercial scale was first started in Assam in 1839. There after it was extended to other parts of the country between the fifties and sixties of the last century. However, owing to certain specific soil and climate requirements its cultivation was confined to certain parts. In south India, Dr.Christy, experimented tea in the Nilagiris tea year 1852 and it was in 1889 that tea planting started in Nilagiris. India has the honor of biggest producer and largest consumer of tea in the world. The country accounts for 30% of global tea production and a share of 15% of the worlds exports. The per capital consumption of tea in India is rising steadily and the increase in demand is much more then the increase in production. Thus unless all the potential areas of tea cultivation is developed, the country will have to import tea in the near future. This will affect the foreign exchange of the country, which will have an effect on the overall development. The foreign exchange of 1997 was RS.1731 corers that are 203 mn. Kg. Both historical circumstances and general characteristics of the product itself have helped to shape the present structure of the industry. After the loss by the east India Company in 1833 of their monopoly of china tea trade, the British turned their attention in earnest to the cultivation of the tea in India on commercial scale. Tea industry in India was created to satisfy Englands need for high quality black teas without dependency on trade with China. First, the British East India Companys monopoly of the tea trade and its dominance over India where the Company maintained the largest privet army in history had to be broken. At the same time growers and tea experts were experimenting with seeds, paints and cutting secured from China which they believed would grow in Indias climate. Notably, an indigenous strain of tea plant growing wild in India had been discovered years earlier. The year 1838 marked the first Indian tea harvest. A mere 350 Ibs, to be auctioned in London. It was greeted with much excitement and high reviews from tea experts. In 1858 the British East India Company turned its rule over India to Britain. The stage was set for the rapid expansion of far product. As it turned out the indigenous plants produced

the far superior in quality to the Chinese transplants. So the Indian tea industry was born. Now India produces more tea than any other country. Tea is said to be the most important lobour incentive crop that provide employment to over million workers both man and women. Women are mainly engaged in plucking the leaves and men do the plucking of the tea bushes, looking after their growth and processing of tea in the factory. Tea has helped in rural development to a large extent as it provides employment in the rural area. It provides income to the central and state government through taxes. Tea has been one of Indias fortes in exports for decades. According to the report published by the United Planters Association of South India ( UPASI ) tea is cultivated in 38 countries including India , China , Bangladesh , Malaysia , Srilanka , Kenya , Russia and Brazil . Area under production of Tea in the World. COUNTRY AREA(hector) TOTAL PRODUCTION(mn.kg) India Srilanka Indioasia China 507196 49195 157488 108900 846.47 53.95 159.35 683.32 WORLD % OF

PRODUCTION 28.16 1.80 10.21 22.74

The global tea production stands at 3.2 billion kg annually. Of this, Black tea accounts from 2.1 billion kg and green tea another 1.1 billion kg. Green tea COUNTRY China Other PRODUCTION 935 165

Black tea COUNTRY PRODUCTION (mn.kg) India Kenya Srilanka Indioasia Turkey Vietnam Others 928 329 317 166 135 109 116

Indications now are that global tea production is slowing down. Black tea demand is however growing 3.3 percent annually. So soon will be short fall in the market. The Indian tea industry is in a consolidation phase. Most branded tea players owning plantations have been looking at divesting their plantation so as to focus on branding and marketing. India continues to be the worlds largest producer and consumer of tea. Domestic production as well as exports has been on a rise. However, due to stiff competition from countries like Sri Lanka, Kenya, china, Bangladesh and issues of quality, realizations on India teas have been witnessing a downward trend. India is not only the largest producer of tea but also one of the important exporters. In 1997, Indian tea accounted for 30.4% of the world production 18% of the world export. It is estimated that 70% of countrys population comes in contact with tea in one way or other, including tea drinking, thus rendering tea to play a key role in Indias economy and society. Overall we can say that tea is the largest consu med beverage in the country. India is also the largest consumer of tea. Nearly 24% of the global production and 75% of Indias total production is consumed in the county. Thus tea plays a key role in Indias economy and society both directly and indirectly.

COMPANY PROFIL
The Frontier Indco Tea Factory was registered under the section 9(1) of the Thamilnadu co-operative societys Act 1961 on 23-06-1981 and started on 27-07-1981, but it commenced its production from 12-10-1986 because of the lack of a factory building. Before 1980s where only coffee plantations in Erumadu & 5000 people under stood the advantage of the against coffee which gives a regular income than coffee, which gives by UPASI (Untied Planters Association of South India). But the tea growers had to endure inconvenience of supplying green leaves to the Indco Tea Factory at Pundallor, where it is too far from this area. The cultivators become aware of the need their difficulties. They formed an association and approached the Tamilnadu government authorities in 1981 in order to implement their ideas. The Frontier Industrial co-operative tea factories Ltd, was started with 98 members and have gradually increased and as on date there are 1961 members on roll. As far as the business turnover of the factory is concerned, the factory commenced its production only from 12-10-86 onward the production and sale details for the past five years are as below; NO YEARS GREEN LEAF LEAF PURCHASED COST PAID 1 2 3 4 5 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 48.09 62.65 50.27 54.20 56.57 11.24 12.28 8.49 9.45 15.24 PRODUCTION PRODUCTION VALU TARGET FIXED 12.00 13.00 14.00 14.00 14.00 12.00 14.10 12.11 13.16 13.65 ACHIEVED OF SALE 772.45 66.28 958.84 72.27 706.57 57.21 811.13 60.99 1135.8 85.84 SALE AVARAGE

2013-2014

42.02

14.03

14.00

10.22

795.94 88.37

The factory is equipped with machinery for dual production of both C.T.C and orthodox types of teas. The area of the operation of the factory is the confined to Erumadu, Ayyankolly, kayyunni, Thaloor and Kolappally village. The successful running of the factory is mainly relived on the patronage of small tea growing members of this area A typical organization of tea industry shall consist of the green leaf production at the garden and the made tea production facility at the factory. The third corollary auction centers where different grade of made tea is transacted in bulk quantities.

TEA INDUSTRY

PLANTATION

TEA MANUFACTURING