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— G.R.N. Somashekar

Ms Sangeeta Talwar, Executive Director, Tata Tea, at the launch of a Chai Unchai outlet at the IIM Bangalore campus on Wednesday.

Our Bureau

Bangalore, Jan. 23 Tata Tea has entered the out-of-home beverage market with its ‘Chai Unchai’ outlet in Bangalore at the Indian Institute of Management.

The outlet serves both tea and other beverages, apart from light snacks and cakes, and is targeted mainly at the youth.

The company says the Chai Unchai outlet is not a café or a kiosk but is designed in the form of an informal “hang-out” where the youth can “congregate and relax.” Says Mr Pankaj Dant, General Manger – Marketing and Sales, Tata Tea, “The atmosphere is warm, friendly, and unpretentious.

“The outlet has been designed to convey a sense of adventure and fun, with elements such as steps and terrace. It is a throwback on the memories of the college campus life.”

The outlet idea came about when the company decided to fill the gap between the low-end functional tea shops on the road and the high-end tea lounges. The pricing at the Chai Unchai outlet is devised to give “more value than competition. Prices are 10-15 per cent below others in the out-of-home beverage space,” says Ms Sangeeta Talwar, Executive Director, Tata Tea.

Tata Tea will open more outlets mainly in the large cities at various locations such as malls, colleges, university campuses, corporate campus, and public places. The company is looking to attain “market leadership position in this segment in 5-7 years.” Initially, the company is not looking at the franchisee model and will set up its own outlets.

Tata Tea will enter into strategic tie-ups to promote its Chai Unchai outlets. Plans include tying up with movie halls to allow people to book tickets at the outlets, while the movie halls would promote Chai Unchai.

The food and beverage market in the country is estimated at about Rs 50,000 crore. Branded business accounts for roughly 10 per cent.

In volume terms, branded tea business accounts for 50 per cent of the total market of 800 million kg (mkg). Of the 400 mkg of branded business, Tata Tea has a 20 per cent share.

More Stories on : Retailing | Tea | Beverages | Tata Tea Ltd

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