The Hindu Business Line : Tata Tea to increase prices soon

Kolkata, March 27 Tata Tea Ltd (TTL) will shortly increase the prices across all its seven brands. “This will be in line with the move being contemplated by the tea industry in general,” Ms Sangeeta Talwar, Executive Director (Marketing), TTL, told newspersons here on Thursday.

Ms Talwar, however, declined to comment on the extent of increase, except saying that the available reports suggested Rs 7-10 per kg increase in auction prices. TTL sourced nearly 50 per cent of its requirement from the auction, she said.

The company, as it was indicated, would withdraw two of its brands, Nilgiri orthodox and Ceylon orthodox, from the market in view of not-so-encouraging response and would re-launch long leaf Darjeeling orthodox. Nilgiri orthodox and Ceylon orthodox were launched last year.

Referring to the virtual neck-and-neck competition with Hindustan Unilever in upping the share in the branded market, Ms Talwar indicated that TTL would catch up with Hindustan Unilever within a year or so. The estimated size of the branded tea market was 450 million kg valued at Rs 6,500 crore.

Referring to three broad initiatives taken by TTL to improve its performance, she said, “We will carry forward with Jaggo Re campaign launched last year which has proved to be successful so far”. As for the initiative to promote football skill among budding talents in partnership with Arcelor, UK, she expressed the view that it was too early to comment on success of it as evaluation had not yet been made.

Finally, more outfits would be launched in Bangalore under Chai Unchai campaign, the third initiative, before it will be launched in other cities. Among other planned initiatives, there would be more brands in tea bag business.

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