Here’s how you can make a profitable tea business in India?
I’m in the Nilgiris, and it seems that a typical tea farm makes at best Rs 50k of annual return from an acre of tea gardens. Just 50k per year from an acre!
Moreover, White Tea, Green Tea and Black Tea - all come from the same tea leaves - just processed differently.
The reason green tea has picked up with the masses is because of the “health” branding associated with it, though “white tea” has 7x more anti-oxidants.
The Indian mass tea market has a duopoly between Tata and HUL.
If you really want to crack a business here and make money, it’ll be about leveraging on building a premium brand for say, white tea, or some other blend, and through the booming D2C ecosystem, sell online to a high premium paying customer.
Vahdam has a huge customer base outside the country, so tapping on such white spaces helps you make money.
Riches are in the niches.
P.S. Both Tea and Vahdam here are just examples. You either compete on cost or on differentiated value. Possibly better to go after an underserved target customer profile in a crowded market.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.
