Tea Board of India appoints Deloitte to boost consumption
The Times of India (ToI) reports that The Tea Board of India is looking to boost per capita consumption of tea across the country, seeking funding for the process. To support with the new plans, the board has turned to Big Four accounting and advisory firm Deloitte, as the firm looks to help prioritise key production areas.
Despite being the second largest tea producer in the world – behind only China – tea consumption in India remains relatively low. The country didn’t even make the top 25 in the world for per capita tea consumption in 2016, according to Statista figures, which represents an unfavourable economic situation. This is despite growth in the country's increasing overall consumption levels.
Aside from high production costs, low price realisations, paucity of labour and erratic weather are all factors that put strain on tea production. The Tea Board of India has recognised that boosting per capita consumption in the country is of the essence at the moment, and has appointed Deloitte to identify the means to this end.
The Big Four accounting and advisory firm has a considerable presence in India, and already has clients from the tea production centre. As a result, Deloitte is well positioned to support the Tea Board, given its familiarity with the sector and production scenarios therein.
Deloitte is tasked with compiling a detailed report on the current production landscape across the countries, and possible avenues to increase consumption. The report is due in three months, indicates ToI. More details of the appointment came to light at the Indian Tea GeNext Seminar in Kolkata last week.
“Instead of pushing the Board for more aid, the industry must come up with comprehensive funding plans. Deloitte was hired last month to increase per capita consumption and give emphasis on ‘exportable’ orthodox tea production,” said Deputy Chairman of the Tea Board of India Arun Kumar Ray, speaking to ToI at the seminar.
Once more concrete plans are developed, the Tea Board plans to raise more funding for production. At the moment, the Board has made the decision to focus on the production of orthodox, green and specialised tea, to help reduce the production share occupied by the crush, tear and curl (CTC) tea category.
“Proper branding and promotion can give Indian tea producers an edge in the overseas market. However, only low-cost tea production can keep the profit margin intact. India spends Rs 50 crore a year on tea promotion, while the figure is Rs 350 crore for Sri Lanka,” added Ray.
