COMPANY PROFILE Wagh Bakri is a family owned tea company in Gujarat, India.

Sir Narandas Desai started Waghbakri Tea Company in the year 1892, which then was represented by small company retail shop at kalupur Ahmadabad,Gujarat. Since then the growth of the endeavor has been phenomenal. Waghbakri tea house markets various tea brands in loose leaf cartons and tea bags for tea lovers all over the globe the finest certified black teas from Darjeeling tea estates, Assam and Nilgiri.

Philosophy of the company

Sir Narandas Desai, our founder, believed that his Company was not tea, but more a confluence of his values and beliefs. Wagh- Of the strong and the meek Bakri- Of co-existence and harmony. The same beliefs are reflected in out Corporate Philosophy even today.

just about

Build long lasting relationships through trust and fair play towards all stakeholders. Is result oriented. Contribute positively. Be progressive and lead from the front. Change with the times. Be socially responsible. Return to the society a share of the gains from commercial enterprise.

Wagh Bakri Tea Group, plans to take its national market share from the current 7.5 per cent to 12 per cent in the next three to five years. It plans to establish its presence as a national brand across 30 cities.To achieve that, the company (turnover of Rs 500 crore last year) has lined up new offerings, including 'instant tea' sachets, as well as region-specific blends. In the process of expansion, company is putting up a new plant near its existing one, close to this city, it is planning to set up another 15 million kg per annum production facility, with an investment of Rs 40 crore. The site is yet to be decided. In the long run Wagh Bakri is also open to set up a production facility in Dubai.
Hindustan Unilever Ltd (HUL) and Tata Global Beverages have 22 per cent of market share each in the packaged tea segment, said Piyush Desai, chairman and managing director of Wagh Bakri. His company, he said was third, with 7.5 per cent, and was clocking an eight to 10 per cent growth rate, even as the packaged tea market was growing at five per cent yearly. We are aiming to capture close to 12 per cent market share in the next three to five years. We already have presence in Rajasthan, Madhya Pradesh, Maharashtra and Delhi markets, apart from Gujarat," Desai said.
In Gujarat, Wagh Bakri enjoys 50 per cent market share in packaged tea and 25 per cent in Rajasthan. In other markets, it only has two to five per cent and it intends to strengthen these. Besides launching new blends to suit regional tastes, the company says it would come up with instant tea sachets within the next three months. The segment is gaining popularity among travellers, Desai said, adding it was still a new segment in the packaged tea industry. HUL and Tata are yet to set foot in it. The company has installed an IMA (Industria Automatiche Macchine) to produce staple-free tea bags, the first such machine to be installed in the country, according to Mr Desai. The machine costing Rs 4.5 crore has been imported from Italy and can produce 240 bags per minute. The tea bags will be for domestic consumption and will also be exported to the UK, the US, the Gulf countries and Japan.

Wagh Bakri tea, is looking forward to reducing prices in the next few months. Tea as a commodity has been witnessing a rise in prices, by 25 to 30 per cent, over the past two years. Speaking to Business Line, Mr Parag Desai, Director Sales & Marketing, Gujarat Tea Processors said: Tea prices will now start falling and we would be go in for a round of reduced prices. Tea prices have been rising due to the crop failing in the international markets primarily. However, the worst is over for the industry and we will see improved pricing shortly within the next two months as the global factors will change and there will be high quality cropping.

PRODUCTS AND SERVICES Products Wagh Bakri Tea Good Morning Premium Tea Mili Tea Wagh Bakri Perfect Darjeeling Tea Organic Tea Gift Packs Services Specialized Retail Outlets Tea Lounge Online Portal (overseas customers)

FUTURE PLANS FOR GROWTH IN KEY MARKET AND EXPANSION Newer Markets and expansion in the existing market:The company has formulated and implemented strategy of going state by state as far as launching of the product & setting up the distribution network is concerned. In the last financial year the company have taken aggressive steps to penetrate the markets of Maharashtra, DELHI and goa. Mumbai The company launched the product in very strong local dominated markets like Jalna(dominated by vikram tea) and Kolhapur(dominated by hp tea) and got reasonably good response

Delhi The company has launched WaghBakri in Delhi, Noida, Ghaziabad, Gurgaon and Faridabad and in near future mili launch is planned The company has used Press, Radio and Television to create awareness of brand
Wagh Bakri to use Delhi as gateway to go national
Business Standard New Delhi , 30 Aug, 2009

The century-old Wagh Bakri tea group has decided to start its operations in North India and plans to use Delhi as its gateway to setting up a national footprint.

2011
RAJASTHAN AND MADHYA PRADESH: In Rajasthan, the company launches product first in Udaipur section and it was launched subsequently in jodhpur / jaipur sections. Distribution section was much similar to Gujarat. And in Madhya Pradesh the company has super stockiest one at Indore and another at Jabalpur. The group also announced their plans of expanding the base in Madhya Pradesh and the surrounding markets with the introduction of its ariants of the other top brands like the flagship Wagh Bakri Tea, GOOD MORNING Premium Tea and Wagh Bakri Pure Darjeeling Tea. (22 jan 2011)
Wagh Bakri Tea Group Launches in Chattisgarh The largest privately held packaged tea company in the country enters the Chattisgarh market with its Wagh Bakri Tea, Mili Tea and Navchetan Tea brands This takes the total number of states that the brand is present in to seven., the Market leader in Gujarat, brands by this group has a strong foothold in Maharashtra, Goa, Rajasthan , MP and expanding rapidly in Delhi & NCR regions.

PAN INDIA PRESENCE

The Wagh Bakri' brand is positioned at the premium end of the tea market and has also extended to the super premium segment with its Good Morning' brand while it is the Mili' brand which stands for its value for money brand. The third largest packaged tea company is slowly expanding its presence in the southern markets and expects to have a pan India presence shortly. After entering the northern and western markets, we are now looking forward to enjoying national presence. Currently we are present in six states and have entered the southern state of Andhra Pradesh, said Mr. Desai. Competing with the big players like HUL and Tata Global Beverages, Wagh Bakri has a 7.5 per cent share in the tea segment. Today both Tata Tea and HUL have similar market share between 12 to 17 per cent and we expect to achieve market share of 12 per cent with additional production capacities, added Mr. Desai. It is setting up a third manufacturing plant in Gujarat with an investment of Rs 40 crore

EXPORTS Waghbakri wants to grow their export division by catering all Indians and asian community wherever they are residing using this as a launching pad, the company would like to cater to all the tea expert of the main stream market all over the globe. Recently they have entered UK, Australia, New Zealand and also having strong dialogues with some of the European buyers and hoping to get good business from them. Currently focusing in USA as a strong hold in New York, Chicago, Atlanta, houstan etc.

Having already entered the markets like UK and North America, the company now plans to enter Africa and Middle East region.

BRAND EVOLUTION Waghbakri has categorized the organic teas, all other form of double and single chamber tea bags, Darjeeling teas and Nilgri teas as Specialty Teas and have started various forms of sales promotion. Which has operationalised our vision for catering to newer generation which traditionally was never our customers. Going ahead in this segment we have launched last year wagh bakri organic combo pack which has all the variable of the organic format with recipe booklet, which has helped our customer to understand the teas better. Tea Lounge

Wagh Bakri to go one step forward and entered in the service arena of serving all forms of teas from single platform which we have discovered as Tea Lounge. They have opened one tea lounge in Mumbai in November 07 and have received an over whelming response and hence we are looking forward to go ahead with this idea on pan India basis. Vending Operations:Vending operation is also a newer version of having hot tea. There are lots of opportunities and the company desires to cater to this business on pan India basis. Institutional Business The company is expanding wings, by tapping huge potential i.e. institution business. In this process the company is appointing distributors and setting up distribution networks. The company has already started business with railways , authorized vendors in IRCTC, organized segments (i.e. corporate ) and also tapped HTS ( Hot Tea Shops ) Highway Restaurants with organized efforts & now we are in process of streamlining it.

EMPLOYEE FOCUS As Wagh Bakri represents traditional culture and believes in close-tie values, it treats the employees as extended family members. Employees are evaluated annually and appreciated according to their performance. Annual Days are held for employees to loosen up, and enjoy being part of the company. Employees can walk up to their seniors to give their feedbacks about the operations or to generate new ideas. The employee can discuss the problems faced to the immediate seniors, if not satisfied can move to a step above.

MARKETING INITIATIVES
Wagh Bakri has gone to each and every customer be it an upper end customer or the middle or lower level of customer in terms of socio economic class with different forms & mediums of communication. Advertising & Publishing Agency:The company has hired nationally renowned agency for their different brands. Triton Communication, Hanmer MS & L & Percept Advertising are workingon creative part to help them communicate to their TG i.e their target group. A publishing agency is hired Publicity Parlour for publishing creatives made bythe agencies in print as well as in electronic medium. Marketing Research:Wagh Bakri always had belief in marketing research, which had been carried forward by purchasing syndicated marketing research report ( lastly purchased this type of report from A C Nielson) & conduct market research by marketing companies.

Electronic Medium:Last year they had presence on number of channels like colors, star Gold, Aaj Tak, Star One, Star News, NDTV Imagine, Set Max, Sahara One, Zee etc. The plan behind broadcasting on these channel is to communicate the brand value to a particular customer, who will recall their already known brand like Wagh Bakri Wagh bakri Perfect or Milli. The company wants to break periphery of four states i.e MP, Rajasthan, Gujarat, & Maharashtra to communicate to their future customers across India. In short they want to spread in PAN India where where their distribution has still not reached and this is the best possible way to reach their prospective customers and make them aware about the brand. Print Medium:This is the medium which they think is the second most effective medium after broadcasting as they can communicate to their TG. This medium is being used for two main agendas i.e to communicate for the ongoing consumer promotion schemes & for brand building activity. They have good presence in this medium be it local newspaper or national newspapers. Internet Selling:Wagh bakri is now catering to customers seeking tea online. Their online selling portal have all the enmities required for the online selling portal. This initiative has kept them on global platform. www.premiumtea.com and www.buytea.com are the two websites which are catering to tea lovers seeking packed tea over the net Organized Retail Network:-

WaghBakri have accepted the importance new form of retailing i.e organized retail network. This retail network is growing up rapidly and would start catering many customers who are used to go to next door retailing. They have started the activity of gondola displays, floors stack displays and also used promoters at the select outlets where they can interact with the end customers. Customer & Trade Promotion (CP & TP):Customer promotion is given for two reasons; one is to motivate a customer to change and second is appreciating customers choice to continue using the particular product. They are also providing CP on their selected SKU for the same reason. i

New launching
The Wagh Bakri Group has launched its premium tea brand, Good Morning tea in Mumbai. Vidya Balan unveiled the tea, which promises to be a delight for all tea connoisseurs. Mumbai is the first launch market in Maharashtra. Subsequently, the brand will be available in key cities like Pune, Nagpur and Nasik. Good Morning tea is primarily targeted towards quality conscious consumers who appreciate a judicious blend of taste, strength and aroma.ii

FUTURE PLANS FOR GROWTH IN KEY MARKET AND EXPANSION

Its a familiar but audacious picture that is slowly emerging. Familiar because it is an oft-told battle of a domestic corporate David taking on the might of multinational Goliaths Hindustan Unilever Ltd (HUL) and Tata Tea Ltd. Audacious, because the Indian company Wagh Bakri Group is now chalking out fresh plans to gain a competitive edge in the Rs 5,000 crore Indian branded tea industry. For starters, Wagh Bakri is extending its presence, manufacturing facility and distribution network to pump up volumes.

The groups game plan includes, retail initiatives, high-voltage mass media advertisings campaigns and export initiatives. The vital question is: Will Wagh Bakris growth strategy change the market dynamics of the branded tea sector in India? On the groups strategy, Piyush Desai, chairman & managing director of Wagh Bakri Tea Group says, Our main objective is to become a national player by the end of this year. We are setting up a new facility at Nadiad soon. We are now the third largest tea brand in India. At present, Wagh Bakri has presence in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. According to Desai, the group is planning to foray into southern states as part of its growth strategy. To start with, the group is planning to introduce its flagship brand Wagh Bakri in Karnataka. In the Rs 5,000 crore Indian branded industry, Tata Tea currently enjoys volume leadership while Hindustan Unilever has value leadership. With its national brand strategy, Wagh Bakri can pose a major threat to HUL and Tata Tea. Very soon, the branded tea sector will witness a major tussle between national and regional players. As a result, this sector is expected to register a 15 % growth this year,said an analyst based in Mumbai. Seeing is believing seems to be the mantra for Wagh Bakri.To gain visibility for its brands, the group is hiking its advertising budget by 50 % this year, according to Desai. To woo consumers, the company is in the process of rolling out an aggressive print campaign with the tag line Perfect Rishtey Banaye. To support our print ads, we are also beaming television commercials on leading channels. Also, we are strengthening our pan-India distribution network, this year.iii

http://www.afaqs.com/search/index.html?k=wagh%20bakri&sbs=Media%20Brief Accessed on 4.01.11s http://www.waghbakritea.com/tea_recipes.htmlAccessed on 1.01.11 http://www.waghbakritea.com/archives.htmlAccessed on 4.01.11

ii

news.maxabout.net/.../wagh-bakri-launches-premium-tea-brand Accessed on

4.01.11
iii

http://www.thehindubusinessline.com/2007/11/29/stories/2007112952070500.h tm Accessed on 4.01.11

References :iii

http://www.waghbakritea.com/about_us.html Accessed on 1.01.11 http://www.waghbakritea.com/achievements.html Accessed on 4.01.11 http://www.waghbakritea.com/product.php Accessed on 3.01.11

iii

iii

iii

http://www.thehindubusinessline.com/2007/11/29/stories/2007112952070500.h tm Accessed on 4.01.11

iii

www.waghbakritea.com/Export%20House Accessed on 1.01.11

http://www.waghbakritea.com/archives.htmlAccessed on 4.01.11

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2151163.ece