Tata Tea is planning to venture into China, one of the world's largest tea drinking markets, with its Tetley brand.
Tata Tea has been promoting Tetley to newer regions to augment its presence in the global branded tea mart.
In mid-2003, Tetley was launched in Pakistan, Bangladesh and Russia. Tata Tea through its UK-based subsidiary entered into a joint venture with Lakson, one of the largest business group in Pakistan to import and sell tea in that country and to build a tea blending factory in Baluchistan. The company also entered into a joint venture with ACI in Bangladesh.
A senior Tata group source said, "We are investigating opportunities in China. However, nothing has been formalised."
It is learnt that the company is looking at the instant tea business in China, which is monopolised by Unilever's Lipton.
Tetley's business model to enter new regions is either setting up joint ventures, have brand licensing or brand arrangements with local parties.
China is the world's second largest producer of tea, after India. The country is also a leading consumer of tea.
China, primarily a producer of green tea, constitutes 74 per cent of its total tea production. Both India and China together account for over 40 per cent of global consumption estimated to be 2.5 million tonne.
About 70 per cent of tea consumed across the globe is black tea, while green tea constitutes 20 per cent, herbal and fruit tea is 5 per cent.
Worldwide, the market for black tea is shrinking and there is a increased shift to higher value added products such as flavoured teas, speciality tea, green tea and herbal tea. The Tatas have been looking at entering China in hospitality, engineering, software and automobiles.
