TGBL is expecting a short-term impact on sales as traders and wholesalers have destocked because of the liquidity crunch in the market.
"I think in the short-term, there will be an effect because trade has destocked across the chain whether it's the trader or wholesaler because of cash crunch, and many of the trade partners work on cash. So, the cash ratio is coming down and amount of cash in the market is coming down, there has been destocking," TGBL Regional President-India Sushant Dash told PTI.
On whether the cash crunch would impact the third quarter performance of the company, Dash said: "It's little early to say that."
According to him, tea is a regular habit and actual decrease in consumption will be minimal.
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The company, which has already introduced the product, is expecting a growth of up to 12 per cent in this segment.
"Health & wellness segment amongst foods and beverages is growing at 10-12 per cent. So, Tata Tea Teaveda is expected to grow at similar rate," said Dash.
He further added: "We are innovating products which consumer wants. In this case, we believe that health and wellness is a growing trend and if you provide health and wellness in daily tea ... Then consumer would be benefited."
As per its growth strategy, TGBL is focusing on three routes - premiumisation, category expansion and targeting white spaces.
"Currently, our premium tea brands contribute to 24 per cent by volume and 35 per cent by value to TGBL India sales," the company said.
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