Chennai group to up tea sales

Stanes Amalgamated Estates (SAE), part of the Chennai-based Amalgamations group, is stepping up its branded tea packet sales.

The company, which re-conceived the concept two years ago and piloted it 18 months ago, targets to more than double its sales to 2 lakh packets, representing over 22 per cent of its annual produce.

Last year, the company managed to pack 10-15 per cent of its output under its label. To meet current targets, it is launching green tea, iced tea, dip bags, a CTC (cut tear curl) and a 'hot' blend for the chai shop. Further, it plans to add a few more labels to its existing brands Kotada and Unitea, according to SAE managing director P S Wallia.

On the cards is Welbeck organic tea, straight from the recently-certified organic garden Welbeck in the high rises of the Nilgiris and Allada. SAE plans to fully launch these offerings by November-December this year.

The SAE group has three member estates spread across the Nilgiris under its fold, turning out 6 million kg a year.

The company is betting on Karnataka and Tamil Nadu to taste success. With the Tamil Nadu customised hot tea blend (very strong), the company will enter the Tirunelveli""Madurai belt in south Tamil Nadu from December. In Tamil Nadu, SAE's brand are currently restricted to its heartland Nilgiris and Coimbatore.

In Karnataka, the company is well entrenched. Across Karnataka its dealership base has grown to 120 from 80. Riding on this strength, the company has started limited sales in parts of Maharashtra and Andhra Pradesh. The concentration on branded packets is primarily aimed at insulating the company from the vagaries of tea trade.

As a result, SAE is minimising its exposure to auctions to less than 30 per cent of the output from 40 per cent earlier. Besides auctions, the company directly exports about 48 per cent. SAE is not alone in this.

Other corporate estates in south like Non Such, Silver Cloud and Manjushree from the B K Birla group are also attempting to move closer to the customer.