WHAT’S YOUR CUP OF TEA?

For ages India has been known as a tea drinking nation where tea is not an obsession rather, people love their favourite cup of tea (chai) at any time of the day. “The tea industry is around 10 billion dollar market in India and is growing at the CAGR of around 16%” revealed Robin Jha, Co-Founder, Tpot Cafe.

The Market Size

Tea consumption occupies more than 79% share in the non-alcoholic beverage market, with a domestic consumption of over 911 million kilograms in a year, this country is the world’s biggest consumer of “chai.” Given the spurting number of opportunities and potential, many players like Chaayos, Cha Bar, Chai Garam and the likes are revolutionising the tea business. “Chai Garam was started in 2008. A large consumer base with low investment and modular design which requires a small area makes it a promising brand in the market. This brand is all about bringing the nostalgia back,” shares Abhishek Nahta, Co- Founder, Chai Garam.

Similarly, Chaayos, started by IIT alumnus in 2012, has grown into one of the biggest players in the country, opening more than 50 cafes in different parts of the country. “We bootstrapped and started our first cafe at Cybercity, Gurgaon on November 5, 2012. Since inception we always stood by our vision to serve every consumer a customised cup of tea, serving ‘Meri wali Chai’” says Raghav Verma, co-Founder, Chaayos, which has a strength of 53 cafés, present in 7 cities.

Brewing Fresh Ideas

Innovation and reinventing of the product helps give a distinct, differentiated edge and drive patrons to the cafe. To create such experiences, cafe like Cha Bar, which is one of its kind urban contemporary space, was born. The tea cafe created a rage in Kolkata in year 2000, turning tea from a dry page in history to a lifestyle drink. A brain child of Priti Paul, backed by generations of Apeejay Surrendra group’s experience in tea plantation business, Cha Bar was created as an integral part of more than 90 years old iconic Park Street. “The concept was expanded pan India, integrated into Oxford Bookstores and customers loved the experience of being able to browse at leisure, leafing through the books of their choice, over a cup of tea from the wide selection available at the Cha Bar or simply unwinding with friends, sipping the rejuvenating beverages,” said Swagat Sengupta, CEO at Apeejay Oxford Bookstores Private Limited.

Franchising Works The Best

With a small investment of around 5-15 lacs, tea cafe as a segment has fast captured the franchising market. Players like Chai Garam, Cha Bar, Tea Junction have already expanded their wings to many cities. Chai Garam started franchising in 2012. Today they are running 20 franchised and five company oriented outlets. “We are targeting to open 500 outlets in next 5 years,” shares Nahta.

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