Hotline: 1800 102 2007
X
Search Business Opportunities
growth 2015-09-28

Exploring potential for online tea retailing

Teabox could become a model for Indian entrepreneurs. With regular fundings, Dugar hopes to scale up operations and bolster India's image as a global tea player.

By
Exploring potential for online tea retailing

At a time when doubts are being cast on the fate of India's colonial-era tea gardens, an online tea seller based in West Bengal's Siliguri District may finally have the formula for revival of the industry back home.

India is the world's No.2 tea producer but is less export-oriented than other producers thanks to its big home market, and Sri Lanka has been extending its lead as the world's third largest exporter behind China and Kenya, reported ANI.

However, Kaushal Dugar, a former corporate finance analyst in Singapore, chose to tap into the unexplored potential of the industry and founded Teabox- a premium tea brand which vertically integrates sourcing, branding and distribution of tea.

Dugar claims that in the three years since the establishment of Teabox, the start-up has sold more than 30 million tea cups in 90 countries.

"Whole idea was at the end of the day can we create a one stop place where people can access the best tea from India directly from source, which means directly from plantations through us," said Dugar.

India is known for producing some of world's best varieties of tea considered as good as the wines from France but, its production practices remain antiquated. Be it the CTC (cut, tear, and curl) or the orthodox tea, India specialises in both forms of production.

Teabox is eventually introducing the industry to technological innovations. Teabox's major chunk of earnings comes from sales outside India.

In order to reach out to the discerning connoisseurs across the world, Dugar chose to leverage the vast reach of internet.

Teabox stocks over 300 varieties of single estate tea, including its in-house blends, and procures from across India's northeast including from Darjeeling, Assam, Meghalaya and Tripura; Nilgiri in the south and even Nepal.

"Being at the source we get tea within a day of production. Once you get the tea in our climate control warehouses, where we maintain the temperature, humidity, moisture and the light, so we take the tea through the intensive QC processes. Within 48 hours they are vacuum packed, they are cleaned of all dust (and) impurities and they are ready to be shipped. The tea which is not shipped is stored in our cold storage," said Dugar.

Dugar understands that tea is a time based product and if not stored properly both the colour and taste can be diluted. He says that Teabox stores the tea at minus five degree centigrade, which means tea's fragrance and quality will remain the same for two years.

The industry is also facing challenges from the cafes that have sprung up across the country in the past decade.

However, futuristic approach of companies like Teabox should help the industry grow better.

Agricultural expert, Vijay Sardana, says that the Indian tea industry needs to evolve to make an impact in the global market today.

"The biggest challenge in Indian tea industry is lack of innovation. We are growing tea but there are hardly any innovative products which are emerging because today if you see the market in India, the tea industry is facing problem from growing consumption of other beverages like coffee, soft drinks, health beverages (and) traditional varieties of beverages, so there is lot of competition emerging for tea and in order to retain this market leadership they have to do innovation," said Sardana.

Teabox could become a model for Indian entrepreneurs. With regular fundings, Dugar hopes to scale up operations and bolster India's image as a global tea player.

Comment
Related opportunities
  • Others Food Service
    About :  Eggsplore is a rising chain of themed fast food..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Frontier Biscuits - a very renowned name in Bakery sector..
    Locations looking for expansion New Delhi
    Establishment year 1950
    Franchising Launch Date 1995
    Investment size Rs. 5lac - 10lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater West Delhi New Delhi
  • Pharmacies
    About Us: Pharmatree is a successful brand promoted by industry experts..
    Locations looking for expansion Karnataka
    Establishment year 2007
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Quick Service Restaurants
    About Us:  Gol Gappa Street is an upcoming chain of India's..
    Locations looking for expansion Gujarat
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 700
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts