A

PROJECT REPORT

ON

WAGH BAKRI TEA

SUBJECT:

ENTREPRENEURSHIP

SUBMITTED TO:

PROF. DHAIWAT SHAH

PREPARED BY:

ROLL NO. 1) CHANDNI RAVAL

5) LATA MANGLANI

10) PRERNA SHARMA

Tea Market in India

Hot drinks manufacturers in India are faced with a highly mature market with long
established traditions and product preferences among consumers. In total volume
sales terms, India was the largest market for tea in the world and the fifth largest
market for other hot drinks in 2009. As tea and coffee already have a very high
penetration in India, companies have sought to increase their market share by
developing innovative distribution strategies to reach new consumers. For
packaged hot drinks players, the consumers of unpackaged tea and coffee in rural
areas represent a potential new consumer base.

While conventional distribution channels such as kiranas (small grocery retailers)

and supermarkets account for over 90% of the sales of tea and coffee, companies
continue to experiment with new channels to expand their consumer base into less
accessible rural areas and consumer groups consisting of affluent youth.

With urban markets approaching saturation, national companies increasingly seek

to expand their distribution footprint to rural regions while regional players are
making an effort to enter neighbouring regions.
 History of the company

Wagh Bakri is a family owned tea company in Gujarat, India. Sir Narandas
Desai, the founder, believed that the Company is not just about tea, but
more a confluence of his values and beliefs of co-existence and harmony
and of the strong and the meek. The same beliefs are reflected in
Corporate Philosophy even today.

Sir Narandas Desai started Waghbakri Tea Company in the year 1892, which
then was represented by small company retail shop at kalupur Ahmadabad,
Gujarat. Since then the growth of the endeavor has been phenomenal and
presently Waghbakri Tea Company has an employee base of more than 400
professional managers and skilled personals with ever increasing space for more,
to tend to the expanding group enterprise in India and abroad.

Waghbakri tea house markets various tea brands in loose leaf cartons and tea
bags for tea lovers all over the globe – the finest certified black teas from
Darjeeling tea estates, Assam and Nilgiri. The company sells organic black and
green tea for the health conscious.

The production base is at Dholka (Dist . Ahmedabad) in a impressive spread of

14 acres with a modern manufacturing plant and state of art production and
packaging unit that conforms to International norms in producing, blending and
packaging of the finest tea leaf for worldwide consumption.
WaghBakri Tea Group, India largest privately held packet tea company, launches
its worlds latest and India’s first staple free `Hygienic Tea Bags in Middle East’ at
the Gulf Food 2009.

The Wagh Bakri Tea Group’s ideology stands for the peace, unity and co-existence
and based on this ideology, Narandas Desai chose the WAGH (Tiger) and BAKRI
(Goat) as its symbols. Today, Wagh Bakri is among the top three tea companies in
India. The company has strong foothold in three Indian states of Gujarat, Rajasthan
and Madhya Pradesh with an annual turnover of Rs 260 crore. Wagh Bakri offers a
range of brands for different needs, groups and price segments. Wagh Bakri Tea
Group products are Good Morning, Wagh Bakri, Mili, Navchetan, Wagh Bakri Tea
Quik and speciality teas like D’Ling, certified organic teas and now, the Wagh
Bakri Perfect Premium Leaf Tea. Today, Wagh Bakri is a global brand with
presence in more than 32 countries including USA, Australia, Canada and New
Zealand.
 Philosophy of the company

Sir Narandas Desai, our founder, believed that his Company was not
just about tea, but more a confluence of his values and beliefs.   

Wagh- Of the strong and the meek

Bakri- Of co-existence and harmony.

To make Tea a common denominator that overrides differences of caste, creed,

culture or color. 

The same beliefs are reflected in out Corporate Philosophy even today. 

 Build long lasting relationships through trust and fair play towards all
stakeholders.
 Is result oriented.  Contribute positively.
 Be progressive and lead from the front.  Change with the times.
 Be socially responsible.  Return to the society a share of the gains from
commercial enterprise.
 Departmentalization

Meaning:

Departmentalization is the process of grouping activities into unit for purposes of

administration. With the help of departmentalization, an organization can take the
advantage of specialization.

Various activities can be grouped into departments on following several basis;

 Functions
 Customers
 Products
 Regions
 Time
 Process
 Combined base

Among the above mention basic, function is the most popular basis of
departmentalization. The enterprise is divided into the departments on the basis of
functions like production, sales, personnel, finance, etc.

From a one man Company to over four hundred employees, the WaghBakri Group
is today a large family.   

While a strong sense of family bonding overrides the organization, professionalism

is encouraged by including experts in the team from various fields.  The work
environment extends adequate freedom for creative and positive contributions to
the organization and society.  In the same light while forging ahead to aggressively
tap the packaged food industry, WaghBakri welcomes talented human resource to
share and nurture its success.

At the same time, we are proud to avoid typical large organizations ills like
bureaucracy and high Over heads.

List of products

1) ORGANIC TEA

2) WAGH BAKRI PERFECT

3) D’LING

4) MILI

5) GOOD MORNING

6) WAGH BAKRI

7) TEA BAGS
 Production

Introduction

Production is regarded as the most important economic activity in the present day
world economy. Production is a part of the business activity. Production is the
preliminary objectives of business. From the society point of new products is of
most important because without production it is impossible to satisfy human needs
and desires. Production takes place when something gifted by nature is transported
into a useful product. In other words Production is defined as creation of activity.

Business of every kind has production function in greater or lesser degree. Several
types of company in particular industry have to do with production. Production is
creation of goods and services but the manufacturing mining, farming, fishing of
manufacture is the most direct concern with production manufacturing changes the
form utilizing the goods.

1) Plant location

When the promoters of an industry take a conscious decision regarding the site of
the industry, it is called location of industry. Location has a very great influence on
productivity, efficiency and profitability of the particular industrial unit.
The plant base is at Dholka in a impressive spread of 65000 yards with a modern
Processing plant and state of art blending and packaging unit that conforms to
International norms in processing, blending and packaging of the finest tea for
worldwide consumption

2) Plant operation

 The company produces product range from 1rs. 4gm. packs to 5 kg packs.

 It produces on an average 6 lacs packs daily

 In 1 single month the company packs 2.5 crores tea packs of various range

 Mainly all the machines in the factory are hi-tech excluding few hand
operated machinery.

 About 8 lacs packs of tea in raw materials form is stored in company’s go

down.
 QUALITY MANAGEMENT

Excellence is not a one-off act; it’s a habit. At Wagh Bakri, it has been our
constant endeavour to transform your tea drinking into an extraordinary
experience by means of our quality checks, high-class   production and
innovative packaging.

The group has always come up with teas and methods that enhance your cup
of tea. Continuing with this, it recently purchased IMA C-27 from Italy,
which can make 250 staple-free tea bags a minute. Its short production cycle
keeps the delicious flavour and aroma of the tea intact for a longer period.
Since the bags are meticulously tied with thread, they offer optimum
infusion efficiency. There is no smell of metal and no fear of staple falling
into the tea either, making it possible to use it in microwave oven too.

At Wagh Bakri, tea is not merely a drink; it is a medium through which

we’ve built an endearing relationship with millions of people around the
world.
In 2008, Wagh Bakri tea group has, further, gone ahead to transcend
unbeatable experience to all the tea lovers. Company has entered into the
retail franchise retail format with the unveiling of “Wagh Bakri Tea Lounge”
in Mumbai. The lounge offers its consumers utmost flexibility to buy-enjoy
and try-out different taste and flavours accompanying with snacks. The tea
enthusiasts can experiment with a variety of tea that will allow them to mix-
and-match their choice of blend and flavours from amongst the strong
Assam tea, Organic tea, Green Tea, Darjeeling tea, the South Indian tea,
Chinese, Sri Lankan, Kenyan tea and flavoured tea.

As the premium quality tea brand, perhaps it is the only brand to have a
global certification from Lacon, Germany for 100% Certified Organic Indian
tea as well as HACCP & ISO 22000 certification, which ensures the ultimate
world-class quality standards for consumers. The company is also working
towards achieving BRC (British Retail Consotorium) certification to meet
European standards. Now, with this stamp of ultimate quality & access to
the global market, the company is ready to explore new horizon so they can
spread the Indian aroma across the world.

BRAND EVOLUTION
Waghbakri has categorized the organic teas, all other form of double and single
chamber tea bags, Darjeeling teas and Nilgri teas as “Specialty Teas” and have
started various forms of sales promotion. It has operationalised our vision
for catering to newer generation which traditionally was never our customers.
Going ahead in this segment we have launched last year wagh bakri organic
combo pack which has all the variable of the organic format with recipe booklet,
which has helped our customer to understand the teas better.

1) Tea Lounge

Wagh Bakri to go one step forward and entered in the service arena of serving
all forms of teas from single platform which we have discovered as “Tea
Lounge”. They have opened one tea lounge in Mumbai in November 07 and have
received an over whelming response and hence we are looking forward to go
ahead with this idea on pan India basis.

2) Vending Operations:-

Vending operation is also a newer version of having hot tea. There are lots of
opportunities and the company desires to cater to this business on pan India basis.

3) Institutional Business :

The company is expanding wings, by tapping huge potential i.e. institution

business. In this process the company is appointing distributors and setting up
distribution networks. The company has already started business with railways ,
authorized vendors in IRCTC, organized segments (i.e. corporate ) and also
tapped HTS ( Hot Tea Shops ) Highway Restaurants with organized efforts & now
we are in process of streamlining it.

MARKETING INITIATIVES
Wagh Bakri has gone to each and every customer be it an upper end customer or
the middle or lower level of customer in terms of socio economic class with
different forms & mediums of communication.
1) Advertising & Publishing Agency:
The company has hired nationally renowned agency for their different brands. “
Triton Communication”, “Hanmer MS & L” & “Percept Advertising” are working
on creative part to help them communicate to their “TG” i.e their target group. A
publishing agency is hired ‘Publicity Parlor’ for publishing creative’s made by
the agencies in print as well as in electronic medium.
2) Marketing Research:
Wagh Bakri always had belief in marketing research, which had been carried
forward by purchasing syndicated marketing research report ( lastly purchased this
type of report from A C Nielson) & conduct market research by marketing
companies.

3) Electronic Medium:
Last year they had presence on number of channels like colors, star Gold, Aaj
Take, Star One, Star News, NDTV Imagine, Set Max, Sahara One, Zee etc. The
plan behind broadcasting on these channel is to communicate the brand value to a
particular customer, who will recall their already known brand like “ Wagh Bakri”,
Wagh bakri Perfect” or “Milli”. The company wants to break periphery of four
states i.e MP, Rajasthan, Gujarat, & Maharashtra to communicate to their future
customers across India. In short they want to spread in PAN India where where
their distribution has still not reached and this is the best possible way to reach
their prospective customers and make them aware about the brand.
4) Print Medium:
This is the medium which they think is the second most effective medium after
broadcasting as they can communicate to their “TG”. This medium is being used
for two main agendas i.e to communicate for the ongoing consumer promotion
schemes & for brand building activity. They have good presence in this medium
be it local newspaper or national newspapers.

5) Internet Selling:
Wagh bakri is now catering to customers seeking tea online. Their online selling
portal have all the enmities required for the online selling portal. This initiative has
kept them on global platform www.premiumtea.com and www.buytea.com are the
two websites which are catering to tea lovers seeking packed tea over the net.
6) Organized Retail Network:
WaghBakri have accepted the importance new form of retailing i.e organized
retail network. This retail network is growing up rapidly and would start catering
many customers who are used to go to next door retailing. They have started the
activity of gondola displays, floors stack displays and also used promoters at the
select outlets where they can interact with the end customers.
7) Customer & Trade Promotion (CP & TP):
Customer promotion is given for two reasons; one is to motivate a customer to
change and second is appreciating customers choice to continue using the
particular product. They are also providing CP on their selected SKU for the same
reason.

8) Place: Distribution Network:

Distribution network facilitates to reach customer throughout the country by a

strong chain of distribution outlets. Company distributes through hyper market,
super market, grocery stores, hotel & restaurants.
 9) Exports:

Wagh bakri exports tea to countries like North America, USA, Canada, The
Middle East countries, West Africa. Next face target export countries are
Germany, France and Ireland.