Assam Company has been one of the major beneficiaries of the rising trend in tea prices across the globe in the early part of this year. The primary reason for this development was the reported crop loss in Kenya during the first quarter of 2008.
Assam Company’s Tea Business thus reported a 18% rise to Rs 56.97 crores during the Quarter ended September 2008. Growth in the overall pricing for tea approximated 25% during the abovementioned quarter.
This was despite the marginal drop in production due to vagaries of nature which resulted in lower volumes. For the quarter, volumes stood at 6.54 million Kgs. However realizations improved given the favourable demand-supply scenario in the wholesale market and stood at Rs. 123/ kg.
The company expects the pricing scenario to remain favourable in the coming quarter too and its strategy is to continue to focus on its wholesale segment. It now has a footprint in the retail space with the establishment of Camellia Tea Bars, which is an innovative concept.
Assam Company intends to establish its retail presence through this initiative as well as through the packeted tea segment. The company has a well structured marketing strategy which is dynamic in nature and adapts rapidly to the commodity cycle swings in the tea segment. |
