Indian Branded Tea:Case Study of Industry Cost Data

The Indian Tea Industry is very significant for the Indian economy. Tea is an agro-based commodity and is subject to vagaries of nature. This case study is an amalgam of cost management and general management principles. In the last two to three decades, there has been significant competition from exporters in countries such as Sri Lanka to Indian Tea exporters. Indian manufacturers need to identify process improvement needed to enhance their ability to offer a Value proposition. The processes involved in tea manufacturing include, Withering, Rolling, Oxidation, Drying and Packing. This case study evaluates the cost structure of branded tea and makes an attempt to study the dependence of domestic auction price on domestic production and the export market by using regression analysis to study the impact of total production and total exports from India and the average global tea prices on average auction price in the domestic market in India.