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Reliance Retail to Enter the Packaged Tea Market

After its successful foray into retail market, Reliance Retail is now planning to enter into the packaged tea market. Reliance is planning to roll out its own brand packet tea with the name, Reliance Select. Initial talks between Reliance and Goodricke group were aimed at making a deal to procure some of the exquisite blends for the Reliance brand. Reliance is planning to procure CTC tea from Goodricke Group which is currently produced in Dooars.

Reliance Retails has also procured some tea from B K Birla Group Company and Jay Shree Tea & Industries to initiate test marketing for packaged tea in selected stores. The company is now planning to expand its own label of packaged tea to more than 150 Reliance Retail stores.
According to one of the officials of Jay Shree Tea, the company has already supplied some tea for Reliance Retail stores. Jay Shree tea has four gardens in Darjeeling, three in upper Assam, two in Dooars, three in Cachar, and two in South India.

Reliance Retail's plan to enter into packaged tea market comes with the fact that tea is one of the fastest growing segments in Indian market and is growing at an annual rate of 3.3 %. The packaged tea market is estimated to be about 360 million kg. Some of the major players in the tea market are:
  • Hindustan Unilever Ltd. (market leader with 24% share)
  • Tata tea, the second largest player in packaged tea market
Other players include:
  • Duncans Industries
  • Wagh Bakri Group



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