corporate sustainability- tea industry

7/27/2019 Corporate Sustainability- Tea Industry

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Corporate Sustainability- Tea

Industry

SECTION F Group 3


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TEA INDUSTRY

Tea Industry in India has a 170 years old.

Most popular Drink in India.

One of the oldest organized firm sectors with a

large network. Indias large tea plantations are mostly

concentrated in Assam and North-Bengal. Assamalone produces 51 percent of the national

production. Second largest employer in the organized sector

after Indian Railway- Mostly Women.


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PROBLEMS Tea industry of India is going through a crisis phase since

1990s.

Emergence of small tea growers.

Introduction of bought leaf factories .

20 estates in Kerala, 30 in West Bengal, about 70 in Assamhave close down since the late 1990s(2007).

More than 60,000 plantation workers have lost their jobs

since 2002.

Job cut, tougher picking demand, job insecurity and the casualwork, appalling living and working condition.

In 2005, Many player such as TATA HUL withdrew from

Production and Started with only packaging.


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REASONS

Poor yield arising out of poor condition of thegardens.

Defective auction mechanism.

Poor garden management/Frequent Changes. Excessive reliance on bank-debts with negligible

fresh equity infusion.

Ownership disputes and diversion of funds.

Rising competition at domestic as well asinternational.

Bad Pricing.


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HOW to Go AHEAD and OBTAIN

SUSTAINABILITY

Vigorous Marketing campaign in order to developtrust of Indian Brand in foreign Market.

Factory modernization and/or processautomation are essential.

Provide support to small tea growers throughtechnical, financial and marketing assistance formarket access and quality improvement.

Enable and facilitate sustainable tea productionat supplying smallholders by paying higher pricesand engaging in long-term buying commitmentswith producers that produce tea sustainably.


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SUSTAINABILITY

Companies like HULs and TATAs should Conduct

multi-stakeholder monitoring and verification of

the social and environmental standards on the

tea estates from which tea is procured.

Government should Provide credit schemes and

debt management services to the plantations.

Train small-scale tea growers on social, economicand environmental aspects and improve their

understanding of the tea value chain.


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SUSTAINABILITY

HUL- Sustainable sourcing not only helps us manage a key

business risk, it also presents an opportunity for growth,

allowing our brands to differentiate themselves to the

growing number of consumers who choose products based

on their sustainability credentials.


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THANK YOU

corporate sustainability- tea industry

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