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Company Background

The Company was incorporated on 31st May 1977 in the state of Assam

The Company was incorporated on 31st May 1977 in the state of Assam

Warren Tea Limited is the flagship of the Warrens group

Warren Tea Limited is the flagship of the Warrens group

Cultivation of tea plantations, manufacture of machinery for processing tea

Cultivation of tea plantations, manufacture of machinery for processing tea

14 tea estates with total planted area under tea measuring about 6,078 ht.

14 tea estates with total planted area under tea measuring about 6,078 ht.

Carry on the business as warehousemen, shippers and exporters

Carry on the business as warehousemen, shippers and exporters

Warren Tea Limited produces 16 million kg of tea annually

Warren Tea Limited produces 16 million kg of tea annually

The produce of the Company is savoured across 50 countries

The produce of the Company is savoured across 50 countries

One of the largest bulk tea producers in India and in the world

One of the largest bulk tea producers in India and in the world

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Current International Business

RUSSIATa rg t

Th e c ompany exports its produ c ts to th e United Kingdom, Germany, Ireland, Nort h A meri c a, P akistan, Iran, and th e Middle East.

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Wh y Go GLOBAL?

To increasesales, revenues, a

nd profits

To increasesales, revenues, a

nd profits

Competitive

advantages in newmarkets

Competitive

advantages in newmarkets

Excess capacity

Excess capacity

Limited ordeclining home

market

Limited ordeclining home

market

Domestic

competitionenteringinternational

markets.Competitive

response. Eg:Tata Tea s entry in

to the U.S., China,and other global

markets; J.V.Gokal s entry in to

the Russianmarket.

Domestic

competitionenteringinternational

markets.Competitive

response. Eg:Tata Tea s entry in

to the U.S., China,and other global

markets; J.V.Gokal s entry in to

the Russianmarket.

Global consumers'tastes are

converging. Easierto offer a globally

standardizedproduct.

Global consumers'tastes are

converging. Easierto offer a globally

standardizedproduct.

Lower costs andhigher prices -opportunities for

profit

Lower costs andhigher prices -opportunities for

profit

70% of Russians'income is

disposable vs.around 40% in the

West

70% of Russians'income is

disposable vs.around 40% in the

West

Russia: toplocation for global

retail

Russia: toplocation for global

retail

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Wh y RUSSIA?S urging Economy

Real GDP Growth 8.1% to $1.3trillion

The fastest growing economy in theG8 group of industrialized nations

Investors pouring money intoimproved storage

facilities, infrastructure, and logistics

Improving financial services, rule of law, and banking infrastructure

FDI into Russia reach $58 billion in 2008, anincrease of about 16% compared to the value

in 2007

Even as the financial crisis shows no signs of abating anddeleveraging continues, Russian economy will remain strong

because of very low levels of public debt.

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P olitical Factors

Government seeking to streamlinecustoms and taxation regimes to

Government focus on expanding

manufacturing base and improving

New reforms targeting bureaucracyand corruption

E- commerce, including B2B

ecommerce

Supporting the E-Russiaprogram, designed to stimulategrowth of

Attract more FDI

Infrastructure development

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Opportunities for Indian Tea Companies in t h eRussian Tea Market

CATEGORIES GLOBAL INDIA RUSSIA

Market size in terms of retail value 23,323 876.4 3,266

Market size in terms of retail volume 1,765 226.04 161.44

Growth rate in terms of retail value(08-09)

4.50% 3.50% 12%

Growth rate in terms of retail volume(08-09)

3.50% 2.60% 2.30%

Per capita consumption (per kg) 0.3 0.7 1.3Average retail price (in US$ per kg) $13.20 $3.90 $20.20

Growth rate in retail price (2008-09) 0.90% 0.90% 9.50%

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Forecast of Tea Volumes by Sub-sectors:2010-2012

239745

243099

245822

235900

239101

241683

230000

232000

234000

236000

238000

240000

242000

244000

246000248000

2010 2011 2012

Tea Black Tea

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Opportunities for Indian Tea Companies int h e Russian Tea Market

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E ntry mode - Joint Venture

Provides access togovernment contactsand existingdistribution network

Provides local helpminimizing problemsassociated withbureaucracy andcorruption

Pooling of

resources

S haring of profits

and risksTime-to-Timemarket advantages

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TO Have Joint Venture Between

Warren tea Ltd canenter into joint venturewith local Russian teaindustry like..

1.Orimi Trade2.MO SCOW TEA FACTORYLIMITED COMPANY

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ConclusionThe time for cooperation between India and Russia has never been

better.The time for cooperation between India and Russia has never been

better.

Plenty of resources on both sides to be taken advantage of.Plenty of resources on both sides to be taken advantage of.

Have a clear strategy and an end result in mind.Have a clear strategy and an end result in mind.

Know the process and requirements for getting to that end result.Know the process and requirements for getting to that end result.

Rely on experts who can bridge the needs and wants of all partiesinternationally.Rely on experts who can bridge the needs and wants of all parties

internationally.

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