Logistics in Exporting Tea from India to UK

Group 5 – Section B

Agenda

• Introduction to Tea Industry• Types of Tea exported• Tea producing areas• Production Process• Exporting Process

Indian Tea Industry

• Indigenous part of India• Ancient origins – cultivated and consumed

for thousands of years• Commercial production started when East

India Company arrived in India• Competition in tea export – China, Sri Lanka,

Kenya

Statistics of last five years – Quantity Exported

Statistics of last five years – Value of Export

Types of Tea produced

Crush, Tear, Curl (CTC) • Widely used by most factories• Quick Brewer• Yield more cups of Tea / kg• Virtually entire demandOrthodox• Traditional mode• Diffuses slowly• Difficult to package • Yields less cups of tea/kg

Tea Producing areas in India

Major varieties of tea exports• Darjeeling Tea

• Assam Tea

• Nilgiri Tea

• Kangra Tea

Export of Tea to UK

Logistics

Tea leaves plucked from estates

Tea produced in factories

Packaged in cartons

Containerization

Air freight

Ship loadShipped to retailers via distributors

Finally served to customers

Tea packing for export

Tea packaging is done is several ways depending upon requirements

• Wooden boxes

• Plywood boxes with aluminum lining

• Paper packaging

• Cartons

Air Route

The Tea consignment to UK if it goes by air it can take the following routes:

• Mumbai to London • Kolkata to London• Delhi to London

London Heathrow Airport is the biggest Airport in UK and have daily flights from these Indian cities.

Air Route

Statistics: Air Route• Air distance : 7,200 kilometers • UK is 4.5 hours behind India • Flying time of about 9 hours.

Average air speed for a commercial airliner of 805 km/hr

• Total delivery time is appox. 4-5 days

Air Freight Charges• Depends on how early

the booking is made• On urgent basis the

cost is appox : 45,00,000 INR

• Appox $91000 • If booked 3 months

earlier $45000

Sea RouteIf it goes by SEA it can take the following route:

Loaded at Nhava Sheva International Port – MumbaiAmingaon dry port – AssamHaldia Port - Kolkata

and transported to Grimsby and Immingham Port – UKLondon Port – UK

Grimsby and Immingham is the biggest and busiest port in UK

London Port, UKLondon Port, UK

Nhava Sheva, MumbaiNhava Sheva, Mumbai

Suez CanalSuez CanalAmingaon, AssamAmingaon, Assam

Statistics: Sea route

• Nautical miles : 3890 nautical miles• Time taken to reach UK : 15-20 days appox• Port clearance : 1 day• A total of appox 25 days for exporting Tea to UK• The rates are $500 for a 20 feet container and

$900 for a 40 feet container• The rates were about half last year amid declining

International Trade

Drivers of Supply Chain

• Inventory : Critical Part as a lot depends on demand and weather conditions as well

• Transportation: Quality of transportation may affect the quality delivered to customer

• Facilities: Manufacturing and distribution centers• Location: Depends on the soil conditions and

favorable weather conditions• Information: Technology used to track the

shipment• Sourcing: From tea estates

Challenges

• Dependent on weather• Care while transportation is critical • Packaging so that aroma and freshness is

intact• Prices fluctuations upon production• Price fluctuations due to oil market

fluctuations

Thank You

Henry SusantoKunal JainPriyanka BirlaSiddhartha NagarVikas Bahar