The Hindu Business Line : Pak tea firm scouting for blending partner

Kolkata, Nov. 30 Tapal Tea (Pvt) Ltd, the major importer, blender and retailer of branded tea in Pakistan, is looking at opportunities in India for entering into a strategic alliance with one or more Indian companies.

Mr Mohsin M Saify, General Manager of Tapal Tea, told Business Line: “what we’re looking for is a blending partner”, adding, “Tapal wishes to make Assam tea an integral component of its blends to add value but at a price point.”

Asked if any progress in this direction had been made, he said “preliminary-level discussions have taken place but with no concrete results as yet.”

India, Mr Saify felt, could be a major supplier of tea to Pakistan which was a CTC market. India was also a major producer of CTC tea. Tea consumption in Pakistan was growing at around three per cent per annum. Also, the demand for quality tea, similar to the North Indian varieties such as Darjeeling and Assam, was slowly but steadily rising.

“It should be possible to develop and promote “Indian Tea” in Pakistan as a brand name in value addition,” he said and added that India and Pakistan had the ability to transform the region into a single tea market.

Mr Saify, however, made it clear that export of Indian teas to Pakistan could hope to rise only on quality and price considerations. On both these counts, Kenyan tea, which accounted for nearly 80 per cent of the Pakistan’s imports through the official channel, scored. “Our market is price sensitive and most familiar with the African varieties,” he said and pointed out that the bulk of exports from India now constituted the South Indian variety.

“The loose tea traders, accounting for nearly 50 per cent of the total market, are now focusing on low-priced teas from South India and Bangladesh,” he said.

Main concern

Another factor which caused concern was the long transit time of the Indian tea. The North Indian teas particularly, transhipped through Singapore or Colombo, would take five to six week to reach Karachi against just a week for the Kenyan tea.

The opening up of the Wagah border for rail transportation of North Indian teas to Lahore could be the solution. “The issue has been discussed but without much headway,” he said.

“In Pakistan, tea is not simply a drink but a kind of food and the majority of our people drink the type of tea that is consumed in Gujarat.”

India could also be a major supplier of other products such as vegetables and spices, he added.

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