KARACHI, Dec 30: Tetley Clover Private Limited (TCPL) is now planning to introduce Tetley tea in Pakistan in the first quarter of 2004, hoping to capture six to eight per cent share in a market dominated by Unilever and Tapal Tea.
As per previous market reports, based on company’s various executives’ comments, Tetley tea was due to hit the market in October 2003 but it had been delayed. According to market sources the delay was caused by late shipments of blending plant and machinery from abroad at Hub, Balochistan.
However, TCPL managing director Zulfiqar Ali Lakhani told Dawn on Tuesday that “actually October was not the specific time period for the product’s commercial entry.”
“The new tea is now arriving in the first quarter of 2004,” he said without giving any specific date of the product launch.
“Our project is well intact and there is virtually no delay in the operation,” he said adding that the launch of new tea had never been planned for October 2003.
On the market apprehensions that Indian tea giant Tata is actually arriving in Pakistan with a UK based Tetley Tea as its front, the TCPL managing director said Tetley Clover is jointly owned by a combination of interests from the UK and Pakistan.
“It has two British and one Pakistani origin British citizen as Tetley director besides the Lakson’s nominated directors,” he said.
Tata, being a substantially big industrial group, succeeded in bidding for acquisition about two years ago and now has a majority shareholding in Tetley UK, he added.
“Tata, does not, however, has any involvement in the management of the joint venture. The joint venture is being entirely operated by executives drawn from the UK and Pakistan,” Zulfiqar Lakhani said.
Lakson Group and Tetley UK had entered into a joint venture investment of Rs150-170 million in 2003 to form TCPL, a company incorporated in Pakistan.
On price, he said the company is likely to keep the prices of tea at par with its competitors.
A stiffening competition in tea business is likely to be witnessed as the TCPL, in its first year of operation, aims to capture six to seven per cent share from two existing tea giants.
Unilever’s January-September 2003 sales and operating profit surged to Rs7 billion and Rs919 million from Rs6.6 billion and Rs900 million in the same period of 2002. Unilever’s sales by the end of 2003 is likely to range between Rs9-10 billion followed by Rs1.2-1.3 billion operating profit. Another strong contender Tapal also enjoys yearly sales of Rs4.5-5.0 billion.
Tetley Clover has planned to import tea from Kenya and Sri Lanka due to good aroma and taste of tea of these countries,” he said adding that the company may also use Indian tea for blending.
Pakistan, being the third largest tea importer of the world, mainly imports tea from Kenya, Bangladesh, Sri Lanka, Indonesia, China and some African countries. In 2002, the country imported 97,827 tons of tea ($146 million) as compared to 107,000 tons ($175 million) in 2001. Local tea market comprises 45 per cent of loose tea and 55 per cent of packed tea.
