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 demand
Orthodox
• 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

Containerizat
Tea leaves ion
Tea Packaged in
plucked
produced cartons
from
in
estates
factories
Air freight

Ship
Finally Shipped to load
served to retailers via
customers distributors
 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 Route
If it goes by SEA it can take the
following route:

Loaded at
Nhava Sheva International Port –
Mumbai
Amingaon dry port – Assam
Haldia Port - Kolkata
and transported to
Grimsby and Immingham Port –
UK
London Port – UK
London Port, UK

Suez
Canal Amingaon,
Nhava Sheva, Assam
Mumbai
 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
 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
 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 Susanto
Kunal Jain
Priyanka Birla
Siddhartha
Nagar
Vikas Bahar