Tea retail venture Tata Cha to be expanded across India

Tata Global Beverages has plans to expand its tea retail venture Tata Cha across the country.

The Rs68bn ($941m) company launched the concept in 2017. Following the success of the initial pilot in Bengaluru city, three more stores were opened this year, reported Business Standard.

Aiming to appeal to office workers and millennials, the stores offer hot and cold tea-based beverages and snacks. The concept was first introduced around ten years ago under the brand Chai Unchai, but was not a success.

Tata Global Beverages’ managing director and CEO was quoted by the publication as saying: “Tea retail is a concept we are testing and is an interesting area to explore as consumers seek innovative beverage options and formats.”

Tata Global Beverages is considered to be second-largest tea manufacturer in the world following Unilever. In the branded tea segment, it competes with Unilever’s Indian unit Hindustan Unilever (HUL).

The brand will also see competition from Chai Point, which is said to be one of the first brands to move into India’s organised tea retail segment. Beginning operations eight years ago, it currently has more than 100 stores across five cities.

Other players operating in this space include Chaayos and Chai Thela. Chaayos has outlets in Delhi, Noida, Mumbai and Gurguram, while Chai Thela has outlets in Delhi-NCR.

In the coffee retail space, Tata Global has partnered with US-based Starbucks Coffee Company in 2012.