India functions on two pillars – Tea and Coffee! Now, we will leave it to our readers to decide which one is better. Tea is an important staple to Indians and the rest of the world. We not only consume tea massively but also export it to other countries. In this blog, we’re going to look at the list of tea manufacturing companies in India, so sit back, and enjoy your daily cup of chai as we try to go through each company.
About the Industry
According to IBEF, India is the 2nd largest producer of tea. We’re also one of the biggest consumers of tea, with 80% of produced tea being consumed domestically.
That still hasn’t affected the fact that we are top 5 in global tea exports, making up 10% of total exports! Indian tea is considered one of the finest in the world. In 2021-22, India exported 201 million kilos of tea.
This is exported across 25 countries globally. India produced a total of 1,344.4 million kg of tea in FY22. The industry is expected to grow at a CAGR of 6.6% during 2020-2027 according to Allied Market Research.
List of Tea manufacturing companies in India
The following is the List of Tea manufacturing companies in India, Keep reading to find out more!
1. Tata Consumer Products
Coming up on #1 is Tata Consumer Products. TCP is part of the Tata Conglomerate. It is the FMCG company of the Tata group and has many products in its portfolio, one of which happens to be tea. The notable brand Tetley Tea is under Tata Consumer Products.
Financials Of Tata Consumer Products –
|CMP||772||Market Cap (Cr.)||71157 Cr.|
|Face Value||1||Book Value||161.57|
|Promoter Holding||34.72%||Price to Book Value||4.75|
|Debt to Equity||0.09||Dividend Yield||0.78%|
|Net Profit Margin||8.68||Operating Profit Margin||12.72|
With a market capitalization of ₹71,024 crores, it is one of the largest FMCG companies in India. If we take a look at the financials of the company, we can see that the company has compounded sales growth of 19.6% and profit growth of 33.2% for the past three years
For the financial year 2022, the company achieved its highest ever sales and net profit of ₹12,425 crores and ₹1,015 crores in the last ten years. The company has also managed to maintain a consistent net profit margin of 8.6% over the years
Despite the high earnings, the company has given an average return on equity (ROE) of 6.21% for the last three years. The company has virtually no debt with a D/E ratio of 0.09, indicating that the company has maintained its debt position.
With a PE ratio of 67.9, the company is slightly undervalued when compared to its industry P/E of 71.01. The stake of the promoters is a little low at 34.7% which is considered great. Out of this stake, 1.2% is pledged by them.
The shares of the company have given an impressive and sizable return of 242% in the past 5 years, making it the best-performing stock on our blog.
2. Bombay Burmah Trading Company
India’s oldest company, Bombay Burmah is part of the larger Wadia Group. Founded in 1863, the company began as a trading company before moving to produce tea and coffee, and other consumer products.
Financials Of Bombay Burmah –
|CMP||875||Market Cap (Cr.)||6106|
|3 Year ROCE||25.44%||3 Year ROE||6.63%|
|Face Value||1||Book Value||788|
|Promoter Holding||65.93%||Price to Book Value||1.13|
|Debt to Equity||1.07||Dividend Yield||0.14%|
|Net Profit Margin||9.79%||Operating Profit Margin||16.31%|
With a market cap of ₹6,106 crores, the company stands second on our list and can be categorized as a mid-cap tea manufacturer. It is a subsidiary of the much larger Wadia group.
The company financials show us that the company has been steadily increasing its revenue YoY and its revenue for FY22 stands at ₹14,544 crores.
On the other hand, though the company’s net profit was increasing until FY21, it has come down to ₹809 crores in FY22 from a net profit of ₹1,278 crores in FY21.
The decrease in profits is due to the increasing costs of the company as the company the revenues of the company have been increasing every year. For FY22, the company has a net profit margin of 9.79% which is considered slightly below average for a company.
While the average return on equity is at 6.63% for the last three years, the company has an impressive average ROCE of 25.44% during the same period.
Coming to the company’s debt situation has a high D/E ratio of 1.07. Though the ratio is considerably low, it is higher than every company on this list. When it comes to the shareholding pattern, the promoters hold a major stake of 66% with no pledged shares.
The shares of the company have given a negative return of 46.7%, making it the least rewarding stock on this list.
3. Tata Coffee
Another Tata company on the list, Tata Coffee not only produces coffee, but tea as well. They have estates located throughout India and export their products internationally too.
Financials Of Tata Coffee –
|CMP||218||Market Cap (Cr.)||4,072|
|Face Value||1||Book Value||91.6|
|Promoter Holding||57.50%||Price to Book Value||2.39|
|Debt to Equity||0.67||Dividend Yield||0.92%|
|Net Profit Margin||9.87%||Operating Profit Margin||15.39%|
With a market capitalization of ₹4072 crores, the company stands third on our list and can be categorized as a small company. Tata Consumer Products is its holding company.
The financials of the company indicates increasing revenue and profit YoY. For FY22 the company reported a revenue of ₹2,364 crores and a profit of ₹233 crores.
While 3-year sales growth stands at 9.4% which is slightly low, it has shown a significant profit growth of 33.6% over the 3 years.
While the return on equity stands at just 8.6% for the last 3 years, it is comparatively better than the other companies on this list. Its ROCE stands at 13.2%
With a PE ratio of 23.5, the company is a heavily undervalued company to the industry PE of 71.01. The company has a good debt position with a D/E ratio of 0.67. The shareholding pattern of the company shows us that promoter stakes have remained unchanged at 57% over the past 2 years.
Over the past five years, the shares of the company have given a return of only 36.9%.
4. Rossell India
Rossell produces CTC and Orthodox tea, which is exported to the USA, UK, Germany, UAE, and other countries. They produce quality tea for tea lovers worldwide.
They hold 6 tea estates and have been in the industry for over 27 years. Fun fact – This is the only tea company on our list which is also in the defence and aviation industry.
Financials Of Rossell India –
|CMP||280||Market Cap (Cr.)||1028 Cr.|
|Face Value||2||Book Value||67.1|
|Promoter Holding||74.90%||Price to Book Value||4.19|
|Debt to Equity||0.62||Dividend Yield||0.11%|
|Net Profit Margin||10.03%||Operating Profit Margin||12.33%|
Rossell India has a market capitalization of ₹1028 crores, making it the smallest company on this list.
The financials of the company indicate that the revenue of the company has been consistently increasing since 2017 with a slight decrease in FY22.
On the other hand, the company has managed to overcome its losses and has started earning good profits in the past three years
For FY22, the company earned a revenue of ₹299 crores and profits of ₹30 crores. While the 3-year sales growth of the company stands at 6.35 which is low, its profits growth for three years stands at an astounding 244%.
The company has given a return on equity of 12.6% which is much better than most of the tea manufacturing companies on this list. With a PE of 23.86, the company is undervalued than all the companies on this list and also undervalued when compared to the industry PE of 71.01
The company has a D/E ratio of 0.62 which means the company doesn’t have very high debt. The shareholding pattern of the company indicates that the promoters have a 74.9% stake in the company with zero pledges.
The 5-year return on the shares of Rossell is a healthy 136% and year to date alone it has given a 98% return, just 2% shy of doubling shareholders’ investment and becoming a multibagger.
We hope you’ve finished with your daily dose of chai as we are done with this blog on “List of tea manufacturing companies in India”. Have any more companies you would like to see on this list? Let us know. Have a Chai on us and happy investing!
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