Insight Into Pakistan Tea Trade Mohsin M. Saify GM Tea Supply Chain Tapal Tea (Pvt.) Ltd. Karachi, Pakistan Brief Introduction & Info Pakistan Tea Facts Leading Tea Importer from Various Origins. Per Capita Intake is 1 Kilogram per Year. Tea is Called “Chai” and is Served Thick & Rich with Milk & Sugar. 02 Tea & Pakistan Culture Diverse Blends Preferred 3 South – Thick & Milky Center – Milky & Sweet North – Kahwa or Green Tea & Pakistan Culture Cultural Bonding First Offer to Guests. Chai Pani (Hot/Cold). Family Values & Ties. Chai Roti; Staple Diet. Poor’s Full Meal/Food. Pakistan Tea Imports Multi-Origin Blends Almost All Origins Population = Intake 200 M Kg – Breakup 1. 2. 3. Blenders ~ 90 M Kg Traders ~ 40 M Kg Smuggled ~ 70 M Kg Five Years Imports (PTA) Origin Wise Imports (M Kg) Import Rate (US $ / Kg) Taxes on Tea Business Levy at Import Stage Import Duty 10 %. Sales Tax 17 %. Adv. Income Tax 5 %. Other Taxes ~ 2 %. Leads to Abuse ATTA and Miss-Declaration. Smuggling of the Tea Pak-Afghan (ATTA) Bought for AFG but Consumed in PAK Duties/Tax Evasion Damaging Economy Hampering Industry TBoK Stats via ITC Adulteration of Tea Influx of Cheap Teas S.India, China & V’nam have dull cup & infusion. Such teas are adulterated to match African Origins. Chemical colors are used & consumers are unaware. Health Hazards and Risk. Pak Green Tea Intake “Sabz” Chai Go Green Trending Across Pakistan. Common in North After Every Meal. Kashmiri ‘Pink’ Tea Offered on Events. Big Growth Potential. Pak Green Tea Imports 3.64 2.34 2.01 1.36 0.91 0.80 www.TapalTea.com The Out of Home Sector HoReCa Channel Hotels Restaurants Cafes Offices Stations Kiosks By Mohsin Saify www.TapalTea.com Trend Setting in Pakistan Leading Players Tapal Tea Unilever Pak Tetley Clover Eastern Product Strong Marketing to Promote Tea as Social and Traditional Artifact. Tapal Tea (Pvt.) Limited The Market Leader From Local to Global Tapal Danedar Family Mixture Tapal Tezdum Tapal Mezban Green Teabags Danedar Mixture Tezdum Mezban Green By Mohsin Saify www.TapalTea.com The Unorganized Sector Mushroom Brands Ethical Packers Counterfeit Case Bazar (Loose Tea) Jodia Bazar Karachi Raja Bazar Rawalpindi Qissa Khuwani Bazar Peshawar By Shakeel Abbas Traditional Ways of Selling Loose Tea www.TapalTea.com Tea Future Forecasts Next Five Years CAGR ~ 4.0 % 240-245 M Kg Urban may Look for Green/Herbal/Fruit. Rural will Stick to Traditional Style. Tea Cultivation Prospects At Mansehra & Swat ~ 60,000 ha Land Govt. is Interested Public-Private Partners Chinese Expertise NTRI by PARC Many Constraints Questions and Answers www.TapalTea.com