India runs on chai - a fact that is clear as day. Tea is a go-to beverage for desis, and we surely can't do without it. Whether it is subah ki chai or shaam ki chai, saying no to tea is not an option for us. In India, Rich or poor, everyone has a unique connection with tea. It's not just a drink for us, but a ritual, a celebration and even a diversion from our mundane schedules.
Tea is the second most consumed beverage around the world, after water. The consumption volume of tea in India was approximately one billion kilograms during the financial year 2020. From TV debates to romantic dates and stress busters, tea is a primary part of every Indian life, and today we are talking about a famous indigenous tea brand named 'Wagh Bakri Chai' which unites all Indians even before independence.
It all started in 1892, when an Indian entrepreneur, Narandas Desai set up his tea business with five hundred acres of a tea estate in Durban, South Africa. During that time, South Africa was also reeling under colonial rule like India. Narandas Desai also had to face several instances of racial discrimination.
Due to his rising success, he faced more racism, and the political unrest in the area eventually forced him to leave the country. During his time in South Africa, he was close to his idol, Mahatma Gandhi, who had a big impact on Desai¡¯s business and personal ethics.
In 1915, Desai was forced to flee? South Africa because of Apartheid. He came back to India with a letter from Mahatma Gandhi vouching for Desai¡¯s skills and honesty in the tea business.
The certificate given by Mahatma Gandhi to Desai on February 12, 1915, stated, ¡°I knew Mr Narandas Desai in South Africa, where he was for a number of years a successful tea planter¡± was a token of help to ease his migration back home.
The history of Wagh Bakri is unlike any other. Narandas Desai, after returning to South Africa, took a large loan to establish Gujarat Tea Depot in 1919. The first store was set up in Ahmedabad which sold loose tea. In 1934, Desai started selling the tea under the brand ¡®Wagh Bakri¡¯ for the first time. And since then, there has been no looking back for the company.
Wagh Bakri Tea Group communicates the message of social equality with its iconic logo. It features a picture of Wagh or tiger (the tiger represents upper class) and Bakri or goat (the goat represents lower class) drinking tea from the same cup. With this logo, Wagh Bakri Tea brand was launched in 1934 by Gujarat Tea Depot.
According to a Twitter thread, Wagh Bakri tea sold loose tea in wholesale and retail outlets till 1980. But to survive in the market, the company board decided to revamp the brand and started distribution of packaged tea under the name Gujarat Tea Processors and Packers Limited.
After a lot of success in Gujarat, the company decided to expand its reach around the country. Between 2003 and 2009, the company started selling its tea in other states as well.
According to the TOI report, Parag Desai, executive director and the fourth generation entrepreneur, said, "Few years ago, the brand name Wagh Bakri was facing difficulty in being understood by consumers from other regions of India. However, the concept and the logo generated enormous curiosity while aroma and taste proved a backbone for the success of our brand. For us, Mahatma Gandhi is the greatest professor of the brands-a brand himself, who taught us branding."
Over time, the company has developed a variety of products catering to different segments. Good Morning Tea started in 1944, it is a super-premium segment tea. Under the Wagh Bakri brand, the company has also added products like Green Tea, Lemon Tea, Iced Tea and Premix coffee. The company spends nearly 10% of its revenues on advertising and runs TV and print campaigns for nearly all varieties of these products.
After Tata and HUL (Hindustan Unilever Limited), Wagh Bakri Tea by Gujarat Tea Processors is the third largest tea company in India and one of the well-known distributors of organic green tea bags. In 2009 the market share of this company was only 3% and in 2020 it increased to 10%. This company has 50% market share in Gujarat.
Today, this brand has become one of the leading tea brands in India. From Rajasthan, Goa to Karnataka, all across India, Wagh Bakri has become a household name. After huge success in the home country, the brand started its journey overseas in 1992, and today, Wagh Bakri is present in more than 40 countries.
Despite a 100 years legacy, a tea brand still remains fairly young and continues challenging the other brands. A company, who created to protest against racial discrimination and inspired by Mahatma Gandhi, has found its way into Philip Kotler's latest book, which is considered as the bible for marketing students across business schools in the world.