In the bustling city of Ahmedabad, there’s a unique tea tasting tradition taking place. At Gujarat Tea Processors & Packers Ltd (GTPPL), the Desai family ensures that every tea sample meets their stringent quality standards before packing. As Parag Desai, executive director, declares, they prioritize quality in an industry characterized by “high volumes, low profits.”
How Does The Company’s Legacy Influence Its Modern Decisions?
GTPPL, today recognized as Wagh Bakri, has its roots in a narrative that stretches back to 1892. Founded by Narandas Desai, the company’s origins can be traced back to his ventures in South Africa and his association with Mahatma Gandhi. The influence of Gandhian values is evident in the company’s ethos and its brand logo, which depicts a tiger and a goat sipping tea harmoniously.
Why Does Wagh Bakri Prioritize Consumer Satisfaction Over Profit?
Despite achieving substantial sales growth over the years, Wagh Bakri’s profit margins remain modest by design. As Rasesh Desai, managing director, explains, the company has often refrained from hiking prices based on market trends, even reducing them after achieving annual profit targets. This consumer-first approach stems from the Desai family’s belief in prioritizing customer satisfaction over maximizing profits.
How Does Wagh Bakri Maintain its Market Edge?
In the competitive ₹10,000-crore packaged tea market, Wagh Bakri has steadily expanded its market share. While giant corporations like Tata Global Beverages and Hindustan Unilever Ltd maintained their dominance, Wagh Bakri witnessed growth from 7.18% to 8.09% between 2012 and 2016. Their secret? An unwavering focus on regional expansion, developing robust distribution networks, and delivering consistent quality to customers.
How Is The Company Adapting To Modern Market Trends?
Innovation and strategic expansion are at the forefront of Wagh Bakri’s growth agenda. Parag and his cousin, Paras Desai, have their sights set on product innovation, boosting brand awareness, and growing their international business footprint. Recognizing the burgeoning café culture in India, Wagh Bakri has also ventured into the domain, launching Tea Lounges and Tea Worlds in several Indian cities.
What’s The Role of Tradition in Wagh Bakri’s Modern Business Strategy?
Wagh Bakri’s strategy is deeply rooted in family traditions and closely-forged bonds. This hands-on approach has allowed the company to make swift strategic decisions. While they don’t have a formal constitution for business operations or succession planning, the importance of mutual respect and consensus in decision-making remains paramount.
How Does Wagh Bakri Plan To Enhance Its Global Presence?
With international business contributing to around 5% of the company’s revenues, Wagh Bakri is making inroads in over 30 countries. While already popular among the Indian diaspora, the company aims to compete with local players by investing in local managers, media relations, and ensuring product availability in major supermarkets across the globe.
What’s Next for Wagh Bakri?
As Wagh Bakri stands at the crossroads of tradition and modernity, its future seems promising. While the Desai family acknowledges the potential need for structured business planning in the future, their core philosophy remains unchanged – delivering unmatched quality and prioritizing customer satisfaction.
In a market dominated by giants, Wagh Bakri, with its blend of tradition, quality, and innovative spirit, continues to carve a niche for itself, turning every cup of tea into an experience of legacy and excellence.