After Cola & Coffee, It’s Tea for RJ Corp
Ravi Jaipuria-owned company inks pact with TWG Tea for luxury tea lounges
New Delhi: RJ Corp, the company promoted by serial entrepreneur and PepsiCo’s biggest bottler Ravi Jaipuria, has entered into an exclusive pact Singapore-based TWG Tea to set up upscale tea lounges in India. TWG Tea is one of the world’s largest luxury tea lounge chains.
Confirming the development, Jaipuria said: “We will set up premium tea parlours starting around the third quarter of this year. This deal complements our existing portfolio of brands across food and beverages and we will leverage our existing strengths to take this association forward.”
RJ Corp has an existing agreement with British cafe chain Costa Coffee.
The average cost of setting up an outlet would be .₹ 10 crore, Jaipuria said. RJ Corp will begin with Delhi and Mumbai, and sell packaged TWG tea at hotels and upscale retail stores, Jaipuria said.
According to information available on its website, TWG Tea, which stands for The Wellbeing Group, was co-founded by Taha Bouqdib, Maranda Barnes and Rith Aum-Stievenard in the year 2008 as a luxury concept to set up retail outlets and upscale tea rooms. Currently TWG has lounges in 15 countries including Japan, Morocco, Hong Kong, Malaysia, Thailand, Taiwan, China, the United Arab Emirates, the Philippines, Indonesia, South Korea, UK, USA and Australia, according to the company website said.
While coffee chains are the more visible format among cafes, tea salons are gaining traction too, industry observers said. Other names include Chaayos and Bengaluru-based start-up Chai Point which claims to be clocking a daily average of 90,000 cups of tea. Anand Ramanathan, director at consultancy firm KPMG said: “Tea is consumed more than coffee in the country and as a cafe concept, both tea and coffeebased food service formats are scalable. The challenge will be how to build a food proposition and create consumer around tea. Ticket sizes should justify rentals.”
According to estimates by consulting firm Technopak, the organised cafe market is estimated to grow to .₹ 15,100 crore by 2020, growing at a rate of 15%.