Teavanas sales have hit a 20-year low in India but it is back to selling some of the most expensive tea brands on the global market, according to its CEO.
“We have a very competitive market in the world.
But we are experiencing a significant slowdown in the demand for our products.
So we have to take it step by step and find the right path for our business,” said the company’s CEO, Amit Shah.
In a statement to The Hindu, Shah said he was “pleased” that the market was stabilising and that the company was moving forward with its plans to expand its business in India.
“The situation in India has not changed much over the last two or three years.
But, we are now witnessing a rapid expansion of the market and it is encouraging to see this,” Shah said.”
In the next few years, we plan to expand our business in more countries.
India is the biggest market for us,” he added.
The company had reported losses of Rs 1,037 crore in the financial year ended March 2018, but it had booked profit of Rs 2,971 crore in fiscal 2018.
Teavannas profits were estimated at Rs 1.8 crore crore, compared with Rs 1 crore crore a year ago.
It said in the statement that the slowdown in demand for Teavans products was partly due to the fact that many customers did not have enough time to spend their money and hence they stopped buying them.
“The company is working on ways to ensure the demand and supply for its products is matched,” it said.
It has also launched a new digital channel, Teavanna.com, that provides a more personalised service for customers.
Teavana, founded in 2007, has a global sales network, and is currently listed on the Nasdaq stock market.
The company has said it has about 4,500 employees in India and plans to add about 1,000 more by the end of 2019.