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Parag Desai
By Kim Westerman
Parag Desai is the executive director of Wagh Bakri, a global tea brand based in Guajarat, India that specializes in premium organic-certified tea. The company celebrated its 100th anniversary in 2018 with the opening of a luxury tea house in its hometown of Ahmedabad, raising its total number of tea lounges to 13 (now 15), with plans to expand to 30 within the next year. The company registered sales of 40 million kg of tea in 2018 and forecasts 10% growth in the coming year, backed by product expansion and geographical diversification. Currently, Wagh Bakri has a strong position in West India and is rapidly growing in the northern cities of Delhi, Himachal Pradesh, Uttarakhand, Punjab, and Haryana. The company exports to more than 40 countries worldwide.
With an MBA from Long Island University, Desai spearheads sales, marketing, and export departments for the Wagh Bakri group, and he is an expert tea taster and evaluator.
STiR: How would you describe the current state of the tea business in India today? And what about the global market?
Parag Desai: Wagh Bakri is India’s third-largest packaged tea company with annual sales turnover of US$ 165 million. Our brand is growing (CAGR) at 10% per annum in India and 20% in the overseas market.
At present, we are available in more than 17 states in India and more than 40 countries across the globe. Our teas are available at all major International retails chains such as Carrefour and Lulu Hypermarkets in UAE, Woolworth and County Grocers Supermarkets in Australia, Walmart, Loblaws, and Freshco in Canada, and in many more countries.
STiR: Your company was founded in 1892. How does that long history inform Wagh Bakri Tea Group’s position in the marketplace today?
Parag Desai: For more than 128 years, Wagh Bakri has embraced the ideology of the coexistence of strong and the weak. Over the journey of 100 years, our vision has always been to spread the message of peace, harmony, and relationship-building, and today Wagh Bakri is an integral part of the lives of millions of tea lovers all over the world. Our company has earned a name to rival the titans of the business by focusing on regional tastes and cautious growth.
STiR: Wagh Bakri now has 15 tea lounges and 15 kiosks. Are there plans for further expansion?
Parag Desai: Going forward we intend to increase our presence both nationally and internationally.
The lounges are an effort to revitalize tea drinking culture as well as connect the consumers with the array of products offered by the company.
STiR: Tell us about last year’s campaign (with MOMS Outdoor Media Solutions) to reach more local markets. What was the goal, and was the campaign successful? Can you explain the concept go “global?”
Parag Desai: We targeted the Western India market by drawing a parallel between 24-karat gold’s quality and the quality of our tea. The campaign was well-received and was even nominated for one of the leading outdoor awards in India.
STiR: What is your forecast for tea in the next decade and for the immediate year 2020?
Parag Desai: Tea consumption is poised to grow at a (CAGR) rate of 10% per annum globally, bolstered by young people who are becoming more and more inclined to seek out tea as a health beverage.
STiR: What tea trends do you see taking hold in India in the coming years and which are likely to fizzle out?
Parag Desai: Tea has now been accepted as a healthy drink, especially with introduction of variants such as green tea and iced tea with multiple flavors to choose from.
Going forward, this trend is set to grow even stronger with many more tea lounges launching across India.
STiR: What is your own philosophy of tea?
Parag Desai: Be it a tiger or a goat, the powerful or the meek, each one is important and can coexist. Tea is a catalyst that brings these two forces together — that’s the basic ideology we’ve embraced, and we imbibe it daily as our philosophy of tea.