Disclaimer: Originally published in September 2018. It is being republished since it still remains an interesting topic till today.
Walking around the office after a long meeting, we all look for some hot, refreshing chai to de-stress. Yet, we end up getting tasteless, diluted chai which is not hot most of the times.
Facing the same, an IT couple decided to give up their highly-taxing jobs at multinational companies to, literally, sell tea.
The Tea Market In India
Indians drink an average of 150 crore cups of tea every day, where about 75 crore people drink tea twice a day.
There is a very high probability of finding a tea stall at every half kilometre on city roads. On an average, a tea cup costs around Rs. 8. That makes up approximately a 40 crore market for tea, on a daily basis!
“Calculating in terms of revenue per cup, amount of milk, tea powder, sugar and other ingredients, the chai industry is massive in India”,
explained Nitin, the founder of Chai Villa, coming up with such striking details in their market research.
The Thought Behind Chai Villa
Even working at companies like IBM and TCS did not get them good quality tea in their work hours. Looking at the cups, one could easily guess the unhygienic conditions the tea was made in.
Leaving behind their cushy jobs, taking inputs from several mentors, specially Pooja’s father who suggested that Nagpur would be a potential market for them, Nitin and Pooja gave way to Chai Villa.
The unique business model of selling 20 different varieties of chai and a patented ATC – Any Time Chai idea of asking other small vendors to sell their tea with a profit margin got them a whopping Rs. 15 lakh revenue in 3 months.
Their free tea delivery system for a minimum of 5 cups over a certain distance and selling the beverage at Rs. 8 to Rs. 20 is proving significantly competitive in the market.
Corporates, guests, personal subscriptions add to their attractive business plan. But, their plan does not get limited here, and Nitin aims to go national with an eye for the 1 crore a year revenue market for chai.
Progress And Other Ideas For Expansion
The co-founder couple has set a target to sell from 1000 ATCs, 15 lakh cups and give way to 20 potential franchisees, with the help of 150 employees – most of whom will be poor or handicapped, in the next 18 months.
Do you fancy a cup of tea every now and then? Well, WhatsApp, call, or order your favourite flavour online from Chai Villa anytime between 10AM to 11PM.
With a fast-growing network, this hygienic, tasty, affordable tea, Chai Villa is the next big Indian franchise to look at.
Image Sources: Google Images