The Wagh Bakri Tea Group, a century-old Indian tea brand, has successfully navigated its digital transformation, with its fifth generation leader, Priyam Parikh, spearheading the initiative. Incorporated in 1919, the company began its foray into digital commerce in 2016, integrating new-age channels with its established offline distribution network.

This strategic shift has resulted in significant growth for the Ahmedabad-based company. E-commerce now contributes 8% to Wagh Bakri’s revenue mix, which is projected to reach approximately ₹2,500 crore by FY26. This digital segment is currently the fastest-growing channel for the group, supporting its stronger presence in general and modern trade.

Digital Integration and Growth

Priyam Parikh, whole-time director and a fifth-generation member of the founding family, joined the business in 2011 as a management trainee. By 2014, he took on the mandate to modernize the legacy business, leading to the company’s embrace of digital channels.

Wagh Bakri launched its direct-to-consumer (D2C) website, buytea.com, in 2015 and began selling on online marketplaces in 2016. The COVID-19 pandemic further accelerated its focus on marketplaces and quick commerce, which Parikh describes as a supportive rather than competitive channel.

A Century-Old Legacy

The Wagh Bakri Tea Group’s origins trace back to 1892 in South Africa, where founder Narandas Desai gained expertise in the tea business. Upon returning to India in 1919, armed with a letter of endorsement from Mahatma Gandhi, Desai established Gujarat Tea Depot in Ahmedabad. His vision was to make quality tea accessible across all social strata, symbolized by the name “Wagh Bakri” (Tiger and Goat).

The company expanded under the leadership of Narandas Desai’s sons and grandsons, including Piyush Desai, Late Pankaj Desai, and Rasesh Desai. The fourth generation, including Parag Desai and Paras Desai, initiated expansion beyond Gujarat. Today, Wagh Bakri operates a multi-brand portfolio, including Good Morning, Mili, and Navchetan, catering to diverse consumer segments and has diversified into iced teas, tea bags, and ready-to-drink premixes.

Market Expansion and Consumer Engagement

Between 2005 and 2015, Wagh Bakri expanded its presence across Rajasthan, Madhya Pradesh, Maharashtra, and Delhi, building an export business to over 60 countries, including the United States and the Middle East. Its expansion strategy involves a phased, market-by-market penetration, prioritizing deep roots and strong distribution networks in each region.

The company emphasized direct consumer engagement through product trials, smaller pack sizes, on-ground activities, and retailer outreach to build trust. Tea lounges, which restarted expansion around 2014-15 with Mumbai, serve as key consumer touchpoints, offering experiential brand interaction in high-footfall areas.

Operational Resilience and Future Outlook

Managing demand planning across diverse channels and highly localized markets presented challenges for Wagh Bakri. Early issues with pincode coverage and online pricing impacting general trade led to efforts to balance pricing and differentiate SKUs. The company leverages technology systems like SFA, SAP, and internal analytics for forecasting and inventory alignment, while maintaining a strong reliance on ground-level market understanding.

Sourcing tea from 14,000–15,000 plantations across Assam, West Bengal, South India, Sri Lanka, and parts of Africa, the group faces significant agricultural variability. To address this, Wagh Bakri increasingly utilizes AI and Machine Learning models for seasonal forecasting, yield estimation, and demand planning, augmenting human expertise in procurement and quality control.

The tea industry faces challenges from unpredictable weather patterns, impacting tea quality and availability, alongside margin pressures from quick commerce and evolving consumer preferences. Despite these headwinds, Wagh Bakri continues to scale, operating four factories with over 60 million kg output last year, focusing on efficiency, consistency, and preserving its legacy while deepening distribution in Eastern and Southern India.