Luxmi Tea, the owner of the renowned Makaibari brand, is planning to expand its retail presence and increase its footprint in airports across India. With the opening of stores in Kolkata and Bagdogra airports, as well as the international terminal of Mumbai airport, Luxmi Tea aims to promote its premium tea and other products to a wider audience.
Luxmi Tea, known for its tea gardens in West Bengal, Assam, and Rwanda, produces approximately 25 million kilograms of tea annually. The company has recognized the growth potential of its retail and online channels, which currently account for less than ten percent of its overall sales. To capitalise on this opportunity, Luxmi Tea has already established stores in three airports and is in preliminary talks to open more retail outlets in airports like Bengaluru and Delhi. By leveraging the high footfall and diverse customer base at airports, Luxmi Tea aims to enhance its brand visibility and increase sales.
Luxmi Tea’s airport stores, branded as ‘Makaibari,’ not only sell its iconic tea but also offer a range of premium Luxmi products. In addition to loose tea, customers can purchase branded accessories such as cups, saucers, caddies, and gifting boxes. The primary objective of Luxmi Tea’s retail expansion is to promote its flagship Makaibari brand across the country. By establishing a presence in airports, premium malls, and modern trade outlets, Luxmi Tea aims to increase brand recognition and expand its customer base. The company’s monthly sales of tea, in terms of value, currently range from Rs 18 lakh to Rs 20 lakh. With the retail expansion, Luxmi Tea anticipates a significant boost in sales and brand visibility.
RTM Watch’s Take
Luxmi Tea’s retail expansion plans, particularly its focus on increasing its presence in airports, demonstrate the company’s proactive approach to capturing new market opportunities. By leveraging the popularity of airports as shopping destinations, Luxmi Tea aims to enhance its brand visibility and reach a broader customer base. The inclusion of branded accessories and premium products in its airport stores further strengthens Luxmi Tea’s positioning as a premium tea brand. The expansion into airports aligns with Luxmi Tea’s objective of promoting the Makaibari brand and increasing sales. With the tea industry witnessing a surge in demand for premium and specialty teas, Luxmi Tea’s retail expansion strategy is well-timed to capitalise on this trend. By offering a unique shopping experience and a wide range of tea products, Luxmi Tea is poised to make a significant impact in the airport retail segment.
