This homegrown tea label wants both farmers and consumers to benefit

Bala Sarda of VAHDAM India—the fourth-generation entrepreneur in his family’s tea business—wants to ensure the highest quality teas while maintaining control over the supply chain  

Tea holds an undoubtedly special place in the hearts of most Indians. Not only does tea make for a significant part of Indian culture and traditions, but it is also a daily ritual for families, one that brings people together. A report by the Tea Board of India from 2018 disclosed that close to 88 per cent of the total households in India consume tea, and around 64 per cent of Indians drink tea regularly. Another Business Linearticle dated 2021 revealed that India’s consumption [of tea] rose to 1,145 million kilograms in 2021 from 1,116 million kilograms in the previous fiscal, indicative of an expansion of 2.6 per cent. While Turkey has officially made it to the winning spot on the list of countries that consume the most amount of tea, India is amongst the top five countries, making it a highly potential and promising market. And, Bala Sarda, founder and CEO of VAHDAM India, tapped into exactly that opportunity.

VAHDAM India is a homegrown artisanal tea label that offers a multifarious assortment—from a basic masala chai blend to flavoured green teas and iced teas. The brand’s journey commenced in 2015 when the then 23-year-old Sarda launched its website that hosted a slew of brews. The founder is the fourth-generation entrepreneur in his family, who has been immersed in the business of tea for almost 90 years. VAHDAM’s offerings came into being in its in-house manufacturing unit where the brand created a medley of cold and hot variations employing tea directly sourced from farms and estates across India. 

Today, with a presence in the USA, Canada, UAE and Europe in addition to India, the brand has successfully raised over 290 crore rupees within eight years of its inception, with global celebrities like Oprah Winfrey, Martha Stewart and Mariah Carey making it to the brand’s loyal fanbase. In fact, it was also the first Indian-origin wellness brand to make it to the Oscars’ hamper in 2022. In a conversation with Sarda, we find out what motivated his entrepreneurial journey and how plans to take VAHDAM to the next level.

Tell us a bit about your journey to creating VAHDAM India.

From my early childhood, I always had the entrepreneurial bug, and that drive has shaped my career at every stage. While I was in college, I ventured into two student startups, but deep down I knew I wanted to create something valuable and impactful. That’s when the idea for VAHDAM India started to take shape. With a lineage of over 90 years in the tea business, I had a strong connection to the industry. As the fourth generation involved in running a tea business, I was well aware of the immense potential within the tea industry. 

It was during a visit to our family’s holiday home in Darjeeling that I had a transformative experience; I encountered the world’s finest teas and had the opportunity to engage with industry veterans, tea growers and customers. This experience sparked a realisation of the untapped opportunities and gaps in the tea market. I decided to join my family’s business for a couple of years which allowed me to gain invaluable insights and understand the dynamics of the industry. During this time, I identified significant gaps and noticed the absence of a home-grown brand that could effectively address these issues.

Fueled by the desire to fill this space, I founded VAHDAM India as a direct-to-consumer online tea brand. Our mission was to disrupt the 200-year-old global supply chain by sourcing directly from 150 farms across India and eliminating unnecessary middlemen. This vertical integration empowered us to ensure the highest quality teas and spices while maintaining complete control over the entire supply chain.

Why did you pick teas as the foundation of your business, in a world of endless options?

Tea has always been a part of my family’s heritage due to which I had a deep-rooted connection to the industry. However, it was my quest for a “big” idea that led me to explore the world of teas in a new light. Tea is the second-most consumed beverage in the world, after water, and India is the second-largest producer and exporter of tea, globally. Moreover, the tea industry is a significant employer of organised labour in India, offering livelihoods to numerous individuals. However, during my interactions, I sensed that something was amiss. There was a gap that needed to be filled, and I saw the opportunity to add value. I wanted to create a brand that would not only provide the world with exceptional teas but retain value here at source and contribute positively to the industry, the farmers, and the customers.

Tea, as a beverage, has a very special place in the hearts of Indians, but they are also used to the typical masala chai. Was introducing fine and flavoured teas in the Indian market a challenge?

Introducing fine and flavoured teas in the Indian market presented its own unique challenges. In India, the predominant consumption has traditionally been focused on the CTC (crush, tear, curl) format tea, which is commonly used for making masala chai. However, with a growing emphasis on health and wellness, there is a notable shift in consumer preferences, especially after the pandemic. An increasing number of consumers are seeking old-school, herbal teas made from full leaves, as they offer better flavours and colours. While our key markets are the USA, Europe, and Canada, where the adoption of these kinds of teas is more widespread, there is also a significant portion of Indian consumers who are tea enthusiasts and are now shifting towards these varieties.

In this evolving landscape, we recognised the need to cater to the changing preferences of Indian consumers. Our focus on fine and flavoured teas positioned us to meet the demands of both the health-conscious segment and those seeking a more diverse experience. We strived to educate consumers about the benefits and distinct qualities of these teas, highlighting their natural flavours and wellness properties.

As a brand, what are your strategies to open Indians to a newer tea-consuming experience?

It revolves around more than just offering exceptionally high-quality products. We understand that consumers today are seeking brands that have a soul, that give back to society and the community, and that goes beyond being just a product. We are committed to showcasing our brand story, values and mission to create a deeper connection with our audience. By sharing our dedication to sustainability, social responsibility and the well-being of farmers, we aim to inspire consumers to choose VAHDAM India as a brand that stands for something meaningful. 

Engaging in community initiatives, such as our TEAch Me programme where we redirect 1 per cent of our revenue towards the education of our farmers’ children, allows us to actively contribute to the education and empowerment of the families of farmers. We also prioritise transparency and traceability in our sourcing and production processes, by providing detailed information about the origins and benefits of our teas. 

Today, a slew of fine tea brands have entered the market — how do you try to keep VAHDAM India different from the rest?

All our teas are procured directly from plantations and tea growers within 24-72 hours of harvest. Then, they are packaged fresh and delivered directly from the source in India, in less than a week to most countries. By eliminating the middlemen, we are not only able to make fresh, high-quality teas available to the international market but are also able to retain all earnings in the region where these divine teas are carefully grown and nurtured by millions of growers. The freshness and character of the teas are locked, after which they are immediately processed, cleaned, blended, packaged garden-fresh at our state-of-the-art facility and shipped off to consumers and fulfilment centres across the world in the shortest time possible.

Additionally, we have a vast range of over 300 SKUs which cater to the diverse palates and preferences of tea lovers worldwide. The brand’s commitment to using only garden-fresh, superior-quality ingredients is evident in every sip. Moreover, our dedication to sustainability is visible through our innovative use of 100 per cent cornstarch tea bags, which are biodegradable and home-compostable.

What does the process of creating a new product range or flavour look like?

It begins with understanding the needs and preferences of our customers, along with analysing geographical demand and flavour trends. For instance, when we decided to explore the category of iced teas, we conducted customer research and received valuable insights from our loyal customers. This helped us realise the untapped potential of iced teas as a category. Our product development team embarked on an extensive journey to create a range of flavours that had not been explored before. The process involved eight months of work, including strong industry research, customer surveys, multiple tea-tasting sessions and rigorous lab tests. It [new product development] is a journey filled with both rejections and failures, as we aim to perfect each flavour and ensure it meets our standards. 

Where do you source your tea and other ingredients from?

We take great pride in sourcing our teas and other ingredients directly from India’s 150 choicest gardens in Darjeeling, Assam and Nilgiris. Each region has its unique characteristics and flavour profiles, allowing us to offer a diverse range of teas that cater to different preferences.

Tell us about the experience of associating with the Oscars. What did that feel like?

Associating with the Oscars was a thrilling experience. We were honoured to be the first Indian wellness brand featured in the goodie bags at the Oscars and the Emmys in 2022. It was a matter of pride to represent India and showcase our high-quality products on a global platform. This recognition reaffirmed our commitment to delivering excellence and promoting Indian brands worldwide. It was an unforgettable milestone that inspired us to continue elevating the standards of wellness brands and sharing the goodness of Indian teas with a wider audience.

How do you give back to the people of Assam and Darjeeling, and the place from where you source a major chunk of tea? And as a brand, how do you contribute to the welfare of the workers/farmers in the space?

Our business is driven by our core philosophy: ‘Do good by doing good’. In 2018 we launched our flagship initiative, TEAch Me, and committed a minimum of 1 per cent of its revenue directed towards the education of its farmers’ children. So far, it has impacted the lives of nearly 15,000 children in around 68 tea estates, schools and community centres. I aim to expand the outreach of this initiative to producers of tea, spices and herbs, increase direct partnerships with tea growers, enhance digital teaching capabilities in schools and support alternative career paths for students. Furthermore, we introduced the VAHDAM India Scholarship for Higher Education in 2020 to support the youth of tea estates who wanted to continue their higher education—we have provided over 50 scholarships to date.

What are the unique values that a consumer gets to enjoy through VAHDAM’s teas?

When customers choose our products, they get to experience unique values that go beyond just enjoying the finest teas and spices. Our brand stands out by offering a genuine and compelling story. We are not simply selling products; we want to promote sustainability, empower farmers and create a positive impact on society. This resonates deeply with our customers, allowing us to build a strong emotional connection and foster loyalty.

Do you see the tea consumption habits of Indians evolving further in the years to come?

We are witnessing a significant shift in the mindset of Indian consumers, who are becoming more conscious about the ingredients in their teas, as well as their sourcing and consumption techniques. We believe that customers today are more aware and appreciate transparency, which is why we provide complete information pertaining to the quality of the teas. The COVID-19 pandemic has also played a role in shaping consumer preferences; post-pandemic, there has been a noticeable increase in the demand for products that offer health benefits, boost immunity and use origin-based ingredients. Consumers are seeking teas that not only provide a delightful experience but also contribute to their overall well-being.

Do you aspire to make VAHDAM a global hit? 

Yes, absolutely. We aspire to become the largest Indian-born [tea] brands globally, taking India’s finest quality teas and wellness products. To achieve this, we have implemented several strategies that have helped us build our global positioning.

One of the key factors in our global success has been forming strategic partnerships with renowned brands and securing organic celebrity endorsements. Collaborations with personalities such as Oprah Winfrey, Ellen DeGeneres and Nicole Scherzinger have not only brought visibility to our brand but have also enhanced our credibility and appeal to a wider audience. Additionally, being featured in global subscription boxes like ‘Be Kind By Ellen’ and ‘Oprah’s Favorite Things’ has significantly expanded our reach and introduced our products to new customers. 

We have also focused on establishing a strong presence in international markets. Our trademark is registered in over 80 countries and we have successfully penetrated markets such as the USA, UK, Canada and UAE. Our products are available in over 6,500 stores globally, reaching customers on a local level. Furthermore, we have expanded our online presence to over 130 countries.

Looking ahead, we aim to further expand our offline reach to complement our strong online presence. By establishing physical touchpoints, such as exclusive stores and collaborations with retail partners, we aim to create immersive experiences that capture the essence of VAHDAM India globally. This will allow us to engage directly with customers, provide personalised service and showcase our wide range of products.

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