Partnership

Orymy Trade's "Princesses"
From India, Sri Lanka and Indonesia

Sergei Kasyanenko,
Chairman of Orymy Trade's board

        The four profiles on the scarlet background of the oval medallion are the four "princesses", whose names - Kandy, Gita, Noori, and Yava - seem mysterious at first. It is a trademark of Orymy Trade, a St. Petersburg company. Despite the oriental beauties' mystery, many people have already become acquainted with Orymy Trade's "princesses". We can see them on tea boxes, billboards, booklets, in TV commercials, and even on city transport.
        We spoke to Sergei Kasyanenko, Chairman of Orymy Trade's board
        - How did Orymy Trade manage to make its production popular in Russia and abroad?
        - It was not at once that Orymy Trade reached its current market coverage, variety, high quality of goods, and import and export turnover. The company first appeared in the market in October 1994, when it delivered a small consignment of Ceylon tea to Russia. Later this tea became popular under the name of Princess Kandy. We began our supplies from three containers a month. Our company bought high-grade tea at reasonable prices from tea-growing countries and also at specialized fairs where tea was being sold following processing. We studied the growing and processing of high-quality tea from the most experienced specialists in oriental countries. We chose large and influential companies as our partners. We learned everything in the course of practical work.
        - Did you have any experience in the tea industry?
        - No, I graduated from the Leningrad University as a physicist, a specialist in optics. I have a Ph.D. in physics and mathematics. I worked on the teaching staff of the Leningrad Aircraft Instrument-Manufacturing Institute and later as a chief research assistant at the Joffe State Physical and Engineering Research Institute, which was part of the USSR's Academy of Sciences. I knew nothing about the tea industry. But life provides us with a lot of new lessons, and since last year I have worked as the chairman of Orymy Trade's board. Our company is growing and gaining recognition in Russia and among its foreign partners. Early this autumn I took part in two international conferences of tea manufacturers, one of which was held in southern India, and the other in Colombo, the capital of Sri Lanka. I was invited there to give a general review of our company's future perspectives given the current situation in the Russian tea market and Orymy Trade's role in the world tea industry.
        - Can you briefly describe the history and specific features of the Russian tea market?
        - As far as it is known, tea was first brought to Russia from China in 1638, so it appeared in Moscow 20 years earlier than in London. By the middle of the 19th century tea made up 95 percent of Chinese exports to our country. By the beginning of the 20th century our tea imports came to 60-70 thousand tons a year. We occupy third place after China and India in the consumption of tea, which was 160-170 thousand tons a year at the end of the 20th century. Russia is the largest tea importer in the world market.
        - Did the August crisis influence the tea industry in Russia?
        - The recession in demand first affected expensive high-grade teas from Ceylon, North-East India, and Indonesian mountain plantations, but this did not last long. The situation has now stabilized and even improved. During the first half of 1999 the overall consumption of tea was 5 percent higher than last year.
        - Did Russia take any antirecessionary measures?
        - Stabilization and extension of the tea market took place largely due to the creation of the Russian Industrial Tea Association in 1998. Its task is to control the quality of imported tea, help the development of Russian tea processing, weighing, and packaging industries, and organize product advertising for Russian import and export operators.
        In Soviet times the state possessed a monopoly for tea growing, processing, and internal and foreign trade. Today there exist about two hundred tea companies of different size, including private companies, joint stock companies, and joint ventures. At the same time 55 percent of the tea market is controlled by the four largest companies: Grand, Maiskii Chai, Unilever, and Orymy Trade. Our company is one of the leaders.
        - What is your opinion of Orymy Trade's perspectives in the XXI century?
        - The development of Russia's tea market in the XXI century will undoubtedly depend on our country's and the world's macroeconomic situation. We hope for the best. We are continuing our search for new providers of high-grade tea and strive to develop new tea brands. About 75 percent of all tea comes to Russia from India, and the rest - from Sri Lanka, Indonesia, and China. Russia traditionally buys tea in the countries of East Asia, but in Europe people mostly drink African tea from Kenya, which is almost unknown in our country. Perhaps our company will acquaint Russian customers with this sort of tea. We are anticipating a growth of demand for green tea, which possesses many healing qualities, and for herbal and medicinal teas. There are also many expensive sorts of tea in the world market which are sold not in tons but in kilograms. We can certainly find tea lovers of elite tea in our country.
        A so-called Ready-to-drink Tea recently became popular in some countries and occupied almost 80 percent of the US tea market. It successfully rivals synthetic soft drinks and may become popular in Russia as well.
        - Do you plan the development of our country's tea industry?
        - We cannot import raw tea leaves because they easily wither and rot. This is the reason why the primary processing of tea is realized by its manufacturers right after the tea is picked in the plantation. But the final processing of dry tea leaves is usually realized right here, because it is both technologically reasonable and more profitable.
        Orymy Trade is extending its production base thus improving the quality of tea and creating new jobs. In Leningrad region's Vsevolozhsk district our company is finishing the construction of a plant for the secondary processing of tea. This plant's output will be 1440 tons of tea a year. And the Nevskie Porogi plant is slated to open in Krasnaya Zarya in June 2000.

Interview by Vadim Kruchina