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Amitava Chattopadhyay


Amitava Chattopadhyay
Emerging Market Multinationals - Amitava Chattopadhyay


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Dilmah Ceylon Tea: Committed to Taste, Goodness and Purpose

The case describes the story of Sri Lanka based Dilmah Ceylon Tea, a company founded in 1988 by  Merrill J. Fernando. The company had pioneered the concept of ‘single-origin tea’ to its latest innovative Elixir range. The premium positioned tea was ‘picked, perfected and packed’ at origin with a brand based on three pillars: taste, goodness, and purpose. Present in over 105 countries, it had become one of the most well-known Sri Lankan brands worldwide. The group invested a minimum 15% of its pre-tax profits in humanitarian and environmental initiatives through the MJF Charitable Foundation and Dilmah Conservation and Sustainability Unit (DCSU). However, the tea business was becoming increasingly competitive with the largest player, Unilever, about to sell its tea portfolio. The current CEO, Dilhan Fernando, needed to address several key questions, in this context: How could the Dilmah Ceylon Tea brand ensure the margins necessary to thrive and grow? Which customer segments and geographies should it focus on? Could it potentially leverage its investments in humanitarian and environmental initiatives to achieve better margins and


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