Archive · 29 Aug 2026
Dilmah Bets on India’s Untapped Fine Tea Opportunity
Dilmah is introducing a new luxury tea collection in India called Thambapanni.
The teas are made mainly from ingredients grown in India.
The company believes more people now want special flavours, healthier drinks and products with clear origins.
Premium hotels and restaurants could help make fine tea more popular.
The collection includes teas mixed with ingredients such as cinnamon, vanilla, cardamom and ginger.
Dilhan C Fernando says Indian teas and Ceylon teas each have their own special qualities.
He also believes tea could become as fashionable with young people as coffee.
Climate change may make some special tea harvests less reliable.
He says growers must receive fairer prices if the tea industry is to remain sustainable.
Dilmah is strengthening its India focus by launching Thambapanni, a collection created specifically for the Indian market.
The company sees growing potential in premium hotels, experiential dining, wellness and authentic flavour discovery.
Thambapanni includes Indian teas, spices and herbs, alongside Nuwara Eliya pekoe and Ceylon Souchong.
Dilhan C Fernando says Indian, Sri Lankan and other regional teas should be appreciated for their distinct terroirs rather than treated as generic competitors.
He identifies climate change and the disconnect between tea prices and producer value as major long-term risks.
- Who
- Dilmah and its chairman, Dilhan C Fernando, are leading the India-focused push.
- What
- Dilmah is launching Thambapanni, an India-specific luxury tea collection, while promoting fine tea, tea gastronomy and tea mixology.
- When
- The interview discusses the current launch and expansion effort; no specific date is given.
- Where
- The initiative is focused on India and draws on teas and ingredients from India and Sri Lanka.
- Why
- Dilmah sees an opportunity in India’s expanding premium hospitality sector and growing consumer interest in authentic flavours, wellness and sustainability.
- New collection
- Thambapanni is being created exclusively for India.
- Product range
- The collection includes 26 artisanal suppliers of fine tea, spices and herbs.
- Examples
- Products include Wild Assam Reserve, Cinnamon Velvet Gourmet Tea and Maharaja Chai.
- Hospitality ambition
- Dilmah aims to work with 50 to 60 luxury hospitality properties in the first two years.
- Indian tea cafés
- India’s branded tea cafés are estimated to number more than 1,200 and grow by about 25% annually.
- Sustainability premium
- Genuinely ethical and sustainable luxury teas may cost 40% to 50% more than ordinary equivalents.
- Dilmah impact work
- The MJF Charitable Foundation and Dilmah Conservation use at least 15% of Dilmah’s pre-tax profits for humanitarian and environmental work.
- Personal tea consumption
- Dilhan C Fernando says he drinks 12 to 15 cups of tea daily.