Nargis, a brand of Project India Blend, a company formed by five top tea corporates including Tata Tea, Williamson Magor, Warrens, Goodricke and Rossell Industries was mooted to address the need for an Indian tea brand for Russia. At one time, the Russia market was the largest importer of Indian teas.

However, plans to promote the Nargis brand abroad have run into heavy weather with the Fund putting strict conditions on loan repayment. Says a top executive of Project India Blend (PIB): ``The government has put very stiff conditions of payment for loans for promotional purposes.

The terms are quite difficult especially when compared to the Tea Board loans for the samepurpose.''

It may be noted that following the central government's idea to float an India Brand Equity Fund (IBEF) -- with a Rs 60-crore corpus -- for the exclusive promotions of `Indian brands' abroad, the Tea Board had discontinued its loan for brand promotions.

However, compared to the earlier loan which had a zero-rate of interest, the IBEF's rates are about seven per cent (albeit reduced from 12 per cent).

Moreover, it has royalty rates linked to sales. Conditions for the period of repayment are also tough compared to earlier loans.

This is an unhappy situation as PIB was the first company to be shortlisted by the IBEF for procuring these funds for promoting the Nargis brand.

Negotiations are now on between the Union Ministry and industry officials on this issue. According to the official, the brand could have done better with increased brand promotions and continuous advertising which in turn would require funds. ``After all, one needs to be in the public eye when an exclusive Indian productis being marketed,'' he said.

Completing almost three years since it was first conceived in January 1996, the Nargis motherbrand at present encompasses a whole gamut of teas including orthodox Assams, south Indian orthodox, CTC tea bags, Darjeelings in caddies, and South Indian CTCs. It is marketed through Melgate Ltd who are distributors of other products as well.

With the Russian market going through a tough time, PIB has very recently started exporting its Nargis brand to Kazakhstan through its distributors Bite Ltd.

Nargis caters to the upper end of the export market and is in competition with other existing brands like Dilmah, Twinnings or Pickwick. ``For us the quality parameters are significant. And to ensure visibility, additional funds are a pre-requisite on lenient terms,'' the executive said.