When it comes to producing a fine cup of tea, exporter Arjun Kumar relies on pure, native ingredients.
“Every product comes direct from the gardens that they natively occur, whether it be ingredients from outback Australia or gardens over in Egypt, America, Europe, Asia, India, or Sri Lanka,” he says.
“Then everything is curated here in Perth, where we check and blend the tea for sale across Australia and the world.”
These days Arjun collaborates with local Indigenous groups, sourcing native ingredients from the Kimberley and outback regions of Western Australia.
“One of our growers has a native title block of land around Derby and he's creating a product for us called Jilungin traditionally used for calming, relaxing and sleeping.
Staff packing XO Tea in Perth Credit: SBS / Rachel Cary
Floor to ceiling of the XO Tea warehouse, a compact 250 square metres, is packed with boxes of loose-leaf tea.
“One thing we do is we try to give people a product from the ground up,” the former engineer explains.
“Not many brands are 100 per cent organic, especially not in Perth, and few [suppliers] create their own products.”
So why the name XO tea?
“The XO name represents kisses and hugs, getting a family feel around the brand,” he says.
Arjun's family tea plantations in Malaysia Credit: Supplied: Arjun Kumar
Developed in the 1930s, the tableland is one of the oldest tourist spots in Malaysia, famed for its tea plantations and its elevated, cool climate.
“My family has been growing and manufacturing tea since 1935, and I learned the art of tea making from my late grandfather," Arjun says.
“Prior to COVID, I spent a lot of time each year in Malaysia on the family tea gardens, and of course we have always drunk a lot of tea,” Arjun says.
Arjun Kumar is growing his tea business globally Credit: SBS / Rachel Cary
Returning to Perth in 2016, he began blending tea in a room in his house.
“And we've just continually grown and grown. And now we're again looking for a new premises, because we're just too big for where we are now.”
During the pandemic, demand for herbal and organic teas has grown rapidly.
“There's been a big shift in the market from traditional caffeinated teas to caffeine free teas. At grocery level, our calming tea called ‘Night Lights’ has become really popular,” he says.
“More people are buying it during COVID-19, perhaps because they want a good night's sleep. And they want to relax, drinking something with flavour, plus it also has some medicinal effects.”
The XO tea web site describes Night Lights as ‘an ayurvedic blend of hops, lavender, and valerian root supported by lemon verbena, and linden leaf’.
It’s a best seller among dozens of flavours, and Arjun’s goal is to ship 60 tonnes of tea this year, much of it via e-commerce.
“Our online market has grown quite considerably in the last 18 months, with about 40 per cent of our sales now coming from online orders.
“We plan for that to continue growing, as our distribution network increases, especially on the east coast. So we expect to see that increase by 25 to 30 per cent in 2022.
Keeping track of a rapidly growing venture with orders pouring in from around the world is complex.
“Running a small business is hard work, you wear many hats.
Arjun Kumar juggles many roles in his business Credit: SBS / Rachel Cary
Arjun uses Xero software to support his expansion.
“Xero has created a program that even people that don't understand finance can use. It helps you to send invoices, create purchase orders, and reconcile your bank statements.
His small but multi-skilled team are also trained to use Xero software, ensuring his operation runs smoothly.
“So when I look at numbers, at the end of the day, or the end of the week, it's all there.”
Joseph Lyons, Xero MD Australia and Asia Source: Supplied / Supplied Xero
"Using Xero [software] gives easy access to financial information, and a range of tools to help run a more effective business."
Being able to integrate Xero with other systems is also an advantage, says Arjun Kumar.
“Xero integrates with our shipping system, as well as our inventory system, which is the main thing. And the inventory system integrates with the website. So it is a chain of connections that works seamlessly.
"Xero's app store has more than 1,000 apps than can connect with our platform, and those apps can help a small business streamline processes and boost productivity," says Xero's Joseph Lyons.
Arjun's advisor can also see his financial information in real time.
“Arguably, the most important relationship any small business owner can have is their relationship with their advisor. Accountants and bookkeepers not only support business owners with their finances – they are a strategic partner who can help them reach their goals,” Mr Lyons says.
XO Tea exports are growing steadily Credit: SBS / Rachel Cary
“I definitely do enjoy running my own business. The hours tend to be long, and owning a small business is very challenging, but it is fulfilling when you achieve targets that you set for yourself.
“I don't think I'd ever go back to a corporate lifestyle. Running a small business is definitely the way forward for me.”
