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The India tea market attained a volume of 1.40 Million Tons in 2025 and is projected to expand at a CAGR of 4.50% through 2035. The market is further expected to achieve 2.17 Million Tons by 2035, driven by entrenched daily chai consumption, a steady shift from loose to branded packs, rising demand for premium and green teas, and the expanding reach of modern trade and quick commerce.
Industry estimates place India tea volumes at roughly 1.40 million tons in 2025, worth about INR 78,000 crore, in a country that supplies around 22% of global production. Tea Board data released in February 2026 showed 2025 output of 1,369.98 million kg, about 5% higher than a year earlier, with Assam contributing 687.76 million kg and West Bengal 411.18 million kg. Roughly 80% of the crop is consumed domestically, which keeps demand steady. The scale of this domestic base, spread across millions of households and small retailers, is what gives the market its resilience through weather and price cycles.
Export momentum has added a second growth lever. In February 2026, the Tea Board reported record 2025 exports of 280.40 million kg worth Rs 8,488.43 crore, with orthodox grades driving the gain and Iraq, the UAE, and China among the leading destinations. Supply conditions have since tightened: output for January to July 2026 slipped 1.7% to 658.3 million kg on adverse weather, as reported in September 2026. Export success depends on consistent quality and reliable logistics, so producers that invest in orthodox processing and shipping stand to benefit most from overseas demand.
Input supply is a rising risk for estates. In March 2026, government orders directed refineries to prioritise LPG for households and essential services, and HPCL, on which most tea estates rely, was unable to supply the gardens; Goodricke Group Limited's managing director Shaibal Dutt said Darjeeling gas stocks would last another fortnight and that supplies needed to resume from April. First and second flush account for about 40% of Darjeeling output but nearly 80% of its revenue, and about 41% of Darjeeling tea is exported, so interruptions at the start of the season carry outsized consequences. Fuel security is therefore becoming as important as crop weather to the economics of premium estate tea.

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Goodricke Group Limited announced in August 2026 that net profit for the quarter ended June 2026 rose to Rs 40.87 crore from Rs 3.19 crore a year earlier, while revenue from operations climbed 21.1% to Rs 211.30 crore, helped by a 41% rise in own crop production and better realizations. Companies can leverage crop recovery and tighter cost control to rebuild margins in estate tea.
Tata Consumer Products Limited reported in July 2026 consolidated revenue from operations of Rs 5,348.88 crore for the quarter ended June 2026, up 11.93%, with India business revenue up 13% to Rs 3,540 crore. In India tea, volumes grew 2% while revenue declined because lower tea costs were passed on to consumers. Companies can leverage cost pass-through to defend share and volumes when raw tea prices soften.
Assam's Chota Tingrai Tea Estate in Tinsukia district sold what is reported as India's first commercially produced matcha at the Guwahati Tea Auction Centre in July 2026, fetching Rs 3,000 per kg in Sale No. 27. Director Mritunjay Jalan spent a decade working with Japanese experts, shading the bushes to lift chlorophyll and amino acid content. Companies can leverage domestic matcha production to capture premium green tea demand.
In October 2025, Tata Consumer Products Limited launched Tata Tea Agni Extra Josh in northern markets, positioned as India's first tea blend with added natural caffeine. Puneet Das, President of Packaged Beverages, said the innovation reimagines the role of tea, and two television films supported the launch. Companies can leverage functional tea formats to win energy-seeking consumers in the mass segment.
Rossell India Ltd. disclosed in August 2026 that net profit for the quarter ended June 2026 rose 52% to Rs 3.81 crore, even as revenue from operations fell 15.6% to Rs 36.78 crore, following a net loss of Rs 23.79 crore in the preceding quarter. The company noted that tea cultivation and manufacturing is seasonal, so quarterly results are not indicative of full-year performance. The swing back to profit shows how the timing of sales and seasonal crop patterns can dominate quarterly outcomes for estate-based tea businesses. Companies can leverage seasonal planning and cost discipline to smooth earnings across the crop cycle.
Bombay Burmah Trading Corporation executed an agreement in March 2026 to sell its Dunsandle tea estate at Sholur in the Nilgiris district for Rs 120 crore, with Rs 110 crore received upfront and the balance due under the agreement terms. The estate had contributed Rs 5.65 crore, or 2.05%, of the company's turnover before the sale. Such sales also reflect a wider trend of plantation owners reassessing which estates are worth holding as costs and climate pressures reshape tea growing economics. Companies can leverage disposals of sub-scale estates to recycle capital into higher-return operations.
In April 2026, Hindustan Unilever Limited reported results for the quarter ended March 2026 in which the Foods segment delivered 5% underlying sales growth on high-single-digit volume growth, with coffee in strong double-digit momentum and tea recording low-single-digit volume growth. Net profit from continuing operations rose 20% to Rs 3,002 crore on revenue of Rs 16,207 crore. The results underline how large consumer companies rely on growth in other beverage lines while tea volumes expand at a steadier, more modest pace. Companies can leverage premiumisation in adjacent beverages to offset slower growth in mature mass-market tea.
Announcing results for the year ended March 2026 in May 2026, Tata Consumer Products Limited said India tea volumes rose 4% in the quarter ended March 2026 while revenue edged lower, since input-cost savings went to shoppers. The quarter also brought summer-focused premix launches, namely Tata Tea Gold Iced Tea and Tetley Matcha Latte, and India Beverages grew 8% over the year. Seasonal products like these show how branded companies stretch a traditional hot beverage into cold and convenience formats for younger urban consumers. Companies can leverage ready-to-make formats to extend tea into new seasons and occasions.
This Expert Market Research Report titled "India Tea Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: Black is the leading type, with national output still overwhelmingly black tea: the Tea Board's March 2026 data put India's output at 66.86 million kg, of which 60.33 million kg was CTC, 5.59 million kg was orthodox, and just 0.94 million kg was green; Green is the fastest-growing type, helped by Chota Tingrai Tea Estate's sale of India's first commercial matcha at Rs 3,000 per kg in July 2026; Oolong remains a small specialty niche; White is a rare, high-value category; and Others covers herbal, flavoured, and blended infusions. Taken together, these segments show a market anchored in everyday black tea but gradually widening at the premium end as tastes and incomes evolve.
Market Breakup by Sector
Key Insight: Organised is the leading sector in value terms, anchored by branded packers such as Tata Consumer Products Limited, whose India business revenue rose 13% to Rs 3,540 crore in the quarter ended June 2026, reported in July 2026; Unorganised remains a large volume base of loose and unbranded tea, and the Tea Board's September 2026 campaign noted that 8,159 kg of failed tea and 89,011 kg of tea waste were denatured in the year ended March 2026 as it tackled adulteration. The gradual shift towards branded packs is expected to continue as quality assurance and convenience gain importance for households.
Market Breakup by Packaging
Key Insight: Loose Tea persists among price-sensitive buyers though packet tea now holds the larger share, and its quality risks were underlined in the Tea Board's September 2026 campaign, which cited a Hyderabad seizure of 3,000 kg of adulterated tea powder; Tea Bag is the fastest-growing format, supported by Hindustan Unilever Limited's relaunch of Lipton Green Tea, highlighted in its review of the year ended March 2026 following its April 2026 results; Plastic Containers and Paper Boards serve branded leaf and dust packs on modern-trade and kirana shelves; Aluminum Tins are used for premium and gifting ranges; and Others covers sachets and pouches. Together these formats show a market that is moving gradually from bulk sales towards branded, convenient, and better protected packaging over time.
Market Breakup by Processing
Key Insight: CTC is the leading processing method, accounting for 140.48 million kg of the 160.43 million kg India produced in June 2026, according to Tea Board data, against 17.53 million kg of orthodox and 2.42 million kg of green; Orthodox (Traditional) is the fastest-growing method, with the Tea Board's February 2026 data showing record 2025 exports of 280.40 million kg driven by orthodox grades while CTC exports stagnated. The balance between the two methods is shaped by household taste for strong milk tea on one side and export and premium demand on the other.
Market Breakup by Application
Key Insight: Residential is the leading application, reflecting daily chai at home, and Hindustan Unilever Limited reported low-single-digit tea volume growth in its April 2026 results; Commercial is the fastest-growing application across cafes, hotels, and roadside stalls, and Chai Point said in February 2025 that it sells nearly 900,000 cups of tea a day across more than 170 stores and plans 300 more within two years, a reminder of how large the out-of-home channel is. The split between home brewing and out-of-home consumption is therefore a key lever for future demand and brand strategy in the market.
Market Breakup by Distribution Channel
Key Insight: Supermarkets and Hypermarkets are the leading channel, where national brands such as Hindustan Unilever Limited, whose Foods and Refreshment business grew 7% to Rs 3,480 crore in the quarter announced in July 2026, use modern trade to build premium ranges; Convenience Stores remain vital for daily top-up purchases; Specialty Stores serve single-estate and gourmet teas; Online is the fastest-growing channel, with Hindustan Unilever Limited reporting strong double-digit e-commerce and quick-commerce growth in its review of the year ended March 2026 following its April 2026 results; and Others covers institutional and direct sales. The mix of channels shows how tea reaches consumers through both traditional neighbourhood outlets and fast-growing digital routes.
Market Breakup by Region
Key Insight: North Region is the largest regional market, though Tea Board data reported in September 2026 showed northern output down 0.9% in January to July 2026; East and Central Region is the production heartland, where Tea Board data reported in May 2026 showed Assam output falling to 17.38 million kg in March 2026 from 28.61 million kg a year earlier; West Region demand is anchored by strong state-level brands, with Society Tea noted in February 2026 as holding about 28% of Maharashtra; and South Region is the fastest-growing market for premium tea even as southern output fell 4.4% over the same January to July 2026 period. Regional taste differences in strength, milk use, and price points shape how brands tailor blends and packs across the four regions.
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By Type, Black leads the market while Green grows fastest because daily chai habits keep everyday black tea dominant, even as health-conscious urban buyers trade up to green and matcha formats
Black tea dominates India's cup, accounting for roughly two-thirds of market value according to industry estimates, and it is the backbone of both CTC and orthodox output. Tea Board figures released in February 2026 put 2025 production at 1,369.98 million kg, about 5% above the prior year, with Assam at 687.76 million kg and West Bengal at 411.18 million kg, two states whose crop is overwhelmingly black tea for household consumption and export. Oolong and White, though niche, add specialty depth at the premium end, while Others covers herbal and flavoured infusions outside the core black and green categories.

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Green tea is the fastest-growing type as wellness-led demand broadens beyond the metros. Tea Board data for June 2026 showed India producing 2.42 million kg of green tea out of 160.43 million kg in total, a small base that leaves ample room for growth, and the Tea Board's pilot consumption study points to a growing trend towards non-milk teas such as green and flavoured tea among households. Growth from a small base is typical for emerging categories, and wider availability through modern trade and online platforms should help widen the consumer audience further.
By Sector, Organised leads the market in value while Unorganised stays sizeable, because trusted branded packs keep winning share from loose and unbranded tea
Organised players lead in value because branded packs carry price premiums and wider distribution. Tata Consumer Products Limited told investors in November 2025 that its India tea business grew revenue 12% on 5% volume growth in the quarter ended September 2025 and expected margins to recover toward 15% by the quarter ending March 2026 as tea prices moderated, showing how scale and pricing power let branded companies convert stable demand into earnings. Investment in brand building, packaging quality, and reliable supply also helps organised companies earn consumer trust that loose tea sellers find harder to match.

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Unorganised trade, led by loose tea sold through neighbourhood shops, retains a large volume base. Trade coverage of Society Tea in February 2026 noted that loose tea leaves make up about 40% of the unorganised market, while the Tea Board's September 2026 campaign flagged that unbranded blending units supply shops, hotels, and roadside stalls directly, a quality gap that pushes consumers toward trusted branded packs. Even so, price sensitivity and long-standing relationships with local retailers mean unorganised sellers will remain important to many households for years to come.
By Packaging, Tea Bag grows fastest while Loose Tea persists because price-sensitive households still buy by weight even as urban buyers trade up to convenient, premium formats
Loose Tea remains in use mainly because of price and flavour, though the Tea Board's pilot consumption study found packet tea, meaning tea not sold loose, still takes the larger share, with a considerably lower share in the Eastern region. That carries a quality cost: the Tea Board reported in September 2026 that 26.19% of 1,470 samples tested in its Southern Zone failed quality checks in the year ended March 2026, an improvement on the 34.28% of 1,307 samples that failed the year before. Plastic Containers, Paper Boards, and Aluminum Tins serve branded packs and premium gifting, while Others covers sachets and pouches.

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Tea Bag is the fastest-growing packaging format as urban households trade up to convenience and premium formats. Tata Consumer Products Limited reported in July 2025 that India packaged beverages, which include tea, grew 12% in the quarter ended June 2025 as net sales rose 9.8% to Rs 4,779 crore, a price and mix led gain that premium formats such as bagged tea help to support. Convenience, portion control, and a perception of consistent quality all support the format, particularly among office workers and younger urban households.
By Processing, CTC leads the market while Orthodox (Traditional) grows fastest because export demand and premium positioning favour whole-leaf grades
CTC leads because it suits the strong, quick-brewing milk tea that most Indian households drink. At the Guwahati Tea Auction Centre in June 2026, Deckiajuli Tea Estate's CTC leaf fetched Rs 1,103 per kg and Sotai Tea Estate set a garden record of Rs 889 per kg, showing that even the mass-market process commands strong premiums for quality, at a centre described as the world's second-largest for CTC tea. Its efficiency and consistent liquor also make it the preferred choice for large branded blends sold across mass-market price points.

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Orthodox (Traditional) tea grows fastest because export buyers and premium consumers prefer whole-leaf grades. In June 2026 the Assam government was reported to be supporting orthodox production with a subsidy of Rs 15 per kg, while the Guwahati Tea Auction Centre is widening its orthodox offering to draw export buyers and enable direct exports, supporting a segment that produced 17.53 million kg nationally in June 2026. Whole-leaf styles also tell a stronger origin and craftsmanship story, which suits gifting, specialty retail, and export positioning.
By Application, Residential leads the market while Commercial grows fastest because out-of-home tea formats are multiplying faster than home consumption
Residential use accounts for about 80% of demand in 2025 according to industry estimates, reflecting daily chai at home. Tea Board data from February 2026 shows 2025 production of 1,369.98 million kg against exports of 280.40 million kg, implying roughly 1,090 million kg available to the domestic market, most of it consumed by households through daily home brewing, which keeps residential demand steady even when export prices swing. Multiple cups a day across families, together with guest hospitality traditions, make household consumption the foundation on which the market's volumes rest.

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Commercial demand from cafes, hotels, and tea chains is the faster-growing application. In June 2026, Indonesia-based tea and ice cream chain Ai-CHA opened its first Indian outlet in Amar Colony, New Delhi, and announced plans for more than 500 outlets over three years under a royalty-free franchise model, a sign of how out-of-home tea formats are drawing new entrants into the market. Offices, hotels, and quick-service outlets also tend to buy in bulk and standardise blends, which supports steady procurement from established suppliers.
By Distribution Channel, Supermarkets and Hypermarkets lead the market while Online grows fastest because quick commerce is shortening the path from discovery to doorstep for premium tea
Supermarkets and Hypermarkets lead with roughly 36% of sales in 2025 according to industry estimates, as modern trade offers wide ranges and easy trial of premium packs. Hindustan Unilever Limited's review of the year ended March 2026, which followed its April 2026 results, credited modern trade support for the launch of Red Label Instant Tea, showing how brands use organised retail to introduce new formats. Convenience Stores and Specialty Stores supply daily top-ups and gourmet ranges respectively, while Others covers institutional and direct sales.

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Online grows fastest, led by quick commerce. Hindustan Unilever Limited's review of the year ended March 2026, issued after its April 2026 results, said quick commerce expanded consumption occasions and supported the market development of premium beverages such as Bru Gold, Taj Mahal, and Lipton, a pattern other branded tea companies are following as they list premium and specialty packs on instant-delivery platforms. Fast delivery lowers the barrier to trying unfamiliar brands, which benefits premium and specialty tea that shoppers may not find in nearby stores.

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North Region commands the largest share of the India tea market at approximately 30% in 2025, shaped by deep-rooted daily chai consumption across the northern plains and strong demand for robust, milk-based CTC blends
This is supported by Tata Consumer Products Limited's October 2025 launch of Tata Tea Agni Extra Josh in northern markets, the first tea blend with added natural caffeine, a regional-first rollout that signals how national brands treat the north as the lead battleground for mass-market innovation. Because northern buyers value strength and price points, brands tend to test caffeine-led and value-led variants there first and then extend successful formats to other regions through the same distribution network.
South Region is the fastest-growing regional market, with demand for premium and specialty tea rising even though industry reports in September 2026 showed southern output down 4.4% and exports down 16.11% to 128.56 million kg in January to July 2026. East and Central Region remains the production heartland, with Assam output of 85.60 million kg in June 2026 against 71.58 million kg a year earlier, while West Region demand is anchored by strong state-level brands, with Society Tea holding about 28% of Maharashtra, as noted in February 2026.
The India tea market is highly fragmented, with national branded companies such as Tata Consumer Products Limited and Hindustan Unilever Limited sharing the organised segment alongside estate owners such as Goodricke Group Limited, Rossell India Ltd., Assam Company India Limited, and The Bombay Burmah Trading Corporation. Ltd, and a large number of regional blenders, packers, and unorganised traders including Wagh Bakri Tea Group, R. Twining and Company Limited., Pataka Group of Companies, Marvel Group, Ramesh Tea Traders, and Amar Tea Pvt. Ltd.
Competitive dynamics are shaped by premiumisation into green, specialty, and functional teas, the shift from loose to branded packs, expansion into quick commerce and modern trade, and estate-level pressures from weather, labour costs, and fuel supply, which are prompting portfolio pruning and tighter cost discipline.
Tracing its roots to 1962 and headquartered in Mumbai, Tata Consumer Products Limited sells packaged tea under Tata Tea and Tetley alongside salt, coffee, and foods. For the quarter ended June 2026 it reported revenue of Rs 5,348.88 crore, up 11.93%, with India tea volumes up 2% as lower tea costs were passed on to consumers.
Established in 1933 and headquartered in Mumbai, Hindustan Unilever Limited sells tea under brands including Red Label, Taj Mahal, Lipton, 3 Roses, and Taaza within its Foods and Refreshment business. For the quarter ended June 2026 it reported turnover of Rs 17,184 crore, up 10%, with Foods and Refreshment growing 7% to Rs 3,480 crore.
Incorporated in 1977 and headquartered in Kolkata, Goodricke Group Limited grows and sells Darjeeling, Assam, and Dooars teas. For the quarter ended June 2026 it reported net profit of Rs 40.87 crore on revenue of Rs 211.30 crore, up 21.1%, helped by a 41% rise in its own crop production.
Incorporated in 1994 as Rossell Tea Limited and headquartered in Kolkata, Rossell India Ltd. grows black tea at seven Assam estates producing about 7.5 million kg a year, alongside aviation and defence engineering. For the quarter ended June 2026 it reported net profit of Rs 3.81 crore, up 52%, on revenue down 15.6% to Rs 36.78 crore.
Other key players in the India tea market include Wagh Bakri Tea Group, R. Twining and Company Limited., Pataka Group of Companies, Marvel Group, The Bombay Burmah Trading Corporation. Ltd,, Assam Company India Limited, Ramesh Tea Traders, and Amar Tea Pvt. Ltd, among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
For a detailed assessment of opportunities across the India tea market's type, sector, packaging, processing, application, distribution channel, and regional segments through 2026 and beyond, connect with Expert Market Research for a customized consultation.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
The India tea market is projected to grow at a CAGR of 4.50% from 2026 to 2035.
Key strategies include premiumisation into green, matcha, and functional blends, tea bag and ready-to-make formats, expansion through modern trade and quick commerce, export growth in orthodox grades, and portfolio pruning of sub-scale estates to fund higher-return operations.
Almost 80% of the total output in India is consumed domestically. The per capita consumption of the beverage in the country has witnessed a significant increase in the last decade. This is expected to be a key trend guiding the growth of the market.
North, East and Central, West, and South are the leading regions in the market.
Black tea is the dominant type of the product in the market.
The leading tea packaging in the market are loose tea, plastic containers, paper boards, aluminium tins, and tea bags, among others.
The major distribution channels in the market are supermarkets and hypermarkets, speciality stores, convenience stores, and online, among others.
The significant processing types in the market are CTC and orthodox (traditional).
Residential and commercial sectors are the leading applications of the market.
Based on sector, the market is divided into organised and unorganised.
Key players in the India tea market include Tata Consumer Products Limited, Hindustan Unilever Limited, Goodricke Group Limited, Rossell India Ltd., Wagh Bakri Tea Group, Marvel Group, Pataka Group of Companies, R. Twining and Company Limited., Assam Company India Limited, The Bombay Burmah Trading Corporation. Ltd, Ramesh Tea Traders, and Amar Tea Pvt. Ltd, among others.
The India tea market attained a volume of 1.40 Million Tons in 2025.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a volume of around 2.17 Million Tons by 2035.
The residential segment leads the market, as tea is an integral part of daily life in most Indian households.
Key challenges include weather-driven swings in output, with production down 1.7% in January to July 2026, rising labour and fuel costs at estates, adulteration in unbranded and loose tea, and margin pressure when lower tea prices must be passed on to consumers.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Sector |
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| Breakup by Packaging |
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| Breakup by Processing |
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| Breakup by Application |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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