How do I start my own tea business?
In this article, we will discuss a packaged green tea business plan, and also see how a brand can be built up from scratch. We will also understand the investment required and how marketing needs to be done.
You will notice most of us plan business within and around our comfort zone. There is an invisible circle that we never think to cross, in fact, which does not come to our mind. While doing business we cross the limits of capital deployment, take risks, and employ blindfolded but seldom think about relocating ourselves. Even if the source of the procurement is thousands of miles away, we do not think of relocating ourselves to that location. For us, the best place to start a business is in our hometown or our current living place.
Let us look at how to start tea packaging business at the source and sell it across the country.
demand of tea in India.
India is one of the world’s leading tea-consuming nations, with an estimated 837 million kilograms consumed annually. Tea has been a part of Indian culture for centuries and is now deeply embedded in its social fabric. It is enjoyed by people from all walks of life, from farmers to businessmen and everyone in between.
Tea consumption varies greatly across India due to regional preferences as well as economic factors such as availability and cost. In some areas it may be difficult or expensive to purchase quality tea leaves; however, many Indians are willing to make the effort because they consider drinking tea an important part of their daily routine. On average Indians consume around 2 cups per day – far more than most other countries!
The popularity of chai (a spiced milk tea) has also grown significantly over recent years thanks largely to its delicious flavor profile which appeals even more strongly when served hot during cold winter months or after meals throughout the year. This beverage can be easily prepared at home using loose-leaf teas that have become widely available across India’s cities and towns, making it both convenient and affordable for many families regardless of their income level. As a result, chai has become increasingly popular amongst all classes within society – further cementing tea’s place at the heart of Indian culture today
A real story on starting a tea packaging business.
I have seen people starting a coffee brand sitting in Guwahati and starting an online packaged tea leaf business from Delhi, nothing wrong with it but one must bear a lot many challenges on procurement and even forgo cost-saving opportunities when the source is miles away.
My advice to the tea trader friend was to come to Guwahati, take a small room in rent for the stay and build up the business here. Because Guwahati is one of the biggest tea business hubs, here procurement will be much cheaper and easy, in such case my friend can bring the packaging material from Delhi or anywhere else he finds reasonable. The purpose of the advice was to be cost-efficient in the business from day one. However, he could not cross the comfort line and started the business from Delhi with a compromised cost of logistics.
Hope you have understood what I am intending to write here, I will advise entrepreneurs, especially those who are planning to do a business that will procure, pack, and sell, please go near the source of production so that cost of goods sold become efficient.
Let us see how one can come to Guwahati and start a tea packaging business and sell it in Delhi.
How good is tea business?
Tea is the most loved beverage for Indian households, and the Indian tea industry is expected to grow at a CAGR of about 4.2% during 2021-26 and reach an approximately 1.4 Million tones volume. The major market driver for the tea industry is rising disposable income, increasing population, and medicinal value. So, with this, we can be sure about its perennial demands.
The medicinal value of green tea.
The factor that is triggering growth of green tea business: Green tea has been used for centuries in traditional Chinese medicine and is now gaining popularity as a medicinal beverage due to its numerous health benefits. Green tea contains powerful antioxidants that can help reduce inflammation, improve heart health, and protect against certain types of cancer. It also contains caffeine which can increase alertness and focus while providing a steady energy boost throughout the day. Additionally, green tea may aid with weight loss by increasing metabolism and suppressing appetite.
The primary active ingredient in green tea is epigallocatechin-3-gallate (EGCG). This antioxidant helps neutralize free radicals that damage cells which can lead to disease or premature aging. Studies have shown that EGCG may be effective at preventing prostate cancer from spreading as well as reducing tumor size when combined with other treatments such as chemotherapy or radiotherapy. Furthermore, it has anti-inflammatory properties which could potentially help relieve symptoms associated with arthritis or asthma.
Overall, green tea offers many potential benefits for overall well-being including improved heart health, increased mental alertness, protection against certain cancers, and relief from inflammatory diseases. While more research needs to be done on the specific effects of green tea consumption on human health, current evidence suggests these are promising results worth exploring further through future studies into its medicinal value
Tea industry in Guwahati: Since I am proposing Guwahati as the pivotal point of business and inviting people to start a business from Guwahati let me share a piece of brief information on the tea economy of Assam. As per the Government of Assam’s Industries and commerce portal, the industry is 172 years old, and the state has a tea research organization that relentlessly works on the development of tea production and its quality improvement. This has helped Assam tea secure a niche across the globe. The state has approximately 60,000 small tea gardens spread across eighteen acres that sell green leaves to the growers who have the factory, one can download the directory from the portal.
How do I start my own tea business in Guwahati?
- Form a company and obtain licenses from the local authority.
- Take a spacious workshop/warehouse with a packaging center (Take it in a remote/rural location where road connectivity and labor are easily available)
- Register the company as a buyer with GTAC (Guwahati Tea Auction Center) and Tea Board.
- Register a brand name
- Decide on the size, variety, and packaging.
- Procure packaging material in bulk (Preferably from Kolkata/Delhi)
- Deploy manpower for packaging, sourcing, and operations.
- Source loose teas from GTAC, Gardens, Wholesaler. (GTAC is the most preferred)
- Package the tea (Pouch/Tin/Tea Bag)
- Start marketing (Digital/Physical) in the target market and put distribution in (Delhi Market)
- Register the company in FBA (Fulfillment by Amazon) and start selling online.
How to package tea for sale?
When it comes to packaging tea for sale, several considerations need to be taken into account. The first and foremost aspect of the food business is the safety of the product. Tea needs to be stored in an airtight package that will keep moisture out and preserve its flavor and freshness over time. Additionally, it’s important that any packages used can easily withstand shipping so they arrive at their destination intact with no damage or contamination from outside sources like dust or dirt particles.
In addition to safety concerns, tea packaging also needs to be aesthetically pleasing for customers to want to purchase your product over others on the market shelves. This means choosing a design scheme that appeals visually as well as selecting colors that match your brand identity or logo if you have one already established. The right combination of colors can make all difference when trying to attract potential buyers!
Finally, labeling should not only include information about ingredients but also instructions on how best to prepare each type of tea to ensure optimal results every time someone brews up a cup using your products! Providing this kind of useful information helps build trust between your business customer base while helping them get the most out of what they purchased from you – something everyone appreciates greatly these days!
Investment required to start a tea business
To start the tea business, you may budget Rs 20 lakhs (INR).
- Company formation, licenses, and registration Rs 50K to Rs 1 Lakh
- Warehouse/Packaging center lease and setup Rs 2 Lakh to 3 Lakhs
- Sourcing 10 Lakhs (Tea and packaging)
- A mini truck/Carrying Van under bank finance (Rs 1 lakh as a down payment)
- Working capital Rs 5 Lakhs
How do I promote my tea business?
Conclusion
- First, you’ll need to come up with a great name for your brand. This is important because it will be the first thing potential customers see. Try to come up with something that is unique and eye-catching.
- Next, you’ll need to design a logo for your brand. This is important because it will help your brand stand out from the competition. Make sure your logo is simple and easy to remember.
- Finally, you’ll need to create a packaging design for your tea leaf products. This is important because it will be the first thing customers see when they are looking for your products. Make sure your packaging is eye-catching and easy to understand.
By following these steps, you’ll be well on your way to creating a successful tea business and a packaged tealeaf brand.
Hope you have liked the tea business plan, in case you need any other clarification may write to me, I promise to get back within a week or two.
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