New Startup for Tea Processing Unit : Leveraging Global Beverage Trends
Tea remains one of the most popular beverages globally, with a diverse range of products and a robust export market. This report provides an analysis of establishing a tea processing plant.
Market Potential
The steady demand for tea, coupled with diverse product offerings, ensures a strong market.
Technical Feasibility
Raw Materials
- Tea Leaves: Primary raw material for tea processing.
Production Process
- Plucking and Withering: Plucking tea leaves and withering to reduce moisture.
- Rolling: Rolling the withered leaves to shape them.
- Fermentation: Fermenting the rolled leaves to develop flavor.
- Drying and Packaging: Drying and packaging the processed tea leaves.
Plant Layout and Machinery A typical plant layout includes:
- Withering Unit
- Rolling Unit
- Fermentation Unit
- Drying and Packaging Unit
Financial Analysis
Total Project Cost
- Land and Site Development: ₹4 crore
- Plant and Machinery: ₹20 crore
- Installation and Erection: ₹4 crore
- Preliminary and Pre-operative Expenses: ₹4 crore
- Working Capital: ₹4 crore
- Total Estimated Cost: ₹36 crore
Revenue Generation Revenue from the sale of processed tea is estimated based on market rates.
Cost of Production
- Raw Material Cost: ₹12 crore per annum
- Operating Expenses: ₹4 crore per annum
- Maintenance and Utilities: ₹2 crore per annum
Profitability Analysis
- Total Annual Revenue: ₹54 crore
- Annual Expenses: ₹18 crore
- Net Profit: ₹36 crore
- Rate of Return: 15%
- DSCR: 1.6
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