Complete Guide to Start Packaged Tea Business in India.pdf

If you are an actual or passionate tea lover and planning to start a new tea business in India, you are right. People’s fondness for tea will never end, and they are keen on new flavours.

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DesignerPeople May 19, 2022
Complete Guide to Start Packaged Tea Business in
India
designerpeople.com/blog/tea-packaging-business

For Indians, tea is not just a phrase or a beverage; it is an emotion: a typical Indian can’t
start a day without tea, and it is a part of our everyday lives. Everyone has their
beginnings when they get attached to “Chai”, and it is taken as the best solution by many
people for their stress. As a design agency , we discussed in detail about tea business
from history to present.
Coffee is also a beverage choice, but according to studies, the Indian population consumes
30 cups of tea for every cup of coffee. In addition, people also use tea during the evening,
and most tea lovers even consume it during the day.
According to studies, an average adult in India consumes 2 cups of tea daily, and it may go
more depending on the weather and mood. It is one primary reason the tea business is
considered one of the most promised businesses. It is also the best business to start with
minimum investment.

History of Tea in India
India is the second-largest tea producer in the world after China. Overall, 70 per cent of
the Indian teas are consumed in India itself. Also, varieties like Assam and Darjeeling tea
were grown exclusively in India. The tea industry grows like nothing, and more brands are
introduced with the latest technologies.

It all started with the British, who discovered tea in India and cultivated and consumed it
in extensive quantities between the early 1800s and 1947. In 1774, Warren Hastings
approved some China seeds to George Bogle for planting, but nothing went more. Later in
1776, Sir Joseph Banks studied the scope, and with his recommendation, the tea
cultivation undertook in India.

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Also Read: UPSCALE YOUR BEVERAGES WITH AN EYE-CA TCHING CAN LABEL
DESIGN

Tea Business Statistics 2021 in India

The consumption of tea in India was around 1.1 billion kg in 2021, and the consumption
of hot beverages also increased throughout the years. Out of the total tea production in
India, the major centres are Assam and West Bengal. The state of Assam is also one of the
highest tea-growing regions. Coming down to the south, Tamil Nadu is the highest tea
producer, followed by Munnar and Wayanad.

The Indian tea market expects an increase of around 4.7% from 2022 to 2027. Even
during the pandemic, the industry didn’t fall compared to other sector

Even studies state that by 2025, brands will introduce tea segments in bars and
restaurants. The average volume per person in the Tea segment is expected to increase by
0.8kg in 2022.

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How to start Packaged tea business in India?

Now let’s discuss the primary factor that should consider before starting a tea
business:
Before starting a tea business in India:
As tea production is one of the topmost segments, you need to look after many factors
before setting a brand:
Understanding Camellia Sinensis:
If you are a hardcore tea lover and want to start a new venture, the success of your
business depends on the magical plant called Camellia Sinensis. It is the central tea plant
that produces more than 1000 varieties. If you want to succeed in the tea business, you
need to understand the plant clearly. The best way of obtaining knowledge about this
plant is by visiting tea estates and interacting with the farmers.

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Recognise Your Focus Competency:
Being the 2nd largest tea producer globally, numerous brands are coming up daily. So you
need to be unique and identify how your brand can stand out from the others.
Understanding your target competitors and evaluating them helps get an idea of what’s
already existing in the market and how it can stand out. It will also help you set up the
prices competitively and counter adversary marketing campaigns with your initiatives.

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Define your target audience:
Around 90% of the Indian population are tea lovers, so are they your target audience? No,
your audiences are attracted to your brand’s offerings. Even the rising premium tea
market in India is a piece of evidence that people have their preferences, and it’s essential
to define your target audience so that you will design your brand accordingly.
Working Capital & Budget Required:
You should consider the budget of working capital to run the business smoothly. It needs
to be depending on the segment, operational cycle, the company’s goals and mission.
Having a clear idea of the working capital helps to proportion things equally and executes
strategies considering it. To develop a tea business, approximately 25-40 Lakh investment
is required for raw material stocking, Packaging material, branding, Marketing, Packaging
Machines, Rent and skilled/unskilled human resources etc.

Machinery &Labour: Production of tea is a long and extensive approach. Different
types of machinery are used in the four stages of production withering, rolling, oxidation
and drying. Also, tea development is a comprehensive labour crop that requires a good
supply of economic and skilled labour, especially during tea leaves plucking.

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How to set up packaged tea business:
Now let’s discuss how to establish a packaged tea business:
Register your business officially with the authorities:

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The first and foremost step in setting up your packaged tea business is registering your
business officially with the authorities. You can establish it by applying the MCA portal
and other procedures. Apply for brand registration to select the brand and start with the
production.
Legalise your tea business:
After the registration, it’s time to legalise your tea business and get the license number.
Legalising your business helps in enjoying all the rights of the company.
Complete your GST Registration and Micro-Small and Medium
Enterprises:
After legalising, it’s time to get your GST registration by going to the official portal or
approaching expertise people, uploading documents on the portal, GST registration form
submission, ARN number generation, and filing the MSME registration receipt.
MSME/ Small Scale Industry (SSI) registration:
You can easily register an MSME and SSI company with proper business address proof,
the promoters’ identity, the business’s constitution, and any other additional documents.
Obtain a trading license:
After the registration, it’s time to obtain a trading license to get the right to all the
manufacturing activities.
Get an FSSAI (Food Safety and Standard Authority of India) License:

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FSSAI license is an essential requirement for every tea business company in India to
manufacture, pack, retail, trade, wholesale, and distribute and supply of tea. Your FSSAI
registration also needs to match the nature and size of the tea business.
Branding & Marketing:
The next and final step is the branding and marketing:
Tea Brand Design:
Having a solid tea brand design helps your customers perceive your company, products
and services. Understanding your target market or audience is essential in engaging their
attention. An engaging tea brand design makes your brand get the correct position in the
market and helps in coming out with something new.
Source:
https://dangkysanpham.vn/
Source:

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Source:https://in.pinterest.com/blessedteain/
Source:https://www.pedalforce.org/
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Source:https://dk.linkedin.com/company/kazi-kazi-tea-estate-ltd

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Tea packaging Design:
Consumers are more concerned about purchasing and clearly understand the current
scenario. So, your tea packaging design can be the customer’s initial point of contact with
your product, and a professionally designed tea packaging will entirely change the face of
your brand. You can convey your value proposition or brand through effective packaging
design. Brands offer top quality, economical and distinct options to stand out.
Source: https://packagingoftheworld.com/darjeeling-tea
Source:https://in.pinterest.com/pin/540643130269369253/
Source:https://in.pinterest.com/azhalsports/packaging-design/
Source:

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Source:
https://www.pinterest.es/pin/537265430551752808/
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Source:https://www.behance.net/gallery/133225517/Tea-packaging-design

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Tea Brand Digital Marketing:
Though the tea industry is among one of the top segments, there are still marketing
challenges faced by top brands. Only a few methods can get your brand into a global
audience, and digital marketing is the top one. Digital marketing helps improvise
strengths, enhance opportunities and recognise threats to the tea business.
Source:https://in.pinterest.com/pin/597501075537686743/
Source:https://in.pinterest.com/hannahianchen/drinks/
Source:https://in.pinterest.com/sattlapyae/for-idea/
Source:https://www.pinterest.it/pin/650066527469529022/
Source:https://www.samjhans.com/teaindia

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Source:https://www.kathryndaviscreative.com/hylands-tea-print

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What is the Tea packaging process in India?

Let’s discuss the tea packaging process in India:

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Growing & Withering:
The first stage is the growing and harvesting period in making tea. The growing
environment and harvesting methods influence a significant role in the final product.
Therefore, while doing the initial step, you need to get the best output. For example,
planting tea in the rocky landscape can change the nature of the leaves. The main
difference between the tea segmentation is also categorised according to the above
conditions.
Bruising:
The step aims to seize up cell walls in the leaf and ease into the next step, known as
oxidation. After withering, the leaves are rolled, warped, or even crushed. The leaves need
to be purely and evenly bruised to make a good batch of a team and maintain consistency.
If there are black leaves, they are processed through multiple bruising and oxidation.

Oxidizing:

After bruising, leaves are left to oxidise and turn brown. These are then set out and left to
wither. You should meticulously monitor the leaves during this stage process. Again, heat
and moisture are carefully controlled and make sure the tray is rotating evenly. The
particular browning process is the central differentiation between different types of tea.

Fixing:

In this fixing process, whatever green is left is preserved. The particular method leads to
flavour distinction. Even the variations in heating the leaves lead to some differences
between the regional styles. For example, steamed leaves taste entirely different from
roasted ones.

Drying:
In the last step, teas are dried to remove all moisture and make a shelf-stable leaf. The
particular heating method also leads to a dramatic change in the flavours of the tea. The
technique is mainly observed in charcoal roasting, which communicates a uniquely rich
quality to the flavour.

Packaging:

The blended tea leaves are placed into a caper which caters for a machine that attentively
measures and distributes the proper amount of tea into the packet. After filling and
sealing, the package goes for a final check, which all are taken place automatically.

Tea packaging bags are fed into distinctively designed machines that can fill thousands of
teabags in a square, round, pyramid, etc. Once the bags are filled with teas, they are
packed into cartons for distribution.

Now the tea bags reach the destination where the products are delivered to customers.

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Through wholesalers or salesman, the tea companies sell their products to supermarkets
and other retailers. Your tea reaches the shop shelves between 20 to 30 weeks after being
plucked on the tea estate.
Conclusion
If you are an actual or passionate tea lover and planning to start a new business in India,
you are right. People’s fondness for tea will never end, and they are keen on new flavours.
The tea business is a highly demanding segment and has a good demand in the Indian
region.

If you have any doubts about starting packaged tea business in India, we will help you.
With more than 18+ years of proven tea branding and packaging experience,
DesignerPeople has a good experience in the tea segment, and we can convert your dream
into a successful brand.
Author: Anush Malik
Being a strategist’s head and a long term visionary
personality aims to achieve excellence in branding,
packaging and digital marketing field. My 15 years of
design experience and masters degree ais my strength
which keeps me motivated and keep me going
positively. I have participated in extensive branding
design conquests in India, USA, Australia and New
Zealand with winning zeal. My objective is to
encourage start-ups and hence involves actively in the
articles which will act as a productive intake of
knowledge for them. Do connect me personally via
my LinkedIn and I love to share my expertise with
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