Do you want to start a tea business in India? Do you want to know the best possible options for starting a profitable tea business? The object of crafting this article is to provide 5 ways for starting tea business for the entrepreneurs who look for the same.
Tea is an important beverage in India. Simply, we consume tea as a refreshing energy booster. Additionally, the tea comes with several health benefits too. The antioxidants help to eliminate toxins and free radicals from the blood.
According to the tea production process, there are two different types of tea. These are CTC and Orthodox. However, according to the taste and flavor, there are several types of tea available in the Indian market.
These are black tea, green tea, white tea, a fermented tea, oolong tea, aroma tea, etc. Also, there are some different varieties of tea according to the origin. These are Darjeeling tea, Assam tea, Dooars & Terai tea, Kangra tea, Nilgiri tea, Annamalai Tea, Wayanad Tea, Karnataka tea, and Munnar tea.
Indian Tea Industry
Globally, India is the largest grower, producer, and exporter of the tea. The tea business of our country accounts for 31% of global production. Nowadays, the industry is having a 1692 registered tea manufacturer and 2200 registered tea exporters in the country. Additionally, the industry enjoys 5548 registered tea buyers and 9 tea auction centers.
The Indian tea industry is about 170 years old. The Northern and Eastern part of India is the major tea growing areas. However, Nilgiri in the southern part of the country also produces a significant amount of tea. Generally, the three prominent tea-growing regions in India are Darjeeling, Assam, and Nilgiri. Additionally, other tea growing areas are Karnataka, Tripura, Himachal Pradesh, Tamilnadu, Kerala, Meghalaya, Mizoram, and Bihar. Kolkata, Siliguri, Guwahati, Coonoor, Cochin, and Coimbatore are the major tea auction centers.
The tea industry holds an important position in the Indian economy. The industry earns a significant amount of foreign exchange. Therefore, it has a great impact on GDP. Additionally, the industry is the second-largest employer in the country. Because the industry hugely depends on human labor, not on the machine.
Therefore, our country is the best place for starting a tea business for new entrepreneurs. However, starting a tea business demands investment and knowledge. According to your investment capacity and risk-taking ability, you can start a business in this lucrative field.
Tea Business Profit Margin
If you want to consider starting a tea business you must be thinking about how much profit you can expect from the business. In this article, we accumulate 5 tea business models that need different amounts of startup investment and profit.
Generally, tea plantation with processing business ensures a better profit margin. Also, tea exporters earn a good amount of profit. Also, the online tea business ensures a 100% gross profit margin in any case.
A tea stall is a great opportunity for self-employment. So, it demands a very small investment and ensures small returns too.
Top 5 Ways for Starting Tea Business
#1. Online Tea Business
Online tea selling is the low-cost tea business you can start from home also. The business is simply setting up an eCommerce site for selling tea. However, the overall operation contains maintaining the site, procuring tea, sending the product through courier, and getting the payment.
Promotion plays an important role in this business. Additionally, you must know the different varieties of tea and flavors. Nowadays, several companies offer eCommerce platforms for small sellers or beginners in exchange for reasonable monthly fees.
#2. Tea Export
Tea export business demands moderate capital investment. Additionally, location plays an important role in this business. If you live nearby the tea auction centers, you can start this business. These days, the major tea importing countries are Russia, Pakistan, Iran, the UK, and the USA.
First of all, you have to obtain the IEC code for starting tea export. The business demands sound knowledge about the international market demand for tea.
#3. Tea Plantation
Tea plantation business demands substantial capital investment and long-term strategic planning. However, the business is highly lucrative and it ensures a great net profit yearly. If you want to start tea plantation, then having a tea garden is a must. And you can have a garden in two ways. Either you can purchase an old tea garden or you can get into a lease agreement with an existing garden owner.
Tea plantation is a high management-intensive work. You need experienced manpower for the overall operations of the garden. Additionally, you have to have a full-proof financial plan. You must ready for the upfront investments in procurement, staffing, etc.
#4. Tea Processing
Tea processing is another great tea business that ensures great profit and revenue. Generally, big gardens have their processing centers. On the other hand, small gardens depend on the other tea processing centers. Usually, they sell the green fresh leaves to the processing centers.
Therefore, the success of the tea processing business hugely depends on the location. Additionally, the raw material input directly depends on local tea production. In starting a tea processing unit, you have to put the investment in land & building, machinery, raw material purchase, utility, and manpower.
#5. Tea Stall
A tea stall is a highly lucrative retail tea business you can start with any type of investment capacity. Do you know the brand Tea Junction? the brand operates shop-in-shop style. A tea stall with comfortable sitting accommodation and a wide range of tea is a very lucrative space for any age group of people.
You can open a tea stall as a franchise also. However, starting your brand will give you the opportunity of future expansion. Additionally, the business is highly self-rewarding. You can open a tea stall in both the metro cities and small towns.
We hope, this list of tea business ideas will help you in starting a profitable and right business. If you have any other tea-based business idea in your mind, do share on our Facebook page.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.