Project report for Tea Blending Unit

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In India, Tea is one of the most popular beverages and is consumed by nearly half of the world population. India was the first country to cultivate the tea as far back as 2737 B.C. Tea blending is process of bringing together teas from various sources and regions with varied level of flavor and liquor. Some regions grow tea of low level of flavor and strength and that needs to be blended with better quality of tea as per consumer’s preferences. Tea is made from the young leaves & unopened buds of the plant ‘Camelia Binerisies’. This plant is grown in tropical and subtropical regions. It is considered to be native of Assam and upper Indo- China. It buds of the evergreen tea-plant, which is popularly acclaimed as a healthful herbs. There are mainly 4 varieties of teas according to process parameters. Fermented tea, partically fermented tea, unfermented teas or green teas, brick tea. Most of the teas quality judges by its flavour and aroma producing capacity on unit weight of processed tealeaves. The packing tea industry is divided into organized and unorganized sectors. There is good market for new entrepreneurs.

Since tea industry is an evergreen industry hence the packing of tea continues round the year irrespective of reason or weather. That is why it is considered to be a very stable industry & the men working in the line are employed on permanent basis & are quite experienced in the job. This industry can be set up in small scale as well as large scale unit, but it remains basically a labour intensive industry with a very attractive profitability.

Market potential & Strategy

Tea production is a profitable opportunity for the new entrepreneurs. The Tea Market was valued at INR 33,79,100 Lakhs in 2019, and is projected to reach at INR 49,34,847 Lakhs by 2026, growing at a CAGR of 5.5% from 2019 to 2026. The tea market is majorly driven by the health benefits associated with consuming tea and increase in awareness related to carbonated drinks among people. Moreover, increase in caf culture, rise in disposable income, change in tastes of people, and introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth. However, increase in cost of raw materials due to unpredictable weather, rise in cost of agricultural inputs, and increase in trend of out-of-home coffee consumption are expected to limit growth of the tea market. The introduction of new flavors & variety in tea and growth in demand from health-concerned young population are anticipated to provide lucrative opportunities for the market. The tea market has been segmented by form, product type, and distribution channel. By form, the tea market has been segmented into leaf tea, CTC tea, and other forms of tea. Black tea held for the dominant market share of the tea market owing to its wide popularity.

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