Tea Bag Making Business – Plan, License, Profit

Starting Tea Bag Making Business in India


The tea bag-making business has only two major raw material constituents – tea and paper bags. A tea bag is a small, porous sealed bag comprising tea leaves and it is used with a hot cup of water to make the beverages called tea. An aspiring businessperson having adequate information about tea leaves can start a tea bag making business with reasonable capital investment.

Tea is fast-moving consumer merchandise next to staple foods such as wheat and rice in any nation. India is the largest customer of the beverage in the world, overriding nearly 25% of the global tea production, concerning a report by trade association ASSOCHAM (Associated Chambers of Commerce and Industry of India).

A step-by-step guide to starting a Tea Bag Making Business in India

Tea Bag Making Business in India
A guide to starting a Tea Bag Making Business in India (Image source: pixabay)

Business plan for starting Tea Bag Making Business

Before initiating any business especially small-scale manufacturing it is significant to have a business plan. It is always suggested to prepare a customized project plan according to your savings/ capital and required production capacity. The business plan, including the marketing policies, business objective, and mission declaration.

A proper marketing plan is completely important in this business. Also, financial planning relies on that. You must have a proper idea about the selling procedure. You can try for a distribution network. However, it demands much of your capital to sustain the circle and enhancing business.

License, registration and permissions required to start Tea Bag Making Business

While beginning the venture you must determine the legal format of the business. You can start by registration of a Person Company or you may register a business as LLP, Pvt. Ltd or Ltd Company. Get Trade License from the local authority.

It is important to have GST registration. This type of small-scale manufacturing may not require NOC from Pollution Control Board. Choose a notable, likable name of your brand.

Below is the list of licenses required before starting the Tea Bag Making business making business in India: Registration of firm, GST registration, Trade license, Pollution certificate, MSME/SSI registration, EPI and ESI registrations, Trademark, FSSAI registration, IEC code, FPO act.

Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.

FSSAI registration: A Tea Bag Making business is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready.

Shop Act or Trade License: The Tea Bag Making business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.

Udyog Aadhaar Registration: A Tea Bag Making business is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.

GST Registration: Every business, including the Tea Bag Making business, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.

BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.

No Objection Certificate from State Pollution Control Board: A Tea Bag Making business doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.

Machinery required to start Tea Bag Making Business

Teabag making machines manufacture tea bags with string & tag using heat-sealable filter paper. It’s an automatic function where the bag forming filling, sealing, and even the addition of the string and tag is fully automated

Easy to handle and operate equipped with all contact parts of stainless steel. Several user-friendly fully-automatic machines or semi-automatic and are obtainable in the market. Choose machines as per your production quantity necessity. Crosscheck the warranty duration.

Raw materials required to start Tea Bag Making Business

The selection of the variety of tea is the chief factor to get the quality item for consumption in the tea bag making business. Organic Tea, Herbal Tea, Green tea, Assam tea, Mixed Blended tea are the most prevalent tea variety usually used to make teabags.

Normally one teabag includes approximately 1-4 ounces of tea leaves. Also, you must source quality paper to make tea bags from trustworthy suppliers. Other requisites are packaging materials such as bags, pouches, and cardboard packets.

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The investment required for starting a Tea Bags making Business in India

Cost of the Tea Bags making machine (automatic) – Rs. 1,75,000

Cost of raw materials – Rs. 25,000

Cost of machinery and other requirements – Rs. 1,00,000

Packaging cost – Rs. 25,000

Other expenses – Rs. 25,000

The total expenses required to start a Tea Bags manufacturing business is Rs. 2,50,000.

Profit in Tea Bag Making business in India

Profit in Tea Bag Making business in India
Profit in Tea Bag Making business in India (pic source: pixabay)

Because of the high demand, the profit margin in the Tea Bags Making business is high. One can gain more than 2000 rupees every day. The profit margin in the Tea Bags making business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the Tea Bags making business though you have spent less capital.

Where to sell the Tea Bags

You can sell your Tea Bags in local markets or you can even sell in the wholesale stores. You can also register in B2B websites and B2C websites in online markets to promote your product.

You can also sell your products in supermarkets, small stores in shopping malls, etc. Advertise about your product through social media to get a huge number of clients in this way you can increase and promote your business. Even though there are several Tea Bags manufacturers in India, but the demand for encouraging the new product is also high because of its uses. So, you need not worry about the market. You can sell your product based on the Tea Bags wholesale price India.

Marketing strategies to promote Tea Bag Making Business

As tea bags are consumer goods you must be careful on creating brand equity, maximize brand perceptibility, and endorsing brand usage. You can begin selling them locally by starting a distribution channel. Approach some retail brands to have a deal with your business. In India hotels, clubs, restaurants, business houses, hospitality management companies are the major customers of teabags.

You can plan for some creative designs for teabags. Register your product with diverse online shopping platforms to entice online consumers. Get prepared to establish an online presence in your tea bag making business. Give some clear informative facts there about numerous varieties of tea and their great flavors.



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