Instant Tea Manufacturing Business

Instant Tea Manufacturing Business. Production of Black Instant Tea and Green Instant Tea. Business Opportunities in Instant Beverage Industry

 

Black tea is a type of tea that is more oxidized than oolong, green, and white teas. Black tea is generally stronger in flavour than the less oxidized teas. All four types are made from leaves of the shrub (or small tree) Camellia sinensis.

Instant teas are produced from black tea by extracting the liquor from processed leaves, tea wastes, or undried fermented leaves, concentrating the extract under low pressure, and drying the concentrate to a powder by freeze-drying, spray-drying, or vacuum-drying. Low temperatures are used to minimize loss of flavour and aroma. Instant green teas are produced by similar methods, but hot water is used to extract liquor from powdered leaves. Because all instant teas absorb moisture, they are stored in airtight containers or bottles.

Instant teas are once put into liquid form and the amount of nutrients is said to be the same as the brewed green tea. On the other hand, green tea powder is simply fine powder of loose leaf teas that you can take in the nutrients of the whole leaf.

Instant tea is a soluble type of tea powder that is either roasted or grounded in form. It has recently gained popularity over the traditional style of consuming tea as it is easier and quicker to prepare. The grounded crushed leaves of tea are extracted along with hot water to derive the desired tea flavor and aroma. Furthermore, these tea extract is then dried either by spray drying or freeze drying to prepare and pack the tea powder in glass jars or sachets. Individuals worldwide are found accepting instant tea rather than the traditional one as it is helping them to save time and resources in preparing the originally brewed tea.

 

Market Outlook

Global instant tea market is expected to grow on account of changing eating habits and lifestyle. Increasing preference for ready-made food & beverages due to its time conservation nature is expected to drive global instant tea market. Growing ready-made food & beverage market is expected to remain a key driving factor for global market growth.  Shift in trend towards instant tea in emerging economies is expected to further augment market growth. Increasing demand for instant green & herbal tea products due to rising health awareness is anticipated to foster the global instant tea market growth.

Green tea has abundant health benefits such as antioxidants, reducing cancer cells, headaches and helps in fat reduction. This in turn is expected to fuel the global instant tea market. Changing customer taste and preference to drinks such as ice tea and black tea is projected to uplift the instant tea market. Presence of wide variety of flavors such as lemon, vanilla, aloe vera, jasmine and basil is projected to impact global market growth positively. Technological advancements in food & beverage packaging have resulted in increased food shelf life. This is expected to have a positive impact on the global market.

Rising ready-to-eat beverages market is projected to endure a major driving factor for this market growth. Change in tendency about premix instant tea in developing economies is projected to boost the instant tea market growth. Increasing demand for herbal and instant tea products due to growing health consciousness is expected to substitute the instant tea market progress. Green tea has rich health welfares such as fat reduction, headaches, antioxidants, and others. Shifting consumer taste and preferences to beverages such as black tea and ice tea is expected to raise the global instant tea market.

Nowadays, due to busy schedules and hectic lifestyle, many people have started to trust on ready-made food products, increasing the popularity of instant tea market in upcoming years. With added health benefits of instant tea such as fat reduction, antioxidants, and headache and various components such as cardamom, ginger, basil, and aloe vera are proven to be fit for health. This key factor is anticipated to increase the growth of instant tea premix market in forecast period. Increasing trade values in emerging economies is also projected to increase the growth of instant tea premix market in upcoming years.

Companies in the food & beverage industry are continuously aligning themselves to consumer preferences and recent food consuming trends to emerge as key players in local markets as well as international markets. Growth in imports and exports of Instant Tea along with increasing support sectors are further fuelling the market growth.

The leading players in the market are Starbucks Corp., Keurig Green Mountain Inc., PepsiCo Inc., Ito En Ltd., The Coca-Cola Company, Suntory Beverage & Food Ltd., Monster Beverage Company, The Republic of Tea Inc., Dunkin Brands Group Inc., Others The major players in the market are profiled in detail in view of qualities, for example, company portfolio, business strategies, financial overview, recent developments, and share of the overall industry.

Green Tea Market

The global green tea market reached a value of US$ 17.4 Billion in 2018. Green tea, made from the unoxidized leaves of Camellia sinensis, is a pale green beverage with a slightly bitter taste. It was traditionally employed as a medicine in China and India for easing digestion, regulating body temperature, improving heart and mental health, controlling bleeding, and healing wounds. On account of altering lifestyles of consumers, increasing prevalence of chronic diseases and rising awareness about the health benefits of green tea, it is becoming one of the preferred beverages across the globe. In addition to this, green tea is widely used as a raw material in the production of beverages, dietary supplements, dental care items and cosmetic products.

The green tea market is gaining immense popularity across the globe and is anticipated to witness robust growth throughout the forecast period. In addition, convenient and attractive packaging is expected to drive the demand and encourage the growth of the market. The increasing number of players entering the global green tea market is expected to strengthen the competitive scenario throughout the forecast period.

The global green tea market is witnessing an impressive growth over the last few years. This is attributed by the rising health conscious people both in developed and developing economies. Also, increasing disposable income of the consumer is anticipated to be the significant reason of the growth of green tea during the forecast period. Increasing cardiovascular diseases and obesity cases are anticipated to fuel the sales of green tea during the forecast period. Apart from that, presence of catechin in green tea hinder the growth, motility, and incursion of cancer cells which in turn escalates the death of such malignant cells.

Moreover, Green tea acts as a natural detoxification agent and helps in healing scars, managing weight, and improve the quality of the skin. The growing popularity of convenience options has driven the rise in the consumer preferences for green tea, all while keeping the product offerings fresh and unique to grab more consumers.

Also, increasing health cognizant consumers in developed economies is anticipated to boost the sales of green tea during the forecast period. Also, the enhancement of livelihood among the consumers in developing economies is also significant factor for the growth of Green Tea over the forecast period.

On the other hand, the higher price of green tea in comparison with black tea and the lack of awareness, especially in developing economies are anticipated to restrict the growth of the global green tea market in the next few years. Nevertheless, the expansion of the product portfolio and the increasing marketing activities and advertising are projected to offer promising opportunities for the key players in the global green tea market.

Companies such as Tetley GB Ltd., Tata Global Beverage, Nestle S.A., DSM Nutritional Products, Associated British Foods LLC, Unilever Group, Oregon Chai Inc, Northern tea Merchants Ltd., AMORE Pacific Corp, and Numi Organic Tea, AriZona Beverage Company LLC, Amorepacific Corporation are the key players in manufacturing green tea globally.

Black tea production in India, the world's second largest producer, is projected to rise to 1.61 million tonnes in the next decade from 1.26 million tonnes in 2017.

Black tea is the most exported tea product from India to the global market. India exports of black tea stood at 80.46% of the total tea exports which is followed by regular tea and recorded 15.66% value. Green tea, herbal tea, masala tea, and lemon tea are other types of tea exported majorly. With the growing awareness about the health concerns, the shift of consumer from normal tea to free/limited pesticides tea is on the rise. However, the price for such tea is high than ordinary tea. The value addition to tea, a flavored version of green tea has a great scope as this has become popular among all age groups even youngsters.

Various part of India is famous for tea production; East and North East part of India (Assam, Tripura, Manipur, Darjeeling, Terai part of West Bengal), The North part of India (Kangra valley in Himachal Pradesh, Dehradoon etc) and South (Part of Kerela and Karnataka).

 

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Ø  Introduction

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·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

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·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

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Ø  Raw Material

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·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

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Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

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·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

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Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

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·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR