Tea has long been the pride of Bangladesh’s hills and highlands. From Sylhet to Panchagarh, the aroma of fresh tea leaves tells a story of soil, sweat, and sunlight. Most important, tea isn’t only a beverage here — it’s a thriving industry that supports millions. Because of this, tea packaging and processing have become one of the most promising investment sectors in Bangladesh.
This article presents a comprehensive project profile for setting up a Tea Packaging and Processing Industry in Bangladesh — covering market potential, technical details, financial projections, and profitability analysis.
1. Project Summary
Tea packaging and processing involve cleaning, grading, blending, and packaging of processed tea leaves for retail and export. Bangladesh produces about 100 million kilograms of tea per year, and domestic consumption is rapidly growing. Therefore, investment in modern packaging and value-added tea processing offers a profitable opportunity.
| Particulars | Details |
|---|---|
| Project Name | Tea Packaging and Processing Industry |
| Proposed Location | Sylhet / Moulvibazar / Panchagarh / Gazipur |
| Project Type | Manufacturing & Packaging |
| Estimated Project Cost | BDT 12.50 Crore |
| Capacity | 1,000 kg processed tea per day |
| Employment Generation | 60–80 persons |
| Project Implementation Period | 12 months |
| Power Requirement | 200 kW (approx.) |
| Land Area Required | 20,000 sq. ft. |
| Water Requirement | 1,000 liters/day |
| Raw Materials | Green Tea Leaves, Packaging Materials |
| Target Market | Local market, supermarkets, export to EU, Middle East |
2. Market Potential of Tea Industry in Bangladesh
Bangladesh ranks among the top ten tea-producing countries in the world. The country exports tea to more than 20 nations, including Pakistan, Russia, UAE, and the UK. Domestic consumption has also grown by over 8% annually due to lifestyle changes and urbanization.
The Bangladesh Tea Board (BTB) estimates that the national market for packaged tea exceeds BDT 3,000 crore per year, and local brands like Ispahani, Finlay, and Seylon dominate retail shelves.
However, there’s still space for medium-sized packaging industries that can offer blended, flavored, and organic tea with premium branding.
Key Market Drivers:
- Rising health awareness and preference for green/herbal tea
- Expanding export potential through GSP facilities
- Affordable labor and favorable agro-climatic conditions
- Government incentives for agro-processing industries
3. Project Objective
The main objectives of this project are:
- To establish a modern tea packaging and processing unit with an automated system
- To create employment and add value to locally grown tea
- To reduce dependency on imported packaged tea brands
- To expand Bangladesh’s export share in the global tea market
4. Technical Aspects
4.1. Raw Materials Required
| Item | Source | Monthly Requirement | Unit Cost (BDT) |
|---|---|---|---|
| Processed Tea Leaves | Local Tea Gardens (Sylhet, Panchagarh) | 25,000 kg | 200/kg |
| Packaging Materials (pouch, box, carton) | Local suppliers (Dhaka) | As per order | 60/kg |
| Flavor Additives (optional) | Imported | 200 kg | 1,500/kg |
| Labels, Stickers, Tapes | Local | As required | 40,000/month |
4.2. Machinery and Equipment
| Equipment | Quantity | Estimated Cost (BDT) |
|---|---|---|
| Tea Cleaning and Sorting Machine | 1 | 15,00,000 |
| Blending Machine (500 kg/hr) | 1 | 10,00,000 |
| Tea Dryer (Electric/Steam) | 1 | 8,00,000 |
| Weighing and Filling Machine | 2 | 20,00,000 |
| Pouch Sealing and Packing Machine | 2 | 12,00,000 |
| Labeling and Coding Machine | 1 | 5,00,000 |
| Carton Sealer and Strapping Machine | 1 | 3,00,000 |
| Boiler & Steam System | 1 | 10,00,000 |
| Generator (50 kVA) | 1 | 12,00,000 |
| Miscellaneous Tools & Equipment | — | 10,00,000 |
| Total Machinery Cost | 1,05,00,000 |
5. Project Cost Estimation
| Particulars | Amount (BDT) |
|---|---|
| Land and Land Development | 1,00,00,000 |
| Building and Civil Construction | 2,50,00,000 |
| Machinery and Equipment | 1,05,00,000 |
| Electrical & Utility Installation | 25,00,000 |
| Office Furniture and Fixtures | 10,00,000 |
| Vehicle (Delivery Van) | 30,00,000 |
| Pre-Operational Expenses | 20,00,000 |
| Working Capital (6 months) | 1,50,00,000 |
| Contingency (5%) | 50,00,000 |
| Total Project Cost | 7,40,00,000 (≈ BDT 7.4 Crore) |
6. Production Capacity and Operation
| Particular | Details |
|---|---|
| Installed Capacity | 1,000 kg per day |
| Annual Working Days | 300 days |
| Annual Production | 300,000 kg |
| Utilization (1st Year) | 70% |
| Average Selling Price | BDT 800/kg |
| Annual Sales Revenue | ≈ BDT 16.8 Crore |
7. Manpower Requirement
| Category | No. of Persons | Monthly Salary (BDT) | Annual Cost (BDT) |
|---|---|---|---|
| General Manager | 1 | 100,000 | 12,00,000 |
| Production Manager | 1 | 80,000 | 9,60,000 |
| Machine Operators | 5 | 30,000 | 18,00,000 |
| Packaging Workers | 15 | 18,000 | 32,40,000 |
| Quality Controller | 1 | 50,000 | 6,00,000 |
| Electrician/Technician | 2 | 25,000 | 6,00,000 |
| Accountant/Admin | 2 | 40,000 | 9,60,000 |
| Sales & Marketing Staff | 4 | 30,000 | 14,40,000 |
| Security & Support Staff | 5 | 15,000 | 9,00,000 |
| Total | 36 Persons | — | 1,16,00,000 / Year |
8. Utility Requirement
| Utility | Monthly Consumption | Monthly Cost (BDT) |
|---|---|---|
| Electricity | 18,000 kWh | 2,50,000 |
| Water | 10,000 liters | 5,000 |
| Fuel (for Boiler & Generator) | — | 1,00,000 |
| Internet, Phone, Misc. | — | 25,000 |
| Total Monthly Utility Cost | — | 3,80,000 |
9. Financial Projection
9.1. Income Statement (Year 1–5)
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Capacity Utilization | 70% | 80% | 90% | 95% | 100% |
| Sales Revenue (BDT Crore) | 11.76 | 13.44 | 15.12 | 15.96 | 16.80 |
| Operating Cost (Crore) | 8.50 | 9.00 | 9.60 | 10.20 | 10.80 |
| Gross Profit | 3.26 | 4.44 | 5.52 | 5.76 | 6.00 |
| Admin & Selling Expense | 0.80 | 0.90 | 1.00 | 1.10 | 1.20 |
| EBITDA | 2.46 | 3.54 | 4.52 | 4.66 | 4.80 |
| Depreciation | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 |
| Net Profit Before Tax | 2.06 | 3.14 | 4.12 | 4.26 | 4.40 |
| Tax (30%) | 0.62 | 0.94 | 1.24 | 1.28 | 1.32 |
| Net Profit After Tax | 1.44 | 2.20 | 2.88 | 2.98 | 3.08 |
9.2. Break-Even Analysis
| Particulars | Value |
|---|---|
| Fixed Cost per Year | BDT 3.5 Crore |
| Contribution Margin | 40% |
| Break-Even Sales | ≈ BDT 8.75 Crore |
| Break-Even Capacity | ≈ 52% utilization |
10. SWOT Analysis
| Strength | Weakness |
|---|---|
| Strong tea cultivation base | High initial investment |
| Low labor cost | Limited branding expertise |
| Favorable government policy | Dependence on raw leaf quality |
| Opportunity | Threat |
|---|---|
| Growing global demand for organic tea | Competition from India, Sri Lanka |
| Export incentives | Price fluctuation in global markets |
| E-commerce and retail chain expansion | Logistic challenges |
11. Implementation Schedule
| Phase | Duration | Activities |
|---|---|---|
| Project Feasibility & Land Acquisition | 1–2 months | Market study, land purchase |
| Building & Construction | 3–6 months | Factory shed, office |
| Machinery Procurement & Installation | 3 months | Import, install, test |
| Recruitment & Training | 1 month | Staff hiring and training |
| Commercial Production Start | 12th month | Trial run and market launch |
12. Financial Feasibility Summary
| Indicator | Result |
|---|---|
| Total Investment | BDT 7.40 Crore |
| Annual Sales (at full capacity) | BDT 16.8 Crore |
| Annual Net Profit | BDT 3.0 Crore |
| Payback Period | 3 years |
| Internal Rate of Return (IRR) | 25–28% |
| Break-Even Point | 52% of capacity |
13. Government Support and Incentives
Bangladesh offers several incentives for agro-based and export-oriented industries:
- Tax holiday up to 5–10 years depending on location.
- Reduced import duty on capital machinery.
- Cash incentive of up to 20% for export of tea products.
- Low-interest loans through Bangladesh Bank’s agro-finance schemes.
Therefore, investors in tea packaging and processing can benefit from both fiscal and non-fiscal incentives.
14. Environmental Consideration
This project has minimal environmental impact. Tea processing generates negligible waste, mostly dust and small leaf particles, which can be used as compost. Water usage is low, and with proper waste management, the operation remains eco-friendly.
15. Conclusion
Bangladesh’s tea packaging and processing industry stands at the edge of a golden opportunity. With growing domestic consumption, expanding export markets, and strong government support, this sector can bring high returns for investors while supporting thousands of rural livelihoods.
Investment in modern tea packaging plants not only ensures profit but also strengthens the brand identity of Bangladesh Tea worldwide.
16. Call to Action
If you’re planning to invest in the Tea Packaging and Processing Industry — or any other manufacturing venture — you need a bankable project profile that meets the standards of banks, investors, and development authorities.
We, RAYHANS (Industrial Project Consultants in Bangladesh), prepare comprehensive and bankable project profiles for local and international clients.
✅ Financial Projection
✅ Machinery & Technical Layout
✅ Market Feasibility
✅ Loan Assistance & Consultancy
Contact us today to develop your project profile for Tea Packaging or any industrial project in Bangladesh and abroad.
📧 Email: [email protected]
🌐 Website: www.cbecl.com
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Let’s turn your idea into a successful, bank-ready business project.