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Project Profile of Tea Packaging and Processing Industry in Bangladesh

    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.

    ParticularsDetails
    Project NameTea Packaging and Processing Industry
    Proposed LocationSylhet / Moulvibazar / Panchagarh / Gazipur
    Project TypeManufacturing & Packaging
    Estimated Project CostBDT 12.50 Crore
    Capacity1,000 kg processed tea per day
    Employment Generation60–80 persons
    Project Implementation Period12 months
    Power Requirement200 kW (approx.)
    Land Area Required20,000 sq. ft.
    Water Requirement1,000 liters/day
    Raw MaterialsGreen Tea Leaves, Packaging Materials
    Target MarketLocal 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

    ItemSourceMonthly RequirementUnit Cost (BDT)
    Processed Tea LeavesLocal Tea Gardens (Sylhet, Panchagarh)25,000 kg200/kg
    Packaging Materials (pouch, box, carton)Local suppliers (Dhaka)As per order60/kg
    Flavor Additives (optional)Imported200 kg1,500/kg
    Labels, Stickers, TapesLocalAs required40,000/month

    4.2. Machinery and Equipment

    EquipmentQuantityEstimated Cost (BDT)
    Tea Cleaning and Sorting Machine115,00,000
    Blending Machine (500 kg/hr)110,00,000
    Tea Dryer (Electric/Steam)18,00,000
    Weighing and Filling Machine220,00,000
    Pouch Sealing and Packing Machine212,00,000
    Labeling and Coding Machine15,00,000
    Carton Sealer and Strapping Machine13,00,000
    Boiler & Steam System110,00,000
    Generator (50 kVA)112,00,000
    Miscellaneous Tools & Equipment10,00,000
    Total Machinery Cost1,05,00,000

    5. Project Cost Estimation

    ParticularsAmount (BDT)
    Land and Land Development1,00,00,000
    Building and Civil Construction2,50,00,000
    Machinery and Equipment1,05,00,000
    Electrical & Utility Installation25,00,000
    Office Furniture and Fixtures10,00,000
    Vehicle (Delivery Van)30,00,000
    Pre-Operational Expenses20,00,000
    Working Capital (6 months)1,50,00,000
    Contingency (5%)50,00,000
    Total Project Cost7,40,00,000 (≈ BDT 7.4 Crore)

    6. Production Capacity and Operation

    ParticularDetails
    Installed Capacity1,000 kg per day
    Annual Working Days300 days
    Annual Production300,000 kg
    Utilization (1st Year)70%
    Average Selling PriceBDT 800/kg
    Annual Sales Revenue≈ BDT 16.8 Crore

    7. Manpower Requirement

    CategoryNo. of PersonsMonthly Salary (BDT)Annual Cost (BDT)
    General Manager1100,00012,00,000
    Production Manager180,0009,60,000
    Machine Operators530,00018,00,000
    Packaging Workers1518,00032,40,000
    Quality Controller150,0006,00,000
    Electrician/Technician225,0006,00,000
    Accountant/Admin240,0009,60,000
    Sales & Marketing Staff430,00014,40,000
    Security & Support Staff515,0009,00,000
    Total36 Persons1,16,00,000 / Year

    8. Utility Requirement

    UtilityMonthly ConsumptionMonthly Cost (BDT)
    Electricity18,000 kWh2,50,000
    Water10,000 liters5,000
    Fuel (for Boiler & Generator)1,00,000
    Internet, Phone, Misc.25,000
    Total Monthly Utility Cost3,80,000

    9. Financial Projection

    9.1. Income Statement (Year 1–5)

    ParticularsYear 1Year 2Year 3Year 4Year 5
    Capacity Utilization70%80%90%95%100%
    Sales Revenue (BDT Crore)11.7613.4415.1215.9616.80
    Operating Cost (Crore)8.509.009.6010.2010.80
    Gross Profit3.264.445.525.766.00
    Admin & Selling Expense0.800.901.001.101.20
    EBITDA2.463.544.524.664.80
    Depreciation0.400.400.400.400.40
    Net Profit Before Tax2.063.144.124.264.40
    Tax (30%)0.620.941.241.281.32
    Net Profit After Tax1.442.202.882.983.08

    9.2. Break-Even Analysis

    ParticularsValue
    Fixed Cost per YearBDT 3.5 Crore
    Contribution Margin40%
    Break-Even Sales≈ BDT 8.75 Crore
    Break-Even Capacity≈ 52% utilization

    10. SWOT Analysis

    StrengthWeakness
    Strong tea cultivation baseHigh initial investment
    Low labor costLimited branding expertise
    Favorable government policyDependence on raw leaf quality
    OpportunityThreat
    Growing global demand for organic teaCompetition from India, Sri Lanka
    Export incentivesPrice fluctuation in global markets
    E-commerce and retail chain expansionLogistic challenges

    11. Implementation Schedule

    PhaseDurationActivities
    Project Feasibility & Land Acquisition1–2 monthsMarket study, land purchase
    Building & Construction3–6 monthsFactory shed, office
    Machinery Procurement & Installation3 monthsImport, install, test
    Recruitment & Training1 monthStaff hiring and training
    Commercial Production Start12th monthTrial run and market launch

    12. Financial Feasibility Summary

    IndicatorResult
    Total InvestmentBDT 7.40 Crore
    Annual Sales (at full capacity)BDT 16.8 Crore
    Annual Net ProfitBDT 3.0 Crore
    Payback Period3 years
    Internal Rate of Return (IRR)25–28%
    Break-Even Point52% 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
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    Contact us today to develop your project profile for Tea Packaging or any industrial project in Bangladesh and abroad.

    📧 Email: [email protected]
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    Let’s turn your idea into a successful, bank-ready business project.