TEA PROCESSING

Introduction:
A small tea processing unit that will satisfy the need of the small tea growers has a very good
market prospect. The small cottage tea industries established in the states like Meghalaya and
Assam have been running successfully as a profit earning venture. The quality of the product
produced by these units have been found to be better and thus greatly in demand than the large
units produce.
Market Potential:
The processed tea (CTC Black Tea) produced by the only unit at Sarupathar (Assam) under
Dhansiri under Golaghat District is being sold like hot cakes in Sarupathar locality.
The Cottage made CTC Tea has great demand among the users due to its special manufacturing
process, which imparts its quality and aroma. Besides, cottage organic Tea (CTC and Orthodox),
Bio-Tea may be produced, which will have great market potential. So a couple of cottage tea
factory could be set up in concentrated tea growing areas which will have a steady market for its
products.
MANUFACTURING PROCESS :
1.

Withering :
Natural Withering :
The fresh tea leaves are laid out in thin layers on tats staked one above another
and dried in the fresh air for at least 20 hours.
Artificial Withering :
The leaves are laid out in layers of up to 20cm. thick on a mesh. The meshes are
placed in a tunnel ; through which warm air mixed with fresh air is forced. This
considerably reduces the total withering time. Around 60-62% residual moisture
suitable for tea processing of the withered green leaves.

2.

Breaking Up :
A circular table fitted in the center with a cone and across the surface with slats called
battens. A jacket, or bottomless circular box with a pressure cap, stands a top of the
table. Table and jacket rotate eccentrically in opposite directions, and the leaf placed in
the jacket is twisted and rolled over the cone and battens in a fashion similar to land
rolling.

(C)

CTC Method (Crushing, tearing and curling) :

This machine consists of two separated metal rollers, placed close together and revolving
at unequal speeds, which cut, tear and twist the leaf. CTC machines are widely used, for
example in Assam.

(D)

Fermentation :
During fermentation, the oxidation process which had begun during rolling is continued.
Fermentation takes place in separate fermentation rooms, which need to be kept
extremely clean to avoid bacterial infection of the tea. The tea leaves are placed in 3.5
7.5 cm. Layers on aluminium trays. The thickness of the layers depends on the room
temperature. As soon as the tea has acquired a copper red colour, the correct degree of
fermentation has been reached, and the process must be halted by drying.

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Drying :
The drying process carried on a 4 plates system vanician typed drier.Hot air up to 90
degree C. is blown against the leaves, which should have reached 80- degree C. by the
time drying has been completed, in order for the polyphenol oxidize enzyme to be
properly inactivated. The moisture content should be reduced to 3.5% whereby the
aroma becomes established and the leaves take on their typical black coloration.
MACHINERY :
Plant & Machinery :
(a) CTC Machine (3CUT) 3 Pair 8 Roller (8-10-8 TPI)
with 3 HP motor complete.
(b) Furnace including heat exchange & Chimney.
(c) Drier (VaniceanType)
includes Blower with 1 HP motor.
(d) Humidifier.
(e) Pivot Balance.
(f) Spring Balance.
(g) Rolling Table-30 kg. batch (with 1 HP motor).
(h) 12.5 KVA Diesel Generator set.
Forced Green Leaves de-humidification Chamber,
Capacity 600 green leaves holding
(j) Fiber Separator.
Total :
SUGGESTED CAPACITY:

Rs. 8.40 lakhs.

600 kg/day for 200 days working days in a year because tea leaves are grown seasonally.
Number of shift per day is one.
INFRASTRUCTURE :
The major infrastructure requirements are :
Building 2000 sq.ft.
Power
20 KW
Water
200 litres/day.
LOCATIONS:
This unit can be set up at any tea growing areas or where green leaves are available readily, in
NER including Sikkim.
TOTAL CAPITAL REQUIREMENT :
The project cost comprising fixed capital and margin money on working capital is Rs 16.82
lakhs.
Rs. Lakhs.
Fixed Capital :
Land & Building
Plant & Equipments
Misc. Fixed Assets.
Preliminary & Pre-op.expenses.
Total (A) :

5.50
8.40
1.20
0.70
15.80

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Working Capital :
Raw materials
Finished goods.
Working expenses
Receivables

2 months.
1 week.
1 month
7 days.
Total-(B) :

2.27
0.56
0.24
1.02
4.09

Note :
Working capital may be financed as
Bank finance
Margin Money
Total

:
:

Rs. 3.07 lakhs.

Rs. 1.02 lakhs.
Rs 4.09 lakhs

MEANS OF FINANCING :
The project cost of Rs 16.82 lakhs may be financed as under
Rs. Lakhs
Promoters contribution(35%)
Term loan(65%)
Total :

5.89
10.93
16.82

OPERATING EXPENSES :
The annual operating expenses are estimated at Rs.16.24 lakhs as under :
Rs. Lakhs
Raw materials 1,20,000 Kgs
Green leaves @ Rs 8/- per Kg.
Utilities
Wages & salaries
Other overheads
Selling expenses @ 5% on annual
Sales.
Interest
Depreciation-10%
Total :

9.60
0.86
2.00
0.24
1.02
1.68
0.84
16.24

SALES REALISATION :
Sl.No.
Particulars
1.

Amount in
lakhs

Green leaves processing per year

= 600 kg. per day x 200 days
= 1,20,000 kg. of leaves.
= Total Production of Made Tea
@ 20% yield.
= 24000 Kg of Made Tea x @ Rs.85/Kg

20.40

PROFITABILITY :
Based on the sales realization and the operating expenses, the profit at 100% capacity utilization
would be Rs 4.16 lakhs per year. This works out to a return on investment of 25%. The unit would
break even at about 58% of the rated capacity.

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HIGHLIGHTS :
The major highlights of the project are as follows :
Total capital requirement
Promoters contribution
Annual sales realization
Annual operating expenses
Annual profit (Pre-tax)
Pre-tax return on sales.
Break-Even Point.
No. of persons employed.

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MACHINERY SUPPLIER :
M/s Avery India Ltd.
12 B, Russel Street,
P.Box 9329
Kolkata 700 071.
M/s Bansal Engg. & Steel Co. Pvt. Ltd.,
Rotary Road,
Dibrugarh,
Assam..

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Rs 16.82 lakhs.
Rs 5.89 lakhs
Rs 20.40 lakhs
Rs 16.24 lakhs
Rs 4.16 lakhs
20%
58%
10