For Indians, tea is not just a term or a beverage; it is a feeling: an expression recognized in our everyday lives as "Chai". When in our lives did we get hooked to this elixir? The solution to this question may never be known to us. All we know for sure is—we need chai regularly no matter how it became such an important part of our lives. So, the real question now is, are you hunting for a market venture that will prove to you to be profitable? This could be the best place to spend your time, money, and effort—A Chai Company.
Before taking this step, here is all you need to know
The whole tea company relies on Camellia Sinensis, a magical plant that grows over 1000 varieties of tea. The factory needs to be learned by someone who aspires to step foot in the business. Different forms of tea are all harvested from it, including Yellow Tea, Green Tea, Black Tea, Puer Tea, Oolong& White Tea. What makes them all different from each other is the type of products used in their manufacturing. The best way to acquire an awareness of this plant is to visit tea estates and speak with the farmers. The type of evidence you find in books or even on the internet can be surpassed by personal knowledge.
India happens to be the world's second-largest tea manufacturer, next to China. Surprisingly, we Indians consume 70 percent of the output as well. A typical person drinks 2 cups of tea a day on a day-to-day basis. It goes up to 4 to 5 cups for some adults, too. For metropolitan areas, it is not only a fantastic business enterprise but also small towns and cities are also a great platform for you to invest in. This can be tried even by women looking for start-up firms.
90% of India's homes drink tea, but does that make anyone your target audience? Incorrect. Your audience and thus the marketing relies on the products of your company. The ease of producing tea, disposable income, increased health consciousness, ability to explore, and aspiration to remain fit are various factors that drive premium tea consumption in India. One needs to find what resonates best with their teas for TDT, which will prompt you to determine the audience and a marketing campaign to increase awareness and sales of the brand.
Planning an accurate business model is the most critical move before launching any new business company. The sort of company you want to set up: a stand or a proper tea room, the goods you are going to sell, their costs, your profit margins, your investment number, your investment money, what products you are going to purchase, where you are going to buy them: directly from a wholesale market, you need to know beforehand. The secret to a profitable market would be a proper business model.
The specifications depend on the type of start-up you want to establish: a small tea stall or a cafe. You don't need too much of an investment for a small start-up like a tea stall, or you need costly material to put up your stall, so the entire point of a stall is to keep as linked as possible to your 'desi' roots. To get you started, an investment of INR 50,000 is enough. On the other hand, you need more of an investment for a more genuine establishment like a tea bar or cafe. The number will go as big as 30 lakhs for metropolitan cities. To make the cafe or bar more aesthetic and genuine, you need to invest in the interiors, the decor, the machinery, other materials.
A key aspect of both distribution and marketing-the packaging of the goods will play a significant role in shaping customer choices. Packaging touches the 5 senses of a human being specifically and will add greatly to the sales of the brand. It comes as no surprise that today's manufacturers expend over $150 billion annually worldwide on food packaging. 52 percent of buyers look at repurchasing their goods whether they like the packaging, according to a survey, and 90 percent favor re-using the packaging of the product.
The investment and the expense of a cup of tea per day are as follows: Rs 1 per 30ml of milk; 2.5 grams of powdered tea- Rs 0.755; 10-gram of sugar- Rs 0.50; Masala Tea 4 grams- Rs 0.30. A cup of tea will cost you about 3.5-5 INR, even after adding added costs to this. You have a profit margin of around Rs15 when you own a stall and sell a cup for 10-20 INR. You should concentrate on improvising them until the goods are well known in the market. Introduce multiple types and variations of tea according to the consumer base's feedback.
Start serving snacks and light food to go with the tea. You should also think of creative projects, such as transporting trucks around the city or delivering courier facilities, until you have accumulated enough money. You can start a tea shop company in India and get invested in it now that you know everything that you need. You have an incredibly lucrative niche: the tea business, something that doesn't need much investment and expertise. Just get started, and who knows, maybe you'll even be the next Prime Minister.
If you are confused about how to draft a business plan for a tea company, let us clear your doubts. For a tea stall owner or franchise business owner, a well-drafted business strategy for selling tea is also important. The business strategy outlines the history of the organization and all the business specifics and associated operations that will further assist in obtaining funds or business loans from financial institutions.
The financial institutes include private or public sector banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs), or Small Finance Banks (SFBs) during any business tenure period. Your Tea Business Plan should also provide information on investment in-
1. Working Capital
2. Budget
3. Labour/worker/employee statistics
4. Marketing
5. Promotional campaign specifics (for franchise business)
6. Equipment/machinery used
7. The number of raw materials used
Tea is believed to be one of the oldest beverages in the world. Before you get caught up between random opinions, discussions, accountants, lawyers, or similar field entrepreneurs jot down the basics. Learn these things before curating a tea business plan in India:
· Understanding Camellia Sinensis- Any person entering the tea business in India needs to learn about this plant. Various teas like- Green Tea, Yellow Tea, Oolong Tea, Puer Tea, and Black & White Tea are harvested from it.
· Recognize Your Focus Competency- Defining your brand's USP is primary in any tea business in India. Curating premium blends and flavors will increase your potential in the market along with good profit margins.
· Define your Target Audience- Your audience might be most of India but curating a special marketing approach will help you cater to the masses easily.
· Product Packing- "Jo dikhtahaiwoibiktahai" or what you see is what you buy approach works best in India for most businesses. Attractive packaging influences consumers' decisions.
· Storage & Procurement of Teas- The customs officials in India are still not well versed in various forms of tea. This leaves them suspect for the procurement process. It's important that their handling is done carefully to ensure that they're not infested with insects until delivery.
