Project Profile of Tea Blending and Packaging Factory in Bangladesh
Tea is more than a drink in Bangladesh — it’s a tradition, an emotion, and a growing industry. Every morning, every conversation, and every office break begins with a cup of tea. Because of this deep cultural connection and strong domestic demand, the tea blending and packaging sector has become one of the most promising industries in Bangladesh.
This project profile explores how to establish a tea blending and packaging factory in Bangladesh — from market potential and production process to cost estimation, profitability, and implementation strategy.
1. Industry Overview
Bangladesh is one of the oldest tea-producing countries in the world. The tea industry began here in 1840 under British colonial rule. Today, it employs more than 3 million people directly and indirectly, and the domestic market is expanding rapidly.
According to the Bangladesh Tea Board, local tea consumption increases by nearly 10% every year. Besides that, several international brands now source blended Bangladeshi tea because of its unique flavor and quality.
Therefore, a well-designed Tea Blending and Packaging Factory can profitably target both local and export markets.
2. Objectives of the Project
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To establish a modern tea blending and packaging unit with quality control.
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To cater to the growing demand for branded packaged tea in domestic and export markets.
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To create local employment opportunities and enhance value addition in the tea sector.
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To promote Bangladeshi tea brands internationally.
3. Market Potential
3.1 Local Market
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Bangladesh consumes around 90 million kilograms of tea per year, while production stands close to 100 million kilograms.
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Urban consumers increasingly prefer branded and hygienically packed tea.
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Local companies like Ispahani, Finlay, and Fresh dominate the market, but small regional brands are also growing.
3.2 Export Market
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Bangladesh exports about 8–10 million kg of tea annually to countries like Pakistan, UAE, Russia, and the UK.
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With proper blending, packaging, and branding, exports can be doubled within five years.
3.3 Target Customers
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Supermarkets and retail chains
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Hotels, restaurants, and cafes
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Online tea shops and export buyers
4. Product Range
| Product Type | Description | Packaging Size | Target Market |
|---|---|---|---|
| Premium Black Tea | Blended from top-quality leaves | 100g – 500g packs | Urban retail & export |
| Green Tea | Mild and aromatic | 50g – 250g | Health-conscious consumers |
| Herbal Tea | Blends of tulsi, ginger, lemongrass | 50g – 100g | Wellness & export |
| Loose Tea | Bulk tea for restaurants & wholesalers | 1kg – 5kg | Domestic B2B |
| Tea Bags | Fast-moving retail product | 25–100 bags per box | Supermarkets |
5. Project Summary
| Particulars | Details |
|---|---|
| Project Name | Tea Blending and Packaging Factory |
| Location | Tongi / Gazipur / Sylhet Industrial Zone |
| Project Type | Manufacturing & Packaging |
| Land Requirement | 10,000 sq. ft. |
| Production Capacity | 1,200 MT blended tea per year |
| Project Duration | 6 months (setup to operation) |
| Ownership Type | Private Limited Company |
6. Estimated Project Cost (in BDT)
| Cost Item | Amount (BDT) |
|---|---|
| Land & Land Development | 50,00,000 |
| Building & Civil Works | 1,20,00,000 |
| Plant & Machinery | 1,50,00,000 |
| Office Furniture & Fixtures | 15,00,000 |
| Laboratory & Quality Control Equipment | 20,00,000 |
| Vehicles (Distribution Van) | 25,00,000 |
| Pre-Operating Expenses | 10,00,000 |
| Working Capital (6 months) | 1,00,00,000 |
| Total Project Cost | 4,90,00,000 BDT |
7. Machinery and Equipment
| Machinery / Equipment | Quantity | Approx. Cost (BDT) |
|---|---|---|
| Tea blending machine (500 kg/hr) | 1 | 40,00,000 |
| Tea dryer and cooler | 1 | 25,00,000 |
| Dust separator and sifter | 1 | 10,00,000 |
| Weighing and filling machine | 2 | 20,00,000 |
| Tea bag packing machine | 1 | 30,00,000 |
| Shrink wrapping and sealing unit | 2 | 10,00,000 |
| Coding and labeling machine | 1 | 8,00,000 |
| Compressor and utility setup | 1 | 7,00,000 |
| Laboratory equipment and accessories | 1 set | 20,00,000 |
| Total Machinery Cost | 1,70,00,000 BDT |
8. Raw Materials and Inputs
| Raw Material | Source | Average Monthly Cost (BDT) |
|---|---|---|
| Black Tea Leaves (CTC & Orthodox) | Sylhet, Moulvibazar Tea Gardens | 50,00,000 |
| Green Tea Leaves | Imported / local estates | 10,00,000 |
| Herbal Extracts & Flavoring | Local / India | 8,00,000 |
| Packing Materials (poly, foil, boxes) | Dhaka suppliers | 15,00,000 |
| Labels and Printing | Dhaka / Chattogram | 4,00,000 |
| Total Monthly Raw Material Cost | 87,00,000 BDT |
9. Human Resource Requirement
| Category | No. of Employees | Monthly Salary per Person (BDT) | Total Monthly Cost |
|---|---|---|---|
| Factory Manager | 1 | 70,000 | 70,000 |
| Production Supervisor | 2 | 40,000 | 80,000 |
| Quality Controller | 2 | 35,000 | 70,000 |
| Machine Operator | 4 | 25,000 | 1,00,000 |
| Electrician/Technician | 2 | 25,000 | 50,000 |
| Packing Labor | 8 | 18,000 | 1,44,000 |
| Sales & Marketing Staff | 4 | 30,000 | 1,20,000 |
| Driver & Helper | 2 | 20,000 | 40,000 |
| Office Admin & Accounts | 3 | 35,000 | 1,05,000 |
| Total | 28 Persons | 6,79,000 BDT/month |
10. Utilities and Overheads
| Item | Estimated Monthly Cost (BDT) |
|---|---|
| Electricity | 1,00,000 |
| Water & Gas | 30,000 |
| Fuel & Vehicle Maintenance | 40,000 |
| Communication & Internet | 15,000 |
| Marketing & Distribution | 1,50,000 |
| Repair & Maintenance | 30,000 |
| Miscellaneous | 25,000 |
| Total Monthly Overhead | 3,90,000 BDT |
11. Financial Analysis
11.1 Revenue Projection
| Year | Sales Volume (MT) | Average Selling Price (BDT/kg) | Annual Revenue (BDT) |
|---|---|---|---|
| 1 | 600 | 700 | 4,20,00,000 |
| 2 | 900 | 720 | 6,48,00,000 |
| 3 | 1,200 | 750 | 9,00,00,000 |
| 4 | 1,400 | 780 | 10,92,00,000 |
| 5 | 1,600 | 800 | 12,80,00,000 |
11.2 Operating Cost Projection
| Particular | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Raw Materials | 2,00,00,000 | 2,80,00,000 | 3,40,00,000 |
| Salary & Wages | 80,00,000 | 90,00,000 | 1,00,00,000 |
| Utilities & Overheads | 45,00,000 | 50,00,000 | 55,00,000 |
| Marketing & Distribution | 30,00,000 | 40,00,000 | 50,00,000 |
| Total Operating Cost | 3,55,00,000 | 4,60,00,000 | 5,45,00,000 |
11.3 Profit Projection
| Year | Revenue (BDT) | Operating Cost (BDT) | Gross Profit (BDT) | Net Profit (%) |
|---|---|---|---|---|
| 1 | 4,20,00,000 | 3,55,00,000 | 65,00,000 | 15% |
| 2 | 6,48,00,000 | 4,60,00,000 | 1,88,00,000 | 29% |
| 3 | 9,00,00,000 | 5,45,00,000 | 3,55,00,000 | 39% |
| 4 | 10,92,00,000 | 6,20,00,000 | 4,72,00,000 | 43% |
| 5 | 12,80,00,000 | 7,00,00,000 | 5,80,00,000 | 45% |
12. Implementation Schedule
| Activity | Duration | Remarks |
|---|---|---|
| Land Purchase & Design | 1 month | Land registration and layout plan |
| Civil Construction | 2 months | Factory & office building |
| Machinery Procurement | 1 month | Import and local purchase |
| Installation & Testing | 1 month | Trial run and adjustment |
| Staff Recruitment | 1 month | Technical and marketing team |
| Production Start | Month 6 | Full operation begins |
13. SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| High demand for branded tea | Initial capital investment |
| Easy access to local raw materials | Limited export branding experience |
| Strong domestic tea culture | Need for consistent quality control |
| Opportunities | Threats |
|---|---|
| Export growth potential | Market competition from big brands |
| Rising urban tea consumption | Fluctuation in raw tea prices |
| Product diversification (herbal, green tea) | Import of cheaper alternatives |
14. Environmental and Social Impact
The project has low environmental risk. It produces no chemical waste since blending is a dry process. Dust filters and sealed packing areas will maintain air quality.
Socially, the project will generate employment for over 25 workers, mostly from surrounding areas. Female employment in packaging sections can further promote social inclusion.
15. Return on Investment (ROI)
| Financial Indicator | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Gross Margin (%) | 15 | 39 | 45 |
| Net Profit (BDT) | 65,00,000 | 3,55,00,000 | 5,80,00,000 |
| ROI (%) | 13 | 72 | 118 |
| Payback Period | 3.5 years | — | — |
16. Risk and Mitigation
| Risk | Mitigation Strategy |
|---|---|
| Price fluctuation of raw tea | Establish long-term contracts with tea gardens |
| Competition from established brands | Focus on niche markets and premium blends |
| Quality issues | Maintain laboratory testing and ISO certification |
| Distribution delay | Develop own logistic network |
17. Project Viability
Based on the above calculations, the project is highly profitable with a payback period of 3 to 4 years. Even under conservative estimates, the tea blending and packaging business ensures steady cash flow and sustainable market growth.
18. Call to Action
Setting up a tea blending and packaging factory requires accurate cost estimation, financial forecasting, and bankable documentation. That’s where we come in.
✅ We prepare complete, bankable project profiles for all types of industries in Bangladesh and abroad — designed for bank loans, investors, and business setup approvals.
📞 Mobile: 01716752370
Let’s build your next project — profitable, sustainable, and ready for success.
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