In our country, India, tea is very popular. You will find tea stall every where. On main roads, in lane, even in by lanes. All restaura offers tea. Every household members drink tea and offer tea to every wanted guests.
So as a prospective tea businessman, your tea market is huge, selling your product is not problem. On the other hand India is the Second largest producer of tea. So getting supply is not a problem for a tea businessman.
Since both sellers and buyers are in abundant supply, any one can start tea business in India. To start a tea business with an aim to make it a large business house, first take these basic steps.
First of all, take a trade license from municipal authority of your town or city. If you want to start in your name or in your firm’s name, a simple application in prescribed form will do. Along with the application, you are required to submit proof of address of your business, your own photo ID and a small fee depending upon nature of business and or size of your business establishment. If you are starting a partnership business then you require to submit Partnership deed or Articles of Association in case of Limited Company for getting trade license or making bank account. You should get your trade license within seven days from the municipal authority.
Second, Now, you require to make GST registration and a Current account. Composite GST registration is for doing business within your State and Regular GST Registration is for doing business all over India. As we said earlier, tea is very popular throughout India, so Regular GST Registration will be better for your business. But if you are starting in small scale then Composite GST registration is more than enough. GST registration usually takes seven to ten days. They also charge a very small fee. You can get your GST registration from local Sales Tax Office.
Now you require a Current Account. You can open a bank account in your firm’s name. That you can do that after you get Trade License from local authority. If you want to open Current account in your own name then you do not require trade license. Normal documents like ID proof, Photo ID proof and address proof are enough. But it is better to open your account in your firm’s name. So getting trade license requires approximately seven days, GST registration another seven days and within this 14 days, your bank account will also be ready. Within this 14 days of gestation period, finalize your business plans.
Third- There are many types of tea. These include CTC, Orthodox, Green Tea, Oolong Tea Etc. Most popular are CTC, Orthodox and Green Tea. Which one you want to deal with ?
Forth- Who are going to supply tea to you? It is always better to buy it directly from tea Supplier from Assam. Local wholesalers will give you in small quantity but charge at least 25% to 50% more.
Fifth- Tea price depends on its quality, it might starts from Rs 65 to Rs 600. What is your prospective consumers’ preferences ?
Lastly- Loose tea or Packet Tea ?
Probable answer to this question may be—-
First- In India or in Asia CTC tea is very popular than all other tea. In Europe, Orthodox is more popular. Other tea are costly and not so popular has got limited market.
Secondly- Few Assam gardens sell in small quantity like minimum 105 kg. You may get Small Quantity Assam Tea from www.kirtiteatrading.com .
Thirdly-If you are in a big city you can sell all qualities and all price ranges. But in a town or village, low to medium price range will be more popular.
Lastly–You can sell both packet and loose tea. You can pack it yourselve in 1 kg, 500 gram packets without level and gradually start your own brand. If your packets are without any level, you will not require to be registered with FSSAI.
Once your tea becomes popular, then you can get it registered with Food Liesence authority or FSSAI. Other than these basic four decisions, you will require to decide many other things, like place of business, sales personnel, size of your establishment etc.
When you have taken all these decisions, you are fully prepared to launch tea business. Be sure, after a year, you will relish the decision of starting tea business.