tea business plan in bangladesh

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How to do tea business in Bangladesh

Introduction:

Bangladesh is a very prosperous country in terms of the tea business. Even Bangladesh ranks tenth in the world in terms of tea production. Is Becoming a successful entrepreneur in Bangladesh your goal? The tea business is the right choice then. But if you’re going to start a business, you must first know  how to do the tea business in Bangladesh.  First of all, let’s see the history of the tea business in Bangladesh.

It started in the British period.  But later, it also started in Chittagong. The next story is known to almost all of us. Bangladesh made incredible progress in the tea industry. Bangladesh accounts for 3% of the world’s total tea supply. Also, a large part of the export industry of Bangladesh’s economy comes only from the tea industry.

The popularity of tea business is increasing but not decreasing over the years. I have arranged this article in such a way that you can know the details about it.

Tea Business: A profitable and  Potential business

Tea business is an active business in business terms of Bangladesh. There are many reasons why you should start a tea business. Let’s find out why tea business has potential in Bangladesh:

Huge tea producing area

Moulvibazar area of ​​Sylhet can be said to be the heart of tea production in Bangladesh. Out of 166 gardens, 93 gardens are in Moulvibazar. So if you want to do a tea business plan in Bangladesh, you must prioritize the Sylhet region.

People love Tea!

Tea is a trendy drink among the people of Bangladesh. From village tong shops to modern restaurants in the city, Tea is a triumph everywhere. So keep an eye on the quality,  of course, you don’t have to be worried about the sale.

Tea Business: Step by Step Guidance

Is it so easy to start a tea business? To be honest, not at all. There are many things you need to know before starting a business.

Doing the local tea business in Bangladesh is very competitive. To survive here, you have to maintain quality as well as all the excellent strategies. There are many reputed local companies in Bangladesh. It’s a little difficult to compete with them as a new business.

So how to start a tea business as a beginner? You need to know some vital information before starting the business. Such as about the wholesale tea market, competitors, other best companies, etc. Now I will explain to you step by step how to start the tea business.

Learn About Tea : This is one of the most crucial business advice for you. Before you start any business, you need to know about the company you want to start. Likewise, you need to know about Tea before starting a tea business. In this case, you need to know the details of tea production. The season, the timing is significant among them.

You also need to know what kind of diseases or problems can occur in tea leaves. Finally, you need to know how other traders are doing a tea business. The work is quite a pursuit but very important. Let me share a surprising thing with you in this context. Many business people work as employees in other companies. Why? To learn about the business because the user experience is significant for the business.

Business Strategy is essential : Well, your idea is necessary. An idea can change everything. Business strategy may vary from person to person. Unique designs are considered as critical points of a successful business. Tea business is so much competition. So a small approach here might be the trump card for you.

Again, the wrong approach can lead to your downfall. But How to create the perfect plan? The best way to do this is to study and analyze. Then, what kind of study should you do? So you have to follow some of these other’s business methods. You need to know what methods others are using.  Besides, you need to do data analysis.

Execution is more important :  Many great ideas fail if the performance is not proper. To improve your business, you have a better understanding of the environment where you are doing business. Well, numerous places in Bangladesh give people different tastes. It is in the country just like that. To get a good boost in the tea business, you have to understand the area and its tradition and people.

Starting an online or physical tea store seems to be quite a startup concept. People drink tea day by day, and various tea varieties are becoming popular in Bangladesh. Much of the tea store is locally developed in Bangladesh. Online tea stores are not so common in these moments. Starting a proper tea shop will take a lot of stress on you, though.

Plan a perfect Marketing Strategy :    The next thing a tea company wants is a proper marketing plan. As you can see, Bangladesh’s tea industry is callous. And to survive, you have to make a healthy marketing plan. Advertisement, help, deals have a considerable effect on unsuccessful marketing strategy. It is essential how you are to communicate with the customer—dealing with your presence and your bud online.

Here are some excellent marketing ideas that you can follow:

• Partner with various restaurants, cafes, and coffee/tea shops to draw more clients.
• Build a website and employ an SEO writer to automate trafficking to the fullest.
• Participate in food fairs, festivals, and related activities. And include discount deals or gifts to create a new friendship.
• Seek to get the company funded to show it.
• Don’t forget to mention your tea company in the company folders.

4  Learn About the wholesale market :  To run a tea business, you must know about the wholesale tea market in Bangladesh. Also, you need to have an idea about the location. It’s challenging to find an excellent place for tea business in Bangladesh. Especially if you’re starting your own tea company, you’d better try looking for the right spot. Most of BD’s stores are crowded; ads without choosing the right place; starting a business will be hard.

After buying wholesale, you have to sell the Tea in retail. So, in this case, it is essential to choose your location. You must first choose a place that is suitable for buying wholesale. Then you need to determine the site for retail. So you need to understand the wholesale market to understand the whole process.

Why Tea wholesale?

Relying on the tea box or from any department store would increase your costs. But you need to cut your price to do your business. Some local manufacturers can provide daily blend tea for you. When you can work with any reputable supplier of Tea, though-having, an excellent brew or blend is not a big deal. Yeah, you can get a drink from your tea garden right away. All you have to do is draw up a contract.

Tea wholesaler in Bangladesh:    Naturally, there are more tea wholesalers in the Sylhet region of Bangladesh. Because most of the gardens in Bangladesh are in the Sylhet region, if you can’t collect directly from the garden, you need to buy from a wholesaler. Do you have your yard or a known garden? If not, it is better to buy from wholesalers. Because it will do your job much more; however, it will cost a little more than to collect directly from the garden.

It is not just that you will find wholesalers in the Sylhet region. At present wholesale Tea, sellers are available in Dhaka. So even if you stay away from Sylhet now, it is not a big problem. Many traders feel comfortable buying from wholesalers in Sylhet. However, there is nothing uncomfortable. In Dhaka too, good Tea is being sold in wholesale.  Tea wholesaler in Dhaka  has made the process easier.  Because of them, people all over Bangladesh can now do a tea business.

Pricing of the Tea : It is essential to have a beautiful combination of retail and wholesale buying. Just as it is critical to selling at a fair price, it is also necessary to buy at a low cost. You need to have a good idea about the price of your Tea before starting a business. Of course, there are quite a few differences in wholesale and retail prices. Moreover, the pricing of Tea varies from place to place.

The big companies of Bangladesh collect Tea directly from Sylhet. There you will usually find at a much lower price than in Dhaka. The retail price of Tea fluctuates. Depending on the supply or more than the demand, so often the price goes up or down. For example, the amount of Tea has come down in the market of Bangladesh recently. Currently,   tea price per kg in Bangladesh  is 243 tk.

Study and analyze Bangladesh’s top-notch companies:

By analyzing the top-notch companies, we will have a much deeper idea. Their business strategy will give you a lot of ideas. You get ideas from everything from production to marketing. That’s why you need to make a list first. The list of tea companies in Bangladesh will help you to analyze more.  By looking at their data analysis, marketing processes, etc., you can easily understand how you should do business.

Best tea company in Bangladesh : Don’t know which company you will buy wholesale from? It is normal to be confused by the crowd of many companies. So from my analysis, I will give you the details of ​​the best tea company.

Rebnal Tea  has already made the best name for Bangladesh’s retail. And wholesale sales. It is not that they only supply Tea. In addition to black and green Tea, they provide fresh lemons and fruits. It has gained an excellent reputation in Bangladesh in a short period. Because it gives the best product in terms of quality, their main service facilities are:

Free Shipping :   The best advantage of working with them is that you no longer have to pay for transportation. If you order just above 55 kg, your full delivery charge is free. So it will not be difficult for you to do tea business from any part of Bangladesh. Since they will be free shipping, you can do your business from anywhere.

Pure Sreemangle : They are the only company in Bangladesh, giving you a one hundred percent guarantee. Their  Sreemang is 100% genuine. So, don’t worry about the quality anymore. Your customer satisfaction will be ensured.  Rebnal G-Camsine Green Tea  and  Rebnal Hillock Black Tea  Supply the office, super shop, online store and home based tea.

Low cost, Huge Service :   When buying wholesale, we aim to buy at a slightly lower price. Rebnal Tea can be the best solution for you. They will sell you wholesale Tea at a relatively low price while keeping the quality of their service intact. Besides, They can supply you in huge quantities.So many big companies buy from them wholesale.

Easy Return:  Business can often have many problems. You may have to return the Tea in case of any emergency. Moreover, even if you do not like the quality, you may need to answer. For whatever reason, it is straightforward for you to return the product to them. They will not ask you any questions about it. They will be by your side as a reliable and trustworthy partner in your business.

Wrapping Up

You have to maintain a lot to be a good businessman. Tea business is very potential one in this region. But you need to execute the plan accordingly. So, You can follow my steps to start a tea business. These will help you cut down on business difficulties. Good wholesale increases your chances of making a profit if you can buy. Supplying the right quality products will naturally increase the popularity. By learning how to do tea business in Bangladesh, you are near the doorstep. Now it’s your turn to execute your idea nicely.

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How to setup tea business in bangladesh.

Bangladesh can be called as the heaven of tea production in the world. The tea industry is the oldest industry of the country that dates back to British period when the East India Company the tea trade in this region. Bangladesh has recorded highest tea production many times which makes it one of the largest tea producers in the world. The geographical advantages of the region such as temperate climate, humidity, the highlands and heavy rainfall (particularly, in the northern and eastern districts) plays vital role behind the massive tea production in the country.

At present, Bangladesh has 166 commercial tea estates which include the world’s largest tea gardens in production.   

The major tea estates and gardens in Bangladesh are located in Sylhet, Maulvi Bazar, Habiganj, Chittagong, Panchagarh, Brahmanbaria and Ranagamati. Besides Black tea, the tea producers in Bangladesh produce various types of tea: Green tea, Oolong tea, White tea and many other types of Instant tea blended with different tastes. 

Bangladesh is the major tea exporter of the world. The tea of Bangladesh, for its premium quality, is popular in the countries of Europe, US, Middle East as well as Asian countries. The sector therefore attracts the investors to invest in this lucrative and profitable sector.

The Bangladesh Tea Board (BTB) regulates the tea sector. BTB has two organs, one is Bangladesh Tea Research Institute (BTRI) and the other is, Project Development Unit (PDU).

The tea industries of Bangladesh are governed by the Tea Act 2016, The Import License Rules 2016, Bangladesh Tea Workers Welfare Fund Regulation 2016, Laws of Ministry of Commerce, and The Imports and Exports Control Act 1950.

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Overview of the Tea Industry of Bangladesh: Current Challenges and Future Potentials

LightCastle Analytics Wing

Tea is a non-alcoholic drink that has been an inseparable part of the life of Bangladeshi people for ages. This beverage has always been associated with happiness, refreshment, and rejuvenation. Additionally, tea even has numerous medicinal values. Exporting tea has been one of the major sources of earning foreign currency for Bangladesh for many years . However, as Bangladeshi people started having higher disposable income with an increased tendency to have tea as part of their daily drinking habits, domestic demand proliferated intensely. A record amount of 96,500 tonnes in 2021 production of tea wasn’t enough to fully meet the local demand, let alone export any significant portion of it [1].

Recently, the tea industry of Bangladesh has faced some volatility due to the tea workers’ protests regarding the daily wage issue and various other challenges. That said, this industry certainly holds numerous opportunities for growth and innovation which can scale up the production of tea and contribute to increasing export volume.

Tea Industry in the Global Context

The tea industry on an international level has been growing during the past years due to increased customer interest in a variety of tea flavors, premium tea products, practical and perceived health benefits of tea, and higher disposable incomes. According to FAO, the value of the world tea trade is around USD 9.5 billion while global tea production amounts annually to more than USD 17 billion [2]. There have been marked expansions of tea production in the major tea-producing countries. Simultaneously, many emerging and developing economies have been driving the growth in demand. While doing so, these countries have also been able to provide working opportunities and empowerment to their rural households and communities. The estimated world tea production in 2021 is 6.5 million tonnes which are slightly more than 2020’s production of 6.3 million tonnes. China had the largest contribution of 47% to world tea production while India holds the second position in this regard. These two countries reached 3.1 million and 1.33 million tonnes of tea production respectively in 2021 [2]. Now apart from the challenge of recovering from the disruption created by the Covid-19 pandemic that had impacted the global tea industry as a whole, a newer obstacle of this industry is the Russian-Ukrainian war since Russia has been one of the key importers of Indian tea for years . The country’s also a major producer of three main types of fertilizers- nitrogen, phosphate, and potash (NPK). [12] So, countries that relied on Russia for the supply of fertilizers are suffering right now due to the war.

Background of the Tea Industry in Bangladesh

The production of tea in the region of Bangladesh has a history of more than 180 years. According to popular belief, the first commercial tea garden was initiated as the “ Malnicchara Tea garden ”, near the current airport road of Sylhet. The number of commercial tea estates and gardens is 167 at present, covering an area of 2,79,507 acres which produce an average of 67,400 tonnes of tea every year [3]. Even though 15,00,000 people are directly employed in the tea industry, the number of people indirectly associated with the related industries is a whole lot more [4]. The level of domestic consumption of tea is increasing at a very fast pace. In 1990, the local consumption was only 18,190 tonnes which in 2016 turned into a whooping 67,031 tonnes [5].

However, the production of tea also increased with time (from 45,190 tonnes in 1990 to 58,050 tonnes in 2016) but that certainly wasn’t enough to cover the whole local demand and still be able to export to foreign countries [5]. As a result, while Bangladesh exported 26,970 tonnes in 1990, after 26 years, the number dropped down to only 77 in 2016. The import of tea also increased in the meantime, which had been 2,000 tonnes in 2010 and 8,200 tonnes in 2016 [5]. Currently, this second cash crop of the country is contributing to 1% of the GDP and makes up 1.89% of global production. Apart from Moulvibazar, Habigonj, Sylhet, Chittagong, Panchagarh, and a few more areas of the country right now contribute to the majority of the production.

Bangladesh Tea Board or BTB is the main regulatory body of the tea industry of the country along with its two organs namely the Bangladesh Tea Research Institute (BTRI) and the Project Development Unit (PDU) .

Labour Situation of the Tea Industry

While the tea workers have been exploited by plantation owners for a very long period, the issue was brought in front of the mass only recently when these workers started a massive protest demanding 300 BDT (USD 3.15) as their wage per workday, which previously had been BDT 120 (USD 1.25) only [6]. This extremely low level of daily wage along with rising inflation and price hike has been diminishing the lifestyle of the tea garden workers miserably. On top of that, they live in some of the remotest areas of the country for which they barely get any sort of medical and educational facilities. These workers, during the initial period of plantations, were recruited from the famine-afflicted underprivileged tribal demographics, by alluring them with a promise of a better life, although the true motive was to ensure a captive labor force with low wages. Since then, tea garden workers have been working for five generations throughout the last 170 years and the current situation of these workers requires the attention and support of the authority.

Even though the tea garden owners argue to provide USD 4 a day in the form of facilities like a medical fund, retirement benefits, and so on, in reality, tea workers are getting hardly 3 kg flour of ration per week to keep them half-starved most of the time while 46% adolescents are victims of child marriage and 15% females suffer from cervical cancers [7]. The protest of these workers did end with the daily wage being finalized at 170 BDT per day with the intervention of Prime Minister Sheikh Hasina [8], but the question remains, that if this amount is still sufficient for these workers, described as “ modern-day slaves ” by journalist and director of SEHD (Society for Environment and Human Development) Philip Gain , to have required health facilities or a sustainable lifestyle.

Key market players in the Tea Industry

Presently there are multiple brands in the industry such as Ispahani Mirzapore Tea , James Finlay Bangladesh , Kazi and Kazi , Duncan Brothers Bangladesh Limited , Abul Khair Group , Orion Group , Transcom Group , Fresh Tea from MGI , and so on. The market leader, however, is Ispahani Mirzapore, with a market share of 50% in the market of nationally branded tea and an 80% share in the branded tea bag market [9]. The market size of the industry was BDT 3500 crore in 2021 and in the same year, the export earnings were BDT 180.57 million [3].

In the previous year, the country exported tea worth USD 4.33 million, being the 56th largest tea exporter in the world. In that year Pakistan was the country with the highest amount of tea imported from Bangladesh valued at USD 2.27 million. The other destinations of Bangladeshi tea were United Arab Emirates (USD 1.15M), the United States (USD 6,25,000), Kuwait (USD 67,000), and Canada (USD 63,500) [10]. The basic five types of tea that are produced by these companies are black tea, green tea, oolong tea, white tea, and instant tea.

Underlying Challenges

The tea industry in Bangladesh is facing multiple challenges at this moment. The fact that the amount of export is continuously decreasing has already been discussed earlier. Apart from that, there are various other issues to deal with.

Antiquated Irrigation System

The country’s current irrigation system is almost ancient which scales down the level of production to a great extent. While countries like Kenya and Sri Lanka have per hectare productivity rates of 2321 and 1763 kg respectively, that of Bangladesh is even lower than the world average, being only 1245 kg [5].

Dependency on Single Source of Labour

The country’s tea industry labour force is composed of only the tribal casts who have been in this workforce for several generations. But since both the local and global demand is increasing, if the source of labour is not diversified, then very shortly there will be an acute shortage of labour. Even the existing labour force receives a very low level of daily wage, deals with social issues like child marriage, and has access to almost no medical or educational facilities. The substandard lifestyle of theirs makes them demotivated to work and reduces their productivity to some extent.

Climate Change

Finally, global warming is a major concern since maintaining the optimum weather condition is absolutely crucial but in recent times, global warming repercussions appeared either in the form of excessive rainfalls, thunderstorms, and increased air humidity, or no rain at all as droughts. Both these situations result in low yields of tea production.

Lack of Customer Interest for Premium Quality Tea

While local customers are becoming more and more habituated with tea drinking habits, they have little interest in high-quality tea variants due to the premium pricing of such products.

That said, the market of premium quality tea is quite different when it’s in the international context. In regions like Europe and America, these premium teas have very promising demand. Apart from that, the tea industry of Bangladesh has many other growth potentials and scopes for innovation.

Growth Potentials and Innovation

The tea industry, despite dealing with some challenges, does offer some amazing opportunities to grow further in the future. Both the local and global demand for traditional and high-quality tea is on the rise so if the country manages to scale up the production, that would result in a high return on investment since the demand is higher than the supply at this point.

The governmental policy regarding the tea industry has also been favourable since the beginning. With its assistance, tea production has already been initiated in the plain lands of the northern region of the country including Panchagarh and Thakurgaon [11]. Utilizing unused and idle plain land which cannot be used for any other agro-based production anyway, if those lands can be used for tea production instead, then this would definitely contribute to the meeting increasing demand for tea, both in the home and global market. The government now is expected to facilitate the innovation of new variants of tea, while enhancing production, marketing, and auctioning. The transformation of flat lands as cultivable for tea prediction has been extremely promising so far since 12% of the current total production is from these areas.

Since the demand is increasing at a very fast pace, utilization of flat lands for tea production is crucial. One contemporary innovative approach in this industry is promoting tea as a skincare and beauty product. Using the by-products of tea leaves and using them for making skincare products can be a whole new industry that could not only cater to the home demand for beauty products but also be exported as well since tea is internationally known for its medicinal and health values.

Finally, proper marketing strategies for the newly introduced tea variants such as ginger, matcha, turmeric, cumin, etc. could contribute more to the local sales of these products.

The Future Ahead

The current focus at this point should be to figure out ways to increase domestic production as much as possible so that tea products can be exported even after meeting the local demand properly. For that, there is no alternative to modern and artificial irrigation systems to deal with unpredictable or hostile weather conditions that cannot create any impediments. The ancient tea bushes with plunging production ability should be replaced with new trees because tea plants usually lose their peak productivity rate after a certain period of time. Moreover, using natural fertilizers in the plantation gardens should be prioritized as well. The other tea-producing countries are currently having a huge competitive advantage due to the low cost of production and high productivity.

In Bangladesh, the existing labour force should be provided with higher daily wages to enhance their quality of lifestyle and adequate training facilities to level up their skills and productivity. The present cultivable land is insufficient to increase both the export amount and satisfy the local consumption, so the authorities should patronise and encourage more the utilization and expansion of such land as well. Modernization of the supply chain, minimization of impurity, and magnification of the marketing efforts for the newly introduced variants of tea could be the way to maximize the production of the tea industry in this country.

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

For further clarifications, contact here: [email protected]

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How to Start a Profitable Tea Business – Ultimate guide

• May 17, 2024
• by Next What Business Research Team

Millions of people all over the world appreciate tea as a favourite beverage. As a result, beginning a tea business is not only lucrative but also satisfying for entrepreneurs and tea lovers. You can start a business on tea by opening a tea shop, selling tea online, or distributing tea in bulk. This article offers a step-by-step tutorial on how to start and run a successful tea business, from conception to execution.

10 Steps to Start a Tea Business

1. understanding the tea industry.

The tea industry is a vibrant and globally significant sector that revolves around the cultivation, processing, distribution, and consumption of tea. Tea, derived from the leaves of the Camellia sinensis plant, is one of the most widely consumed beverages in the world and holds cultural and social significance in many countries.

Find below a Detailed Overview of the Tea Industry:

a) Global Tea Production

The tea industry spans various regions, with major tea-producing countries. It includes China, India, Kenya, Sri Lanka, and Vietnam. These countries contribute significantly to global tea production, with each having its unique tea varieties and cultivation practices.

b) Types of Tea

The tea industry offers a diverse range of tea types, including black tea, green tea, white tea, oolong tea, and herbal infusions. Each tea type undergoes specific processing methods that result in distinct flavours, aromas, and health benefits.

c) Consumer Demand

Tea consumption is driven by factors such as cultural traditions, health consciousness, and taste preferences. The demand for speciality and premium teas has been growing, as consumers seek unique flavour profiles, organic and sustainable options, and teas with specific health benefits.

d) Health and Wellness Trends

Tea is known for its potential health benefits due to its antioxidant content, polyphenols, and other bioactive compounds. This has led to the popularity of herbal teas, functional teas, and wellness-focused blends that cater to consumers seeking natural and healthy beverage options.

e) Retail Channels

The tea industry encompasses various retail channels, including tea shops, speciality stores, supermarkets, online platforms, cafes, and restaurants. The rise of e-commerce has facilitated the direct-to-consumer sales of tea, enabling small tea businesses to reach a broader audience.

f) Tea Culture and Tourism

Tea has a rich cultural heritage in many countries and is often associated with tea ceremonies, rituals, and social gatherings. Tea tourism has also gained traction, with tea estates and tea gardens attracting tourists who want to experience tea cultivation and processing firsthand.

g) Sustainability and Ethical Practices

With increasing consumer awareness, the tea industry is placing more emphasis on sustainability and ethical practices. This includes initiatives such as organic and Fair Trade certifications, responsible sourcing, environmental conservation, and fair wages for tea workers.

h) Innovation and New Product Development

The tea industry continually evolves through innovation, with the introduction of unique blends, flavoured teas, ready-to-drink teas, and tea-based products. Manufacturers and entrepreneurs are exploring creative ways to cater to changing consumer preferences and diversify their product offerings.

The tea industry presents opportunities for entrepreneurs and tea enthusiasts to venture into various aspects of the business, such as tea cultivation, processing, retailing, branding, and e-commerce. It is a dynamic and competitive industry that rewards innovation, quality, and a deep understanding of consumer preferences.

2. Market Research

Market research plays a crucial role in understanding the dynamics of the tea industry. It also identifies opportunities for business growth. Here are some key aspects of market research in the tea industry:

• Consumer Preferences
• Market Trends and Analysis
• Competitor Analysis
• Target Market Identification
• Pricing and Profitability Analysis

3. Develop Your Tea Business Plan

After receiving the feedback from the market research, you need to develop a business plan document. A well-crafted business plan will serve as a roadmap for your tea business’s success. Some of the important topics that the tea business plan must address are as follows:

• Initial and recurring costs
• Identifying your target audience
• Pricing strategies
• How do you plan to sell your tea items?

4. Sourcing Tea Suppliers

Choosing the right tea suppliers is crucial to ensure the quality and variety of your tea products. You will need to research and select reliable tea suppliers, evaluate tea quality and certifications, and establish robust supply chains. It helps you build strong partnerships with tea producers and maintain a steady supply of high-quality teas.

Read:   Best Tea Brands

5. Choosing Your Business Model

You need to select a business model for your tea business.

There are various tea business models one can choose based on the target market, product offerings, and customer preferences. Here are some common business models used in the tea industry:

Retail Tea Shop

This traditional model involves setting up a physical tea shop where customers can come in to purchase a variety of teas, tea accessories, and tea-based beverages. The shop may also provide a cosy ambience for customers to enjoy their teas on-site.

Online Tea Store

With the rise of e-commerce, many tea businesses operate primarily online. They offer a wide selection of teas through their website, allowing customers to place orders online and have the teas delivered to their doorstep. Online tea stores can reach a broader customer base and often offer more extensive product catalogues.

Wholesale Tea Supplier

Wholesale tea suppliers focus on supplying teas in bulk to retailers, hotels, restaurants, cafes, and other businesses. They usually have a wide range of teas to cater to different customer preferences.

Read:   Best Tea Business Ideas

5. Legal and Regulatory Considerations

Starting a tea business involves adhering to legal and regulatory requirements. You need to register your tea business, obtain necessary licenses and permits, and comply with food safety and labelling regulations. It helps ensure your business operates within the legal framework and meets the necessary standards.

Some of the basic steps to start a legally compliant tea business in India are as follows:

a) Business Registration

Register your tea business as a legal entity. You can choose from various business structures such as sole proprietorship, partnership, limited liability partnership (LLP), private limited company, or public limited company. Register the business with the appropriate authorities based on its structure.

b) Trade License

Obtain a trade license from the local municipality or relevant government authority. This license allows you to conduct business activities within a specific jurisdiction.

c) Food Safety and Standards Authority of India (FSSAI) License

As tea is a food product, you need to obtain an FSSAI license . It ensures that your tea business complies with food safety standards and regulations.

d) GST Registration

Register your tea business under the Goods and Services Tax ( GST ) Act if your annual turnover exceeds the prescribed limit. GST is a unified tax applicable to the supply of goods and services.

e) Labour Laws Compliance

If you plan to employ staff, ensure compliance with labour laws, such as providing employee contracts, following minimum wage laws, and adhering to working hour regulations.

f) Import-Export License (If Applicable)

If you plan to import or export tea, you may require an Import-Export Code (IEC) from the Directorate General of Foreign Trade ( DGFT ).

g) Business Permits and Licenses

Check for any specific permits or licenses required for operating a tea business, such as local business permits or health permits.

h) Trademark Registration (Optional)

Consider registering a trademark for your tea brand to protect it from unauthorized use and infringement.

It is advisable to consult with legal experts or professionals to ensure that all legal requirements are met before starting a tea business in India. This will help avoid any legal issues and ensure the smooth functioning of your business.

6. Arrange Funds

Arranging funds for a tea business in India can be done through various sources. You can approach banks and financial institutions for business loans. Banks offer various types of loans, such as term loans, working capital loans, or machinery loans, specifically designed for small businesses like tea ventures. Do not forget to prepare a comprehensive business plan and financial projections to support your loan application.

Here are some other common ways to secure financing for your tea business:

• Personal Savings
• Government Schemes
• Venture Capital and Angel Investors
• Crowdfunding
• Family and Friends
• Partnerships and Joint Ventures
• Microfinance Institutions
• Trade Credit and Supplier Financing

In addition, do not forget to apply for a credit card to meet small-time business expenses.

7. Branding and Packaging

Branding plays a critical role in establishing your tea business’s identity and attracting customers. As a tea business owner, you will need to create a unique tea brand identity, design appealing packaging that reflects your brand, and develop a compelling brand story. Effective branding and packaging help differentiate your tea business in a competitive market.

8. Setting Up Your Tea Business

For setting up a tea shop,  you will need to follow some below-mentioned essential steps:

a) Select a Proper Location

Choose a strategic and accessible location for your tea shop. High footfall areas near offices, schools, or shopping centers can be ideal for attracting customers.

b) Shop Design and Layout

Design an inviting and cosy ambience for your tea shop. Consider factors like seating arrangement, decor, lighting, and overall aesthetics that align with your brand image.

c) Suppliers and Inventory

Establish relationships with reliable tea suppliers and source high-quality teas in various flavours and blends. Consider offering both loose-leaf tea and tea bags for customer convenience.

d) Equipment and Tools

Purchase essential equipment for brewing and serving tea, such as tea kettles, teapots, cups, saucers, and tea infusers. Also, invest in a commercial-grade coffee machine if you plan to offer tea-based beverages like chai lattes.

e) Menu Selection

Create a diverse menu featuring a wide range of teas, including black, green, white, herbal, and flavoured teas. You can also offer tea-based beverages like iced teas, milk teas, and tea lattes.

f) Staff Hiring and Training

Hire friendly and knowledgeable staff who are passionate about tea and can assist customers in selecting the right teas. Provide training on tea brewing techniques and customer service.

g) Hygiene and Safety Measures

Ensure strict adherence to hygiene and safety standards in tea preparation and shop operations. Display health and safety guidelines prominently in the shop.

h) Soft Launch

Conduct a soft opening to test your operations and gather feedback from initial customers. Use this feedback to make improvements before the grand opening.

i) Grand Opening Event

Plan a grand opening event to create buzz and attract potential customers. Offer free samples, discounts, or other incentives to draw people to your tea shop.

For online stores, you are required to build an e-commerce website and set up efficient inventory management, payment, and shipping processes.

9. Marketing and Promotion

Marketing is essential for creating awareness and attracting customers to your tea business. You will need to develop a marketing strategy , build an online presence through social media and a website, implement digital marketing tactics like SEO and content marketing, and leverage collaborations and events in the tea industry.

10. Provide Excellent Customer Experience

Customer satisfaction is an extremely important aspect of the success of the tea business. You must ensure the quality of your tea offerings, train staff on tea knowledge and preparation techniques, and engage with customers to gather feedback and enhance their experience. It is needless to say providing exceptional customer service helps build loyalty and drives repeat business.

Frequently Asked Questions

How much capital do i need to start a tea business.

The capital required can vary depending on factors such as the scale of your business, location, and business model. It is essential to conduct a thorough financial analysis and create a budget that covers expenses like tea sourcing, equipment, rent, marketing, and working capital.

Where can I source high-quality tea for my business?

There are several options for sourcing tea, including direct contact with tea producers, and wholesalers or partnering with established tea suppliers. It is crucial to research and select reputable suppliers who can provide consistent quality and meet your business requirements.

How do I identify my target audience for my tea business?

Understanding your target audience is essential for effective marketing and product development. Conduct market research to identify consumer preferences, demographics, and tea consumption patterns. This information will help you tailor your products and marketing strategies to appeal to your target customers.

What are the legal requirements to start a tea business?

The legal requirements can vary based on the location and nature of your tea business. Generally, you need to register your business, obtain necessary licenses and permits, comply with food safety regulations, and ensure accurate product labelling. Consulting with local authorities or a legal professional is recommended to ensure compliance.

How can I differentiate my tea business in a competitive market?

To stand out, focus on unique aspects such as speciality teas, organic or sustainable sourcing, innovative blends, or creating a distinctive tea experience. Develop a strong brand identity, emphasize quality and authenticity, and prioritize excellent customer service to build customer loyalty.

How can I effectively market my tea business?

Marketing strategies can include online promotion through social media, influencer collaborations, content marketing, and email marketing. Additionally, participating in tea-related events, offering tastings or workshops, and partnering with complementary businesses can help raise awareness and attract customers.

How can I ensure the quality of my tea products?

Quality control is crucial in the tea business. It involves sourcing tea from reputable suppliers, conducting regular taste tests, ensuring proper storage and packaging, and maintaining freshness. Establishing quality control processes and implementing regular checks will help deliver consistent quality to customers.

How can I expand my tea business beyond a physical store?

Consider expanding your reach through online channels, such as creating an e-commerce website or partnering with established online marketplaces. Explore wholesale opportunities by supplying tea to other retailers, cafes, or restaurants. Additionally, offering subscription services or introducing unique tea-related products can contribute to business growth.

Inside Bangladesh’s Tea Industry: Progress So Far

In 2023, Bangladesh produced the highest number of teas in the country’s 180-year-long history of tea cultivation, generating a total of 102.92 million kilograms from 168 tea gardens across Bangladesh. However, Bangladesh, once one of the largest exporters of tea, has now become one of the biggest importers of tea because the domestic production of tea has failed to meet the surging local demand. After jute, tea is the second most significant cash crop in Bangladesh, with a contribution of around 1% to the overall GDP of the country. According to the London-based International Tea Committee, Bangladesh now ranks 8th in global tea production from the 10th position a decade ago, whereas a total of 47 nations cultivate tea, according to the Food and Agriculture Organization of the United Nations (FAO). This article looks at Bangladesh’s tea industry and how it can address some of the challenges of becoming a tea-exporting nation.

Early Days of Bangladesh’s Tea Industry

Bangladesh’s tea cultivation journey commenced in 1840, when the first tea farming started experimentally during British rule in the Pioneer Garden of Chattogram on the slopes of the hills, which is now the Chittagong Club. Mr. Sconce , who was the Chattogram Collector at the time, gathered tea seeds from Assam and Chinese saplings from the Botanical Garden of Calcutta. He cultivated these saplings and seeds in the Pioneer Garden, thereby establishing the Pioneer Tea Garden. During British rule, two attempts were made to cultivate tea in Chattogram (then Halda Valley) in 1828 and 1840. However, both attempts were proven futile. The first successful commercial tea cultivation started in 1854 at Malnicherra Tea Garden in Sylhet (then Surma Valley), which is near the present airport road of Sylhet.

Only two regions of then-East Pakistan, the Halda Valley, or Chattogram, and the Surma Valley, or Sylhet, produced tea before Bangladesh’s independence. Currently, 6 valleys divide the Surma Valley, also known as Greater Sylhet : Laskarpur Valley, Balisera Valley, Manu-Dalai Valley, Longla Valley, and North Sylhet Valley. Starting from 2002, tea cultivation was expanded to various regions of Bangladesh, including Panchagarh, Lalmonirhat, Thakurgaon, Nilphamari, Dinajpur, and Bandarban in the Chittagong Hill Tracts. 

In 1947, during the partition of India and Pakistan, Bangladesh (then known as East Pakistan) possessed 103 tea estates , which spanned across 26,734 hectares of land dedicated to tea cultivation. These estates produced a total of 18.36 million kilograms of tea annually, with an average yield of approximately 639 kilograms per hectare. Domestic consumption amounted to approximately 13.64 million kilograms until 1955. Subsequently, there was a significant increase in home consumption, prompting the Government to enforce a compulsory annual expansion of the tea area by 3% in 1961 . In 1970, the tea plantation area expanded to 42,658 hectares and the production increased to 31.38 million kilograms. During the liberation war in 1971, our tea industry experienced extensive destruction, leading to inadequate management, high levels of vacancies, insufficient resources, deteriorated factory machinery, and inadequate maintenance. Consequently, this resulted in decreased productivity and a decline in the quality of tea. In addition, global tea production has been steadily increasing at an annual rate of 3%. In Bangladesh, tea production has seen a growth of 1.84% and contributes 1.37% to the global tea trade, generating approximately 1775 million Taka (with an exchange rate of Taka 69 = USD 1.00) in annual revenue.

Bangabandhu’s Contribution

Bangabandhu Sheikh Mujibur Rahman was appointed as the first Bengali Chairman of the Tea Board from June 4, 1957, to October 23, 1958. Following are some of the major contributions of Bangabandhu in bolstering Bangladesh’s tea industry during his tenure as the chairman of the Tea Board as well as the Prime Minister of Bangladesh:

• Bangabandhu undertook critical initiatives to facilitate research for the burgeoning tea industry by setting up a laboratory and library at the Tea Research Station at Sreemangal in Moulvibazar.
• Bangabandhu amended the Tea Act, 1950, to establish the Contributory Provident Fund (CPF) for the officers and employees of the Tea Board. This provident fund is still operational and currently supports the human resources of the Tea Board.
• Throughout his term, he expedited the construction of the Tea Board’s main headquarters in Dhaka and enhanced the research endeavors of the Sreemangal Tea Research Station in Moulvibazar.
• Bangabandhu also played a crucial role in the development of high-yielding variants (clones) of tea plants. He initiated the planting of high-yielding saplings in the Karnaphuli tea gardens in Chattogram and Karanura in Sreemangal to guarantee a substantial tea harvest.
• Tea gardens incurred significant damage during the War of Independence in 1971. After gaining independence, Bangabandhu Sheikh Mujibur Rahman implemented several initiatives to revive the industry. One of these measures was the establishment of the “Bangladesh Tea Industries Management Committee (BTIMC) ” to restore abandoned tea plantations that were left in ruins after the war. By 1975, plantation owners were given war-damaged abandoned plantations.
• Bangabandhu obtained loans from the “Industrial Development Bank of India” to reconstruct devastated tea factories and procure machinery for the tea industry.
• The government implemented cash subsidies and provided subsidized fertilizers to tea producers , and these measures are still ongoing.
• Bangabandhu prioritized the well-being of tea workers by offering them complimentary housing, access to clean water, facilities for infant care, primary education, and provisions.
• In 1973, he transformed the Bangladesh Tea Research Station into the Bangladesh Tea Research Institute (BTRI).

Overview of Tea Gardens

Over time, the industry expanded, and by 1970, there were 150 tea gardens, a number that has grown to 168 today as per the Bangladesh Tea Board. Besides, since 2002, small-scale tea plantations have been gaining popularity in Bangladesh, especially in Panchagarh, Lalmonirhat, Thakurgaon, Nilphamari, Dinajpur, and Bandarban districts. Bangladesh has 2 tea auction centers: Chittagong Tea Auction Center and Srimangal Auction Center. After the production of teas nationwide, teas are sold in bulk to buyers in these two auction centers.

Tea Production, Imports and Exports

While Bangladesh produced only 31.38 million kgs tea in 1970, the number now stands at 102.92 million kgs in 2023. According to the Bangladesh Tea Board, from January to March 2024, Bangladesh has produced around  1.75 million kgs tea , and exported around 0.70 million kgs (up to April), which enabled the country to earn 104.59 million BDT.  In 2008, Bangladesh earned the highest amount through tea exports, which was  976.95 million BDT.  In 2023, Bangladesh earned only 272.52 million BDT from tea exports. 

In the past, the export of tea played a significant role in generating foreign currency for Bangladesh. Nevertheless, the surge in domestic consumption, which hit an all-time high of 9.65 crore kg in 2021 , has put pressure on production capacities, resulting in decreased exports and heightened imports . According to the Tea Board of Bangladesh, tea exports from Bangladesh are gradually declining. Bangladesh exported only 0.68 million kg of tea in 2021, whereas tea exports were 2.17 million kg in 2020. Thus, ensuring the country exports more tea remains a crucial challenge to diversify Bangladesh’s export basket. 

At present, Bangladesh exports tea to  Australia, Bahrain, Brunei, China, Canada, Cyprus, France, Greece, India, Italy, Japan, Kuwait, Malaysia, Mauritius, New Zealand, Pakistan, Qatar, Saudia Arabia, the Solomon Islands, Switzerland, the UAE, the UK, and the US. 

Support from the Government of Bangladesh 

The Government of Bangladesh (GoB) has undertaken various initiatives to support the country’s tea industry. Following are some of the key initiatives that are transforming Bangladesh’s tea industry: 

1. Tea Cultivation in Plain Land

The Awami-League government, under the leadership of Prime Minister Sheikh Hasina, took the initiative to start tea cultivation on plain land in the northern parts of Bangladesh in 1996. In this way, the government facilitated the utilization of unused and idle plain land, which cannot be otherwise used for other agricultural activities. Thus, tea cultivation on plain land contributes significantly to the overall tea production of the country, meeting both local and foreign demand.  Currently, around  8,000 small growers are farming tea in the northern regions of Bangladesh. In 2021,  about 14.54 million kg of tea were produced from plain land tea cultivation. 

2. Small Tea Cultivation Project

The Bangladesh Tea Board has successfully executed numerous development projects using its allocated funds to enhance the growth and progress of the small-scale tea industry. The Ministry of Commerce approved the “Small Tea Cultivation Project” for the northern region , which aimed to cultivate 3000 hectares of land . The project was implemented from January 2001 to December 2006, with funding from the Bangladesh Tea Board and the Rajshahi Krishi Unnayan Bank. The project’s duration was prolonged until December 2009 by amalgamating additional districts in the northern region with Panchagarh.

The project’s duration was subsequently extended until 2014. The “Extension of Small Tea Cultivation in Bangladesh” is a notable initiative aimed at expanding small-scale tea cultivation in the northern region of Bangladesh . This project falls under the jurisdiction of the Ministry of Commerce and is being financed through the Official Development Assistance (ODA) and the EC Revolving Fund, with a total cost of Tk 74 million (7.40 crore). The project is being executed in a combined total of 16 upazilas within the region .

The Bangladesh Tea Board has successfully achieved the target of this project. The objective of the project was to cultivate 500 hectares of land for small tea plantations by 2021 in the region. It aimed to offer technical assistance to registered tea farmers and introduce innovative methods developed by BTRI . Additionally, the project sought to introduce high-quality BT series tea varieties to small-scale farmers, distribute affordable fresh cuttings and saplings, and contribute to social and economic development by creating employment opportunities in the project area.

3. Northern Bangladesh Project

The Northern Bangladesh Project is currently engaged in the production of 1 .0 million BT series tea seedlings that are both high-yielding and high-quality. The objective is to distribute these seedlings at a low cost to the registered small tea growers in the regio n.

• Already, 883 thousand tea seedlings have been distributed among farmers at a reduced price as part of the program. In addition, a total of 400 pruning knives and 130 spray machines have been provided to registered small tea growers without charge.
• A training facility has been established at the regional office of the Bangladesh Tea Board in Panchagarh. Its purpose is to offer practical training to small-scale tea farmers.
• The Bangladesh Tea Research Institute (BTRI) has organized two-day annual training courses on cultivation specifically for tea plantations and small tea growers in the northern region. A total of 288 training workshops have been conducted, covering a wide range of topics related to tea cultivation, including planting, tipping, plucking, pruning, fertilizer application, pest and disease control, tea processing, and tea tasting.
• The Bangladesh Tea Board in Panchagarh has undertaken 1,580 field visits to tea plantations and small tea plantations in the area in order to offer essential guidance.
• The Project Development Unit of the Bangladesh Tea Board and Rajshahi Krishi Unnayan Bank have offered registered small tea farmers in Panchagarh free irrigation machinery, subsidies on tea seedlings, and loans with favorable conditions .
• A cumulative subsidy of Tk 949,000 was given to small tea farmers until 2009, amounting to Tk 1.0 per seedling , in order to promote tea cultivation. The Rajshahi Krishi Unnayan Bank provided a loan of Tk 12.5 million (1.25 lakh) to tea farmers in Panchagarh , based on the recommendation of the Bangladesh Tea Board, to support the expansion of tea cultivation until 2009.

4. Camellia Open Sky School

The Camellia Open Sky School provides practical training to small tea growers in the management of tea plantations in an outdoor setting. The purpose of this school is to provide systematic training to tea growers on cultivation techniques. The Bangladesh Tea Board’s Director of the “Extension of Small Holding Tea Cultivation in Northern Bangladesh” project, Dr. Md. Shamim Al Mamun, received instructions for the union-level implementation of the Camelia Open Sky School. The Camelia Open Sky School commenced its operations on October 25, 2020, aiming to deliver training services to tea growers in Tetulia Upazila of Panchagarh district. The Camelia Open Sky School has commenced operations in the Thakurgaon, Lalmonirhat, Nilphamari, Dinajpur, and Chattogram Hill Tracts (Bandarban, Rangamati, and Khagrachari), as well as in greater Mymensingh. A total of 32 practical training workshops have been organized under this program.

5. Roadmap: Bangladesh Tea Industry

On January 8, 2017, the Government of Bangladesh approved the  “Roadmap: Bangladesh Tea Industry”  to not only satiate the increasing domestic demand but also expand the export market for Bangladeshi tea by increasing the production of quality tea and improving the living standards of tea workers. The 11 programs on the roadmap will be implemented over the course of three terms: short-term (2016-2022), medium-term (2016-2025), and long-term (2016-2030). The government has already successfully implemented the short-term plan. As per the roadmap, the country has set a target to produce 140 million kg of tea by 2025. To attain the target, the Bangladesh Tea Board (BTB), under the Ministry of Commerce, has undertaken the following actions: 

• BTB has developed  23 high yielding clones.
• BTB has provided  fertilizer at a subsidized rate to the tea gardens and small tea growers.
• BTB has introduced a cash incentive of 4% for tea exporters.
• BTB is going to launch the ‘Tea Tasting and Quality Control Course’  in order to facilitate quality tea production in the country.
• BTB has established  7600 labor houses, 7600 sanitary latrines, 10 day care centers, and 26 mother clubs in order to cater to the welfare of tea workers.
• BTB has also introduced a new tea brand, namely  ‘Bangladesh Tea’. 

Other 2 notable projects that are currently operational under the BTB are: Extension of Small Holding Tea Cultivation in Chattogram Hill Tracts; and Eradication of Rural Poverty by Extension of Small Holding Tea Cultivation in Lalmonirhat. 

In the second part of this series, I will discuss in detail what are the bottlenecks the tea industry of Bangladesh currently experiencing, and what should be done to rise above all the challenges. 

About the Author

Shah Adaan Uzzaman   is the Blog Administrator at The Confluence, and the Co-Founder & CEO of Dumpy. A former Bangladesh Television Debate Champion and winner of several policy & debate competitions, he is currently a student of IBA, University of Dhaka.

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Tea Manufacturing in Bangladesh: Problems and Prospects

Tea industry is an agro-based export oriented industry in Bangladesh for over a century. Started from establishing Malnicherra Tea Estate in 1857 in Sylhet, now the number of tea estates have reached at 158 and tea industry has spread over Moulvibazar, Habigonj, Rangamati and Brahmanbaria.We produce only 2% of global tea production and we are earning near about two hundred crore taka in every year. The various stages of tea manufacturing are: Withering, Rolling, Fermenting, Drying/Firing, Sorting & grading, Tea tasting, Packaging etc. Now tea estates are facing various problems, which must be solved to save the tea industry. Tea is a safe and healthy beverage, which has also medicinal value. We have to intensify our race to reach a target of 1500 Kg/ha by 2010 A.D. to produce 90 million Kg made tea and to increase our area by about 1650 ha. This will satisfy our increasing domestic need and at least maintain the present ratio of the export of tea. We have to make quality tea, which ...

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First and foremost, praises and thanks to the Almighty Allah, for His shower of blessing throughout my field work to complete the report successfully. In the field of Geography it is really important to conduct work practically. That's why field work is considered as one of the fundamentals of Geography. I am grateful to Department of Geography and Environment, University of Dhaka for arranging this field trip on 18 march, 2023, in Burjan Tea Estate , Khadimnagar, Sylhet and allowing the students to go for the trip for the fulfillment of the course-Research Methods and Field work in Geography and Environment-I (GELb-108). The successful fieldwork in Sylhet would not have been possible without the supervision of some key people. I am very much grateful to these personnel for facilitating us with all the necessary help and supports.

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Tea in Bangladesh: History, Production and Consumption

Explore the history of tea in Bangladesh with this full-blown guide. From the early days of the tea trade to the modern day, we’ll give you a detailed account of how this key crop is grown and produced.

Bangladesh is an essential tea-producing country in Asia and is the world’s 10th largest tea producer. Bangladesh’s tea industry dates back to Colonial Period, during British Rule, when the East India Company initiated the tea trade in Chittagong in 1840. The country has 178 commercial tea estates, including many of the world’s most extensive working tea plantations. The industry accounts for 7% of global tea production and employs more than 0.5 million people.

In Bangladesh, tea is grown in the country’s Northern and Eastern parts or districts. The highlands, temperate climate, humidity and heavy rainfall in these districts provide a favourable ground for producing high-quality tea.

Historically, Bengal was the terminus of the Tea Horse Road connecting the subcontinent with China’s early tea-growing regions in Yunnan . Atisa is regarded as one of the earliest Bengali drinkers of tea.

Black tea cultivation was introduced in Bengal during the British Empire . European traders established the first sub-continental tea gardens in the port city of Chittagong in 1840 when plantations were set up beside the Chittagong Club using Chinese tea plants from the Calcutta Botanical Garden. The first home-grown tea was made and tasted near the Karnaphuli river in Chittagong in 1843. Commercial tea cultivation began in the Mulnicherra (Malnichora) Estate in Sylhet in 1857 for the first time. The Surma River Valley in the Sylhet region emerged as the centre of tea cultivation in Eastern Bengal. Plantations also flourished in Lower Tippera (modern Comilla ) and North Bengal .

Tea was a significant export of British Bengal. The Assam Bengal Railway served as a lifeline for the industry, transporting tea from growers in the Surma and Brahmaputra Valleys to exporters in the Port of Chittagong. The Chittagong Tea Auction was established in 1949 by British and Australian traders. British companies such as James Finlay and Duncan Brothers dominated the industry once. The Ispahani family has also become a prominent player in the industry.

Tea is the second-largest export -oriented cash crop in Bangladesh, following jute . The industry accounts for 8% of the national GDP . Tea-producing districts include Sylhet , Moulvi Bazar , Habiganj , Brahmanbaria , Rangamati , Chittagong and Panchagarh .

Once a major world exporter, Bangladesh is now a net importer of tea. The rise of the Bangladeshi middle class has increasingly driven the industry to focus on a lucrative domestic market. The sector is today dominated by Bangladeshi conglomerates, including M. M. Ispahani Limited , Kazi & Kazi, the Transcom Group , James Finlay Bangladesh , the Orion Group , the Abul Khair Group and Duncan Brothers Bangladesh Limited.

In 2012, Bangladesh recorded its highest tea production, at 63.85 million kilograms. The country has over 56,846 hectares of land under tea cultivation, up from 28,734 hectares in 1947. The government has begun to promote small-scale tea growers, particularly in the Chittagong Hill Tracts .

The price of Bangladesh tea is determined at the public auction in Chittagong. In March 2015, the international price of Bangladesh tea was US$2.40.

More than 300,000 plantation workers are employed in Bangladeshi tea gardens. 75% of workers are women. Many are descendants of tribal labourers brought from central India by the British.

Government bodies

The Bangladesh Tea Board and the Bangladesh Tea Research Institute support the production, certification and exportation of the tea trade in the country.

The Process of Tea Production

C ultivation

It is not particularly hard to make tea grow. As long as it gets plenty of rain and temperatures do not vary much year-round, Camellia Sinensis is a robust shrub, able to tolerate a relatively wide range of more or less tropical climates, altitudes and soil conditions. It flourishes happily in the wild, in China (whence it originates), Assam, Bangladesh and elsewhere. Untended, the bushy shrub that covers the hills of central Srimangal in manicured, contour-planted swathes becomes a fuzzy, gnarled tree that can grow up to 9m (30ft.) tall. It was from such trees that the original seed stock of Finlay tea – in fact, of all tea – was derived. However, growing tea worthy of bearing the famous Finlay logo is not at all easy. Every permutation and combination of such variables as plant stock quality, soil, weather, altitude and exposure has a discernible effect on the quality of the final product.

So sensitive is the tea plant to such effects that samples of tea picked from different hillsides or ‘fields’ on a single estate, or even from the same hillside on other days of the week, will appear different to an experienced taster. Today, when much of the island’s output is grown on smallholder farms, the potential variation within a single sub-district can be even more comprehensive.

Such extreme variability was a significant handicap to pioneer Finlay tea planters, who could never be sure of a consistent product. Advances in the art and science of tea production, together with such processes as bulking, delivered greater consistency. Still, tea cultivation remains, much like viniculture, a business of regional and seasonal variation, of vintages delectable or disappointing. Modern supermarket brands, made by blending teas from many sources of origin, tend to eliminate this exciting variety in the flavour of a predictable, homogenized ‘consumer experience’; Finlay tea, on the other hand, proudly emphasizes its unique, variable yet always recognizable character. The differences between the various tea-growing regions of Bangladesh are marked, and the flexibility of the orthodox black tea process enables many adjustments to be made at the manufacturing stage.

Less common now than in the pioneering days, a sloping hillside is cleared of trees and scrubbed for planting with tea. The heavy timber, often valuable, is removed, and the remaining cutting is burnt off, the resulting ash helping fertilizes the soil.

Preparation

In preparation for planting, the land must be surveyed, ‘lined’ to mark the future position of each bush, drained and ‘holed’ to receive the plants. Proper drainage is vital; the ideal is a clean runoff with minimal erosion.

Originally grown from seed, either in situ or at a nursery, tea is now reproduced by vegetative propagation or ‘cuttings’. The traditional planting pattern, with bushes arranged in geometrical clusters, was superseded in the 1857s by contour planting that closely follows the hillside line. In addition, trees are planted amid the tea to provide partial shade and further control soil erosion.

Early planters weeded their fields clean, losing tons of topsoil with every rain shower. Today, only weeds that can harm the tea are picked, the rest left to help ‘bind’ the soil. Topsoil loss remains a problem; however, how to overcome it is a subject of much controversy, study and experiment at Bangladesh’s national Tea Research Institute and elsewhere.

Fertilization

While the proportion of organically-produced Ceylon Tea harvested increases annually to keep pace with demand, conventionally-grown teas must also pass the Tea Board’s stringent rules on chemical content. This results in a safer and healthier product and helps protect the environment.

Tea bushes, like vines, respond well to periodic mutilation. Pruning, which begins before the plant is mature enough for plucking, is repeated every couple of years after that, causing the bush to grow horizontally instead of vertically. Performed using a special knife, pruning is a strenuous and challenging manual operation that resists automation. Human skill is an essential part of the process.

Picking the tea, or ‘plucking’ as it is known in the trade, continues all year round. However, different regions produce their best teas at other times of the year due to the climatic variations associated with them. The pluckers, primarily women, restrict themselves to the two tenderest leaves and the ‘bud’ that grows at the very top of every stem. Coarser picking results in poor-quality tea.

Manufacturing

Bangladesh’s tea cultivators and manufacturers are the custodians of the traditional, orthodox method of black tea production. Most experts still agree this produces the best black tea. The conventional way is relatively slow and labour-intensive, even with the technological improvements introduced over the last thirty or forty years. Still, as the tea planters and traders of Bangladesh have always maintained, good tea cannot be hurried. Nor, oddly enough, can it be delayed. The time devoted to each of the processes of tea manufacture has to be finely judged if a quality product is to be obtained. This is a matter of the tea-makers judgment, for the right timing depends on the moisture content of the plucked leaf, the temperature and humidity conditions prevailing throughout manufacture and a variety of other factors. Although making fine black tea is simple in its essentials, expertise, experience, and a ‘feel’ for the task are essential to success.

The manufacturing process commences when the leaves are picked or ‘plucked’. Plucking calls for discrimination and skill and is carried out mainly by women. Only the uppermost foliage on every stem is selected – the famous ‘two leaves and a bud’ – and the branch itself must be undamaged. Fiddly work, but a skilled tea-plucker can collect up to 35kg. (44lb.) of leaf daily.

On arrival at the factory, the raw leaf is weighed. The total weight recorded for the day’s batch provides a benchmark for quality assessment at the end of the process of manufacture. After weighing, the tea is laid out for withering.

Raw leaf is ‘fluffed’ and spread out to dry on racks or troughs in a well-lit, ventilated space. It will lie here for 18-24 hours, slowly losing moisture and undergoing physical and chemical changes essential to manufacture. Over withering can be fatal, so the process is carefully monitored. It is complete when about two-thirds of the moisture present in the raw leaf has evaporated.

The withered leaf is now ready for rolling. This is a mechanized process in which the leaf cells are ruptured to release enzymes and bring them into contact with air so that aeration can commence. The bits of broken and rolled leaves are called dhols. The dhools are then broken up and sifted before aeration.

During this critical stage of manufacture, necessary chemical reactions take place through the action of air on the leaf tissue. The rolled, broken leaf is spread out on tables and exposed for a period that varies between 20 minutes and five hours, depending on various factors, including the desired final product. The withered tea leaf is a rusty, coppery orange colour. Again, timing is critical: under-aerated tea tastes raw and green, and over-aerated tea is soft and tasteless. Aeration is also sometimes known as ‘fermentation’ or ‘oxidation’.

When the right amount of aeration has occurred, the leaf is dried in a desiccator or ‘firing chamber’ at 99-104˚C (210-220˚F) to prevent further chemical changes. This shrinks and darkens the leaf, resulting in the product known as black tea. This completes the actual manufacture.

The size of the leaf particles in your teapot bears no relation to quality per se, but it does affect the colour and strength of the brew. Manufactured tea is graded by leaf size using a mechanical sifter. ‘Leaf’ grades contain the most significant pieces; ‘broken’ grades are successively smaller, while the minor grades are known as ‘dust’. More significant grades tend to command higher auction prices.

Bulk Packing

To ensure consistency of appearance, flavour and quality, each grade of a particular consignment is thoroughly stirred up and mixed. After this, the tea is bulk-packed – either in the traditional wooden chests (in former times, these were lined with lead) or in more modern aluminium-lined paper sacks.

Tea Bags and CTC

Bangladeshi manufacturers responded to the growing worldwide popularity of tea bags by commencing manufacture in recent years. Tea destined for bagging is not traditionally rolled but processed by a CTC (‘cut, tear and curl’) machine, which breaks the withered leaf into tiny pieces. This fragmented leaf is ideal for tea bags; it infuses rapidly, producing a dark, potent brew.

Want to learn the art of tea-making? Book a tour with Bangladesh Unbound and get a Tea Making Lesson for FREE from our expert! And know all secrets of making a cup of delicious tea!

By Arafat Rasul

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Tea production: Slow start, then boom in peak season

There has been a record of 4.60 per cent or 1.77 million kilograms of increase in tea production during the months of January to July as compared to the corresponding period last year.

Tea production plunged because of the drought and lack of rain right at the start of the season. This gave rise to worries among the tea estate owners.  

But tea production seemed to pick up momentum again in July for as the weather was favourable. Since the production increased in July despite a slow start to the season, hopefully there would be an increase in tea production this year.

According to Bangladesh Tea Board statistics, 40 million (4 crore) kilograms of tea has been produced in the country between January and July of the current year. The production was 38.3 million (3.83 crore) kilograms during the same period in 2022.

That means there has been a 4.60 per cent or 1.77 million (17.66 lakh) kilograms of growth in tea production during the months of January to July as compared to the same period last year.

Not just last year, but this is the record of highest production during the first seven months of the year so far in the history of country’s tea production.

The six months of June to November are considered the peak season of tea production. During this window, more than 10 million (1 crore) kilograms of tea is produced every month.

This year there had been less rain than normal in the tea estate areas at the start of the peak season in June. The temperature was high as well. Both these factors are harmful for tea production.

Because of such hostile weather condition, tea production dropped down to 10 million (1 crore) kilograms in June. Production in the same month last year was 12.5 million (1.25 crore).

But the production upsurge in July has been higher than that of other times. A total of 13.6 million (1.36 crore) kilograms of tea has been produced this month, which is 21 per cent higher than that of last year.

Tea production resumed the upward trend basically for the record production in a single month. The tea board has set a production target of 100 million (10 crore) kilograms this year.

Former president of tea estate owners’ organisation, Bangladesh Tea Association, Shah Alam, told Prothom Alo that the investment made in tea estates including planting new saplings on a regular basis and renovations, is bringing in returns now.

Tea production decreased at the beginning of the season due to the drought but shot up again in July, due to favourable weather condition. Meanwhile, the healthy relationship between owners and workers played a role in boosting the production. If the weather remains favourable till October, there could be record production.

If the production trend of July is sustained, it would be very possible to reach the milestone of producing 100 million (10 crore) kilograms of tea at the end of the year, he added.

Better production has resulted in Bangladesh having the highest growth rate in tea production compared to the neighbouring countries. Compared to last year, production till June was hit by a 2 per cent reduction in India whereas in Sri Lanka it went up by 1 per cent.

In Kenya, production data till the month of May saw a reduction of 1 per cent. In Bangladesh on the other hand, there has been a 4.6 per cent rise of tea production till July.

Former deputy director of Bangladesh Tea Board, Munir Ahmed, who is now working as an advisor to a tea estate, told Prothom Alo Monday that tea production booms if rain follows drought. There being record production in July this year is indeed a reflection of that.

Meanwhile, tea estate owners are frustrated over the price rolling downwards at the auction despite the production boom. Records from the auction held in Chattogram showed that tea sold at Tk 205.31 per kg on average in the 17 auctions that took place this year. The price was Tk 199.22 at the same time last year. That means the price has been Tk 6 higher this year.

The growing trend of tea production is a positive sign.  But it would be difficult to retain this upward trend of production if the auctions don’t come up with better prices.

Despite the average price being better towards the beginning a downward trend has been noticed in the last few auctions, showed the auction data. For instance, a kilogram of tea sold at Tk 190 on average in the 17th auction that was held a weak earlier. But the price had been around Tk 208 during the same time last year.

Former president of Bangladesh Tea Association Shah Alam said that the growing trend of tea production is a positive sign.  But it would be difficult to retain this upward trend of production if the auctions don’t come up with better prices.

The current price rates aren’t enough to cover up the production cost and this can also throw the investments made in tea estates before a challenge, he added.

According to the tea board records, tea is being produced in seven districts of the country. These seven districts are: Moulvibazar, Habiganj, Sylhet, Chattogram, Rangamati, Bandarban and Panchagarh.

Tea is being produced in about 168 tea estates and, on a smaller scale, in the plains in these districts. A total of 93.8 million (9.38 crore) kilograms of tea had been produced on 164,000 acres of land last year.

As per tea marketing rules, tea has to be sold at auction as granules after the leaves have been plucked from the garden and then processed in the factories.  

Tea production hits a record high

• Tea Production
• Tea Garden Workers

Tea - Bangladesh

• Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Tea market amounts to US$1.6bn in 2024.
• Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$0.6bn in 2024.
• Revenue, combined amounts to US$2.2bn in 2024.
• The revenue, at home is expected to grow annually by 5.94% (CAGR 2024-2028).
• In global comparison, most revenue, at home is generated in China (US$52,500m in 2024).
• In relation to total population figures, the average revenue per capita, at home of US$9.06 are generated in 2024.
• In the Tea market, volume, at home is expected to amount to 106.4m kg by 2024.
• Volume, out-of-home is expected to amount to 3.3m kg in 2024.
• Volume, combined is expected to amount to 109.7m kg in 2024.
• The Tea market is expected to show a volume growth, at home of 5.1% in 2025.
• The average volume per person, at home in the Tea market is expected to amount to 0.61kg in 2024.

Key regions: United Kingdom , Philippines , Singapore , Worldwide , Thailand

Definition:

The Tea market consists of black tea, green tea and mate sold in tea bags or as loose-leaf tea. Not included are herbal tea, instant tea, iced tea or similar tea-derived Ready-to-Drink beverages. Ready-to-Drink variants are instead shown in the corresponding segment in the Non-Alcoholic Drinks market. 

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per kilogram , as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

• Loose Leaf Tea

out-of-scope

• Instant Tea
• Ready-to-Drink Tea, such as Lipton Ice Tea
• Roast Coffee
• Instant Coffee
• Analyst Opinion

Tea has long been associated with various health benefits, and this connection continues to drive consumer preferences. Health-conscious individuals are turning to tea as a healthier alternative to sugary beverages, thanks to its antioxidant properties, potential weight management benefits, and calming effects. It is especially important in Asia and Eastern Europe as well as in the UK. In these regions, it serves the purpose of both caffeination and hydration.

Trends include sustainability and ethical sourcing, innovation in tea formats and blends, and the rise of premium tea experiences. With an expanding consumer base and evolving preferences, the tea market is expected to continue its growth trajectory in the coming years.

• Methodology

Data coverage: The data encompasses B2C enterprises. Figures are based on private Household spendings on Hot Drinks. At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. In the out-of-home market, the price always refers to the price per kilogram of the beverage consumed, regardless of other components in the finished beverage.

Modeling approach: Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as production data, region, and price level index. This data helps us estimate the market size for each country individually.

Forecasts: In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Hot Drinks market with a projected steady growth.

Additional notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.

• Sales Channels
• Global Comparison
• Key Market Indicators

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Here Is The Most Effective Method To Setup Tea Business!

Bangladesh can be called as the paradise of tea production on the world. Try to Setup a Tea Business in Bangladesh. Because tea business is the most seasoned industry of the country that traces all the way back to British period when the East India Company the tea trades this area. Bangladesh has recorded most elevated tea production commonly which makes it one of the biggest tea makers on the world. The geological benefits of the area like calm environment, humidity, the good countries and weighty precipitation (especially, in the northern and eastern regions) assumes crucial part behind the massive tea production in the country. 

The significant tea estate and nurseries in Bangladesh are situated in Sylhet, Maulvi Bazar, Habiganj, Chittagong, Panchagarh, Brahmanbaria & Ranagamati. Other than Black tea, the tea makers in Bangladesh produce different sorts of tea: green tea, Oolong tea, White tea and many different kinds of Instant tea mixed with various preferences. 

Bangladesh is the significant tea exporter of the world. The tea of Bangladesh, for its superior quality, is famous in the nations of Europe, US, Middle East just as Asian nations. The area hence draws in the financial backers to put resources into this rewarding and productive area. 

The Bangladesh Tea Board (BTB) directs the tea area. BTB has two parts, one is Bangladesh Tea Research Institute & the other Project Development Unit (PDU). 

Take Our Effective Help For License & Registration Process

In Bangladesh, Tea business can be worked through framing an organization: 

Organization: 

A Company properly registered in Bangladesh might take part in any business activities according to the Object Clause of the Company, set out in the Memorandum of Association of the Company. In Bangladesh, an organization can be either open or private. To shape a public organization least seven investors will be required. Then again least two investors are important to fuse a privately company business. Privately company business can’t any issue greeting to the general population to buy in for its portions, while, public organization can offer overall population to secure its portions. By and by, privately company is the most well-known type of organization to foreign and local business visionaries. For foreign direct venture, there is no restriction relating to foreign value investment, for example 100% foreign value is permitted. Foreign venture appreciates full assurance and security in Bangladesh, as other Locally Invested Companies. The laws of Bangladesh ensure non-biased treatment among foreign and local investment, and bringing home of continues from deals of offers and benefit. 

Our 7 Core Advances That You Need For Tea Business in Bangladesh

1. A Name Clearance for the proposed Company should be gotten from Registrar of Joint Stock and Companies (RJSC). 

2. Opening a transitory financial balance for the Proposed Company in any planned Bank in Bangladesh. 

3. Remit the settled-up capital sum from the record of each foreign investors to the Bank Account of the Proposed Company in Bangladesh. 

4. Obtain encashment testament for each foreign exchanges from the Bank of the Proposed Company. 

5. Submit all the needed to the Company House. 

6. Pay the Govt charge for the registration. 

7. Get the registration declaration from Company House. 

The Required Documents For Setup Tea Business in Bangladesh

• Copy of Valid Name Clearance for the proposed organization
• Executed duplicate of Memorandum and Articles of Association of the Company. 
• Declaration on Registration of Company 
• Notice of Situation of Registered Office
• Consent of chief to act
• Classification of Personal Consenting to be Directors
• Particulars of the chiefs, administrator and overseeing specialists
• Copies of National ID of investors and chiefs (for Bangladeshi Nationals) 
• Copies of TIN Certificate of investors and chiefs (for Bangladeshi Nationals)
• Copies of identification of investors and chiefs (for Foreign Nationals) 
• Passport size photographs of investors and chiefs 
• Bank Encashment Certificate regarding each foreign investor
• Receipt of installment of the administrative expenses

Aside from setting up the above particular configuration a 100% foreign possessed organization can likewise enlist as Branch Office to start Tea business. However, Branch office can just play out the capacity imagined by the parent organization by taking earlier endorsement from Bangladesh Investment Development Authority. Subsequent to setting up the separate organization, some extra permit or authorizations might be required, contingent upon the development/extent of the business. 

13 Important Recruitment For Get Additional Licenses

The Cycle to Acquire The Additional Licenses Has been Determined Below: 

1. Trade License

To fire up a business in Bangladesh, the main necessity is securing of an exchange permit. It is necessary for each business element to get Trade License from the separate nearby legislative power. To acquire the Trade License an application encased with vital records should be submitted to the concerned local legislative power (for example City Corporation/Municipal Corporation/Union Parishad). 

2. TIN Certificate

The Government of Bangladesh gives a TIN Certificate, to individual or organization to follow charge installments. The National Board of Revenue (NBR) is the sole position to give TIN Certificate. To acquire the TIN Certificate a web-based application should be submitted to the NBR. 

3. VAT Certificate

Each Business to work is needed to have a Business Identification Number (BIN). A BIN can be gotten by VAT enlistment interaction to the National Board of Revenue. Each business element should acquire a VAT enlistment testament. To get the VAT Certificate an internet-based application alongside fundamental archives should be submitted to the NBR. 

4. Registration of Industrial Investment Project

The Industrial endeavors in Bangladesh, either nearby or foreign, must be enlisted with the Bangladesh Investment Development Authority (BIDA). To Registration of Industrial Investment Project an application alongside essential reports should be submitted to the BIDA. 

5. Factory Layout Approval

Prior to utilize, change or development of any houses, building or premises as plant, an endorsement recorded as a hard copy from the Department of Inspection for Factories and Establishments (DIFE) will be taken. To get the endorsement of the design an application alongside fundamental reports should be submitted to the DIFE. 

6. License of Factory

Every one of the proprietors or occupiers will need to present an application with essential archives to the Department of Inspection for Factories and Establishments (DIFE) for enlistment and permit of plant inside 30 (thirty) days before beginning of work for production lines. 

7. Membership Certificate

Subsequent to setting up the separate business, the business person should be an individual from a nearby Chamber of Commerce and Industry or pertinent Trade Association. The application structure to be a part is accessible at the workplace of the concerned Chamber of Commerce or Trade Association. 

8. Import Registration Certificate and Export Registration Certificate  

A shipper having Import Registration Certificate (IRC) and an Exporter having Export Registration Certificate (ERC) can Import and Export any reasonable thing with no worth and amount limitations and without getting any consent from any position. The Office of the Chief Controller of Imports and Exports (CCI&E) issues Import Registration Certificate and Export Registration Certificate to the ideal candidate. To get the IRC or ERC a web-based application alongside vital archives should be submitted to the CCI&E. 

9. Environment Clearance Certificate 

Climate Clearance Certificate (ECC) is one of the essential endorsements to start a modern unit or task in Bangladesh. To get such Certificate, the concerned business person of the modern unit or undertaking need to make an application to the Department of Environment alongside the vital records. 

10. Fire License 

Thinking about the climate and to guarantee the wellbeing of the foundation alongside the specialists occupied with the business, it is required for structures and business associations to get fire permit. It is given by the Fire Service and Civil Defense (FSCD) authority working under the Ministry of Home Affairs, Bangladesh. To get such permit, the concerned business person of the modern unit or undertaking need to present an application to the FSCD alongside the fundamental reports. 

11. Registration of Trademark 

To ensure brand name and other IP related issues, after the registration of the element, it can apply to the Department of Patents, Designs and Trademarks (DPDT), worked under the Ministry of Industries, for enlisting its brand names or potentially some other Intellectual Property. A candidate in the recommend way needs to record with important reports for the enlistment of a brand name to the Trademark Registry Wing of the DPDT. 

12. BSTI Certificate: 

Bangladesh Standards and Testing Institution (BSTI) is an expert in Bangladesh which gives declaration/permit for standard of items. The Tea and metal items by and large quality is assessed by BSTI test. (BSTI) gives two sorts of item certificate: 

• Mandatory Certification: where item can be dispatched without an authentication from BSTI 
• Voluntary Certification: where item can be dispatched without authentication, however BSTI testament adds additional validity advantages to the item. 

13. Registration of Tea Estate/Tea Garden/Small Tea Garden 

An application is needed to submit to the Bangladesh Tea Board in the endorsed structure. Various data should be put during the structure top off. 

FAQs For Tea Business in Bangladesh

What is the profitability of the tea business in bangladesh.

The tea business is definitely profitable in Bangladesh. It also depends on what types of tea you are producing or selling in the market. There can be a wide variety of profit margins depending on the distributor and the market value.

What is the cost of starting a tea business?

You will need an investment of maximum 50,000 to start a tea business in Bangladesh. If you want something more genuine like a tea bar or cafe, you will need more of an investment.

Why is green tea so expensive?

It is the delicate processing, production, and quality that make green teas so expensive when compared to average or mainstream teas.

How can one prepare for success in the tea business?

Get reay to setup tea business with us, business setup.

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Top 10 Tea Companies in Bangladesh

Business Inspection BD

October 14, 2022

For Bengalis, the first thing that comes to mind after waking up early in the morning is the thought that they will get to smell and taste one of the most aromatic drinks in the world. Yes, we are talking about tea!

Most people here start their day with a cup of tea. To quench the thirst of this national drink, the tea industry here in Bangladesh has reached quite the height. Some of the biggest tea companies are not only dealing with the demand nationally but are also exporting it internationally. The tea industry in Bangladesh dates back to the British period. And since then, tea has become an integral part of Bangladeshi culture.

In Bangladesh, tea cultivation first started near the Chittagong Club in the 1840s. And Malnicherra in Sylhet is the first tea garden of Bangladesh which was established in 1854 and began commercial production in 1857. Now, there are several tea companies in Bangladesh that have become prolific through the production of the finest tea leafs. They are:

1. Ispahani

The Ispahanis have been doing business in South Asia since 1820. Mirza Mohammed Ispahani established the Calcutta office of M.M. Ispahani & Sons in 1900. In 1947, the corporate head office was moved to Chittagong, where it stands today. Till date it is one of the largest & oldest tea companies in Bangladesh. Currently, about 80% of the tea bag market is in the grasp of Ispahani. Along with regular tea, Ispahani also makes Green Tea and Black Tea for their famous line up.

Moreover, Ispahani also has a strong influence in the sponsoring game as well, as they have sponsored the National Cricket League and many other sports competitions. Along with tea, the Ishpahani group also owns many other major food brands in the country.

2. Finlay 

Finlay is one of the oldest tea companies in Bangladesh and it dates back to 1882 when the company began its journey during the British period. Their main office is situated in Agrabad, Chittagong. Initially, the company was owned by James Finlay Ltd. But then James Finlay Ltd. sold the company, factories, and its tea estates that are located in Habiganj and Moulvibazar districts to Bangladeshi entrepreneurs. However, James Finlay Ltd. retained the “Finlay Tea” brand name.

Now, Finlay Tea is produced by two companies – The Consolidated Tea and Lands Company (Bangladesh) Limited and Baraoora (Sylhet) Tea Company Limited. Along with regular tea products, Finlay also produces some unique tea flavours such as Masala Cha and Shinrai Japanese Green tea. Though Finlay does not have a strong foothold in the sponsoring sector, they did participate in some domestic sport events.

3. Kazi & Kazi Tea

Interestingly enough, Kazi & Kazi tea is the only organic tea growing company in Bangladesh. They are also internationally certified as organic tea growers. Kazi & Kazi started their journey in 2000, and their garden is located in Tetulia, in the northernmost district of Panchagarh. The company was founded by Kazi Shahid Ahmed, Chairman of Gemcon Group, who’s main goal was to improve the lives of the people working in tea fields.

And his inspiration for producing organic tea came from the rising demand of healthy high-quality tea for both the local and international market. Their top selling products are Green Tea and Black Tea. Moreover, they also produce Tulsi Tea, Turmeric Infusion Tea, Green Lemongrass Tea, and so on. 

HRC is one of the most popular tea companies in Bangladesh. And they have been in business since 1991. The Government of Bangladesh has granted “CIP” status to HRC for its export achievements in 1991/1992. As a matter of fact, HRC has been exporting their tea products to various countries such as Russia , Poland, and Pakistan to name a few. Moreover, the brand has won eleven awards for its export endeavors which include 9 Gold and 2 Silver trophies. Rather than developing different flavours , HRC mainly focuses on the different blends of the tea , right now they have about 13 different blends of tea in a variety of sizes. 

5. Tetley ACI

Tetley ACI Bangladesh Ltd. (TABL) is a joint venture initiative of Tata Global Beverages and ACI Limited. The company has been operating in Bangladesh since 2003 and have been serving the people of the country with premium quality tea for almost two decades. Moreover, Tata Global Beverages is the second largest tea company in the world and the brand is on the path to become the market leader of the natural beverages industry.

Their headquarters is situated in Kawranbazar in Dhaka, Bangladesh, where they have their own company building called HRC Bhaban. Apart from producing regular tea, Tetley also brings in some unique products such as Lemon & Honey tea, Herbal Camomile, etc.

6. National Tea Company

National Tea Company Ltd. (NTCL) was formed in 1978 as a joint venture of the Government of Bangladesh and the General Public, which makes it the first public tea company in the country. The company’s shares are being traded at both the Dhaka and Chittagong Stock Exchanges since its inception. They have about 12 A-class tea estates all across Sylhet, Bangladesh, with a total area of approximately 10,000 hectare. There are about 12,500 permanent laborers in the company’s Tea Estates, mostly from ethnic groups, whose welfare is ensured by the NTCL.

This includes free medical facilities, housing facilities, pure drinking water, modern sanitary facilities, and subsidized food. Apart from tea, NTCL is also active in manufacturing rubber. The primary function of company is to plant, cultivate, manufacture, and sell tea and rubber products. It has been estimated that the company’s annual average production is somewhere around 5.2 million kg and a major portion of its tea products are sold via the Chittagong Auction Market. 

7. Duncan Brothers (Bangladesh) Ltd.

Walter & William are the two Duncan brothers who came from Glasgow about 150 years ago, and formed their business in Calcutta in 1859. The tea industry was booming at the time, which is why they shifted from their cotton business to tea, and it eventually became their primary venture. Duncan Brothers produces 12-13 million kgs of tea annually from 9,100 hectares of land, which mainly comes from its 16 tea gardens. The organization has a diverse portfolio of products which include rubber, mineral water, and of course – tea. There are approximately 18,500 employees that work for the brand in its various business verticals.

Seylon Tea was introduced in the market in 2004 and it is under Abul Khair consumer goods. Within a decade, it has successfully become one of the leading tea brands in Bangladesh. Moreover, Seylon was the first brand to launch Double Chamber stapleless tea bags in Bangladesh. Although the company does not make any flavoured tea, they do have 7 different blends of tea. And their head office is located in Pahartoli, Chittagong.

9. Jafflong Tea Company

Jafflong Tea Company Ltd was acquired by Orion Group in the year 2005. It is located at Jafflong under Gowainghat Upazilla, Sylhet. JTCL is the only Flat Land tea estate in the NorthEast region of Bangladesh. They specialize in producing export quality Black Tea, which is then sent to the Chittagong tea auction. The production from their estate is increasing every year, and they are confident that production will reach 400,000 kg within a short period of time. The company also ensures welfare programs that offer free housing, healthcare, and other benefits for its labourers.

10. Fresh Tea

Fresh tea is a concern of Meghna Group of Industries (MGI). Along with the brand’s other food products, Fresh Tea is widely popular as well. Under their premium category, the company produces Fresh Premium tea, Fresh Premium Green tea, and Fresh Premium Masala tea. Their head office is located in Dhaka, Bangladesh. MGI is one of the biggest brands in Bangladesh, thus it leaves no doubt why their tea is also beloved.

• Wrapping Up

It’s no surprise that the tea industry is booming in Bangladesh since there is a massive consumer base for this beverage around the country. Furthermore, Bangladesh is exporting tea worldwide, which brings in a large chunk of revenue. Thus, it can deduced that the tea industry is sustainable in the country as there will always be a demand for it both locally and internationally.

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Free Business Plan Template for Small Businesses (2024)

Use this free business plan template to write your business plan quickly and efficiently.

A good business plan is essential to successfully starting your business —  and the easiest way to simplify the work of writing a business plan is to start with a business plan template.

You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other  entrepreneurs and startups. 

Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today. 

What this free business plan template includes

• Executive summary
• Company overview
• Products or services offered
• Market analysis
• Marketing plan
• Logistics and operations plan
• Financial plan

This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.

That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.

Our free business plan template includes seven key elements typically found in the traditional business plan format:

1. Executive summary

This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand. 

2. Company overview

This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.

3. Products or services offered

What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.

4. Market analysis

This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.

5. Marketing plan

How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.

6. Logistics and operations plan

Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.

7. Financial plan

It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.

Business plan examples

What do financial projections look like on paper? How do you write an executive summary? What should your company description include?  Business plan examples  can help answer some of these questions and transform your business idea into an actionable plan.

Professional business plan example

Inside our template, we’ve filled out a sample business plan featuring a fictional ecommerce business . 

The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.

Lean business plan example

A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires. 

Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:

• Company description
• Key members of your team
• Customer segments

💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read our guide on how to create a lean business plan .

Benefits of writing a solid business plan

It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:

• Test the viability of your business idea. Whether you’ve got one business idea or many, business plans can make an idea more tangible, helping you see if it’s truly viable and ensure you’ve found a target market. 
• Plan for your next phase. Whether your goal is to start a new business or scale an existing business to the next level, a business plan can help you understand what needs to happen and identify gaps to address.
• Clarify marketing strategy, goals, and tactics. Writing a business plan can show you the actionable next steps to take on a big, abstract idea. It can also help you narrow your strategy and identify clear-cut tactics that will support it.
• Scope the necessary work. Without a concrete plan, cost overruns and delays are all but certain. A business plan can help you see the full scope of work to be done and adjust your investment of time and money accordingly.
• Hire and build partnerships. When you need buy-in from potential employees and business partners, especially in the early stages of your business, a clearly written business plan is one of the best tools at your disposal. A business plan provides a refined look at your goals for the business, letting partners judge for themselves whether or not they agree with your vision.
• Secure funds. Seeking financing for your business—whether from venture capital, financial institutions, or Shopify Capital —is one of the most common reasons to create a business plan.

Why you should you use a template for a business plan

A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.

No blank-page paralysis

A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.

Guidance on what to include in each section

If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.

Knowing you’ve considered every section

In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.

Tips for creating a successful business plan

There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.

Understand the audience for your plan

If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.

Know your goals

Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.

Take it step by step

Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Maximize your business planning efforts

Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.

To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.

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Business plan template FAQ

What is the purpose of a business plan.

The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.

How do I write a simple business plan?

• Choose a business plan format, such as a traditional or a one-page business plan. 
• Find a business plan template.
• Read through a business plan sample.
• Fill in the sections of your business plan.

What is the best business plan template?

If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.

What are the 5 essential parts of a business plan?

The five essential parts of a traditional business plan include:

• Executive summary: This is a brief overview of the business plan, summarizing the key points and highlighting the main points of the plan.
• Business description: This section outlines the business concept and how it will be executed.
• Market analysis: This section provides an in-depth look at the target market and how the business will compete in the marketplace.
• Financial plan: This section details the financial projections for the business, including sales forecasts, capital requirements, and a break-even analysis.
• Management and organization: This section describes the management team and the organizational structure of the business.

Are there any free business plan templates?

There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.

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Bangladesh National Budget FY2024-25

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Political parties react to proposed budget

After Finance Minister AH Mahmood Ali presented the proposed FY25 budget in the parliament today, political parties were divided on the subject, some terming it "practical", while others calling it "unrealistic", and "a new plan for looting".

Talking to reporters BNP Secretary General Mirza Fakhrul Islam Alamgir criticised the proposed budget.

For all latest news, follow The Daily Star's Google News channel.

"This budget has been designed for looting. The so-called budget showed expenditure higher than income. The burden will fall on people. This will lead to increased loans from both banks and foreign sources," Fakhrul said.

"The biggest problem with the budget is its failure to create employment opportunities. The entire budget is focused on mega projects, which lead to mega theft and corruption," he said.

"I would not call this budget anti-people … it is an anti-Bangladesh budget," he added.

Meanwhile, ruling party spokesperson Obaidul Quader said the proposed budget was "realistic" and "pro-people".

This budget is based on the election manifesto, said the Awami League general secretary.

Development projects, controlling prices, employment, and social safety net got special priority from the manifesto, Quader said while talking to journalists at the entrance of parliament.

Asked whether the budget was formulated following the IMF's prescriptions, the road transport bridges minister replied in the negative.

Opposition leader and Jatiyo Party Chairman GM Quader in his reaction said the proposed budget cannot be called "people-friendly".

"Indirect taxation will increase the tax burden on people. There is no escape from this. Bangladesh will face a major economic crisis after this budget," he said while addressing reporters from the same spot.

Flanked by party leaders, he said there is no way out in the proposed budget on how to recover from the ongoing economic crisis, inflation, skyrocketing prices of essentials, unemployment problems, and the decline in foreign reserves.

Communist Party of Bangladesh (CPB) in an initial reaction said the proposed budget will not bring any relief to people.

In a joint statement, CPB President Mohammad Shah Alam and General Secretary Ruhin Hossain Prince said the proposed budget will put the burden for corruption and looting by the wealthy on the hardworking and low-income people.

Revolutionary Workers Party in an instant reaction also said the proposed budget offered no relief for the people.

দূতাবাস এলাকায় পুলিশের গুলিতে পুলিশ নিহত, জাপান দূতাবাসের গাড়িচালকসহ গুলিবিদ্ধ ২

অভিযুক্ত কনস্টেবল কাউসার পুলিশ হেফাজতে রয়েছেন।

বাজেটে দেশের সম্পদ নতুন করে লুটপাটের ব্যবস্থা করা হয়েছে: মির্জা ফখরুল