Tea Processing
Uploaded on : April 2019
Introduction
Tea Processing is a crucial industrial activity in India. This is so because the country is one of the major producer, consumer and exporter of tea. Tea is a natural beverage brewed from the young leaves of an evergreen plant Camellia sinensis. Tea gardens and tea industries are largely scattered covering a major part of India. The crop is grown in the certain districts located in Assam, West Bengal, Kerala, Karnataka and Tamil Nadu and to some extent in Tripura, Uttar Pradesh and Himachal Pradesh. Though, tea is commercially cultivated in 16 states in India, of which, Assam (52.0%), West Bengal (21.9%), Tamil Nadu (14.6 %) and Kerala (7.1%) are accounted for more than 95% of the Total tea production. Other traditional and non-traditional states where tea is produced in small extents are Tripura, Karnataka, Uttaranchal, Himachal Pradesh, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Odisha and Bihar. Tea production in smallholding has been growing worldwide.
The Tea Board of India has recently decided to approve setting up of mini and micro factories by the small tea growers within their plantation areas, with an aim to improve plucking standards and retain garden freshness. This is expected to help improve the quality of tea processed from green leaves of small tea gardens, as the time needed for transporting green tea leaves from the gardens to factories will be reduced. It will also help retain the garden freshness of the green leaves. The Tea Board, which has defined 'micro' as factories having capacity of upto 200 kg and 'mini' as factories having processing capacity of upto 500 kg a day, has also decided to provide 40 per cent subsidy on the cost of plant and machinery to such growers. The small tea growers will have to obtain biometric cards to avail the various benefits offered by the Tea Board. Small tea growers can set up mini tea processing factories, which may reduce tension of marketing of green leaf. Besides this, unemployed youths also can grab the opportunity to set up mini-factories on the support of financial institution. The mini and micro factories will open up a huge chain of employment opportunities at the garden level.
This project profile is for setting up of a Mini Tea Factory with installed processing capacity of 100 Ton of Processed Tea, based on 200 working days per annum and 8 working hours per day.
Market Potential
Tea is India's primary beverage with almost 85% of Total households in the country consuming tea. Demand supply gap has been increasing in India in recent years. While tea consumption has been growing at 3-3.5% every year, there has been no significant increase in plantation land in the last few years as per the market survey report. Tea trading in India is done in two ways - auction and private selling. Market reports are obtained from six major auction centres in India - Kolkata, Guwahati, Silguri, Cochin, Coonoor and Coimbatore where bulk trading is carried out through the suctions held in these centres. The Cottage made CTC Tea has great demand among the consumers due to its special manufacturing process, which imparts its quality and aroma. Besides, cottage organic Tea (CTC and Orthodox), Green-Tea may be produced, which has great market potential. Therefore, few cottage tea factory could be set up in concentrated tea growing areas that will have a steady market for its products.
Technology & Process Details
The process of manufacturing CTC tea comprises of the following different process.
• Spreading the leaf on Withering Trough: The collected green Leaf is spread upon the withering trough, while spreading due emphasis is laid upon to remove source and old dried leaves so that it will help to minimize the presence of stalks and help in producing fine tea.
• Withering: The process of withering involves partial removal of moisture from fresh leaf and is carried out in order to condition the leaf physically for subsequent processing. Besides, some chemical changes also take place during withering and these are independent of the physical process. Thus, withering involves (a) Physical wither and (b) Chemical wither. While the physical wither can be completed even in 3-4 hours, however for completion of the chemical wither, a period of 12-16 hours is required as such the withering trough can't normally be used more than once a day. Withering is carried out either by Natural Withering or by Trough withering system.
The green leaves that are spread upon the wire mess of withering trough are charged with cold and warm air through an axial flow fan so that the moisture content is reduced to the desired level. Generally the level of reduction in moisture depends upon the grades and quality of tea, which is to be manufactured.
• Rolling / Rotorvane: The withered leaf are rolled to rupture the leaf cells and release of enzymes and to give a twist to the leaf. It is achieved by processing withered leaf in Rotorvane. During rolling operation chemical changes among the principal constituents of leaf start as soon as the juice of leaf is squeezed out in contact with the air. The chemical changes are caused by the enzyme present in the leaf. The enzyme brings about chemical changes but it does not change itself. Generally, leaf is rolled in Rotorvane before send to further processing.
• Operating on C.T.C Machines: A fter the leaves are rolled, they are put into the C.T.C machine (i.e. cutting, tearing and curling machine). This machine cuts the leaf into uniform size with maximum cell distortion leading to quicker and more even oxidation during fermentation. The C.T.C machine is comprised of two rollers rotating in opposite directions at the arranged speed. The speed of the two rollers are different, one of the roller is fast rotating at a speed of around 675 revolutions per minute, whereas the slow roller rotates at a speed of 60 to 73 revolutions per minute. Generally, a constant clearance between the rollers is maintained. The roller segment is in sharp condition, which cut the leaves three times. During the process it is specifically seen that leafs are not heated as it destroys briskness and quality.
• Fermenting: After processing in the C.T.C machine the leaf are fermented. Fermentation of the tea leaf is a very important process in Tea manufacture for briskness, strength, colour and quality largely depend upon it. The duration of fermentation varies according to rise and fall of temperature. A temperature of 76'F to 78'F represents the ideal temperature of the fermenting room and it takes roughly between 1 to 2 hours in the fermenting process. The leaf processed in C.T.C is spread on the fermenting floor or fermenting bed of fermenting machine. Generally, they are spread at a thickness of half a inch. Fermentation begins as soon as the juice of the leaf come into contact with the air enzyme present in the leaf being about chemical changes among the constituents of the leaf cell such as latechins (polypheno's) and caffeine. When the leaf become bright red in the fermenting room it is the best time to transfer to the drying room for firing.
• Drying: After the requisite level of fermentation CTC leaf is transferred to the drying room where the leaf is fed on the trays of mechanical dryers and fermented leaf is fired at an inlet temperature of 200'F to 220'F to arrest fermentation process and to remove additional moisture present. The exhaust temperature being 120'F to 135'F.
The thickness of spreading of CTC leaf being one fourth of inch. The fair revolution of the quality drying machine should be 350 and the tray speed is 200. The final moisture contained of the tea is kept at around 3%.
• Sorting: The sorting process of the CTC leaf is very simple. At first tea is allowed to pass through the sorter for separation of grades, during this process tea is also made free from any foreign material, fibre and other proper grading which depend largely on size (granule) of tea. After grading tea is packed in tea chest/jute bags of standard size and sent to the auction centre.
Cost of the Project
The estimated project cost is given below:
Particulars |
Amount (Rs. lacs) |
Land & Site development |
4.00 |
Building & Civil Works |
27.44 |
Plant & Machinery |
26.40 |
Misc. Fixed Assets |
3.39 |
Preliminary & Pre-operative Expenses |
3.96 |
Contingencies & Escalation @ 5% |
3.06 |
Working Capital |
1.75 |
Total |
70.00 |
Land & Site Development:
Covered Area: 5,100 Square Feet.
Particulars |
Area (Sqft) |
Rate (Rs) |
Amount (Rs) |
Site levelling, approach road, construction of boundary wall, etc. |
LS |
-- |
400000 |
|
|
Say (Rs. in lacs) |
4.00 |
Building & Civil Works:
Details of building & civil works are given below.
Particulars |
Area (Sqft) |
Rate (Rs) |
Amount (Rs) |
Factory Building |
2000 |
400 |
800000 |
Office cum Store Building |
1500 |
450 |
675000 |
Staff Quarter |
1200 |
500 |
600000 |
Genset Room |
400 |
300 |
120000 |
Sub Total |
|
|
2195000 |
Add: Electrification, Water supply, Sanitation and Drainage @ 25% |
|
548750 |
|
Total |
|
|
2743750 |
Say (Rs. in lacs) |
|
|
27.44 |
Plant & Machinery:
Details of plant & machinery are given below.
Particulars |
Qty |
Amount (Rs) |
SS Rotorvane 8" |
1 |
2400000 |
CTC Machine (3 CUT) 3 |
1 |
|
Pair 8" Roller (8-10-8 TPI) |
1 |
|
DF Furnace |
1 |
|
Drier (Conventional) |
1 |
|
Humidifier |
1 |
|
Mydelton Sorter |
1 |
|
Fibre Sorter |
1 |
|
Vibro Sorter |
1 |
|
Miscellaneous Equipment |
-- |
|
Sub Total |
|
2400000 |
Add: Taxes, transportation and installation etc @ 10% |
|
240000 |
Total |
|
2640000 |
Say (Rs. in lacs) |
|
26.40 |
Misc. Fixed assets:
Details of miscellaneous fixed assets are given below.
Particulars |
Qty |
Rate (Rs) |
Amount (Rs) |
Electrical Load Security and Transformer |
LS |
-- |
168000 |
Furniture's and Fixtures |
LS |
-- |
90000 |
Miscellaneous items |
LS |
-- |
50000 |
Sub Total |
|
|
308000 |
Add: Taxes, transportation and installation etc @ 10% |
|
|
30800 |
Total |
|
|
338800 |
Say (Rs. in lacs) |
|
|
3.39 |
Contingencies & escalation: Contingencies & escalation has been assumed at 5% of the cost of land & site development, building & civil works, plant & machinery and miscellaneous fixed assets.
Preliminary & pre-operative expenses:
Details of preliminary & pre-operative expenses are given below.
Particulars |
Amount (Rs. lacs) |
Travelling Expenses |
48000 |
Non Refundable Deposits and Professional Fees |
72000 |
Interest during implementation |
222126 |
Miscellaneous expenses |
54000 |
Total |
396126 |
Say (Rs. in lacs) |
3.96 |
Working capital:
Details of working capital are given below.
|
Total Current Assets |
|||
|
Period (Days) |
Year 1 |
Year 2 |
Year 3 |
Raw Materials |
7 |
0.72 |
0.86 |
1.01 |
Power & Utility |
30 |
0.18 |
0.22 |
0.26 |
Salary |
30 |
1.14 |
1.15 |
1.16 |
Finished Goods |
15 |
2.27 |
2.61 |
2.94 |
Receivables |
15 |
2.67 |
3.21 |
3.74 |
Total |
|
6.99 |
8.04 |
9.10 |
Working Capital Margin in Year 1 25%) |
1.75 |
|
|
|
Means of Finance
The means of finance for the project is estimated as below.
Particulars |
Percent |
Amount (Rs. lacs) |
EQUITY |
|
|
A. Equity from Promoters |
40% |
28.00 |
B. Subsidy from Central/ State Govt. |
- |
|
DEBT |
|
|
Term Loan from Banks/ FIs |
60% |
42.00 |
|
100% |
70.00 |
Profitability Statement
|
(Rs. in lacs) |
|||||
Particulars |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
Yr 6 |
A. INCOME |
|
|
|
|
|
|
Production Capacity (Ton/ annum) |
100 |
100 |
100 |
100 |
100 |
100 |
Capacity utilisation |
50% |
60% |
70% |
70% |
70% |
70% |
Production/ annum at capacity utilisation |
50 |
60 |
70 |
70 |
70 |
70 |
Total income/ annum |
65.00 |
78.00 |
91.00 |
91.00 |
91.00 |
91.00 |
B. OPERATING EXPENSES |
|
|
|
|
|
|
Raw Materials |
37.55 |
45.06 |
52.57 |
52.57 |
52.57 |
52.57 |
Power & Utility |
2.22 |
2.67 |
3.11 |
3.11 |
3.11 |
3.11 |
Salary |
13.92 |
13.99 |
14.06 |
14.13 |
14.20 |
14.27 |
Repair & Maintenance |
0.90 |
0.92 |
0.94 |
0.95 |
0.97 |
0.99 |
Other Expenses |
0.65 |
0.78 |
0.91 |
0.91 |
0.91 |
0.91 |
Total Operating Expenses |
55.24 |
63.42 |
71.59 |
71.68 |
71.77 |
71.86 |
Operating profit |
9.76 |
14.58 |
19.41 |
19.32 |
19.23 |
19.14 |
C. FINANCIAL EXPENSES |
|
|
|
|
|
|
Depreciation |
3.02 |
3.02 |
3.02 |
3.02 |
3.02 |
3.02 |
Interest on Term Loan |
3.36 |
3.05 |
2.38 |
1.71 |
1.04 |
0.36 |
Interest on Working Capital Loan |
0.63 |
0.72 |
0.82 |
0.82 |
0.82 |
0.82 |
Net Profit |
2.75 |
7.79 |
13.20 |
13.78 |
14.36 |
14.94 |
Net Cash Accruals |
5.77 |
10.81 |
16.21 |
16.80 |
17.38 |
17.96 |
Principal Repayment |
0.00 |
8.40 |
8.40 |
8.40 |
8.40 |
8.40 |
Break Even Point (BEP)
|
(Rs. in lacs) |
||
|
Year 1 |
Year 2 |
Year 3 |
A. Net sales (Rs. lac) |
65.00 |
78.00 |
91.00 |
B. Variable cost |
|
|
|
Raw Materials |
37.55 |
45.06 |
52.57 |
Power & Utility |
2.22 |
2.67 |
3.11 |
Other Expenses |
0.65 |
0.78 |
0.91 |
Interest on Working Capital Loan |
0.63 |
0.72 |
0.82 |
Total variable cost |
41.05 |
49.23 |
57.41 |
C. Contribution (A-B) |
23.95 |
28.77 |
33.59 |
D. Fixed & Semi-fixed Costs |
|||
Salary |
13.92 |
13.99 |
14.06 |
Repair & maintenance |
0.90 |
0.92 |
0.94 |
Interest on Term Loan |
3.36 |
3.05 |
2.38 |
Depreciation |
3.02 |
3.02 |
3.02 |
Total fixed cost |
21.19 |
20.97 |
20.39 |
E. BREAKEVEN POINT |
88.51% |
72.91% |
60.71% |
F. BEP at operating capacity |
44.25% |
43.75% |
42.50% |
G. Cash BEP |
37.96% |
37.46% |
36.21% |
Address of the Machinery Suppliers
S.No |
Name of the Machinery Suppliers |
Communication Address |
1 |
M/s Vikram India |
Vill : Jaladhulaguri, N.D.T. Complex |
2 |
M/s Zenith Forgings Pvt. Limited |
3, Brabourne Road, Kolkata 700 001, India. |
3 |
M/s Tea Mech (India) |
Tea Spares & Agencies (After Sales Service) |
SOURCE- http://www.nedfi.com
North Eastern Development Finance Corporation Ltd.
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
