Tea powder is almost used in every household .Green powder tea called matcha is very easy to make and can even be produced at home.
The production process involves fermenting fresh tea leaves and then drying them. After drying the fermented tea leaves, then they are chopped into small pieces and grinded to a fine powder. Flavours can be added to make it tastier. The project is aimed at producing 131,040kgms of green powdered tea annually generating TR of US $220,147in the first year of operation. The total operation costs of the project are estimated at US $153,216.
Capital Investment Requirements in US$
| Capital investment item | units | Qty | @ | Total |
| Grinder | No | 1 | 500 | 500 |
| Sealing machine | No | 5 | 150 | 750 |
| Weighing machine | No | 2 | 100 | 200 |
| Filling machine | No | 2 | 400 | 800 |
| Delivery Van | No | 1 | 9,000 | 9,000 |
| Trays | No | 25 | 175 | 4,375 |
| Fermenting materials | No | 10 | 60 | 600 |
| Dark shade | No | 1 | 1,750 | 1,750 |
| Furniture & Fixture | No | – | – | 2,000 |
| Other tools | No | – | – | 840 |
| TOTAL | 20,815 |
Production and Operation costs in US$
(a) Direct materials, supplies and costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdncost/ yr |
| Direct Costs | ||||||
| Raw tea leaves | Kgs | 0.75 | 450 | 338 | 8,775 | 105,300 |
| Flavors | Kgs | 0.5 | 20 | 10 | 260 | 3,120 |
| Packaging materials | Pcs | 0.03 | 1,700 | 51 | 1,326 | 15,912 |
| Other materials | – | – | – | – | 850 | |
| Sub-total | 2,170 | 399 | 10,361 | 125,182 | ||
General Costs(Overheads)
| Labour | 792 | 9,500 |
|---|---|---|
| Utilities | 125 | 1,500 |
| Selling & distribution | 292 | 3,500 |
| Cleaning & toiletries | 115 | 1,380 |
| Rent | 500 | 6,000 |
| Miscellaneous expenses | 79 | 950 |
| Depreciation | 434 | 5,204 |
|---|---|---|
| Sub-total | 2,336 | 28,034 |
| Total Operating Costs | 12,697 | 153,216 |
- Production costs assumed are for 312 days per year with daily capacity of producing 1,680-250gms of green tea powder.
- Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other costs that directly go into production of the product.
- Total monthly days assumed are 26-days.
- The valuation currency used is United States Dollars
Project Product Costs and Price Structure
| Item | Qty/day | Qty/yr | @ | Pdn cost/yr | UPx |
| Green Tea powder | 1,680 | 524,160 | 0.29 | 153,216 | 0.42 |
Profitability Analysis Table
| Profitability Item | Per Day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 706 | 18,346 | 220,147 |
| Less: Pdn & Operating Costs | 491 | 12,768 | 153,216 |
| Profit | 215 | 5,578 | 66,931 |
Market Analysis
Green tea powder is not very common on the market therefore when introduced; many people will shift to its consumption. Supplying supermarkets, wholesale and retail shops and selling to individual consumers can be viable though advertisement costs have to be considered as the product is not common on the market so as to increase the sales.
Government Facilities & Incentives
Agricultural products value addition is one of the major goals of the government and programs such as “Bonna Bagagawale” can be an intervention program through funding agro processing.
