Aditya Birla Management Corporation
UPL
DCM Shriram Industries
Tata Steel
JSW Steel
ITC (Agri Business Division)
Godrej & Boyce
Grasim Industries (Century Rayon)Vending operators, beverage brands, exporters and HoReCa buyers all need soluble tea powder, and that demand is what drives most instant tea projects. An instant tea plant extracts brewed tea, concentrates it and dries it into powder or premix. An experienced instant tea plant consultant helps you size the unit, pick spray or freeze drying and plan approvals before you commit capital. NPCS has supported entrepreneurs with project planning since 1994.
Instant Tea Plant at a Glance
| Typical capacity | ~100–1,000 kg/day powder |
|---|---|
| Land | ~1–3 acres |
| Power load | ~200–800 kW |
| Water | Moderate |
| Manpower | ~20–60 |
| Indicative investment | ~₹5–30 crore |
Investment basis: excludes land.
Figures are indicative ranges. Your project report works them out for your capacity and location.
Market Demand for Instant Tea in India
Demand for instant tea comes from convenience and from value addition. Office and vending growth keeps machine operators buying premixes, while ready-to-drink tea needs soluble bases. Plants also turn low-grade teas into a higher-value product. Production is concentrated near tea regions such as Assam, West Bengal, Tamil Nadu (Coonoor) and Kerala, and export potential is high.
- Vending operators buying premix
- Beverage brands making iced tea
- Exporters supplying overseas buyers
- HoReCa kitchens and cafés
Instant Tea Products You Can Make
Most new units start with plain black or green tea powder, because it needs the simplest line. Premix with milk and sugar suits vending buyers, while iced-tea bases and concentrates suit beverage brands. Add these once your drying and blending steps run steadily.
- Instant black and green tea powder
- Tea premix (with milk, sugar)
- Iced-tea bases
- Tea concentrates
Instant Tea Plant Process
The instant tea plant process turns brewed tea into a stable soluble powder. Hot water extracts the tea countercurrent, and the liquor is clarified before concentration. Membrane concentration helps protect aroma, while evaporation is the other route. Drying then decides cost and quality: spray drying is the usual choice, and freeze drying preserves more flavour.
Quality control runs through the line. Plants test solubility, moisture, colour and taste, caffeine, heavy metals and pesticide residues, and follow FSSAI standards for tea products.
- Tea extraction (hot water, countercurrent)
- Clarification
- Concentration (evaporation or membrane)
- Spray or freeze drying
- Blending (premix)
- Packing
Raw Materials and Machinery for Instant Tea
Your main input is CTC or orthodox tea, along with fannings and dust, sourced from Assam, West Bengal (Dooars, Darjeeling), the Nilgiris and Kerala. Premix lines also need milk powder and sugar. The machines that matter most are the extractors, the evaporator and the spray dryer, since they set yield, aroma and energy use.
- Extractors
- Clarifier or centrifuge
- Evaporator
- Spray dryer
- Blender
- Packing machines
Instant Tea Plant Licence and Approvals
Start with business registration, then secure consent to establish from the State Pollution Control Board before construction. Food processing is Green below 10 KLD wastewater without a boiler, and Orange with a boiler or 10 KLD and above. Then obtain your FSSAI licence and consent to operate.
- Tea Board registration as manufacturer or exporter
- Factory licence
- Boiler approval under IBR
- No QCO applies
| Pollution category | Food processing: Green below 10 KLD wastewater without boiler (CPCB S.No. 56.2); Orange with boiler or 10 KLD+ wastewater (56.1) |
|---|---|
| HSN code | 2101 20 (extracts and preparations of tea) |
| GST | Classification-dependent under 2101; applied in the project financials |
| BIS / quality control order | No QCO |
| FSSAI | FSSAI licence |
| Other licences | Tea Board registration as a tea manufacturer/exporter; factory licence; boiler (IBR) |
Choosing the Right Instant Tea Technology
Spray drying suits buyers who want lower running costs and steady volumes for vending and premix. Freeze drying costs more to run, but it keeps aroma better, which can matter for premium and export products. Membrane concentration can sit ahead of either dryer to protect flavour. Your project report compares these routes against your capacity, budget and target buyers.
Choosing the Right Plant Size
Plant size changes cost sharply. Capacity typically runs from about 100 to 1,000 kg/day of powder, with investment in an indicative range of ₹5–30 crore excluding land. A smaller unit suits a regional premix business, while a larger one suits export contracts. Power load and manpower rise with scale, so decide size from confirmed buyers.
Government Schemes and Project Finance
Tea Board development schemes, PMFME and PMKSY are relevant to instant tea projects, depending on your unit and eligibility. NPCS reports are used for bank loans and government programmes such as PMEGP, MSME schemes, Mudra and NABARD-linked projects, subject to each lender's requirements. A well-built report supports your application, though approval rests with the lender.
What Decides Success in an Instant Tea Plant
Good operators protect aroma, secure steady tea supply and obtain export approvals early. Plan for the risks too, and sell spent tea leaves as compost or fuel.
- Energy cost in drying and evaporation
- Flavour consistency across batches
- Competition from global producers
- Tea flush seasons from Mar to Nov
How NPCS Helps You Set Up an Instant Tea Plant
NPCS ties its services to your actual decisions: capacity, spray or freeze drying, machinery specifications and vendor selection. Our team also supports plant layout, approvals planning and finance documentation. We then assist with installation and commissioning, so your plan carries into production.
NPCS's published client list records 223 assignments across food and agro processing projects between 2009 and 2026, for clients in 28 states and 26 countries.
What Your Instant Tea Plant Project Report Covers
- Project introduction and BIS specifications
- Manufacturing process with flow sheet
- Market survey (demand, imports/exports, existing units)
- Personnel
- Plant and machinery with suppliers
- Land and building with layout
- Raw materials with sources and rates
- Financials (project cost, working capital, cost of production, profitability, break-even, 5–10 year cash flow, projected balance sheet, IRR/NPV/payback)
Instant Tea Plant: Frequently Asked Questions
How much does an instant tea plant setup cost in India?
Investment is typically in an indicative range of ₹5–30 crore, excluding land. The figure depends on capacity, drying technology and building needs. Your project report works out the cost for your capacity and location.
Which licences does an instant tea plant need?
You need an FSSAI licence, Tea Board registration as manufacturer or exporter, a factory licence and IBR approval if you run a boiler. Pollution category is Green or Orange depending on wastewater and boiler use.
How much land and power does an instant tea plant need?
Plants typically need about 1–3 acres and a power load of about 200–800 kW. Water need is moderate. Exact figures depend on your capacity and the drying technology you select.
How to start an instant tea plant business?
Begin with a project report covering capacity, technology, buyers and costs. Then register the business, obtain consent to establish, order machinery and apply for FSSAI and Tea Board approvals. Confirm raw tea supply before construction.
How does NPCS help with an instant tea plant project report?
NPCS prepares a detailed project report covering process, machinery, raw materials, approvals and financials, tailored to your capacity and location. Our team also guides machinery selection, vendor choice and commissioning support.