Tea is more than just a drink in India; it’s a part of our culture and daily life. Whether you’re from the bustling streets of Mumbai or the calm countryside of Assam, chances are that tea is a daily ritual.
In fact, India is the second-largest producer of tea in the world! But beyond being a cherished beverage, tea is also a fantastic business opportunity.
If you’ve been thinking about starting a tea shop, you’re on the right path. Let’s dive into this detailed guide to help you start your tea business in India.
Why Start a Tea Business in India?
Before we get into the steps, here’s why tea is such a promising business in India:
Reason 1 – With over 1.3 billion people, India has a huge tea-drinking population. Around 88% of Indian households consume tea daily. (Source: Statista)
Reason 2 – The Indian tea industry is expected to grow at a CAGR of 6.5% from 2021 to 2026.
Reason 3 – Compared to other food and beverage businesses, starting a tea shop requires lower investment.
Reason 4 – The India Tea Market was valued at USD 11,702.3 Million in 2024 and is projected to reach USD 17,934.1 Million by 2033, growing at a CAGR of 4.19% during 2024–2033.
Step-by-Step Guide to Starting a Tea Business in India
1. Market Research
Before setting up your tea shop, research your market.
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Target Audience – Are you catering to office-goers, students, or the general public?
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Tea Preferences – In some areas, people love strong masala chai; in others, green tea or iced teas are popular.
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Competition Check – Are there other tea stalls nearby? How will you stand out?
2. Choose Your Tea Shop Type
Depending on your budget and goals, you can choose from:
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Small Tea Stall – Classic roadside setup with chai, biscuits, and snacks (low investment).
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Tea Café – A premium setup offering a wide variety of teas, snacks, and cozy ambiance.
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Tea Kiosk – Quick-serve model suitable for malls, bus stations, or airports.
3. Create a Business Plan
A strong business plan is crucial.
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Investment –
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Small tea stall: ₹50,000 – ₹1,00,000
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Tea café: ₹5 lakhs – ₹10 lakhs
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Location – High-traffic areas like offices, colleges, or public spaces. Cafés work best in shopping areas or IT parks.
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Menu – Start simple with classic chai, masala chai, ginger tea, and a few snacks. Cafés can expand to green tea, iced tea, and sandwiches.
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Suppliers – Source tea leaves from quality suppliers in Assam or Darjeeling.
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Franchise Model – Many tea franchises provide setup, training, and marketing support in exchange for royalty fees.
4. Legal and Licensing Requirements
You’ll need the following licenses:
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FSSAI License – Ensures food safety compliance.
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GST Registration – Mandatory for businesses with annual turnover above ₹40 lakhs.
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Shop & Establishment License – Local permit to operate your shop.
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Fire Safety Certificate – Needed for cafés or large stalls.
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NOC from Local Authorities – Required in some states.
5. Location and Setup
Location is key to success.
Best spots for tea stalls or cafés:
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Bus stops
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Railway stations
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IT parks / office complexes
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Shopping malls
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Busy high streets
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Commercial hubs
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Metro stations
6. Profitability of a Tea Business in India
Earning potential:
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Tea Stall – ₹3,000 – ₹5,000 per day (~₹90,000 – ₹1.5 lakhs per month)
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Tea Café – ₹10,000 – ₹20,000 per day (~₹3 lakhs – ₹6 lakhs per month)
| Business Type | Daily Earnings (Approx.) | Monthly Earnings (Approx.) |
|---|---|---|
| Tea Stall | ₹3,000 – ₹5,000 | ₹90,000 – ₹1.5 lakhs |
| Tea Café | ₹10,000 – ₹20,000 | ₹3 lakhs – ₹6 lakhs |
7. Hiring Staff
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For a small stall – Only 1 helper may be enough.
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For a café – You’ll need waiters, cooks, and cleaning staff.
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For a franchise – The franchisor may handle recruitment.
8. Marketing Your Tea Shop
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Offline Marketing – Flyers, posters, and attractive shop signage.
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Social Media – Business pages on Instagram, Facebook, and Google My Business. Share photos of your teas and café vibe.
Final Note
If starting a tea business in India feels overwhelming, FranchiseBhoomi can help. They connect aspiring entrepreneurs with top tea franchise opportunities across India.
Whether you want to open a small tea stall or a full-fledged café, you’ll find the right guidance and resources to kickstart your journey.
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