§1What this business is
Chamomile flower heads are picked when fully open, withered, cleaned, dried and graded, then packed loose or in tea bags. The tea is caffeine-free and sold to tea buyers; the report notes chamomile is also bought by cosmetic and pharmaceutical firms. Buyers are health stores, supermarkets, online shoppers and cafés.
§2Is it right for you?
Who it is for
Someone tied to herb growers or an FPO, or with an existing tea or health-food brand.
Who it is not for
Someone without a sure source of chamomile flowers.
Advantages
- Herbal and caffeine-free teas are a growing shelf
- Simple machinery — dryer, grader, packer
- Low break-even at 32%
- Fits food-processing schemes
Drawbacks
- Flowers are about three-quarters of the cost
- Chamomile is not a common Indian crop — supply is the main problem
- Brand building is needed to sell retail
- Dried flowers lose flavour after about 6 months
Skills you need
- Drying and moisture control
- Grading for quality
- Packaging and branding
- Online and retail sales
Why difficulty 3/5: Processing is easy; securing flowers and building a brand is not.
§3Market
Who buys
- Health-conscious households
- Cafés and hotels
- Cosmetic and pharmaceutical firms (named in the report)
How it sells
- Supermarkets and health stores
- Online marketplaces
- Bulk sale to tea packers
Good to know
- The report says loose whole flowers are higher quality than crushed bits in tea bags.
- Dried flowers keep in a sealed jar for up to 6 months.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Dryer machine | 1 | ₹2,00,000 |
| Grading machine | 1 | ₹2,33,000 |
| Packaging machine | 1 | ₹5,00,000 |
From: PMEGP sample project report — Chamomile Tea (prepared by Udyami/Samadhan)
- Chamomile flowerspicked fully open; raw material ₹63.00 lakh in year 1 in the report
- Packaging material (pouches, tea bags)₹0.99 lakh in year 1
From: PMEGP sample project report — Chamomile Tea (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Fire NOC and pollution control board NOC
- Trade licence
- Trademark for the brand
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP sample project; PMFME suits a micro food unit; MUDRA (up to ₹20 L) and CGTMSE fit the size.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹9.33 L (incl. GST and transport) + other misc assets ₹2.00 L + working capital ₹4.33 L = ₹15.66 L. Premises rented. Finance: term loan ₹10.20 L, WC loan ₹3.90 L, own ₹1.57 L.
Working capital: Working capital ₹4.33 lakh, of which the bank funds ₹3.90 lakh.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Chamomile put up as a herbal infusion may fall under a different line — confirm with customs.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Raw flower supply and price
- Moisture and mould in storage
- Competition from imported brands
- Food-safety lapses
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working chamomile tea processing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Chamomile Tea Processing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.