Producing tea bags with medicinal herbs

General specifications of the project

For a long time medicinal herbs (plants having effective medicinal materials) were used in forms as brewed, powdered, poultice … and now their worldwide usage continues to be increased even more. Herbal tea bags or herbal infusions are fitted in Iranian bazaar and warmly welcomed now because people can buy and use them very easily. This is why the largest companies producing tea bags have put the kind products in their product basket.
West Azerbaijan province and Maku Free Zone have a proper status dealing with accessing medicinal herbs. There are 1000-1200 types of plants in the province half of which have medicinal properties and at the present, nearly 150 types of are used traditionally. During several years ago, West Azerbaijan produced the highest level of medicinal herbs among the other provinces in the country. Considering convenient access to raw materials and status of the market, this project has advantages in Maku Free Zone. The annual capacity of the project assumed to be 396000 boxes with 20 packs in each.

Type of the project

The project deals with establishing a new economic unit.

The axis of the project

According to ISIC (2008, 4th edition) and considering the nature of the project, this project can be categorized in industrial production section (manufacturing), producing foodstuffs part and into group activity of producing other food products (with the code of 107).

Area of land and building area of the project


m2 1300


m2 300


m2 900

total required land

m2 2500

The main goal markets

The main goal markets of this national and international project, at the first priority, are the regional states.

The required volume of investment in the project

$ 388820

Fixed capital

$ 49060

Working capital

$ 437880

Total requiring investment

Table of the financial-economical indexes of the project


Breakeven point

Return Period


35.5 %


years 3.39

$ 524440

* Discount rate is considered 16%

Calculations are done with fixed numbers (not in line with inflation)

Job-creation rate of the project

The number of direct employees is predicted to be 23 when the project becomes operational.

Scheduling the enforcement of the project

Required time to implement the project would be 1.5 years and the period of exploitation is estimated 15 years after completion of construction period.

Suggested type and method of investing the project

Direct investing method could be our suggestion for this project.