Table of ContentsEXECUTIVE SUMMARY.2INTRODUCTION4OUR PRODUCTS5TECHNOLOGY6ENERGY REQUIREMENTS:6MARKET ENVIRONMENT7I). Target market7II). Competition7III). Marketing/Sales strategy8BUSINESS MODEL8PRODUCTION/OPERATIONS9I). The Process:9RAW MATERIALS/MANUFACTURING RESOURCES11MANAGEMENT/PERSONNEL12i).Key Personell12ii).Advisory Board12REGULATIONS13i).Tea Act (Cap 343) and Tea (Licensing, Registration and Trade) Regulations, 2008.13ii). National environmental management Authority (NEMA):14iii). Other legislation:14iv). Quality certification:14CAPITAL REQUIREMENTS / FUNDING14

EXECUTIVE SUMMARY.1. Tumoi Teas limited intends to invest in the establishment of an orthodox cottage tea manufacturing plant 2. Total estimated value of the investment is Kshs. 14,000,000 (Fourteen Million shillings).3. The project will be financed by Equity contribution from shareholders, promoters and financier/strategic partners identified by the directors of Tumoi Teas limited.4. The feasibility study reveals that the project will bring in profits in the first year of operation and continues to be profitable even after the sixth year of operation.5. The project has good economic benefits to its shareholders and the community around the location of the project. The project is labor intensive and direct employment to about 200 with a production of 200kgs of made tea a day and 15000 tea stars. 6. The returns on both the Equity and the Investment are quite good and sustained by a good flow of cash.7. The project is technically feasible, economically viable and financially sound and should be supported.8. Tumoi Teas limited, in collaboration with the strategic investors, has identified all the resources needed for immediate implementation of the project.9. The construction of the factory plant will commence as soon as the Tea Directorate issues a manufacturing license to Tumoi Teas.

INTRODUCTIONTumoi Teas was founded in the year 2013 and registered as a limited company in 2015 after almost 3 years of extensive research in small scale Orthodox tea manufacture also known as the cottage tea manufacture. The Tumoi Teas stakeholders have been involved in tea farming, machinery fabrication, tea packing and distribution for over 40 years. They propose to invest in a tea manufacturing facility for Orthodox teas. The proposed facility will be a cottage tea manufacturing and value addition facility. The government has continued to encourage investment in tea sub-sector processing, packaging and marketing since liberalization in 1992. This liberalization meant opening the tea sector to various investments at various levels. However certain regulatory procedures issued by the Tea Board of Kenya (TBK) as stipulated in the Tea Act, must be met before and during operations in any investment on Tea. These regulations covers various categories in Tea handling such as in Planting, Manufacturing, Value addition, Marketing, Tea Estate management, Warehousing, research Etc. While fulfilling the regulations required by the Tea Act, Tumoi Teas Limited would like to use this window of opportunity to invest in a small scale, labor intensive tea manufacturing and value addition factory. Tumoi Teas limited directors, shareholders and sponsors have a rich background on tea operations and would like to use their experience for further development in tea operations by investing in a manufacturing factory. This project will entail the building of a cottage factory, acquisition and assembly of state of the art tea manufacturing machines and facilitating the acquisition of green leaf for conversion to black orthodox tea and other specialty tea products. Our products will deviate from the mostly manufactured CTC teas to Orthodox teas which the world is conforming to.This project appraisal examines in details the viability and feasibility of Tumoi Teas vision of setting up a cottage tea factory to be located in Nandi County in Rift valley province. OUR PRODUCTSIn the recent past the world has seen a gradual increase and demand of orthodox teas. Tumoi teas realize Kenyas bias towards CTC leaving a gap in the orthodox market, our proposal is to produce whole-leaf orthodox teas for the mid to high end market segments. We propose to produce both loose and tea bag tea, our orthodox tea bag is a patented concept of tying the tea in a string hereafter referred to as a tea star. Through different degrees of oxidation and fermentation, we have developed recipes for different types of specialty tea that we are ready to produce. These are; 1. Green Tea, 2. Black Tea, 3. Yellow Tea, 4. Purple Tea5. Oolong Tea.6. White Tea The tea will be packaged and branded as shelf ready products. In collaboration with our major partner (JUSTEA), we have carried out extensive market research in Canada and the wider North American Market and are now ready to start producing for this ready market. As we grow our operations we have plans to expand product line to include flavored teas.TECHNOLOGYThe growing demand for orthodox teas in the high end segment is driven by consumers who are interested in the story behind the tea. At Tumoi we have passionately designed and assembled our own prototype machinery that will be used in production of the teas. The advantage we gain from the process allows us not only to have high quality machines that produce premium tea but also a great story of the Kenyan tea farmers innovations and employment creation. We have partnered with a software company (Vookani) which has helped a great deal in the Market research. With this technology our customers are able to connect directly in real time with the tea process from the initial stage of plucking to the final stage of packing. This real-time connection between the consumers and the farmers/employees creates a great sense of identity and authenticates the tea process and origin.Quality control has been one of the major challenges in tea manufacture. This is where recent advances in mobile technology become strategic. Similar to the way M-Pesa has revolutionized handling money, the vookani cloud based system allows the management team to see any problems in real-time so they can step in and help .It tracks tea from farm (GPS) and plucker (picture) through processing (temperatures, times, humidity, etc.) and packaging to shipping. Any concern along the line can be traced back to the person, equipment or situation that lies at the cause.ENERGY REQUIREMENTS:At the onset, the prime source of power for machines will be electric energy. However, Tumoi have designed the cottage factory using modern architectural concepts that reduce electric requirements on lighting by 20%. In addition we have negotiated with Greenskies LLC a US based Solar Company who are ready to install solar arrays that will provide power for the cottage factory. Tumoi teas also realize the limited sources of firewood as fuel for tea driers. In this regard, we have developed a machine that will be used to convert bagasse and saw dust to briquettes. These technological advancements will not only be cost saving measures but also major marketing points.

MARKET ENVIRONMENTI). Target market

Our target market will be both domestic and international markets. Our immediate international markets will be Europe, North America and Canada through our Partners NOTHING BUT TEA, OMAR COFEE and JUSTEA respectively. These groups of consumers value the health benefits of tea and the story of the social impact of the products they consume. These consumers can connect directly to the actual farmers and producers of the tea and asses the social impact. These consumers can also follow the story through social media sites.Locally we intend to target the increasing number of coffee and tea cafes in cities, High end hotels and restaurants, Gift shops and Duty free shops.

II). CompetitionThe Asian markets Taiwan, China, India and Nepal are major competitors with similar products. In Africa few companies have embarked on orthodox tea manufacture and these is in very small scale production. Our Orthodox tea manufacture will be based on Single origin which increasingly resembles that of wine Origin (i.e. area/estate/ garden, single - estate), cultivar, terroir, harvest year, name of the tea master, and method of production have become important selling points for the high - level segment. Its therefore highly unlikely that any other competitor can offer the same product as ours. III). Marketing/Sales strategy

Marketing Partners: The secured Strategic Partnerships in UK, US, Canada will act as manufacturer representatives and approach wholesalers, distributors or retailers in the respective markets. Tumoi teas working with them will continually attend tea fairs and tradeshows locally and internationally to market and sell the teas. In addition, we plan to aggressively use emails and telemarketing as they are the most cost effective tools and can reach many people across the globe. We will aggressively use these tools and social media platforms to popularize our teas.Our major Selling points will among others be;

Diversity - a wide selection of flavors Storytelling continually engaging the consumers on the social impact of the tea and the people behind their great cup Sustainability green energy tea production Health Benefits antioxidants, lower levels of caffeine, pesticide free Purple Tea a uniquely Kenyan product Social impact our hand tied tea starts will employ many people

BUSINESS MODEL Our business model will be based on the Single Origin tea Model. Single origin teas are commonly defined as teas made from leaves harvested from a single country, region or farm. Our tea will be produced, batched and packed from the same farm. In this case the consumer will know the origin of the tea being consumed as an unblended pure (Kenya/NANDI) tea. This is critical because we want to sell the high quality Kenyan tea.

PRODUCTION/OPERATIONS I). The Process: The steps involved in the orthodox tea manufacture include; withering, preconditioning, rolling, fermentation, fixation/drying, grading & sorting and finally packing.WitheringWithering will be carried out by spreading the leaves thinly on banks of bamboo trays. The trays are kept 12 to 15 centimeters apart, to allow free access of air. There are two types of withering; outdoor withering and indoor withering. The outdoor is natural withering in its simplest form. The average length of time for withering is 12 to 20 hours. In general the teas will be withered to a target moisture content of 60-65%.Rolling: When a satisfactory wither has been obtained the leaf is ready for rolling, which twists the leaf, breaks it up and expresses the juices. The rolling will compress and turn the leaf over. This step facilitates mixing up of cell constituents thereby starting fermentation.Fermentation: Though actual fermentation starts at rolling it is continued in the next stage. The sifted leaves are spread out in thin layers on tables or perforated aluminum trays or into aluminum drums, in order to continue the oxidative process. During fermentation, the leaf changes colour and turns into a dark coppery tone. Typical aroma develops at this stage. When the fermentation is judged to be sufficient (colour & nose assessment) the fermenting dhool is transferred to the drier. Fixation: This is done to stop the tea leaf oxidation at a desired level. This process is accomplished by moderately heating tea leaves, thus deactivating their oxidative enzymes and removing unwanted scents in the leaves, without damaging the flavor of the tea. The tea leaves are panned or baked using a panning machine. Drying: A simple tray dryer will be used in the tea drying. After firing, the tea is spread out to cool and then temporarily stored to wait sorting. Grading and sorting: Grading and sorting: Grading is carried out on mechanically oscillated sieves. Finished grades are stored in air-tight bins until a sufficient quantity has been accumulated to fill a consignment.Packing: The readymade tea will be packaged and shipped to consumersThe grades of orthodox teas that we intend to produce are only the whole leaf grades indicated as follows;FPFlowery Pekoe

Whole leafFTGFOPFine Tippy Golden Orange Pekoe

TGFOP1Tippy Golden Orange Pekoe

GFOPGolden Flowery Orange Pekoe

FOPFlowery Orange Pekoe

OPOrange Pekoe

BOPBroken Orange Pekoe one

GFBOPGolden Flowery Broken Orange Pekoe

RAW MATERIALS/MANUFACTURING RESOURCESTumoi teas Limited have an 80 acre tea farm that will be the source of green leaf for the orthodox tea manufacture. Annual production of green leaf currently is about 400,000kgs. We also have a 4 acre piece of land set aside for the cottage factory. The site has access to water and electricity.The requisite Machines for production have been fabricated / bought and are ready for operations. MANAGEMENT/PERSONNELi).Key Personnel

Boaz Katah Boaz is the principal director of Tumoi teas. He is a seasoned businessman involved in tea packing and distribution since the year 2007. He holds a bachelors degree in computer science from Emporia State University and an MBA (finance) from the University of Nairobi. For the past 2 years, Mr Katah has been involved in orthodox tea research.

Jamilla Kangahi KatahJamilla is a banker and handles the financials of the company. She brings in a wealth of experience in matters finance. She holds a Bachelors Degree in Education (Arts) and an MBA (Finance) from the University of Nairobi. Jamilla will be in charge of the Finance and Administration departments.

Maurice AgoroMaurice is a diploma graduate in Engineering. He is the brains behind machinery that we use. Maurice will be in charge of the Engineering departments.

ii).Advisory BoardIn order to meet high quality standards, Tumoi has engaged the following persons on advisory positions.

Jacob KatahJacob Katah retired from Eastern Produce Kenya in the 2013 having worked in the tea industry for 40 years. At the time of his retirement he was the production Director. He has been a big asset in Tumoi tea research for the past one and a half years with his knowledge and extensive expertise in all matters tea.He is also a Director of Siret tea company which is wholly owned by farmers and managed by Eastern Produce. He will continue being a big asset to Tumoi Teas limited in harmonizing Tea quality procedures and welfare of the community with international standards.

Buddha Dev AcharyaBhudha like Jacob has over 30 years experience in tea manufacture with a bias on orthodox tea. He has worked in India and Nepal as a consultant in orthodox tea manufacture. Bhudha is the Tumoi Teas consultant on orthodox tea manufacture process and machinery.

Doug PennerDoug is a software and communications expert from Canada. He developed an application (vookani) that is used by Tumoi Teas to connect with the consumers all over the world in real time.

REGULATIONSi).Tea Act (Cap 343) and Tea (Licensing, Registration and Trade) Regulations, 2008. This act generates the several regulatory requirements in detail in the Tea sub sector of the Kenyan economy. The directors and shareholders of Tumoi Teas Limited are confident that they will satisfy all the requirements and demands of the Act and be able to obtain the various licenses from the Tea Directorate for the intended investment. ii). National environmental management Authority (NEMA):

The directors have engaged the services of Westfield Company limited to carry out an impact assessment and to develop a comprehensive environmental policyiii). other legislation:These include licenses from the county government, Water companies, Kenya Power and lighting. The process of acquiring these required documents is already on- going. Water Resource Management Association of Lake Victoria Basin will process the water abstraction permit once the mandatory conditions have been satisfied.The Kenya Power and Lighting Company limited Western Kenya Region have confirmed their willingness to connect electricity to the factory once the construction starts iv). Quality certification: Tumoi teas will pursue FDA, KEBS, Public Health certifications

CAPITAL REQUIREMENTS / FUNDINGWe have outlined the cost of 1 tea cottage in the table below. The total cost for a fully operational cottage is Kes. 14, 000,000/-. Our concept is to ultimately multiply the tea cottages and provide employment to as many people as we can. One Tea cottage can employ up to a maximum of 250 persons and can produce up to 200kgs of made tea and 20,000 tea stars in a day.

ORTHODOX TEAMACHINERY7,500,000.00

STRUCTURES2,500,000.00

TRAINING1,000,000.00

POWER CONNECTION1,000,000.00

WORKING CAPITAL2,000,000.00

TOTAL14,000,000.00

Funding will be drawn from the project sponsors and shareholders.a) The project will be sponsored by:i) Tumoi Teas Limited: This is a company limited by shares and incorporated in Kenya under the company Act (Cap.486). It is run by a board of Directors elected periodicallyii) Financier/strategic partner: Tumoi Teas Limited has invited a strategic partner to fill the shortfall in the financing of the project. The engagement will be based on agreed Equity contribution.iii) Other shareholders: These are drawn from the general public who may not necessarily be suppliers of green leaf. Their input will be based on purchase of shares.

b) Sponsors Equity: The entire investment will be financed by Equity contribution from the sponsors as in (a) above. It is estimated that the total cost of the factory will be Kshs.14,000,000.