Paper cup manufacturing | business plan | process and cost

Paper cup manufacturing business is a home-based business idea also. you can start this business from your home. In this article we are going to see how to start a paper cup manufacturing business?

Paper cup manufacturing

Scope and importance of the Paper cup manufacturing business plan

Paper cups are generally made from wax and paper. As we have discussed earlier in the paper bag manufacturing business many governments all over the world have banned plastic bags.

That’s why there is an increasing demand for paper.

They are eco-friendly and disposable and if we discuss the health issues these paper cups are germ-free you can use this in hospitals to give your parents patients a germ-free life.

People have great awareness of paper cups, plates, and all other disposable products because of the changing lifestyle.

Paper cups are hygienic disposable eco-friendly and they can hold both hot and cold liquid. With increasing awareness paper cups demand has increased very much globally.

What do you think about who will take your products? That’s right you need to know your targeted customer. Then and only then you can increase your sales.

Major demand of the paper cups in IT industry educational institutions canteens food shops coffee shops tea shops supermarket health club and wholesalers.

As you might be aware, pollution is on the rise, and the Indian government has also banned the use of plastic. As a result, both small and large plastic packaging manufacturers are transitioning to paper-based products.

Paper cups are widely used in tea shops, coffee shops, restaurants, supermarkets, educational establishments, food canteens, and wedding parties, in keeping with the fast-changing lifestyles. Paper plates and cups are becoming increasingly popular.

Furthermore, owing to its eco-friendly aspect, this paper cup looks lovely and appealing with a variety of designs and does not affect the climate.

Read more: Jute bag manufacturing business plan

How to start the paper cup manufacturing process?

Well, this is again the next question how you can start your manufacturing process. You cannot make paper cups with your hand in large quantities.

Write a business plan

To start Paper cup manufacturing business plan, You will have to invest your money to purchase a paper cup manufacturing machine. You can get both automatic and semi-automatic machines in the market.

Indeed you can get these machines online also. But where are they available? Indiamart.com and alibaba.com.

These are the sites where you can get online pieces of information about price capacity and brand. If you don’t trust them then you can visit their physical location to purchase the product face to face.

I will give you another idea to purchase a machine. visit YouTube channel and ask them how to manufacture the paper cup.

Dear channel owner and seller will give you the exact location to purchase the product face to face and also they will give the all detailed information in the video.

Here I will give you one automatic manufacturing machine details.

Paper cups go in the three processes while the manufacturing.

In the first stage process, paper cups sidewall will have to form and shape. The second process is the bottom process where the bottom paper is formed and joined with the sidewall of the paper.

And in the last process paper cups are preheated and rim curling has to be done.

Paper cup making machine cost and project details:

For the production of paper cup business, two kinds of machines are used: fully automatic machines and semi-automatic machines.

However, if you want to start a paper cup manufacturing company, I suggest buying a fully automatic machine because it requires less manpower and produces more cups.

1) Fully-Automatic Machine: A fully automatic machine that can produce 45–60 cups per minute in sizes ranging from 45ml to 330ml costs about 6.5 lakh.
It uses poly side coated paper which needs 3.5 kW of power to operate.

2) Semi-Automatic Machine: With the aid of labour, a semi-automatic machine can produce 25-35 paper cups per minute. In the Indian industry, it will cost about Rs. 1.25 lakh.

This unit will also make ice cream cups, coffee cups, and juice glasses in a variety of sizes using various moulds.

Paper cups making machine cost could be approximately 7 lakh rupees. Prices could be vary to purchase this fully automatic paper cup manufacturing machine.

You will have to invest your money in two types of category. let’s see.

1)The fixed investment involves the purchase of machines, the construction of infrastructure, and the purchase of initial raw materials.
2)Regular investment: Running supplies, worker wage, transportation costs, gas, and water bills, on the other hand, fell under the second group.

There are some material expenses in the paper cup business.

  1. Rent ranges from Rs 15,000 to 20,000 a month.
  2. A fully automated unit costs Rs. 5,50,000 – 7 lakh rs.
  3. A semi-automatic unit costs Rs 1,25,000.
  4. 20,000 rupees spent on employees
  5. Rs 90 per tonne for PE coated reels
  6. Material for packaging: Rs 175 per kilogramme
  7. Water and electricity

Aside from that, there are other costs to include, such as repair fees, transit costs, and shop purchases, to name a few.

In order to start your paper cup company, you’ll also need some employees. This company can also be run by only three people: a production manager, a skilled worker, and an unskilled worker.

You can hire employees through advertising on job apps. Like, indeed.com

Paper cup raw material:

You will need a raw material for paper cup. you can get this raw material from local market. Because this is easily available in any market in city area.

Paper cup Raw Materials List:

  1. Printed Paper
  2. Bottom Reel
  3. Paper Reel
  4. Packaging Material

you can check paper cup raw material price list on business to business websites like indiamart.com and tradeindia.com

Area requirement for paper cup manufacturing business

How much area is required to establish this manufacturing machine? Only 300 to 500 square feet.
If you have enough space in your house then you do not need to rent shops for your manufacturing process. You can start your company from your home.

License requirement for manufacturing business.

Sales tax license: if you are selling your products online or offline also then we need to take a sales tax permit. If you are a taxpayer then it is good for taking a business loan in the future.

Zoning permits: there are some specific kind of companies which can operate or cannot operate in the zone. You will need to take a zoning permit from your local authorities.

Home occupation permit
This home occupation permit applies when you are operating your business from home. You will have to check whether this home occupation permit is applicable in your city or not.

Health permit and fire department permit.
In this paper cup manufacturing process you will need to take a health permit because your paper cups are being used while eating and drinking.

Indeed in this paper cup manufacturing process, there is some flammable substance we use while processing and also involves many people in one location that’s why a fire department permit is required for this.

And there are also many permits like environmental permits, sign permits and building and construction permits.

Now we have discussed lots of permits but how many are usable from all of them. We have a solution for this. While purchasing a machine you will have to ask to give such permits for business with the cost of machine price.

You need 2 or 3 labor for your business. And also raw materials like printed paper, bottom reel, and packaging material. The total investment would be around approx 3-4 lacs.

Paper cup is a profitable business.

Paper cup profit margin: Your investment would be around 10 lac in Paper cup manufacturing business plan.

With raw material + equipment and labor and electricity. Your annual turnover would be around 60 lac with an annual profit margin of 9 lac rupees for a new entrepreneur.

A paper cup’s price is determined by its texture, scale, and consistency. For example, if you make a printed paper cup with a capacity of 100 ml, one packet will cost up to Rs 25 and be sold for Rs 28 in the market.

One packet of paper cup manufacturing costs about Rs 15 to produce. If you want to make a simple paper cup with no style, you can do so.

Simple paper cups cost about Rs 25 per pack in the industry.

Starting a paper processing company is unquestionably a wise venture. Since the government banned the use of plastic, demand for paper cups has increased. As a result, I strongly advise you to start this company.

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