Paper Plate Making Business Plan & Profit Margin in India

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paper plate business plan

Paper Plates are alternatives of steel, glass and ceramic material that we often use in our daily lives. Paper plates are basically not used on the first place but are used as an alternatives or for specific use. In India, paper plates hold great prominence because of their large scale usage. If you are planning to start paper plate making business then this is absolutely right time to kick start your business. This industry is growing in rapid rate in India and profit margin in the manufacturing of plate is also very high.

In this article, you will learn about following important points:-

  • how to start your own paper plate manufacturing unit in India?
  • what are the machines required and cost of machines?
  • Manufacturing process and plant setup
  • Profit margin in manufacturing of paper plates
  • Cost estimation ROI(Return on Investment)

Usage of Paper Plates (Business Opportunity)

Paper plates are basically used in two categories. The first category belongs to domestic usage and the second category belongs to commercial use. The first category usage amounts to use for domestic purpose, marriage, event, function, picnic and travel purpose. Most of us use paper plates in marriages as the best way to serve the most without worrying about cleaning or loss of item. It is also very convenient, light and affordable.

On the other hand we have the commercial use. Commercial use is linked to street shops that offer eateries, street hawkers and their likes. This part consumes the most manufactured paper plates as the demand is regular and huge.

Paper Plate Making Business Plan

If you planning to open up a manufacturing center for paper plates then you need to draw up a comprehensive and well though business plan because this market is already grown up. Your plan should not only be limited to its manufacturing but also to its supply and returns. Here we will discuss how you can open a paper plate manufacturing plant.

Requirements for opening a Paper Plate Manufacturing Plant

There’s not much required to open a paper plate manufacturing business what you need is some basic requirements which are mentioned below.

  • Land: Yes you need a land where you can set up your manufacturing plant. The land must be at a place which has basic amenities so that you don’t find much trouble. The size of the land isn’t the big issue because a 100 sq. feet land will also work.
  • Water: Water is an important part in paper plate manufacturing business because while doing so one needs a constant water supply. This can also be seen as disadvantage because the water requirement here is quite huge.
  • Electricity: Electricity is something as essential as water. You need proper power supply to run your paper machine along with water pump and other electronics. The power supply should be constant and proper with required standard voltage so that your machine works well.
  • Raw Material: It would be better that you get the raw material directly as papers or paper rolls. Because manufacturing paper requires lots of resources, money and time. You can get lots of paper from local scrap shops which may sell you those papers at a very minimal rate per kg. A quintal or 1000 kg of paper can easily be brought at Rs 5000 to 7000.
  • Manufacturing Machine: A manufacturing machines varies with price. Most common variation comes in number of generation of paper plates per hour. Some machine generate 1000-2000 pieces per hour while some do 4000-7000 pieces per hour. Also the design, quality and type of machines varies. One normal machine will cost you around Rs 75, 000 to Rs 500, 000.
  • Labor: You may need at least two more people along with you if you are also involved in manufacturing. This may not be much costly but you need to give them proper training in initial days.

Feasibility Analysis of Paper Manufacturing Plan

A feasibility analysis is necessary aspect that should always be conducted where you are going to do something brief with a respected amount of capital. Setting up a manufacturing center requires a decent amount of capital, time, raw material, resources and man power. It would be better for you to conduct such feasibility test that will give you a comprehensive report. Here is some aspects of feasibility analysis.

Requirement of Resources

The basic requirement for opening a manufacturing center is a decent size of land. It should definitely be built as per the requirement. You can also open this in your house with only one machine. Second requirement will be paper work related to the business that includes registration, taxation, required permissions, etc. The third important point is a proper connection of water supply and power. Your place of manufacturing should be at place that has all basic amenities. Other requirements are raw materials, machine and labor.

Investment Required

Though most of the people open their plant in their own land or house instead of buying a separate land because it is quite costly. Building up that place will at least required few lakhs of rupees. Other than that your basic investment will be in machine. This will cost around Rs 75, 000 to Rs 500, 000. Raw material, power supply, water, taxation, labor will cost you around Rs 10 lakhs a minimum. It may go up to Rs 15 lakh which you must try to minimize as much as possible.

Other Possible Issues Related with the Business

Paper work and proper permission: You should be prompt with these issues of taking proper permission from the authorities. Paper work like proper electric connection, water supply connection, registration of your business, registration in GST and many others.

Arrangement of Capital: Though many of us won’t have that much of money to invest in this business at a go. We definitely need some sources from where we can arrange these funds. The better option would be to go for a bank loan. The Indian government recently launched a scheme known as MUDRA Yojna where it is offering loan of Rs 50, 000 to 10 lakhs for those who want to start a small business. You can go up with your plan and papers and get a loan.

Market for the Business: It is the most necessary aspect of the business where you need to have a proper market for selling up your product. Make a network with local vendors, shopkeepers and wholesalers who sell such items. Make a deal with them based on supply and rate. Your market should focus where you can sell your product at a good price.

Paper Plate Manufacturing

Paper plate manufacturing should focus on three different perspective. The first perspective should be the total amount of manufacturing per day. A normal machine manufactures a minimum of 2000 plates per hour so if you make it work for eight hours it will give you 16000 plates. You should consider having two machines in case one of your machines stops to work you may continue with the other. If both are working then you may have greater manufacturing and then greater supply.

The second perspective is the shape and size of the plate. Though machine remains the same but there are different shapes and sizes that are fitted to manufacture such plates. You can do an analysis in the market for the requirements and based on it you can manufacture them. Make sure what you manufacture has some good demand so that you get a constant order. The last perspective is the quality of product.

There are different types of paper plates. Some of them are extremely light while some of them are light weight yet durable. The last category is the most advanced and durable plate that is thick and holds the best quality. You should try all of them based on requirements. Some shopkeepers use the lowest quality while some use the best. You can figure it out while consulting the shopkeepers.

Return on Investment:

Your profit depends first on your investment. If you have a good investment then your return for the first time may not sound good but if your investment is low then you may be comfortable with the return. Apart from manufacturing, the return in this business also depends on the market. You need to have a proper network where you can supply your product.

This network should be wide so that you can get different prices for your product. Your aim should be supplying product directly to the user. Shopkeepers in cities demand quality paper plates where the cost is high. You can sell your product to them so that you get the best returns. Cost of transportation also will be an add up but if you get a good price then it can be managed.

The return of this business is satisfactory because the raw material that is paper is quite cheap and a kg of paper will create good amount of plates. These plates per dozen or hundred piece cost decent amount. If you are able to sell 10, 000 to 50, 000 plates a day then your result will be very much satisfactory or else you have to build your business and work hard to achieve the target. One other important aspect is the cost of manufacturing that should be controlled to the best. If that’s done then you can easily maximize your return.

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13 COMMENTS

  1. hi …can i get information of same product(paper plates) manufacturers in singarayakonda and ulavapadu mandals in prakasam district AP……

  2. Sir, it is very much valuable information, I am very much interested to do this, please I request u to give project report

  3. Its really good information
    ..i need your guidance on training and rm selection. Also need sample peoject report.

  4. hi
    i am also ins truest for paper plat and cup making business but i don t no where i will purchase machine and Raw materials so please helf me

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