Paper cups are disposable cups made of paper
and lined with wax or plastic to prevent liquid from soaking the paper. Paper
cups are made using food grade paper, which is hygienic and capable of storing both hot or cold liquid for long
times. With the rising awareness and rapidly changing lifestyles, the demand for
paper cups has increased tremendously year on year.
PAPER MANUFACTURING
PROCESS
There
are mainly three stages in manufacturing a paper cup. In the first stage, the paper
cup’s sidewall paper shaped and formed . In the second stage the paper cups
bottom paper is shaped
and joined with the shaped side wall .In third and final stage, the paper is
preheated and bottom and rim curling is done to complete the paper cup.
LAND AND BUILDING
For a paper cup manufacturing business a
covered area of about 500 square meter is required with an electricity
connection .
EQUIPMENT
Automatic machinery for
paper cup manufacturing business can be purchased from various vendors in
India. The cost for automatic paper cut manufacturing machine is 8,50000and
dyes would be required with a cost of Rs1,50000.
Labour requirements for setting
up of paper cup manufacturing is minimal . Only about 3 persons are
required. Its recommended that there is
one sales cum production manager, one skilled and one unskilled worker.
Raw
materials requirements raw materials in the form of printed PE paper ,bottom
reel and packing material would be required for the paper cup business . The
total investment in raw materials per month would be about RS 4 lakhs.
Profitability
in paper cup business The paper cup
business setup with an investment of about
rs 10 lakhs in machinery and rs 15 lakhs in working capital would
generate an anbual turnover of rs 66 lakhs . The total cost for production
would be about rs 57 lakhs thereby providing profit of rupees 9 lakhs for the
Entrepreneurs . The net profit ratio in paper cup business is usually about 14%
and the rate of return on total investment is 39%.
Licenses and registration required To establish a paper cup
manufacturing unit ,a minimum of rupees 10 lakhs investment is required for
purchasing the equipment and raw materials. With an investment of 10 lakhs the
paper cups can manufacture over 2.2 crore paper cups with an estimated sales
turnover of over 66 lakhs. Since the business would achieve a turnover in excess
of rupees 66 lakhs per annum its best to incorporate a company. With the
business being registered as private limited company it would be easy for the
Entrepreneurs to obtain bank loan scale up quickly and have the ability to
bring on partners.
In addition to to company registration the business would also require
Vat registration for selling paper
cups.
So
that was all about paper cup industry business anyone who is interested can
start this business.
- By Poorvi Bellap
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