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How to Start Egg Tray Making Manufacturing Business

Do you want to start an egg tray business? if yes, you are in the right place. Here in this article, we have provided you with the steps to follow to start a successful egg tray manufacturing business with costs, licenses, production process, machinery requirements, and more.

Egg tray manufacturing is a profitable and environmentally friendly business that involves producing egg trays and other molded pulp products using recycled paper. The demand for egg trays is consistently high due to the growing poultry industry and the increasing awareness of eco-friendly packaging solutions.

12 Steps to Start an Egg Tray Manufacturing Business

1. Do Market Research

Conduct thorough market research to understand the demand for egg trays in your region. Identify potential customers, such as poultry farms, egg suppliers, and supermarkets, and assess the competition in the market.

2. Create a Business Plan

Create a comprehensive business plan that outlines your business goals, target market, production capacity, marketing strategy, and financial projections. A well-structured business plan will help you secure funding and guide you through the startup phase. Some of the steps you need to cover are as follows:

  • Executive summary
  • Company Overview
  • Market Analysis
  • Products and Services
  • Marketing Plan
  • Logistics and Operations Plan
  • Financial Plan

3. Register and Procure Licenses

To start an egg tray-making business, you must obtain different registrations and licenses from the Government authority. Check your state laws. Here, we have listed some of the basic requirements.

  • Business registration with ROC. For a small unit, OPC is recommended. Otherwise, you can form Pvt. Ltd. or LLP Company.
  • Obtain Trade License from local authority
  • Apply for MSME Udyog AAdhaar online registration. This is optional.
  • Apply for GST registration
  • Obtaining a ‘NOC’ from Pollution Control Board is highly recommended.

4. Name Your Egg Tray Company

It is essential to find a catchy and attractive name for your egg tray business. You can check our detailed guide on how to name a business to learn more.

5. Arrange Funds

If you are short of funds, consider financing your egg tray venture from banks or other financial institutions. There are several banks and alternate funding platforms where you can pitch to avail of business loans. Also, apply for a credit card to meet small expenses.

6. Location and Setup

Select a suitable location for your egg tray manufacturing unit. It should have ample space for raw material storage, production machinery, and finished goods. In addition, acquire the necessary permits and licenses to operate the business legally.

7. Develop an Egg Tray Manufacturing Unit Set-Up

With the increasing use and varieties of designs in pulp molded products, production equipment, and techniques have also progressively evolved. New techniques for producing smooth surfaces, precise shapes, and dimensions have been developed through the introduction of the in-mold thermoforming process.

You can establish the unit in two ways. One is semi-automatic and another is fully automatic. You must purchase the right machine according to the investment capacity, desired product quality used raw materials, and output quantity. Any wrong selection of the machine can influence the overall profitability of the project.

A semi-automatic manufacturing process of molded pulp products consists of the following sequential stages:

  • Pulping – Stock preparation
  • Molding – wet end
  • Drying
  • Finishing and packaging

8. Buy Egg Tray Manufacturing Machinery

You can purchase a fully-automatic machine to start this business. These types of machines include:

a) The paper pulping system

The pulping system is mainly comprised of a hydra pulpier, pulp pump, multi-function refiner machine, blender, control cabinet, etc. This process allows turning the waste paper into pulp.

b) Forming system

This is primarily using the aluminum mold to absorb the pulp and then molding the egg tray, by the vacuum pump. The blow molding technology is the key

c) Drying system

You can customize the drying machine as a single-drying line or multi-layer drying line according to your choice. Potential fuel options are diesel, natural gas, coal, and electricity. There must be an assistant drying road to recycling the tail gas after measuring, the tail temperature is about 130.°C.

d) Packing system

It includes the stacking system and the counting system. You can have an automatic stacking and counting machine. It makes it convenient for workers to pack the finished products.

9. Egg Tray Manufacturing Process & Raw Materials

The production process involves three main stages – pulping, molding, and drying. In the pulping stage, waste paper is converted into pulp using water and chemicals. The pulp is then molded into egg trays using specialized molding machines. Finally, the molded trays are dried using drying systems.

You can use rotary molding machines for the production of specific products in high volumes. Egg trays, fruit trays, and disposable service trays account for a major share of PMP production. Due to this reason, rotary molding machines are extensively used globally over for the production of these items.

Read: Best Small Manufacturing Business Ideas

10. Quality Control

You need to implement a rigorous quality control process to ensure that the egg trays meet industry standards. Furthermore, conduct regular inspections and tests to identify and rectify any defects in the trays.

11. Packaging and Distribution

Once the egg trays are dried and quality-checked, they are ready for packaging. Use eco-friendly packaging materials to align with the environmentally conscious image of your business. Develop a distribution network to supply egg trays to your customers promptly.

12. Marketing and Promotion

Create a strong brand identity for your egg tray manufacturing business and market it effectively to potential customers. Utilize both traditional marketing methods and digital platforms to reach a wider audience. Offer competitive prices and excellent customer service to attract and retain customers.


Is the egg tray manufacturing business profitable?

Yes, the egg tray manufacturing business can be highly profitable, especially when there is a consistent demand for egg trays in the poultry industry and other sectors that require eco-friendly packaging solutions.

What is the required investment for starting an egg tray manufacturing unit?

The required investment depends on the scale of the operation and the machinery you choose. It can range from a few lakhs to several crores.

Where can I source the raw materials for egg tray production?

Recycled paper or waste paper can be sourced from various places such as paper recycling centers, waste collection centers, and even newspapers and cardboard manufacturers.

Can I customize the design of egg trays according to customer requirements?

Yes, you can offer customization options to your customers based on their specific requirements. This may involve changes in the size, shape, or color of the egg trays.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.