Do you want to start a paper plate-making business at home? If YES, find here a detailed plan guide to start a disposable paper manufacturing business with market potential, business licensing, machinery, manufacturing process, and required raw materials.
Any individual can start this business on a small, medium, and large-scale basis. However, depending on your investment capacity, you must plan the business size. From the same unit, you can produce disposable bowls and glasses also. Additionally, you can start this business on both a part-time and full-time basis.
Related: Profitable Paper Business Ideas
Generally, this type of disposable plate comes with special quality paper reinforced with polythene sheets to make it leakproof. Some of the majorly used papers are millboard, greyboard, kraft paper, greaseproof paper, and other papers. In most cases, these plates come in either white or printed.
Mostly, these are used in family functions and corporate gatherings. In most cases, people use to serve snacks, cakes, pastries, bakery items fruits, sweets, etc.
Is Paper Plate Making Profitable?
Disposable paper plates have an urban as well as a rural market. People use these items mostly for social functions, religious gatherings, parties, marriages, outings, sweet shops, caterers, etc.
The products have many advantages and are hence preferred as compared to standard utensils/crockery for serving eatables. Additionally, because of their disposable nature, they save a lot of labor as far as the cleaning/drying of utensils is concerned.
Furthermore, these are easily transportable and easy to handle. Further, people use these items in marriages, birthday parties, and other family functions on a regular basis. Also, sweet shops and small eateries are the major consumers of this item. Hence, we can conclude starting a disposable paper plate-making business is a highly profitable and lucrative opportunity for entrepreneurs.
Here are the Steps to Start Paper Plate Manufacturing Business
1. Create a Business Plan
In starting this business, you must craft a business plan first. And to understand the industry, you must conduct a market survey prior. Identify the different types of plates that have regular demand in the market. Understand the design, thickness, color, etc. Identify the established manufacturers and know their market policy. These all will help you in crafting a business plan rightfully.
In writing the business plan, mention your business goal, mission, vision, and what type of organization you want to build. For a small or tiny operation, you can open the business as a proprietorship company.
2. Arrange Business Capital
Generally, disposable paper plate-making business demands moderate capital investment. However, starting the business at home eliminates the cost of securing a space. Additionally, it helps you to work from the comfort of your home.
Apart from the space, the business demands investment for procuring the machinery and raw materials. You also need to hire manpower and arrange other necessary resources. Hence, a financial calculation is necessary and you must include this in the business plan. Besides using your own fund, you can apply for a loan from the banks.
Also, do not forget to apply for a credit card to meet small-time business expenses.
3. Registration & Licenses
Even, if you start the business from home, check the licensing issues from the Govt. agency of your state. It is mandatory. It also depends on the manufacturing process and the raw materials you are using.
Register your business with a suitable organization form. Check the upcoming tax liabilities of your startup.
Generally, you will need to obtain a Trade License from the local authority. And if you operate from a factory premise, then you will need to apply for a Factory license.
In India, you will need to apply for a GST Number.
4. Paper Plate Manufacturing Unit Setup
If you don’t have enough space at home to start the business, you will need to secure a location for setting up the unit. Before finalizing, check the water resource and electricity connection. Contact the machinery supplier to get a floor plan for the installation of the machinery.
It will help you to plan accordingly. Determine specific spaces for raw material storage, operation area, and finished goods storage. In addition to that, you will need to have an admin area for preparing the bills, etc.
5. Paper Plate Making Machinery
The major plant and machinery consist following macies.
- Double-die press with dies.
- Electrically operated.
- Bag sealing machine
- Weighing scales.
Besides this, you will need to have furniture and fixture for the overall unit operation.
6. Raw Materials
The basic raw materials for the unit are good-quality scrap paper & polyethylene sheets. Packing the unit will require polythene bags and hessian sacks. The cut to size paper is readily available in two varieties. These are thick and thin.
7. Paper Plate Manufacturing Process
The process of manufacturing is not very complicated. Basically, you can produce the product by using the specific die. First of all, cut the paper and the polyethylene sheets previously according to the size. Also, you can procure a specific size of the paper depending on your specific requirements.
Then, mount the specific die on the press and start heating to the desired temperature. Place the two layers of paper and the polythene sheets in between the male-female die parts. Then, apply the pressure so that the product takes shape.
Remove the formed product and set the another. The machine is an ordinary press with one fixed platform and another moving plunger. The movement of the plunger is through the hydraulic mechanism.
Finally, collect the formed products and trim the edges to give them a proper shape. Pack the plates and stock them for dispatch.
8. Cost of Starting a Paper Plate Manufacturing Business
The cost of starting a paper plate manufacturing business will depend on several factors. It includes location, machinery and equipment, legal fees, raw materials, labor cost, etc.
On average, the cost of starting a small-scale paper plate manufacturing business in India will be around Rs. 5-10 lacs (approximately $6,800 – $13,600 USD).
However, the cost can go up from INR 50 to Rs. 1 Cr. for large-scale setups.
9. Develop a Distribution Network
Retail distribution is the most proven way of promoting this type of item. Additionally, you must concentrate on institutional selling. Talk to the event planners and small caterers in your area. Also, you can offer introductory discounts. Moreover, you must have a solid marketing plan to make your paper plate-making business a great success.
10. Promote Your Paper Plate Making Business
Paper plates are not new products. So, people are already aware of these items. Additionally, there is already a huge demand in the market. However, you must have a marketing plan for your product promotion.
In the present day, going online is a must. Create a website and promote your products through social media platforms.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.