Tissue paper making is one of the technically feasible and financially viable projects which has huge returns with less investment. Small-scale and large-scale manufacturing both are possible in the tissue paper manufacturing business. The tissue paper industry has emerged as a new sub-segment within the paper industry in India.
The major reasons behind it are increasing disposable income, hygiene consciousness among the people, and deeper penetration of organized retail.
Is Tissue Paper Making Business Profitable?
As more and more people become hygiene conscious, the market base will keep on increasing. Moreover, as it is a recyclable and biodegradable product, it adds to the environmental advantage too. The growth rate of the market is close to 12.5 percent year-on-year.
The tissue paper industry’s high growth potential has propelled its migration from a small-scale Industry to a fully grown organized industry sector in India. Some of the big companies in the paper industry are moving into tissue paper production in India.
The product has a strong export potential also. The major export markets are North America, South America, Eastern Europe, Southeast Asia, Africa, Mid East, Eastern Asia, and Western Europe.
5 Steps to Start Tissue Paper Manufacturing Business
1. Create a Business Plan
It is essential to write a business project plan before actually setting up a tissue paper manufacturing unit. It is advised to do market research and then get into writing the draft. The market research will help you in finding out the scope and opportunities and plan accordingly.
Some of the issues your tissue paper manufacturing business plan document are as follows:
- Executive Summary
- Business Profile
- Product Description
- Operational Plan
- Marketing Plan
- Financial Plan
2. Registration & Licenses
In starting and operating a tissue paper-making business, you will need to have several different registration and license from the Government Authorities. These are as follows:
- Business registration with ROC
- Trade License from local Municipal Authority.
- NOC from Pollution Control Board
- Factory License
- Udyog Aadhaar MSME Registration
- GST Registration
- IEC Number if you want to export tissue papers.
3. Tissue Paper Manufacturing Process
The tissue paper manufacturing process includes the following steps:
Pulp and Dye: This is the first in the process of making soft tissue paper. First of all, you need to create paper pulp. You can produce this from recycled materials.
You need to mix fiber with the wood pulp then you have to bleach it and wash it. Then you need to place the fiber in a mixing tank where the manufacturer adds components like a dye. Tissue paper used for household purposes is normally dyed white. If you want you can mix it with an assortment of dye colors.
Pressing: Then, you have to go for pressing to squeeze out moisture. The main intention to press tissue is to make it dry and easy for it to enter the next step of the process.
Creeping: Here pulp is processed through a dryer heated by steam. This dryer helps in putting the pulping process through creping. Roller dries up the pulp with extreme heat as fine blades scrape the tissue to the desired thickness.
Cutting and Reeling: This is the final stage in the process. Here, cut the long lengthy paper into desired sizes. They cut the tissue into different sizes which are used for different purposes.
4. Arrange Funds
Two types of finance are generally required in the tissue paper manufacturing business. Fixed cost including space and machines. Another one is working capital including raw materials, wages, transportation, etc.
It is important to prepare a project report or business plan before initiating the business. According to the report, you can apply for a loan from any bank or financial institution. In that case, owners’ credibility and at least 25% investment as owners allocation on total project cost is required.
5. Tissue Paper Manufacturing Machine & Unit Setup
Selecting the right location for the plant is an important factor in this business. The location should have easy availability of skilled labor, transportation, commercial electricity, and water resources.
According to your requirement, you will need to arrange the area of that space. It is advisable to have space in the industrial zone. You will need to arrange specific space for manufacturing operations, raw material storage, finished goods going down, and the admin section.
According to the desired output and manufacturing process, you will need to select the right machinery. Some of the important machines needed to get started include the Core making devices, Bandsaw cutter, Rewinding machine, embossing unit, perforating unit, etc.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.