How To Start A Paper Cup Manufacturing Business

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After dumping tons of plastic waste on our land, the present generation has finally got the wake-up call. The need for eco-friendly products that are biodegradable and harmless to the environment, is the need of the hour.

Among the waste products, plastic cups have contributed a significant amount which explains why starting a paper cup business will be the most promising in near and far future. Where the business strategies and approach are more or less similar to other startup ideas, in this case setting up of paper cup manufacturing unit happens to be the primary requisite.

The business of making paper cups is also considered economical in several ways i.e., resulting in a huge turnover with minimum investment. For this, you have to understand the basic process of how are paper cups made, the pros and cons of paper cup business and a guide to begin with.

If you are not ready for a large-scale paper cup manufacturing business, start as a small-scale start-up. A proprietorship firm does not require such a complicated process of registration and can be easily started with a trade license.

Starting a Paper Cup Business

Research the Paper Cup Manufacturing Market

Before starting a paper cup manufacturing business, make sure you research the market thoroughly. Chalk out the possibilities of failure and focus on the areas where you can excel.

Research the fields where you need to invest in marketing and understand the scope of paper cup business profit. Besides, you should also research the progress of companies that are ahead of you and make a detailed note of their future goals and strategies implemented.

Read: How to Start Tissue Paper Manufacturing Business: Tissue Paper Making Plan

Business Plan and Investment

You cannot start a business without a proper business plan. Now that you have had the primary idea, invest some time to write down a paper cup manufacturing business plan. The plan should have a systematic working procedure, future goals and aspirations, the number of employees needed, utilities required and an estimated sum that needs to be invested.

setting up of paper cup manufacturing unit
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Estimated Cost Incurred

Now that you are ready with an effective paper cup manufacturing business plan, make an estimate of the cost of making paper cups and the business altogether. The total cost assessed for owning a paper cup factory, paper cup machine and all the other raw materials for a paper cup business is approximated to be approximately 10 lakhs.

Besides, working capital of around 15 lakhs should be incurred. If you are worried about the investment required, worry not as the banks readily provide loans for business. However, the loan procedures, interests and the amount up to which the loan can be granted without collateral, might vary from bank to bank.

Licenses and Registration Required for Paper Cup Business

To start a paper cup manufacturing business, you will need a business registration. If you want to start as a small proprietorship firm, this might not be applicable. However, for the bigger picture, you will require a certified paper cup manufacturing registration to start a large-scale manufacturing unit.

The registration for a private company depends on the shares and stocks invested. The procedure might take some time depending on the regions. Once the registration is done, the owner needs to apply for business PAN card.

Henceforth, you will also require a Trade license for trading, a GSTIN number for tax filing, Trademark Registration for legalizing and authenticating your brand name. In the end, you will also have to apply for BIS Registration to avail the ISI stamp on all the products manufactured.

Read: How To Start Matchstick Manufacturing: Low-Cost Match Sticks Making Business

Machinery Required for Paper Cup Manufacturing

A significant number of people are implementing the paper cup business idea because of the huge annual turnover. There are two types of machinery for paper cup manufacturing:

  • Semi-automatic paper cup machine
  • Automatic paper cup machine

The machines come under various price brackets depending on the brands preferred. These also range between 1.25 lakhs to 7 lakhs. Some imported paper cup machines might be costlier as well. The price may vary according to the features and specifications.

Factory or Storage Room

You will need proper housing or a big room to store the machine and the raw materials every month. To begin with, a 500 sq. ft. the area is recommended. The place should have proper drainage facility and should be furnished with electricity.

Remember to research your market thoroughly and keep a close look on your rivals. Their ups and downs in business in the past years will help you a lot to understand which path to not take and thus be extra careful.

Raw Materials for Paper Cup Manufacturing​

For the paper cup production, you will need to make a list of the raw materials required.

  • ‌Printed PE Packing
  • ‌Bottom Reel 
  • ‌Packing Material 

Paper Cup Manufacturing Process

To start the paper cup manufacturing business, you need to understand the procedure. The paper cup manufacturing process is quite easy and simple.

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First, the paper needs to be cut to the required shape and rolled. Then, the base is cut out and fixed to the previously cut-out paper.

Lastly, the angle of cup needs to be separated and inclined up to 45° and the top, as well as the bottom rim, is curled to give proper shape and finish.

Investment in Marketing

Once you start your paper manufacturing business the next step is to invest in marketing. Preach what you are selling and let the customers know why yours is the best!

Attend local meetings and gathering and distribute leaflets and brochures. If you want to go for online marketing, make sure you have a perfectly functioning website.

Make sure you double check all the documents concerning registration and licenses. If you are buying a place or taking the working space on rent, make sure you have a transparent deal with the landlord and explain him the purpose to avoid any kind of lawsuit in future.

Wrapping It Up

Paper cup manufacturing business can actually garner an annual turnover running into lakhs. A flourishing business with excellent marketing strategies can even result in a turnover of crores. Hence, noting down the huge amount of return with an average investment, paper cup business is surely worth a try.

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