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written by | October 11, 2021

Is Starting a Paper Plate Business Profitable?

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Table of Content


There are so many plastic products that we regularly use. Even after knowing so many harmful effects of plastic on the environment, we're still using it every day. Why? Because there's a lack of a perfect alternative to plastic. Currently, we have two alternatives; one is sturdy metal, while the second one is flimsy paper. Metal needs proper maintenance, so it isn't considered a perfect alternative to plastic. However, the paper has, up to some extent, replaced plastic in the form of many products. 

We already use paper bags, straws, cups and to add to the list; we've got paper plates now. We Indians have a lot of childhood party memories associated with these paper plates. The craze wasn't that high back in those days, but now, it is a huge business opportunity. As there's much more awareness of the environment, we prefer paper plates over plastic ones. The paper plate business has gained immense popularity in recent times, and as a result, the industry is thriving quickly. If you're wondering how to start a paper plate business, setting up a paper plate business isn't that daunting.

So, how much is the paper plate business profit margin? What's the initial cost of this business setup, and what challenges may you face? Let's get all the answers in this post.

Did You Know?

All the non-contaminated paper plates can be recycled, meaning those used for crafting purposes.

Materials Required to Begin a Paper Plate Business

To start an enterprise in the field of paper plates, you will require essential amenities like the land, machinery, raw materials, labour, etc. Additionally, you require a lot of money to start a business. Many people may not have the money at first to purchase all those things. So many people approach banks to obtain loans. To get approval for the loan amount, it is necessary to file the project report.

Also Read: Learn About Starting a Successful Food Packaging Business in India

Current Supply

Electricity is crucial for the running of your machinery for making paper plates. Before you pick a place to start your enterprise, check if the place has a sufficient electricity supply. A majority of paper machines require a voltage of 220-240V to operate efficiently. Certain high-end machines could require the use of 440V. 

Therefore, ensure that the place you decide to install your manufacturing facility has the proper current source. Frequent power interruptions or continuous voltage fluctuations could damage the paper machine and it might increase the paper plate manufacturing cost.

Paper Plate Machine

Paper plate machines are the primary need for any production process. The cost of the machine will depend on its capacity, the model (automatic/semi-automatic), options (Single Die/Double Die) and its power consumption. In general, a basic machine costs around ₹40,000. The typical mid-end machine starts at ₹65,000 to ₹75,000. A high-end automated paper plate machine costs about ₹1.5 Lac.

Workers

In order to succeed with your paper plate business idea, it takes 2-3 employees to manage the business effectively. You can place them in one shift or alternate shifts. Also, you don't need to be concerned about their training because they just require a few normal skills to master. If you can give them the basics of operating a machine, it is likely sufficient.

Land

It is necessary to have a place to build your manufacturing facility. The land should be located in an area with the basic amenities to ensure that you don't face any difficulty. The dimension of the Land isn't important. Just the coverage area is important (125-150 sq. ft. is more than enough) for the machine setup.

Water

Water is a crucial element of the paper plate manufacturing business process. This is also viewed as a disadvantage since the requirement for water here is huge.

Raw Materials

We'd recommend you to purchase the raw materials in one go, either as paper rolls or papers, since the production of paper requires a lot of money, resources and time. There are a lot of papers at local scrap shops that may offer you at the lowest price per kilo. A quintal or 1000 kilograms of paper can be purchased for the range of ₹5000-7000.

Paper Plate Making Procedure

Making paper plates isn't an extremely complex procedure. It consists of only four steps.

  • Paper Plate Cutting: A cutting of paper plates allows you to create any shape or size suitable for creating plates.
  • Die Pressing: Die pressing is when the true magic occurs, and the polythene sheet holds the plate design.
  • Separating the Product from Die: After the shape is formed, the finished item is taken away from double die presses.
  • Packaging: The paper plates are collected, cut and then packed to be distributed.

Registering, Documents and Other Licences

For any business to start, it is necessary to get certain permits. These depend on many factors, including the sector and location of operation, the number of employees, the type of business, etc. According to your capacity for manufacturing and capital investment, the most popular permits and registrations include company registration GST, Shop and Establishment Act licences, Udyam registration, etc.

It is essential to know what is appropriate for your specific situation in the paper plate business. In general, most small-scale manufacturing of paper plates falls under the category of micro-business within MSME (Udyam). The registration process under MSME allows you to take advantage of various benefits like tax benefits, subsidies and other programs. To sign up for your paper plate-creating company under MSME, visit the Udyam registration portal.

Also Read: Explore The Profitable Food Business Ideas

Production Plan for Paper Plates

After gathering all the relevant information regarding the machinery and raw materials, you must then make a plan of making paper plates before you think about how to sell them. It generally depends on four factors.

  • Types of paper plates that you're making
  • Budget
  • Market demand
  • Production capacity

Various Forms of Paper Plates

There are paper plates available for purchase in a variety of shapes, sizes and qualities. Some are extremely tiny and lightweight. They are used to serve pani puri, samosas and various other snacks. They are typically offered in 4 to 7 inches in size.

Some other plates are heavy and durable; these are the ones that can hold food easily. These kinds of plates are usually used for serving tiffins or thali. These plates come in 10 to 14-inch sizes. Before you decide to make a particular type of product, inquire with the local vendors if they would be willing to purchase. While you're at it, ensure that you select the varieties that are always in demand in the market.

Return on Investment

Your earnings of the paper plate manufacturing business primarily depend on the amount you invested. Your first-time return might not be as impressive if you've made an investment. However, you may start making profits soon.

When your investment is small, you are obviously going to get smaller returns. In addition to manufacturing, the profitability of this industry is also contingent on the markets. It is essential to establish an appropriate network that can sell your product. Your goal should be to offer your product directly to the consumer. It is possible to sell your products to them and receive the highest results. Transportation costs can be a factor, but when you can negotiate a fair price, you'll be able to handle it.

Conclusion

Strong planning and a fine marketing sense can help you grow your paper plate business in no time. Most importantly, paper plates are continuously in demand, and if you fulfil the demands and your customers are satisfied with your quality, you may get continuous orders. You’ll face loss only when you buy the wrong machine or low-quality raw material, or don’t do paper plate marketing well enough. Besides that, to handle the client base perfectly, it's important to keep the calculations handy to know the profit margin.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Is the marketing of paper plates important to grow your business?

Ans:

Not just in the paper plate business, but marketing is important in growing any business.

Q: Is the paper plate business profitable?

Ans:

The quick answer is. Yes, the paper plate business can be highly profitable. There are numerous reasons for this. Paper plates are continuously in demand in fast food centres, hotels, bakeries, street vendor joints, canteens, etc.

Q: What does the paper plate manufacturing cost?

Ans:

One normal machine will cost you between ₹75000 to ₹500000. Some machines produce 1000-2000 pieces per hour, while some high-power machines can make 4000-7000 pieces per hour. Raw material, taxation, labour, power supply and water will cost you nearly ₹10 lakh a minimum. It is a rough estimation only.

Q: How many paper plates are made of 1 kg raw material?

Ans:

Paper plates can be of many types and sizes. So, the only way to calculate is to divide 1kg by the paper plate’s weight (in kg) to get the answer.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.