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written by | July 1, 2022

How to Start Tissue Paper Manufacturing Business in India?

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The demand for hand napkins or tissue napkins has seen an increase in the recent past. These are used generously in all commercial outlets like malls, restaurants, cafes, tea and coffee shops, bars and even by vehicle owners. Almost every car maintains a box of soft wipes. Most families have made tissue paper a preferred choice instead of cloth napkins because you can easily dispose of the tissue paper after one usage. A cloth napkin becomes easily exposed to bacteria and, when used again, may cause several skin or other issues. An increase in disposable incomes is another reason for the increasing demand for using tissue paper as the best alternative to handkerchiefs. When compared to the various varieties of cloth used to wipe our hands, tissue paper can be easily recycled. The awareness of to use of biodegradable products is increasing across all sections of society, and this has led to a huge demand which has excited many new entrepreneurs to start manufacturing it.

Did you know? China is the only country in the world which uses more than 4 billion miles of toilet paper in a single year.

Why Start a Tissue Paper Manufacturing Business in India?

Urbanisation and the art of maintaining social etiquette have brought about a tremendous change in the habits of Indians. The earlier cloth napkins are now replaced by tissue paper wipes, irrespective of the place. Homes, offices, hotels, hospitals and even shopping malls have made tissue napkins a preferred choice as it is safer. Many commercial places opt for branded tissue paper. This is especially the norm in 5-star hotels and hospitals to the increase in demand for tissue paper. There are many elite hospitality spaces where you can find customised tissue napkins or paper to indulge their clientele. Some are available in fancy designs and colours, and the branding helps create an impression on the users. This increasing usage has led to phenomenal demand for tissue paper. Globally, tissue paper in the form of hand wipes, toilet paper, facial wipes, kitchen towels, as well as household and hotel towels has always been widely used, but the demand for it in India has grown in the last few years. One of the primary reasons for starting such a business is that it requires nominal investments and promises massive returns. The manufacturing of tissue paper does not involve detailed documentation. There aren’t too many registration and licenses required. Most of these are the same as those which apply to other businesses and suffice to start this type of business.

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Raw Materials Required for Setting Up a Tissue Paper Business

Some of the key raw materials required include the following:

  • Jumbo paper rolls or reels – you can purchase them from the wholesale market or even online. The price of a single jumbo roll can vary between 50 and 70 per kg because it is dependent on the grams per square metre (GSM) of the paper.
  • Core paper
  • Wrapping paper
  • Glue
  • Cellophane
  • Water

The requirements are almost the same for both the categories of manufacturing tissue paper, namely consumer and commercial. The former is used on a personal level, i.e. individuals, homes, and vehicles, while the latter is used at commercial outlets like restaurants, offices, salons, and hotels.

Also Read: Types of Business - Different Types of Businesses One Must Know

How to Start a Tissue Paper Making Business in India?

At the start, you have to be sure about the product you want to make. Is it toilet tissue paper, hand wipes, household towels or hotel towels? The sizes and the market demand for each of these categories differs.

Though this is one of the most simple businesses to execute, you need to be focused on your goal. You also have to be sure whether you want to start a small-scale business from home or a large-scale business from commercial premises with machinery and other equipment. This is followed by procuring the necessary licenses. There are two ways in which you can set up your tissue paper-making business. These include:

Tissue paper is made at your own home and is also made with the help of machinery. Let’s go through the details of both.

Home-made Tissue Paper:

  • If you start with the Jumbo rolls, you don’t have to make pulp of them. In case you want coloured tissue, you need to use specific dyes. If you aren’t using Jumbo rolls, you have to make pulp of the paper you have bought.
  • The second step involves thorough washing of the jumbo rolls until they are free of moisture. This process is referred to as ‘pressing’.
  • In the case of pulp (procured out of recycled materials), you have to dry the pulp. You can use a roller dryer. The heat of the roller dries the pulp well. This process is called ‘creeping’.
  • Once dried, you can cut the large sheet of paper in different sizes, as per your requirement. This is the penultimate process and is referred to as ‘cutting and reeling’.
  • Your final step involves packaging the tissue paper. This is often done with the aid of a packaging machine.
  • Your tissue paper is now ready for delivery to your dealers and distributors.

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Machine-made Tissue Paper

You can invest in a machine as per your desired output for a day. Machine-made tissue paper is an effortless process. It requires minimal human intervention and provides you with neatly-cut products. You can always train the staff who will manage the machines. This process is time and money-efficient and provides finely-cut tissue paper.

Machinery & Equipment

The machinery and equipment required are totally dependent on the volume of business you wish to operate. There are various machines with wide-ranging specifications. Once you have a specific blueprint of the product/s, you can select a befitting machine. Some of the specifications you need to consider are as follows:

  • Power requirements – Most of the machines work on 440 power voltage and with 50 Hz and 2.2 kilowatts.
  • Five types of working width – These include 20, 270, 300, 330 and 400 millimetres. You need to understand which one you require.
  • Paper-folding size – Machines help to cut and even fold the sheet of paper in the desired shape and size.
  • Machines for printing and embossing – This is in accordance with the production.
  • Transmission – Most machines come with ‘timing belts’.
  • You have to assess the volume of production, seek appropriate technical advice, if required and then make a purchase. Almost all machine manufacturers offer to train the staff and the owner in the entire process.

Also Read: What Is Business Development - Complete Guide on Business Development Strategy for Successful Business

Requirement of Working Capital

The amount of working capital depends on the scale of your business. If you start on a very small scale and operate your business from home, you may need to make an investment of 5 - 6 lakhs and a working capital of at least 6 lakhs, i.e. a total of about 10 - 12 lakhs. This amount can bring you an annual sales turnover of ₹1 crore, and you can make a net profit of about ₹6 - ₹7 lakhs.

Licenses and Registrations

Following are the mandatory documents for starting a tissue paper manufacturing business:

  • Trade license – The local municipal corporation will furnish you with one.
  • Registrar of  Companies (ROC) registration - covered under Section 609 of the Companies Act.
  • No Objection Certificate – The Pollution Control Board provides this.
  • Ministry of micro, small and medium enterprises (MSME) registration – You can do this online. You will have to upload proof of all the requisite documents.
  • A factory license.
  • Certificate of sales tax registration.
  • GST registration.
  • Importer-Exporter (IEC) code/number – Only if you plan to export your products.
  • Personal id proof – PAN and Aadhar cards, electricity bill, residential address.
  • Details of commercial premises – If you plan to start a large-scale business, you will require larger premises, most probably, for rent unless you have a large property at the right location.

Conclusion:

The contents of this article detail the various aspects of setting up a tissue paper manufacturing unit. It is imperative to first gauge the demand and understand the competition and competitive prices before plunging into it headlong. Water connectivity, electricity, accessibility, as well as ease of commuting are other key factors to consider before setting up a commercial unit for this type of business. You can always resort to a small-scale operation from your home and expand operations at a later stage. 

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: Does the tissue paper manufacturing business in India have a prospective future?

Ans:

The tissue paper industry in India is growing at an annual rate of 20-25%, which is very positive. Consumers are becoming increasingly aware of hygiene and are replacing cloth and other fabric napkins with tissues. Tissues are disposable and eco-friendly, which makes them a preferred choice for many individuals. The future of this industry is very bright and is sure to contribute handsomely to the gross domestic product (GDP) of the Indian economy.

Q: Does the tissue paper company require too many licenses and registrations?

Ans:

No. It requires the same number of licenses and registrations, which are mandatory for any manufacturing business. In addition to the obligatory personal details like PAN and Aadhar cards, you have to fulfil other requirements like a trade license, GST, factory license, and a NOC. In case you wish to start exports at the earliest, you will have to apply for an Importer-Exporter (IEC) number.

Q: How much finance does tissue manufacturing entail?

Ans:

The tissue manufacturing business entails an initial investment of at least 10 lakhs. This amount can be less if you start a production unit at home on a small scale. When you feel the business is progressing in a positive manner, you can rent large premises and then resort to machine-based manufacturing.

Q: Is the tissue paper business a feasible commercial venture?

Ans:

Absolutely. There has been a tremendous increase in the demand for tissue paper across categories. From personal to consumer usage, the industry has been witnessing an incredible increase for the same. The investments are nominal compared to other entrepreneurial initiatives, and the returns are attractive. You can enjoy good returns within the first year of operations. It is one of the most feasible businesses to set foot in.

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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.