How To Start Paper Cup Making Business [10 Step Plan]

Thinking to start paper cup making business? If yes, then this article is for you. Here I have a detailed project guide on how to start paper cup making business with project cost, machines, required materials, and profit margin.

If you are thinking to start your business, then paper glass business is a good option for you. The manufacturing of paper cups or glass is also eco-friendly and it benefits the environment as well.

Also, paper cups can be destroyed but the plastic cups and glasses cannot be destroyed. Which are also harmful to the environment and health as well.

Steps to Start Paper Cup Making Business

Paper cup making business

If you are interested in the paper cup making business then you must understand how this industry works and how you can make difference from your efforts and understanding. Every business requires investment, planning & willpower to achieve success.

Here are a few steps to successfully start your paper cup plant.

  • Analyzing the market
  • Who is your potential customer?
  • Think about investment
  • Planning & Execution

Related Read: Tissue Paper Making Business – Full Guide

#1. Market Potential of Paper Cup Making Business

As you know pollution keeps increasing and plastic has been banned by the Indian government as well. Because of that many small and big plastic product making industries are switching to paper-based products.

Along with the fast-changing lifestyles, Paper cups are highly used in tea shops, coffee shops, hotels, supermarkets, educational institutions, food canteens, as well as in the wedding parties. The demand for paper plates and cups is increasing rapidly.

Also, this paper cup looks beautiful and attractive with different types of designs and doesn’t cause harm to the environment due to its eco-friendly nature.

After considering these factors, we can see that starting a small paper cup making plan is highly profitable.

#2. Planing For Paper Cup Making Business

Before starting any business, it is necessary to plan for its success. A well-written plan act as the roadmap for your business.

It should be prepared for all the investments made in the business, for example, initial investment of machinery, area rent, raw material, expenses on employees, expenses on the marketing of the business, etc. So, there are no problems with starting a business.

3#. Paper Cup Making Business Cost (Investment)

Paper cup making a business investment can be divided into two categories: fixed investment and variable investment.

The fixed investment includes purchasing the machines, building infrastructure, initial raw materials, etc.

In the other hand, running materials, labor salary, transport cost, electricity, and water bill falls into the second category.

Material Expense

  1. Location rent: Rs 15,000 – 20,000
  2. Price of a fully-automatic machine: Rs. 5, 50,000
  3. Price of a semi-automatic machine: Rs 1, 25,000
  4. Employee expenditure: Rs 20,000
  5. PE coated reels: Rs 90 / ton
  6. Packing Material: Rs 175 /kilogram
  7. Electricity and water

Apart from this, there are other expenses as well such as maintenance bills, transportation costs, stores, etc.

Also, you will need some employees to start your paper cup business unit. This business can also be carried out with only three persons, which may include a production manager, a skilled, and an unskilled worker.

#4. Paper Cup Making Raw Material

In making paper cups, raw materials such as printed rolls as well as food-grade or Polly coated paper is used, so that if kept cold or hot in the paper cup, the cup can be easily caught.

Raw Materials List

  • Printed Paper
  • Bottom Reel
  • Paper Reel
  • Packaging Material

You can buy raw materials from the local market and online markets too. For buying raw materials of paper cups online, you can see this link-

#5. Required Machinery and Its Costs in India

Paper cup making machine

Two types of machines are used for the manufacture of paper glass, fully automatic machines and the other is a semi-automatic machine.

But if you are thinking to start a paper cup manufacturing business then I recommend you purchase the fully automatic machine as it has low manpower requirements and high production capacity.

1) Fully-Automatic Machine: A fully automatic machine can which can manufacture 45 – 60 cups/min of 45ml to 330 ml cup sizes and it costs approximately 6.5 lakh.

It works on poly side coated paper with an energy requirement of 3.5 kW.

2) Semi-Automatic Machine: semi-automatic machine can which can manufacture about 25-35 paper cups per minute with the help of labor. It can cost approximately 1.25 lakh in the Indian market.

Also, with different types of mold, this machine can manufacture ice-cream cups, coffee cups, and juice glass in many sizes as well.

An automatic or semi-automatic paper cup manufacturing machine can be purchased from different sites in India. And the price of the machine may vary from different companies. Here are some sites that offer great paper cup making machines –

#6. License & Registration for Paper Cup Making Business

Starting this type of small business doesn’t require too much documentation but to keep your firm safe you must do some paperwork beforehand. It will also avoid any unfavorable circumstances. To register a business as a sole proprietorship company and to operate the business, it is necessary to obtain a legal license.

For this, contact the local authority of the place where you are going to do the business, and then complete all the other legal formalities.

  • Company Registration
  • Trade License
  • GST Registration
  • BIS Registration
  • Apply for Business Pan Card

If you want to keep the supply of diesel generator as an option for power supply, then you have to get special permission from the local district authority.

#7. Area Required for Paper Cup Business

Starting a paper cup manufacturing business requires a minimum of 500 to 700 square feet area.

You can start this business with an electricity connection in 500 – 700 square feet space. If your house is big and there is a lot of free space in your house, then you can start this business from home too.

Also, you should keep about 100 square feet area for packaging and other small things like the functionality of machines, loading, unloading of materials, etc.

#8. Paper Cup Making Process

To start a paper cup manufacturing business you must understand its making process. The paper cup manufacturing process is very simple and easy to understand.  Here is the process:

Paper glass is made in four stages:

In the first stage, The machine cut the poly-coated paper according to the shape of the paper cups then it is applied in the machine which is slightly wet then its round cone is formed.

In the second stage, a round of paper appears under the cone.

After that, in the third stage, paper cups are collected in one place after the process of testing.

Fourth stage: All produced paper cups go for the packaging and then it will transport to their finalized destination.

You can do packing and counting through a fully automatic machine. But if you are using a semi-automatic machine, then the counting of the cups will also function manually. in the long plastic prepared according to the size of the cup manually through labors.

Paper Manufacturing Process Video

#9. Apply For Loan for Paper Cup Making Business

Loans can also be obtained from the bank for startup businesses under various schemes. Under the Mudra Loan Scheme, MSME schemes, loans up to Rs 10 lakh can be easily availed from various banks or financial institutions without any capital as collateral.

#10.  Marketing & Selling Your Paper Cups

For selling your paper cups, you can target small whole-sellers, coffee, tea shops, etc. Your local market would be the best opportunity to sell your products.

Apart from that if you are capable of investing in advertisement then you can advertise your product through TV channels, newspapers, and banners, social media, etc.

Also, you can register in B2C and B2C sites for directly selling your paper cups online.

List of B2C Sites

  • Amazon
  • Flipkart
  • Shopclues

You can register on these sites and directly avail the benefit of these sites.

List of B2B Sites

  • Alibaba
  • IndiaMart
  • TradeIndia

You can grab the opportunity of B2B sites to sell your products online.

The marketing of the business is also very popular through the internet and social media platforms like Facebook, Twitter, and Instagram.

#11. Business Profit Margin (ROI)

The price of a paper cup depends on its texture, size, and quality. For example, if you make a printed paper cup of 100 ml, one packet can cost up to Rs 25 which you can sell in the market as Rs. 28 per packet.

The manufacturing cost of one packet paper cup is about Rs 15. If you make a plain paper cup without any design. The market price of plain paper cup is approximately Rs 25 per pack.

Most Frequently Asked Questions (FAQ)

Is paper cup making business profitable?

Yes, paper cup making business is profitable. You can easily start a paper making project within 7 to 9 lakhs.

How much does it cost a paper cup?

It depends on the texture, size and design. An average plain paper cup without any design can costs about Rs 25 per packet and the designed one is about Rs 35 for one packet.


Starting a paper manufacturing business definitely a profitable investment. And the demand for paper cups is increasing after the government banned the use of plastic. Therefore, I highly recommend you to start this business.

Here I’ have given you a detailed guide on how you can easily establish a paper-making plant. I wish you good luck for your first startup.

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