Tissue paper making business is one of the best business ideas if you are looking for small investment business ideas. The business of making tissue paper, or napkin, is very useful nowadays because of the changing lifestyle, tissue paper is being used a lot
Many people are seen using tissue paper because people are now more aware of their health and due to the low availability of water as well.
Usually, tissue paper is used to clean the hands but nowadays it is commonly used in restaurants, hotels, food trucks, offices, and hospitals. The business of making tissue paper can prove to be a very profitable business.
How to Start Tissue Paper Making Business?
The business of making tissue paper can be started with the help of very few people.
It does not require much labor, here is giving all the necessary information related to this trade which you can read and make your tissue paper or napkin making. Here are the necessary steps to start a successful paper tissue business.
- Analyze the demand for the product
- Registration & Licenses
- Raw Materials
- Tissue Paper Machine
- Required Location & Space
- Investment for the plant setup
- Marketing & Selling Your Product
#1. Market Potential of Tissue Paper
The demand for tissue paper is increasing rapidly. Also, it’s an eco-friendly product thus there are many loan options are available as well. As per the data, the consumption of tissue paper in India is increasing at the rate of 20% per year and it’s considered a very good opportunity for the young entrepreneurs
By this growth rate, you can earn a good amount of money by starting a tissue paper making business.
The tissue paper is a forever selling product and it has no bad effect of any season. Instead, during festivals, the demand for tissue paper increases further. Tissue paper has high demand in small hotels, Fast food corners, canteen, offices, catering, beauty parlor, etc.
#2. Licenses & Registration Required for Tissue Paper Business
Establishing a paper making plant doesn’t require much documentation but it is mandatory to have these registrations and licenses for manufacturing tissue papers.
To start this business you have to get some licenses & registrations which are as follows –
- Company Registration: It is very importation to do a company name registration to build your brand
- Trade License: For any business trade license is mandatory and you can get it from the local authority.
- You have to get NOC certificate from Pollution Control Board
- GST Registration: You must apply for GST Number, It is mandatory to have a GST Number in India
- MSME/SSI Registration: It makes you eligible for various government loans and schemes.
#3. Materials Required for Making Tissue Paper
The material required for making tissue paper is mainly the same and that is the paper roll. For making tissue paper there two types of jumbo paper rolls available in the market. The first is hard paper and the second is soft paper.
These raw materials are easily available in major cities. Also, you can purchase them online as well. After that, you will be able to make tissue paper with the help of that roll.
Cost of Raw Material Required & Project Report
There are many types of paper rolls are available in the market, one is lighter and the other is better quality, if you buy this paper, you will get a paper roll from INR 62 to INR 80.
- The average price of hard paper roll is 62 – 64 rupee per kilo
- Average soft papers rolls are 72-74 rupee per kilo
#4. Tissue Paper Making Machine & Cost
The tissue paper making machine is fully automated and it runs on electricity. Once the machine is attached to a plain paper roll the tissue comes out automatically after completing the process.
The current price of this fully automated paper napkin machine is around Rs 5.25 lakh. You can buy this machine and make tissue paper according to your size. By the way, tissue paper sold in the market varies in size. You can check the latest prices here
Size 10×10, 11×11, and 30×30 whose market price is approximately INR 10, 20 and INR 30 different packets have different prices.
#5. Space Required for Making Paper Bags
If you want to start this business, paper making machine requires at least 600 square feet of space at the place where you will install and produce tissue papers.
Also, you need at least 100 square feet of space for packing in addition to the installation of the machine.
Make sure you choose an industrialized area for your business. Also, check for the availability of electricity, water supply, transport, raw materials, and the market should be near too.
#6. Investment Cost
To start this business initially, you may have to invest at least between 7 to ₹ 8 lakhs. However, if you want you can start this business on a large scale by investing more money to set up a large manufacturing plant.
Apart from machinery, other investments are also required like raw material, wiring for machines and other financial resources are fulfilled.
Here are the breakdowns of the starting cost:
- Fully automatic machine cost: 5.25 lakh
- Paper Roll cost: 60 – 70 Rs per roll
- Estimated Electricity bill: 3000/ month
- Labor Salary: 10 thousand per month
Also, don’t forget other types of recurring investments like maintenance cost, transportation cost, repairing cost, etc
#7. Tissue Paper Making Process
Tissue paper is made with a very easy process. The business of making paper napkins is done by a single machine whose process is given below –
- First set the paper roll at the given rolling place in the machine, from here a part of the paper roll will be placed in the machine.
- For colored tissue paper: If you want to make color tissue paper, then you can add paper to it by adding the desired color to the coloring space provided in the machine, the paper has some kind of tags like the name of a hotel or restaurant or any kind of logo if you want to make it. You can put rubber tag in the same color channel.
- From here, a part of the paper roll is embossed in the machine for further embossing. The paper roll passing through the embossing roll becomes transparent in a way, as is often the tissue paper.
- After embossing from here, the paper enters the folding section of the machine, the paper in this section folds and cuts like tissue paper.
- After cutting the tissue paper is completely ready.
Packaging of Tissue Paper
After the tissue paper is made, special attention has to be paid to its packing. You can use your registered tag, logo, or trademark for packing. Prepare your trademark printed plastic packet and you can prepare one packet by putting 50 tissue papers in each packet.
Also, if you want, you can also keep 100 papers in a packet as per your requirement and after that, you can set the price and sell it in the market.
Tissue Paper Marketing
As you know that the demand for tissue paper is very much in today’s market, it is very much used in many places to keep cleanliness.
Company Branding For Tissue Paper
Branding is very important to sustain in this completive market. Branding your product creates trust among your customers. Mostly, people buy products by their brand names.
Even if you are not big manufacturers, you must have a brand name to stand in the market. People tend to buy branding products rather than the local ones.
Related Article: Agarbatti Making Business [8 Steps Guide]
#8. Where to Sell Your Tissue Papers?
There are various ways to sell your tissue papers. Generally, the local market would be your main target for selling the products.
Wholesale Market: This is the most common and forever running marketing strategy. You can easily go and sell your bulk products to the nearby wholesale market and instantly get your money.
Online Market: If you want to sell in bulk then you can choose to sell your tissue papers in online B2B and B2C markets as well. Here are a few famous B2B and B2C market lists.
B2B (Business to Business) Sites
There are many online B2B platforms to sell your tissue papers but Amazon is one of the best among them and dominating the market. Simply go to any of the above B2B sites and create an account and list up your products.
B2C (Business to Company) Sites
These B2C or eCommerce sites are best to sell your products directly to the consumers. You just have to register yourself in the above-listed sites as a seller and you can list your product there and start selling.
The paper making business is highly profitable and you can expect a 15 to 20 percent profit margin. One of the best things is that it is recyclable and biodegradable item.
It does not cause any harm to the environment. Every year the consumption of tissue paper is increasing rapidly across the country, due to which the tissue paper industry is gradually taking a huge form.
Also, entrepreneurs are taking more interest in this business and they are making a lot of profit. If you also want to start this business, then according to what I told you, you can easily start this business at your home.