INTRODUCTION:
A paper cup is a disposable made out of paper and after lined with plastic or wax prevent liquid from leakage out or soaking by paper. Paper cups are made from renewable resources. The cups should be made from food grade paper which is hygienic in nature. It is capable for holding both hot & cold liquid for longer time. The uses of paper cups have wide range. Give the rapid changes in life style; it is the right time to enter the consumer segment to popularize the home consumption of paper cups. There are several inherent advantages in using Paper Cups as compared to cups of other materials.
These Paper Cups are gaining popularity all across the globe as a beautiful and stylish way of minimizing exposure to food borne infections. Paper Cups have numerous advantages like; they are manufactured in a very simple process using Food Grade Raw Materials with least waste and are easiest to recycle. They are ideal for individual servings at all kinds of parties, functions, picnic occasions, marriages, chat, tea & food joints, etc. Non-toxic in nature, the shapes and surface designs on these paper cups are attractive and present an inviting look. These paper cups can also be custom printed with an outlet’s logo, brand punch line or advertising message.
Note: The content or Calculations are considered for Indian Market. Request Users to take note of it and convert the values as per your demographics. The Overall process and Project Plan mostly remains same anywhere.
MARKET POTENTIAL
A wide range of paper cups are now produced and marketed in India. The paper cups are reckoned to be a high potential business for India. Manufacturing Paper Cups is the purpose of satisfying needs and wants of Consumers is the market place. Developing a strategy for delivering an effective combination of food grade quality and cost effective features for consumers within the target market is done. The prospects of paper cups depend on the value of customers who utilize it. But in today’s world paper cups are used by all the people as it is easy to use, hygienic and eco-friendly. Hence, per capital consumption has increased and the demand for it is recognized.
As paper cups are a product of daily consumption and necessity, their marketing will not be a problem as the consumers are aware of the advantages of using paper cups. The raw materials are vastly available and the manufacturing process is also simple. Paper Cup find potential market in IT companies, Educational Institutions Canteens, Industrial Canteens, Restaurants, Fast Foods, Catering People, Tea Shops, Paper Product Dealers and Super Markets.
MANUFACTURING PROCESS OF PAPER CUPS:
In this blog, we consider an Automatic Paper Cup Forming Machine for manufacturing process of Paper Cups. The general structure of paper cup forming machine is composed of three stages. They are:
- The first stage: mainly finishes transmission of the paper cup’s sidewall paper, shaping side-wall and transferring them to the second stage after shaped.
- The second stage: transmission of the cup-bottom paper, shaping cup bottom, joining the shaped side-wall and cup bottom, automatic transmission and discharging of the shaped cup, and curling the shaped cup’s edge.
- The third stage: mainly includes 45 degree angle separating, preheating, curling bottom, curling rim and so on mechanisms, which are the important parts in finishing paper cup.
BASIS AND PRESUMPTION OF THE PROJECT:
- The process of manufacture is on the basis of eight hours per day with three hundred working days in a year.
- Labor and wages mentioned in profile are as per prevailing local rates.
- Interest rate at 15% considered in the project.
- The Promoter contribution will be 25 % of the total project cost.
- The capacity of the plant nos. of paper cups per day.
Related Read: You may be also interested in reading Bakery Manufacturing. you can read its Project Profile Here.
INSPECTION, QUALITY CONTROL & PRODUCTION CAPACITY PER ANNUM
Plant should strictly adhere to the International FDA standards and Indian BIS standards in the process of manufacturing Paper Cups from procuring high quality food grade raw materials to hygienic methods of packaging.
Quantity: 73000 nos. of paper cups per day 22,000,000 nos. of paper cups per Year(300 days).
POLLUTION CONTROL
The technology adopted for making paper cups is eco-friendly. Cup forming process is totally automatic, only feeding and packaging involves manual work. The scrap papers created out of this manufacturing process also can be sold for recycled paper converters. Hence there is no chance of any pollution out of this industry.
FINANCIAL ASPECTS
A. FIXED CAPITAL
1. Land and building
Covered area (500 Sq. meters) rented: 5,000
2. Machinery and Equipment:
| S.No. | Description | Quantity | Rate(Rs) | Value(Rs) |
| 1 | Machine | 1 | 8,50,000 | 8,50,000 |
| 2 | Dyes | 3 | 50,000 | 1,50,000 |
| 3 | Office Equipment & Furniture | 50,000 | 50,000 | |
| 4 | Electrification and Installation | 10,000 | 10,000 | |
| Total | 10,60,000 |
3. Pre-Operative expenses
10,000
Total Fixed Capital(2+3) = 10,70,000
B. WORKING CAPITAL
1. Staff and Labour (per month)
| S.No. | Description | No. | Salary | Total |
| 1 | Sale Cum Production Manager | 1 | 15000 | 15,000 |
| 2 | Skilled Worker | 1 | 10,000 | 10,000 |
| 3 | Unskilled Worker | 1 | 7000 | 7,000 |
| Add Pre-Requisite@ 15% | 4,800 | |||
| Total | 36,800 |
2. Raw Materials Requirements (Per Month)
| S.No. | Description | Quantity | Rate(Rs) | Value(Rs) |
| 1 | Printed PE Paper | 2836 Kg | 92 | 2,60,912 |
| 2 | Bottom Reel | 1134 Kg | 78 | 88,452 |
| 3 | Packing Material | 25,000 | ||
| Total | 3,74,364 |
3. Utilities (Per Month)
| S.No. | Description | Amount |
| 1 | Power | 5000 |
| 2 | Machine Oil & Grease | 1000 |
| Total | 6,000 |
4. Contingent Expenses(Per Month)
| S.No. | Description | Amount |
| 1 | Rent | 5000 |
| 2 | Postage and Stationary | 500 |
| 3 | Transportation charge | 10000 |
| 4 | Maintenance Charge | 2000 |
| 5 | Advertisement | 1000 |
| 6 | Phone | 2000 |
| Total | 20,500 |
5. Total Working Capital (Per Month)
| S.No. | Description | Amount |
| 1 | Raw Material | 375000 |
| 2 | Utilities | 6000 |
| 3 | Salary | 37000 |
| 4 | Contingent | 20500 |
| TOTAL | 4,38,500 |
6. WORKING CAPITAL FOR 3 MONTHS
Working capital for 3 months = 3 * 438500 = 13,15,500
TOTAL CAPITAL INVESTMENT = Fixed Capital + Working Capital for 3 Months
Fixed Capital : 10,70,000 + Working Capital for 3 months : 13,15,500
Total : 23,85,500
Financial Analysis
1. Cost of Production (Per Year)
| S.No. | Description | Amount |
| 1 | Total Recurring Cost | 52,62,000 |
| 2 | Depreciation on Machine @ 10% | 85,000 |
| 3 | Depreciation on Dyes @ 25% | 37,500 |
| 4 | Depreciation on Furniture @ 20% | 10,000 |
| 5 | Interest on Total Capital Investment @ 15% | 2,68,369 |
| TOTAL | 56,62,869 |
2. Turnover (per year)
| S.No. | Description | Quantity | Rate(Rs) | Value(Rs) |
| 1 | Paper Cups | 22,000,000 | 0.3 | 66,00,000 |
| TOTAL | 66,00,000 |
3. Net Profit(Before Taxation) (Per Year)
Turn Over : 66,00,000
Cost of Production (-) : 56,62,900
Total : 9,37,100
Cost of Production (-) : 56,62,900
Total : 9,37,100
4. Net Profit Ratio
Net Profit Ration = (??? ?????? ??? ????/???????? ??? ????) x 100 = 14.20%
5. Rate of Return on Total Investment
= (??? ?????? ??? ????/????? ?????????) x 100 = 39.28%
6. Break Even Point
| S.No. | Description | Amount |
| 1 | Rent for one Year | 60,000 |
| 2 | Total Depreciation | 1,32,500 |
| 3 | Interest on Total investment | 2,68,369 |
| 4 | 40% of Salary and Wages | 1,77,600 |
| 5 | 40% of Utilities and Contingents | 1,27,200 |
| TOTAL | 7,65,669 |
B.E.P = (????? ???? / (????? ????+??? ??????)) x 100 = 44.96%
Conclusion:
Paper Cup manufacturing is an economically viable project to start. One can easily apply and approved their loans from Banks or Other financial institutions by approaching with a good project plan and projections in these way.
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Address of Machinery and Equipment Suppliers
1. AKR Industries
No. 36 A&B New Colony, North Street,
Mannarpuram ,Trich Pin-620020
No. 36 A&B New Colony, North Street,
Mannarpuram ,Trich Pin-620020
2. Sri Jata Machine Tech
No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore – 641021, Tamil Nadu; www.papercupmachineries.in
No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore – 641021, Tamil Nadu; www.papercupmachineries.in
3. Future Enterprises
No. 9 AA, Anna Nagar Podanur,
Coimbatore – 641023, Tamil Nadu; www.futureenterprises.co.in
No. 9 AA, Anna Nagar Podanur,
Coimbatore – 641023, Tamil Nadu; www.futureenterprises.co.in
List of Suppliers of Raw Material
1. Sri Jata Machine Tech
No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore – 641021, Tamil Nadu; www.papercupmachineries.in
No. 24/1, SIDCO Industrial Estate, Kurichi Post Pollachi Main Road,
Coimbatore – 641021, Tamil Nadu; www.papercupmachineries.in
2. Sagun Papers
No. 100, Velayutham Road Near LIC Building,
Sivakasi – 626123, Tamil Nadu
No. 100, Velayutham Road Near LIC Building,
Sivakasi – 626123, Tamil Nadu
3. Indo China Paper And Boards
No. 54, Industrial Estate ,
Sivakasi – 626123, Tamil Nadu; www.indiamart.com/icpaper
No. 54, Industrial Estate ,
Sivakasi – 626123, Tamil Nadu; www.indiamart.com/icpaper
How to start Paper Cup Manufacturing Industry
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Reviewed by Muhammad Rashid
on
November 16, 2018
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