Startup

How to Start a Paper Plate Business in India?

Starting a paper plate business in India is a very easy process and it requires a very low initial investment. You just need to get the necessary licenses and registrations, a place to start your business, raw materials, and proper machinery. Read the full blog to know all the requirements and necessities to start your paper plate making business.

Paper Plate Business: Business Scope

Paper plates are made with special quality paper which is covered with polythene sheet to make it leak proof. Generally, paper plates are made from papers like billboard, greybeard, kraft paper, greaseproof paper, etc.

Paper plates are not used in the first place but instead as an alternative for plates made from steel, glass, ceramic, etc. materials. These plates are generally used as a cheap substitute for these plates and are used in both domestic and industrial purposes. Also, there is a high demand for paper plates in India, as paper plates reduce the hassle of cleaning of plates, these are light, easily disposable, they are affordable and they are also an eco-friendly option. 

Commercial uses of the paper plate include street shop vendors, commercial food serving industries, etc. and domestically it is used at birthday parties, marriage functions, corporate gatherings, family functions, etc.

Licenses / Registration Required for Paper Plate Making Business

To be able to start your business paper plate making business you would need the following licenses and registrations;

• Registration of Entity: First, you should start by incorporating your firm in the form of any entity. In the initial stage, you can start by incorporating a one-person company when your company is small or medium scaled.
• GST Registration: It is mandatory to get the GST Registration to commence your paper plate business, provided that your turnover is more than the prescribed limit.
• Trade License: You need to obtain the Trade License from your local authority
• MSME / SSI Registration: Getting MSME / SSI Registration will make you eligible for availing various facilities under numerous schemes offered by the state or central governments.

Requirements / Necessities for Paper Plate Business

Apart from getting all the required licenses and registrations, you would also need other items or things to set up your Paper plate making business. For example, you would need a space to set up your business, essential raw materials, machines, and tools, etc.

Area Requirement

The most important task while starting a business is deciding or selecting an adequate location for your business. For paper plate making the business, the area prescribed should be approximately 500 sq. ft.

Additionally, choose a place that is near the target market and the location must have basic facilities like water supply, drainage supply, electricity supply, etc.

Furthermore, divide the space into different sections dedicated to just one type of work such as material storage area, operation area, finished goods storage area, etc.

Raw Materials

The basic material for your paper plate making business is good quality scrap paper. The paper is available in two varieties, one is thin-layered and the other is thick layered. Apart from scrap paper, the process of manufacturing paper plates needs polythene sheets and hessian sacks for the purpose of packing.  

Machineries / Equipments

There are mainly two types of one is a semi-automatic machine and other is a fully automatic machine. Other equipment you would probably need are as follows;

• Paper cutting machine
• Double die press machine
• Packaging machine
• Weighing scale

Paper Plate Making Procedure

Manufacturing paper plates are not a very complex process. It consists of just four simple steps;

Step 1: Paper Plate Cutting

A Paper plate cutting helps to cut the paper into any desired shape or size for making plates.

Step 2: Die Pressing

Die pressing is the stage where the real magic happens and the paper and polythene sheet together holds the shape of a plate.

Step 3: Separating Product from Die

After forming shape the final product is removed from the double die press machine.

Step 4: Packaging

Finally, the paper plates are collected, trimmed and packed for distribution.

Paper Plate Making Flowchart

Hitting the Target Market

Paper plates are not a new product, everyone is already aware of this product and its demand is pretty high. Therefore, you just need to hit the market and start selling your product. However, you would need to promote your brand with a unique marketing strategy to overcome the huge competition.

You can sell your products to the local market or you can sell it yourself by setting up small distribution centers. Also, you can sell them in wholesale amount, or online either through Business to Business {B2B} websites, or selling them on Business to Customer {B2C} websites.

Conclusion

Paper plate business is a profitable option if you are preparing to start a small or medium scale business. Also, it is a sector which comes under the Micro, Small and Medium Enterprises {MSME} and you can avail various facilities offered by the government by securing an MSME / SSI Registration.