Business Idea: Nowadays, whether it is a birthday party, a wedding event, or everyday meetings in offices, the use of paper cups has increased rapidly everywhere. The main reason for this is that plastic cups have proved to be harmful to the environment, while paper cups are considered a safe and eco-friendly option. Gradually, the trend of paper cups has increased so much in the market that now their demand is increasing day by day.
How to start a paper cup business
Raw material is required first to make paper cups. This includes print PE paper, bottom reel, and packing material. On average, their total cost is around Rs 3.75 lakh. Apart from this, a paper cup-making machine will be required to start this business, which can cost up to Rs 8.50 lakh.
Paper cup making process
The manufacture of paper cups is completed in three stages.
In the first stage, the sidewall of the cup is shaped.
In the second stage, the bottom part of the cup is prepared and attached to the sidewall, and the edge is curled with a curling machine.
In the third stage, the cup is separated and heated at 45 degrees, and then its bottom part is curled for strength. In this way, the prepared cups are ready for packing.
Production capacity and annual turnover
About 73 thousand cups can be prepared every day with an automatic machine. About 22 lakh cups can be made in a year. If we calculate the average sales, then the annual turnover can reach about Rs 66 lakh.
Expense and profit calculation
The total expenses include raw material, machine oil, electricity, wages of workers, packaging, transportation, and other necessary expenses. It comes to about Rs 56.62 lakh annually. In comparison, the annual income can be up to Rs 66 lakh. That is, you can get a net profit of about Rs 9.37 lakh annually.
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What will be required?
To start this business, you will need essential resources like rented space, electricity, stationery, transportation, machine oil, packing material, and advertising. Also, a production manager, a skilled worker, and an unskilled worker will have to be hired.