Nowadays, the use of paper cups in place of plastic is increasing rapidly in all types of programs, big or small. While plastic cups are considered harmful to the environment, paper cups are biodegradable and do not cause any harm to nature. This is the reason why their demand is constantly increasing. This increasing demand has made the production of paper cups a fast-growing business, in which good profits can be earned even with low investment.

Things required to start a paper cup business

Raw Material

First of all, you have to buy raw material. It will require printed PE paper, a bottom reel, and packing material.

Print PE Paper 2836 KG Rs.2,60,912
Bottom Reel 1134KG Rs.88,452
Packing Material – Rs 25,000
Total Cost – Rs 3,74,364

Paper Cup Making Machine

For higher production, you will have to buy a paper cup-making machine, which can cost around ₹8,50,000.

Process of making paper cups by machine

The work of making paper cups by machine takes place in three stages:

Step 1: The side wall of the cup is shaped and prepared for the next stage.

Step 2: With the help of the machine, the bottom part of the cup is shaped, attached to the side wall, and the edge is curled.

Step 3: The cup is separated at 45 degrees, and the bottom part is heated and curled.

After these three simple steps, the cup is completely ready for use.

Production Capacity and Other Expenses

A single machine can produce around 73,000 cups per day, which can produce over 20,00,000 cups in a year.

Other Expenses

Apart from raw materials, you also need to budget for expenses like space rent, electricity, machine oil, stationery, transport, maintenance, and advertising.

Electricity and machine oil: ₹6,000 per month

Rent, transport, advertising: ₹20,500 per month

Staff salary

Sales/production manager: ₹15,000

Skilled worker: ₹10,000

Unskilled worker: ₹7,000

Total monthly salary: ₹32,000

Total investment and annual profit calculation

If we estimate a year, around 22,00,000 cups will be produced, which will lead to a total sale of around ₹66,00,000.

Total production cost: Approx ₹56,62,900

Estimated annual profit: ₹66,00,000 (sales) – ₹56,62,900 (cost) = ₹9,37,100

Thus, you can earn a handsome profit of more than ₹9 lakh annually from the paper cup manufacturing business.