Business Idea: Nowadays, the use of paper cups is increasing rapidly in every small and large event. Be it a children’s birthday party, a wedding ceremony, an office meeting, or a cafe and street food stall, the demand for paper cups is being seen everywhere. While plastic cups remain a threat to the environment, paper cups are considered an eco-friendly and safe option. This is the reason why their consumption is constantly increasing, and their production has taken the form of a big business.
Increasing demand and market of paper cups
Lakhs of paper cups are being used daily in cafes, offices, canteens, and big events. This business not only contributes to environmental protection, but also provides an opportunity to earn great profits at low cost.
Requirements and cost of raw material
To start this business, first of all, printing PE paper, a bottom sheet, and packing material are required. 2836 kg of print PE paper costs around Rs 2,60,912, while 1134 kg of bottom reel costs around Rs 88,452. Packing material costs around Rs 25,000. Thus, the total cost of the initial raw material is around Rs 3,74,364.
Machine and manufacturing process
For large-scale production, a paper cup machine is required, which costs around Rs 8.5 lakh. The process of making cups with this machine is completed in three stages. In the first stage, the side wall of the cup is shaped, in the second stage, the bottom part of the cup is joined and the edge is curled, and in the third stage, the cup is heated and finished. After these stages, the finished cups are sent for packing.
Production capacity
About 73,000 cups can be prepared daily with a standard machine. On average, more than 20 lakh cups can be produced in a year.
Other expenses and requirements
To run this business, along with the machine and raw material, rent of space, electricity, machine oil, transportation, advertising, and other expenses are also included. Electricity and machine oil cost around Rs 6,000 per month, while rent, stationery, transport, and advertising, etc. cost around Rs 20,500. Apart from this, the salary of the employees is also included, in which the average monthly expenditure, including the manager, skilled, and unskilled workers, is Rs 32,000.
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Calculation of total investment and profit
If around 22 lakh cups are made in a year, then their sales can be up to about Rs 66 lakh. At the same time, the production cost comes to about Rs 56.62 lakh. According to this, the annual net profit can be up to Rs 9.37 lakh.