Introduction on how to start a toothpick making business
Are you willing to start a wood or plastic toothpick making business? If yes, find here a stepwise business guide about the process of making toothpicks with information related to its registration, machine, manufacturing process, etc.
A step by step guide to start and make profits in toothpick making business
Plastic toothpicks are very comfortable for tooth picking. They are widely consumed especially in hotels and restaurants. The plastic toothpick production unit can be begun on a semi-automatic or fully automatic basis. Any person can start a manufacturing operation from his or her home location like a part-time income opportunity.
Additionally, people tend to use disposable plastic toothpicks extensively while they travel. Compared to wooden toothpicks, the plastic toothpicks are highly flexible and they are obtained in well-packed status. Here, in this blog, we have shared every essential aspect of starting a plastic toothpick making business of your own.
Market potential to start a toothpick making business in India
The plastic toothpicks are having a great demand already. The increasing custom of dining by people living in urban and suburban areas has increased the need for this product. The plastic toothpicks are used daily in hotels, homes, restaurants, public gatherings, and various places where food is usually shared.
The growth rate of plastic toothpicks is around 4 %. Apart from the domestic market, this product also has a very high export capacity. If you want to begin a fully export-oriented plastic toothpick production unit, then you should maintain the quality of the product as per export guidelines.
Registration, license, and permissions required to start a toothpick making business
For initiation of even a small scale, medium, or large scale plastic toothpick production business in country like India, it is essential to obtain the following registration and licenses for the Government authority.
- Register your business with ROC. A small scale proprietorship setup is fine when it is One Person Company. In starting a big company, you can apply as LLP, Pvt. Ltd or Ltd. Company setup.
- Obtain Trade License from local Municipal authority.
- Apply for Udyog Aadhaar MSME Registration. Though it is not obligatory, it will help you in availing of the grants and schemes from the Government.
- Take a No Objection Certificate from the Pollution Control Board.
- Apply for VAT Registration.
- You can apply for ISO Certification
- Obtain IEC Code if you are willing to export the product in the future.
Investment required to start a toothpick making business
Similar to any manufacturing business, you will require two types of capital investment here also. The first one is the fixed capital investment and the next is working capital investment. The major areas of the requirement include land, building, and machinery.
Generally working capital comprises investment of raw material, manpower charges, and other daily basis expenditures to operate the unit. Create a thorough business plan and submit it to your nearby financial institutions for availing of the loan.
For only fixed capital requirements you can approach unsecured business loans and mortgage loans. To avail of working capital investment, you can get a cash credit and overdraft facility. Before applying for the loan, verify your credibility, needful collateral security amount, and interest rates of the bank.
You need to invest Rs. 1 lakhs to Rs. 1.5 lakhs based on the scale of the business. The cost of machine starts from Rs. 20,000 or sometimes you can avail it for Rs. 18,000 also. The cost goes high when you choose a high-quality machine and it may range up to Rs. 2 lakhs.
The cost for raw materials includes Rs. 50,000.
Other miscellaneous costs include Rs. 10,000.
Machinery required to start a toothpick making businesss
For beginning a small or medium-scale plastic toothpick production business, you should acquire the following machinery. In this type of manufacturing business, automatic injection molding machines are suggested. This is most appropriate as precision molding requirements are more.
Additionally, it will take care that the production rate is high with a minimum cycle time. Here the weight of the component injection-molded generally exceeds 150 gram, as compared to injection molded in semi-automatic machines. The main machinery needed here is stated below:
The automatic injection molding machine with accessories.
- Scrap grinding machine
- Dry color mixing machine.
- Mold lifting equipment.
- Water cooling arrangements.
- Weighing scale
- Various molds.
- Packing machine
Raw materials required to start a toothpick making business
The major raw material needed is PP/HDPE granules or bamboo. You can obtain it from the local wholesale market or directly from the manufacturer. Apart from this, you should obtain masterbatches and color. You will also require some packaging materials.
The process of toothpick production
The plasticized and homogenized thermoplastic material is inserted into a locked (clamped) mold with appropriate injection speed and pressure. After cooling the melt in the mold, open it to separate the molded articles.
This is a cyclic process. The automatic injection molding machine is the primary machinery in this type of manufacturing function. The next step will be packing. The most exciting aspect of the plastic toothpick production business is, it needs a small area for the manufacturing unit and can also be started at home. You can also use wooden sticks to make the tooth picks.
Profit margin in toothpick manufacturing business
Toothpick manufacturing business gives good profits as there is high demand in the market as the investment is also very less. Within no time you can earn 25-30% profits in toothpick manufacturing business in India.
Promotion and marketing of toothpick manufacturing business
Many people are into the manufacturing of toothpick and their toothpicks do have a good sale in the market. So you will need to promote your brand properly to sustain the market and give a firm stand to competitors. Through promotion, people be aware of your brand and this could aid in improving the sales of your toothpick.
How to promote your toothpick making business
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Small scale marketing
You can encourage your brand at a small scale level. You can provide an advertisement via the print media through any local newspaper. You can prepare free samples to nearby hotels and restaurants to give them an idea of your product and the brand so that they will purchase it later.
Large scale marketing
You must spend more if you need to advertise the brand at large scale. You can place an ad on television channels. So it is recommended to promote the business after it is well established or in case you don’t have any budget constraints.
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Recruitment of employees
You must employ some staff for this business. If you are starting a small scale then you must have 8 to 12 employees which will be more than 16 people for large scale business. Make sure you hire skilled people or with experience candidates for your business.
Training for toothpick making business
Get perfect training on how to make toothpick. You must get trained to train the employees for handling the machinery to have smooth operations.
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