Paper Straw Manufacturing Project Report

Introduction to Paper Straw Manufacturing Project Report, Business Plan: Beginning a paper straw-making business is not a difficult task. Already one can check out many of the paper straw manufacturers in the state capital, Delhi. As paper straw is having some advantages like eco-friendly property that means it does not harm the environment which makes people opt for it regularly. Thus, the government also endorses this eco-friendly project by providing certain schemes. Besides, if one is aware of the potential demand for paper straws then he can easily analyze his/her gains. In this manner, anyone can start the business and get a rough approximation of the product demand in the market.

A guide to Paper Straw Manufacturing Project Report, Business Plan in India

Paper Straw Manufacturing in India
Paper Straw (Image source: pixabay)

Business plan for starting Paper Straw Manufacturing Business: Before starting Paper Straw Manufacturing Business, you need to craft a perfect business plan by considering the following points.

  • Implementation schedule
  • Market potential of the Paper Straw
  • List of approvals required for starting the business
  • Raw materials and machinery required
  • Manufacturing process
  • Project economics
  • Marketing strategies to promote the product

Implementation schedule of Paper Straw Manufacturing Business

  • Market analysis and demand, applying for loan 0 – 1 month
  • Preparation of business plan 1 – 2 months
  • Financial support or investment 2– 4 months
  • Selection of location and establishment of unit 3 – 4 months
  • Power and water connection facility: 4 – 5 months
  • Building construction and shed development 5 – 6 months
  • Machinery and equipment purchase 6 – 7 months
  • Procuring raw materials and recruiting of manpower 8 – 9 months
  • Trial operations 10th month

Market potential of Paper Straw Manufacturing Business

Paper straw is a significant material in many stores such as fruit juice, bakeries, etc., and hence, it is important to be aware of its applications. Paper straw has huge demand in both small stores as well as supermarkets. In this post, we will elaborate on the specifications of beginning the business and the items required for the same. The business even has a huge demand in foreign countries. One can even plan to approach the paper straw exporters if they desire to export the product and expand their business. 

Government approvals required for starting Paper Straw Manufacturing Business

Below is the list of approvals required for starting Paper Straw Manufacturing Business

  • MSME registration
  • GST registration
  • ROC
  • Registration of firm
  • Shop Act License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Raw materials required for starting Paper Straw Manufacturing Business

The Paper straw-making business is a money-spinning business. But to grow the business, you should have ideas about all the paper straw raw materials needed to get the paper straws. Also, you must also know about the equipment and apparatus that is mandatory to produce the paper straws.

Before one commences the business, one has to be aware of the raw materials that are needed to make the kinds of stuff. Apart from this, you must have an idea of the source from where you can have a sufficient supply of raw materials. After getting this data, one can evaluate the price that would be required to procure the raw materials, which is important to fix the rate of the straws planning to be produced.

Thus, paper straw making requires raw paper, ink, glue, and white oil. Moreover, curarine is also essential for it employed to paint straws. Thus, you should get the ink and glue depending on the color of the paper straw that you desire to produce. The price of ink and glue is about Rs. 120 per kg, but it is vital to verify the costs properly as they can differ somewhat from market to market and place to place.

The machinery required starting a Paper Straw manufacturing business

Before you start the business, you must get proper knowledge about the various machines that you must obtain to begin the business. Apart from this, it is important to have the information of the cost that is incurred to purchase the machine. In this paper straw business, one will need two machines. needed. One is to prepare the paper straws, and the other is used for cutting the paper straws. 

Paper Straw manufacturing process

Besides all these aspects it’s significant to have knowledge on how to make biodegradable straws. During the process, raw paper or paper roll and ink as introduced in the paper straw-making machine. In the device, both the materials will get mixed, and they will manufacture the straw. Next, you can program size to the mixed material in the equipment. After giving the required shape, it is now cut into pieces. This will be taken care of by another machine. 

In this manner, the paper straws are now properly prepared for selling purposes. While purchasing the paper straw-making machine, one must verify carefully the number of straws that the machine can develop at one time. This will assist you to calculate the production rate, and thus this can be a deciding aspect to opt for buying the machine.

Packing of the Paper Straw

Product packing in this business requires proper skills and it is very important to pack the straws as soon as they are manufactured. It is recommended to pack the paper straws within cartons that are helpful to maintain the straws without any damage. At this step, you must decide the number of straws that you plan to place in a single carton.

Paper Straw Manufacturing Project Report/ Economics of Paper Straw Manufacturing Business in India

In case if you miss this: 1000 MT Cold Storage Project Report.

Economics of Paper Straw Manufacturing
Economics of Paper Straw Manufacturing (Image credit: pixabay)

Here, we have added an estimated analysis for a paper straw making for your ease and immediate reference.

Fixed capital

Machinery and Equipment: Rs. 6,50,000

Recurring expenditure (per month)

Raw material per month: Rs. 2,55,100

Salaries and wages per month: Rs. 30,475

Utilities per month:  Rs. 4750

Utilities per month: Rs. 12500

Total recurring expenditure per month: Rs.3,02,825/-

Recurring Expenditure for 3 months: Rs. 9,08,475/-

Working capital assessment: Rs. 6,50,000.

Financial aspects for Paper Straw Manufacturing Business

Total project cost required to start Paper Straw Manufacturing Business

Plant and Machinery: Rs. 16,50,000

Working capital: Rs. 16,50,000

Total: Rs. 13,00,000

Total Project cost: Rs. 13,00,000

Promoter contribution 10%: Rs. 1,30,000

Total: Rs. 11,70,000

Finance required from the Bank: Rs. 11,70,000/-

Cost of production per annum

Total recurring cost: Rs. 36,33,900

Interest on Bank Loan @12.5%: Rs. 1,46,250

Total depreciation on Machinery and Stabilizer @15%: Rs. 90,000

Total depreciation on furniture’s and other equipment’s @ 20%: Rs.5,000

Total: Rs. 38,75,150.

Turnover per annum

By sale of 1,20,00,000 nos. of Paper Straws @ Rs. 0.39: Rs. 46,80,000/-.

Profit per annum

Turnover – Cost of Production = Rs. 46,80,000 – Rs. 38,75,150 = Rs. 8,04,850/-

Percentage of profit on sales = Profit/annum X 100/Turnover = 8,04,850 X 100/46,80,000 = 17.2%.

Rate of Return

Rate of Return = Profit per annum x 100/Total Capital investment = 8,04,850 X 100/13,00,000 = 61.91%.

Break Even Analysis

Fixed expenditure per annum:

Interest on Loan: Rs. 1,46,250

Total Depreciation: Rs. 95,000

40% of salary and wages: Rs. 1,46,280

40% of other expenses and Utilities: Rs. 1,82,800

Total: Rs. 4,70,330.

Profit margin in Paper Straw Making Business

Profit per annum: Rs. 8,04,850/-

Break Even Point = Fixed Cost per annum x 100/fixed cost per annum + Profit per annum = 4,70,330 X 100/1275180 = 36.88%.

Marketing strategies to promote your Paper Straw product

How About This: Neem Oil Manufacturing Project Report.

How to Market Paper Straws
How to Market Paper Straws (pic source: pixabay)

To sell your Paper Straws, you need to register it online on B2B websites and B2C websites.

B2B websites: The websites like –

  • Alibaba,
  • Indiamart,
  • Tradeindia,
  • ExportsIndia will take the bulk orders for your product.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

  • Amazon,
  • Snapdeal,
  • Flipkart, etc. 

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