Introduction to Paper Tea Cup Project Report, Manufacturing Business Plan: A Tea Cup is a paper-made cup and later has a lining of plastic or wax that inhibits the release or leakage of liquids and allows to soak it. Tea Cups are developed by renewable sources. The cups should be made with any food-grade paper that could be hygienic. It is even used for both hot & cold fluids for a longer time. There are well-known uses of the Tea Cups. it is the proper period to tap the consumer segment to promote the home consumption of Tea Cups.
A guide to Paper Tea Cup Project Report, Manufacturing Process Business Plan, profit, and license requirement in India
There are many benefits of using Tea Cups as compared to cups made from various other materials. These Tea Cups are attaining global recognition for their beauty and stylish way of diminishing contact to food-borne contaminations.
Business plan for starting Tea Cup Manufacturing Business
Before starting the Tea Cup Manufacturing Business, you need to craft a perfect business plan by considering the following points.
- Market demand of the Tea Cup
- 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 Tea Cups 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 Tea Cup Manufacturing Business
A wide range of Tea Cups are available and being marketed in India. The Tea Cups are estimated to have a great potential business for India.
Manufacturing Tea Cups for satisfying the requirements and desires of consumers present in the market. Preparing some techniques for providing an effective product that is perfect for food-grade quality and cost-effective characteristics is important for attracting customers.
But in our country Tea Cups have been utilized by people because of their comfort, its hygienic and eco-friendly. Even the per capita consumption has augmented and the necessity for it is known. As the need for Tea Cups has showcased a high growth, people associated with the business get success if proper marketing strategies are devised and operated properly.
Since Teacups are almost used daily, thus its marketing might not pose any trouble as the customers are well acquainted with the pros and cons of its use. Even the raw materials are available easily and the manufacturing process is even very convenient
Tea Cup has wide acceptance and applications in the market, especially IT companies, Industrial Canteens, Paper Product Dealers, Restaurants, Tea Shops, Educational Institutions Canteens, Fast Foods, Catering People, and Super Markets.
Government approvals required for starting Tea Cup Manufacturing Business
There are no particular mandatory approvals for the plastic industry process.
But, the MSME registration, several taxations associated registration, and labor law-related guidelines have to be verified as per the particular state laws. It is even recommended to contact the State Pollution Control Board if the process involves the release of pollutants to the environment and must obtain the NOC in case required.
- 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 to start Tea Cup Manufacturing Business
- Printed PE Paper
- Packing Material
- Bottom Reel
The machinery required to start Tea Cup Manufacturing Business
There are two ways to set up the paper cup-making unit.
- One is by using a semi-automatic machine and another is by fully automatic.
- The fully automatic unit yields a large number of cups per hour than its counterpart or the semi-automatic one. However, if you are in the beginning stage, then a semi-automatic unit is best for you. You need a paper cup forming machine, dies, molds, and other necessary equipment, and some various tools. Also, you need a packaging machine for bulk packaging.
- The cost of an automatic paper cup manufacturing machine will be around Rs. 5 lakhs – 7 lakhs based on the output and some features.
The manufacturing process of Tea Cup Manufacturing Business
We recommended using the Automatic Tea Cup Forming Machine regarding the manufacturing procedure of Tea Cups. There are three stages included in Tea Cup forming machine. They are mentioned below:
- The first step: Majorly includes the Tea Cup’s sidewall paper, completes side-wall and then they are moved further to the next stage after being shaped.
- The second step: Includes the preparation of the cup-bottom paper, making cup bottom, combining cup bottom with shaped side-walls. These are performed automatically and gives the form of a shaped cup.
- The third step: This step includes separating, curling bottom, preheating, curling rim, and other mechanisms, which are the essential segments of finishing Tea Cup.
Paper Tea Cup Project Report/ Economics of Tea Cup Manufacturing Business in India
In case if you miss this: 1000 MT Cold Storage Project Report.
Here, we have added an estimated analysis for a paper cup 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 Tea Cup Making Business
Total Project Cost required to start Tea Cup Making 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 Tea Cups @ 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.Â
Profit margin in Tea Cup 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 Tea Cup product
How About This: Export Business Ideas For Beginners.
To sell your Tea Cups, you can register them online on B2B websites and B2C websites. Plan to distribute some samples in the surrounding shops, supermarkets, event management companies, small hotels, stores, restaurants, or in the wholesale markets where your product gets well purchased.
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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