Tissue Paper Manufacturing Project Report

Tissue Paper Manufacturing Project Report, Business Plan

Introduction

Hello friends, today we are here with a new topic of “tissue paper manufacturing project report and business plan in India. The tissue paper sector has extensively expanded over the last few years. With a move to attain luxurious tissue paper and provide ultra-absorbent paper towels as well, the industry has been able to expand and enhance the tissue paper costs and create new brands to sustain consumers.

Tissue can be made not only from a virgin but also using recycled paper pulp. Key characteristics are toughness, absorbency, basis weight, brightness, thickness, stretch, appearance, and ease. Usually, the tissue papers in the market are the following categories namely; Paper Towel, Facial Tissue, Bathroom Tissue, Paper Napkin and, Specialty and Wrapping Tissue. 

Tissue paper is a lightweight paper and has become one of the most indispensable commodities of every individual living in urban areas exclusively. Tissue paper products are commonly made from three types of raw material: Wood-containing (or mechanical) pulp, wood-free (or chemical) pulp, and Recovered paper. Tissue paper came into existence in the 1920s, thereafter the use of tissue paper has been steadily increasing. 

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

Tissue Paper
Tissue Paper (Image credit: pixabay)

Types of Tissue papers in manufacturing business

  • Toilet paper 
  • Facial tissue
  • Handkerchiefs
  • Wipes
  • Napkins
  • Kitchen towels
  • Household towels

Tissue papers are made using one or many plies, each ply is manufactured as rolls or sheets, folded or unfolded, embossed with or without lamination, might be even printed or not depending upon the client requirement or the manufacturer wish.

Market demand for Tissue Paper Manufacturing Business

The global market for Tissue Paper is growing day by day and at present the CAGR of 5.3 percent during 2015-2019. One of the key factors powering this market growth is the increasing need for tissue paper for personal use. However, the rising demand for devices like hand drier machines could be a problem for this market. Tissue and hygiene in India witnessed a strong liner curve in 2019 supported by increasing consumer disposable revenue and consumer consciousness. Tissues and wipes products have seen incredible growth in the coming years in India. The global tissue paper market is predicted to rise at a CAGR of 5.02% during 2020-2024.

Urbanization has made a profound impression on our dining practices. One of the notable differences is a change in the utilization of paper napkins currently, which was otherwise could be seen only abroad. Plain paper napkins are now being greatly used in hotels, households, automobiles, industries, etc. Tissue Paper with a colorful layout and attractive designs is having high prospects with our restaurants focusing on neatness and decoration.

License, registration, and permissions required to start Tissue Paper Manufacturing Business in India

In case if you miss this: How To Start Milk Powder Making Business in India.

Toilet Tissue Paper
Permissions for Tissue Paper making (pic credit: pixabay)

Below is the list of licenses, permissions and registration required for starting the business.

  • Get the essential and mandatory GST Number
  • UAM Registration (udyogaadhaar.gov.in)
  • Company Registration with ROC
  • Trade License
  • Factory License
  • Drugs and Cosmetics License
  • BIS Certification
  • MSME registration
  • Shop and Establishment Act permission
  • No Objection Certificate
  • Shop Act License

Raw Material specification for Tissue Paper Manufacturing Business

  • Facial tissue 12.5 to 13 & 14 GSM
  • Toilet Tissue 14 to 22 GSM
  • Napkin 15 to 24 GSM
  • Towel Grade 19 to 42 GSM

Tissue Paper Manufacturing Machine Specification

  • Minimum Order Quantity – 1 Unit
  • Voltage – 230 V
  • Phase – Single
  • Grade – Automatic
  • GSM Required – 15-38 Gsm
  • Weight – 1500 kg
  • Electricity 3 Phase – 380 V
  • Dimensions for machine – 2600 x 1050 x 1550 (L x W x H) in mm

Manufacturing process in Tissue Paper Making Business

Tissue paper rolls are introduced into the flexographic printing machine that is integrated with the manufacturing of paper napkins so that these can be printed and cut to a particular size using a device linked with the machine.

The tissue paper manufacturing process has a slight difference with respect to other papers.

It follows the same underlying steps like pulping, pressing, and converting processes similar to normal paper, with few modifications changes. The process of manufacturing is briefly mentioned below:

Pulping

1. Trees are logged and chopped into chips, which are then are made into fine flakes, they are then soaked and extracted-apart (retted). Paper pulp is formed from wood fiber or from the leftover recycled materials.

2. Stirring together these uniform retted flakes in an agitator tank with a large quantity of water and other chemicals needed.

3. The manufacturer must have acquired chemicals such as limestone, sodium sulfide, and others beforehand while the wood pulp is still in the tank, to soften, fortify or color the paper.

Pressing

1. The prepared pulp is then transferred over fast-moving belts developed by highly porous materials that are powered over huge drums heated by steam. The pulp is poured consistently across the width of the belt/drum. This process makes the water escape through the pores, leaving only fibers on the belt which gives a delicate fabric at the end.

2. The tissue is then placed on a massive heated roller known as Yankee. The heat of the Yankee makes the fabric dry rapidly.

3. The tissue paper is then moved on to a core to give a large diameter roll.

4. There is an option to adjust the draw speed of the roll which allows you to get a thicker or thinner tissue as per your need.

5. The rolls are then placed on the converting machine.

Converting

1. The tissue piles are taken and are then split for packaging so that later they can be sent into a trimming roller.

2. Embossing softens the toilet tissue and can be used to develop decorative designs.

3. The plies are separated and held using glue. The tissue is then pierced by doctor blades so that they can be easily pulled apart.

4. The tissue can then be developed on flat surfaces or wound round a cardboard tube to develop a cylindrical roll.

5. Several different roll sizes and sheet counts are shaped on the winding machines.

6. The large roll is introduced into a doctoring arrangement and cut by a large rotating doctor blade into individual rolls.

You may also check this: Vermicompost Project Report.

Tissue Paper Manufacturing report, economics in India

Financial aspects for Tissue Paper Manufacturing Business

Fixed Capital

Machinery and Equipment:

Automatic Tissue Paper converting machine:Rs. 6,10,000

Weighing machine Rs. 12,000

Total Rs. 6,22,000

GST 18%: Rs. 1,11,960

So, total fixed capital including GST: Rs. 7,33,960

Recurring expenditure

a. Raw Material per Month:

Tissue Paper Roll including GST @ 18%: Rs. 2,10,000

Packing materials: Rs. 19,000

Total: Rs. 2,29,000

b. Salaries & Wages Per Month: Rs. 32,500

c. Utilities per Month (Power supply, water supply, etc): Rs. 15,218

d. Other Expenses Per Month:

Rent: Rs. 10,000

Postage and stationery: Rs. 1,000

Repairs and maintenance: Rs. 2,000

Traveling and transportation: Rs. 10,000 

Insurance: Rs. 500

So, in total: Rs. 23,500

Recurring expenditure per month = a + b + c + d = Rs. 3,00,218/-

Recurring expenditure per year: Rs. 36,02,616/.

Total tissue paper manufacturing project cost: Rs. Plant & Machinery + Recurring Expenditure for one month (known as working capital) = Rs. 7,33,960 + Rs. 3,00,218 = Rs. 10,34,178.

Means of Finance

Total Project cost Rs. 10,34,178

Promoter contribution 5 % (-) Rs. 51,709

Total Rs. 9,82,469.

Cost of Production Per Annum:

Total recurring cost: Rs. 36,02,616

Interest on total investment @12.5%: Rs. 1,29,272

Total Depreciation on Machinery @10%: Rs. 73,396

So, total cost of production per annum for tissue paper making business = Rs. 38,05,284

Turnover Per Annum: Total production 42 MT

One year production: 42 MT

And total 5.88 pockets, selling price @ Rs. 7.40 per packet

Total Selling value: Rs. 43,51,200.

Profit calculation in Tissue paper making project report

Profit = Turnover – Cost of Production

= Rs. 43,51,200 – Rs. 38,05,284

= Rs. 5,45,916.

Percentage of profit on sales = Profit per annum X 100/Turnover = 5,45,916 X 100/ 43,51,200 = 12.54%.

Rate of Return

= Profit per annum X 100/Total Capital investment

= 5,45,916 X 100/10,34,178 = 52.78%.

Break Even Analysis

Total Deprecation: Rs. 36,698

Interest on Investment: Rs. 1,25,000

Insurance: Rs. 2,400

40% of Salary: Rs. 1,56,000

40% of other Expenditure and Utilities excluding Insurance: Rs. 1,83,446

Total: Rs. 5,03,544

Profit per annum = Rs. 5,45,916.

Break-even Point:  

= Fixed Expenditure per annum X 100 / Fixed Expenditure per annum + Profit per annum

= 5,03,544 X100 / 10,49,460 = 47.98%.

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