Indian functions are often a grandiose affair with various dishes being served and the humble paper plate is very much an integral part of these functions. With the move by several states and the Indian Railways to ban single-use plastic, paper plates have been the go-to for many.
Setting up a paper plate business is profitable as the investment barrier is low, and it has a good profit margin.
Guidelines for Setting Up Your Paper Plate Business:
Individuals with an aptitude for business can start a paper plate business on a scale that applies to them. The scale of the business depends on your investment capacity.
The raw material for paper plates is mainly special quality paper reinforced with polythene sheets to make it leakproof. Some commonly used papers are greyboard, millboard, kraft paper, greaseproof paper, etc.
A paper plate business can thrive during festive and wedding seasons as they help save manual labour required to wash plastic dishes and are cheap in bulk.
How Profitable is a Paper Plate Business?
Both rural and urban markets demand disposable paper plates, as many retail food outlets use them. A paper plate business can explore diverse industries like catering and institutional consumers for large business volumes.
Steps to Get Started on Your Paper Plate Business:
Formulate a Business Plan
While initiating a business endeavour, the first and most crucial step would be to draw up a business plan. The initial steps include conducting market surveys to identify the kinds of plates in demand, the designs, colours, and thickness.
Evaluate the competition to grasp why they are successful, what they are doing right, and where there is room for improvement. Also, mention details like the business scale, the amount you are looking to invest, the ROI and output you are targeting etc.
Organise Working Capital:
The paper plate business doesn’t place too many demands on initial funding. The basic requirements for this business would be appropriate space, machinery and raw materials procuring. Hiring sufficient and skilled labour also needs to be considered.
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Apply for Requisite Permits:
It is mandatory to obtain the requisite permits according to the prevailing laws. The standard requirements are a Trade Licence entitling you to carry out commercial activities and a Factory Licence if required. You will also need to register with the GST department, which will assign you a GST Number.
Plan for the Initial Investment:
The bulk of the initial investment will be for procuring machinery and raw materials, and the machinery may set you back up by Rs 5 Lakh. The rest of the expenses are variable depending on the quality of raw material, the skill level of the hired labour, etc.
Have a Distribution Network:
Identifying retailers to stock your product is ideal to ensure it reaches the end consumer. Apart from this, getting in touch with event planners, caterers, large corporate firms, etc., are a surefire way of maintaining sustained sales and income.
This summarises the basic information required for setting up a paper plate business in India. Be sure to conduct in-depth research before starting this venture.