Single use plastic shalt be banned in the country. In view of the growing palpation and health concerns, the government has called for the closure of plastic use. While the government’s move will curb plastic tumbler, cups or plates across the country, the demand for its alternet product will also increase rapidly. You have a great opportunity to get into the paper cup business. The main thing is that the government is also helping under mudra scheme to set up paper cup manufacturing units. The project report is also ready by the government, which gives a full calculation of profits ranging from the cost of starting business. Know its detail….
Advantages of Paper Cup Making
The biggest advantage of paper cup business is that it is a demand village, a town or a city everywhere. Now, when the plastic is banned, its demand will grow faster. These glass or cups are usually used from tea shops to juices and drink shops. It is also easy to use for big party fantasies and celebrations. Because of the paper, they are easily disposed of. This does not cause any damage to the environment.
Land: You must have an area of at least 500 sq ft.
Expenditure on machinery and equipment: Rs 10.70 lakh
Note: This includes office equipment and furniture, dye, electrification, installation and pre-operative expenses besides the main machine.
Total Working Capital: Rs 438500
This includes these expenses…..
Salary of Workers: Rs 35,000 (This includes skilled and unskilled worker’s monthly salary.)
Expenditure on Raw Material: 3.75 lakh
Cost on utilities: Rs 6,000 (it costs electricity, water and machine oil and Greece etc.)
Other expenses: Rs 20,500 (including rent, stationery, transportation, advertising and maintenance, etc.).
How much to invest
This includes working capital expenses for 3 months in addition to the cost of machinery and equipment.
I.e. Total Expenses: Rs 10,70,000 + 13,15,500 (438500*3) = Rs 23,85,500
How to earn
73,000 units per day and 2.20 crore units of paper cups or glass can be prepared if 300 days of work throughout the year.
Cast of Production: Rs 56,62,900 per annum
Total turnover: Rs 66,00,000 per annum
Note: The price per cup or glass is 30 paise.
Net Profit: Rs 937100 per annum
Net Profit Ratio: 14.20 per cent
Rate of Returns: 39.28 per cent
Loan under Mudra Scheme
You can get a loan from the bank for this business under Mudra Scheme. Under Mudra Loan, the government provides subsidy on interest. Under this scheme, you will have to invest 25 per cent of the total project cast from yourself. The government will provide 75 per cent loan under Mudra scheme.
Where to find the machine
Paper cup making machine is available in many cities including Delhi, Hyderabad, Agra and Ahmedabad. Engineering companies are working to prepare such machines.