tissue paper industry

Tissue Paper Manufacturing Industry: A Comprehensive Guide

1. Raw Material Availability

Tissue paper manufacturing primarily uses the following raw materials:

• Wood Pulp: Derived from trees, available in softwood and hardwood varieties.
• Recycled Paper: Often used to reduce costs and environmental impact.
• Chemicals: Such as wet-strength resin and adhesives to enhance tissue quality.

Availability:

• Wood pulp and recycled paper are readily available from domestic and international suppliers.
• India imports wood pulp from countries like Canada, Indonesia, and Brazil.

2. Raw Material Cost

• Wood Pulp: ₹35,000 – ₹50,000 per ton.
• Recycled Paper: ₹20,000 – ₹30,000 per ton.
• Chemicals: ₹5,000 – ₹10,000 per ton.

3. Machinery

Tissue paper manufacturing machinery comes in two main types:

a. Semi-Automatic Machines:

• Cost: ₹5,00,000 – ₹12,00,000.
• Features: Moderate speed, requires manual intervention for packaging.
• Capacity: 1-2 tons per day.

b. Fully Automatic Machines:

• Cost: ₹15,00,000 – ₹25,00,000.
• Features: High speed, automated operations including cutting and packaging.
• Capacity: 5-10 tons per day.

4. Other Requirements

• Transportation Expenditure: Raw materials and finished goods transportation costs depend on the distance but typically range from ₹30,000-₹50,000 per month for intra-state logistics.
• Space Required: 2,000-5,000 sq. ft., depending on the scale of operations.
• Total Expenditure:
  

  • Semi-Automatic Setup: ₹30,00,000 – ₹50,00,000.
  • Fully Automatic Setup: ₹60,00,000 – ₹80,00,000.

5. Marketing

Target customers include:

• Wholesalers and Distributors.
• Retail Chains and Supermarkets.
• Hotels, Restaurants, and Catering Services.
• Hospitals and Clinics.
• E-commerce platforms.

Marketing strategies:

• Establish partnerships with wholesalers and retailers.
• Offer bulk discounts.
• Highlight eco-friendly practices to appeal to conscious consumers.
• Use online marketplaces for visibility.

6. Profit Estimation

• Cost of Production: ₹30-40 per kg.
• Selling Price: ₹60-80 per kg.
• Net Profit Margin: ₹30-40 per kg.
• Monthly Profit: For a production capacity of 5 tons/day (150 tons/month):
  

  • Revenue: ₹6,000,000 – ₹12,000,000.
  • Profit: ₹3,000,00 – ₹4,500,00.

7. Machinery and Raw Material Suppliers

• Machinery Suppliers:
  

  • Bharat Engineering Works: www.bharatengineering.com
  • Tissue Tech Machines: www.tissuetech.com

• Raw Material Suppliers:
  

  • Green Pulp Industries: www.greenpulp.com
  • RecycleX India: www.recyclex.com

8. Government Subsidies

• SME Support: The Indian government offers subsidies of 25-35% under the MSME scheme for machinery and infrastructure.
• Startup India Initiative: Provides tax exemptions and funding assistance.
• Sustainable Practices: Additional incentives for using recycled materials or adopting eco-friendly practices.

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Next Steps: To set up this industry, identify suitable suppliers, secure government subsidies, and develop a robust marketing strategy to maximize reach and profitability. Make sure to comply with local regulations and secure necessary certifications for production and distribution.

To apply for government subsidies for your tissue paper manufacturing business in India, consider the following schemes and their application processes:

1. Credit Linked Capital Subsidy Scheme (CLCSS):

This scheme offers subsidies to Micro and Small Enterprises (MSEs) for technology upgradation.

• Application Process:
  

  • Through Primary Lending Institutions (PLIs): MSEs must apply online via the PLI from which they have availed a term loan. DC MSME
  • Online Application Portal: Access the application form here: MSME

2. Startup India Initiatives:

The Department for Promotion of Industry and Internal Trade (DPIIT) offers recognition to startups, providing access to tax benefits and other incentives.

• Application Process:
  

  • DPIIT Recognition: Eligible startups can apply for recognition to avail various benefits. Startup India
  • Startup India Portal: Begin your application here: Startup India

3. Startup India Seed Fund Scheme (SISFS):

This scheme provides financial assistance for proof of concept, prototype development, product trials, market entry, and commercialization.

• Application Process:
  

  • For Startups: Eligible startups can apply through the Startup India portal. Seed Fund
  • Additional Information: Details are available on myScheme: MyScheme

4. Stand-Up India Scheme:

This scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

• Application Process:
  

  • Online Portal: Apply here: Jan Samarth

General Steps to Apply:

1. Eligibility Check:
   

   • Review the specific criteria for each scheme to ensure your business qualifies.

2. Documentation Preparation:
   

   • Gather necessary documents such as business plans, financial statements, and proof of identity.

3. Online Application:
   

   • Complete the application forms on the respective portals linked above.

4. Follow-Up:
   

   • Monitor your application status through the portals and respond to any additional information requests promptly.

For personalized assistance, consider consulting with financial advisors or government-appointed facilitators who specialize in MSME and startup schemes.

India Announces Credit Guarantee Scheme for Small Industries in Manufacturing

Reuters

INDIA BUDGET India announces credit guarantee scheme for small industries in manufacturing