How To Start Paper Plate And Other Disposable Supplies Business

Are you an aspiring entrepreneur planning to start a paper disposable items business? Items such as paper plates, cups, glasses? Then you have come to the right place! The paper plates and disposables business has always been popular and profitable too. But now there is a new found respect and demand for this business. Initially paper plates and disposables like cups, glasses were once considered as cheaper alternatives to glass, metal or ceramic plates and crockery. However, post the covid-19 pandemic led lockdown there is an increased demand for disposable paper plates and related items. 

There are several reasons owing to which there is a spike in the requirement for paper plates and disposables. Firstly, owing to the lockdown and the safety concern of maintaining a social distance, most restaurants are providing delivery of food and with that they provide disposable paper plates and cutlery. Another probable reason is that covid-19 patients need to maintain a separate set of utensils when in isolation, whether at home or in hospital or care centres. At these places where there are a number of patients, maintaining separate utensils for each patient is close to impossible and that’s where disposables come in very handy. Thirdly, the lockdown forced a number of households to bid farewell to their maids and domestic help. The washing of utensils daily, several times in a day became quite a task and many opted to eat from paper plates to avoid the added task of washing all the utensils.

Apart from these covid-19 related reasons, the paper plate making business products were always sought by street food vendors and sweet marts as well as for functions such as birthday parties, weddings, baby showers etc, where there are a number of people and serving in paper plates is more convenient.

The paper plate making business is popular because paper plates have several advantages such as-

• They are lightweight and easy to carry
• They can be packed and transported easily
• They are convenient and easy to use
• They are durable
• They are economical and affordable
• They come in a variety of sizes and shapes too

In fact, the popularity of the paper plate making business can be judged by this statistics which says that the global sales of disposable plates and other products were close to US $12 billion, and are expected to reach up to US $20 billion within the year 2026. This revealed that the sales revenue of disposable products is increasing with a CAGR of 5.9%, thereby making it a popular as well as profitable business opportunity. 

Let us now learn how to start a paper plate business along with manufacturing of other disposables. 

How To Start Paper Plate Making Business 

When learning how to start the paper plate making business, one needs to know of the planning required, the raw materials and machines needed, the registrations necessary and the marketing technique. However entrepreneurs do not require any special qualification or education to start this business. Let’s see what is needed to start the paper plate business–

• Plan The Business

Every business requires planning before starting, including the paper plate making business. Business planning helps validate the business idea and checks it’s feasibility. It also lays out in detail the steps necessary to start the business and make it operational, including mentioning the goals and objectives of the business, the requirements to start the business, the investment needed, the timeline to achieve the goals and the steps to be taken to reach the goal. As an entrepreneur business planning is an essential first step and you can always get assistance in business planning to start the paper plate making business on the right note. 

• Consider Location And Space Required

The paper plate making business can be started in a small area too, even at home, if the space permits to place the paper plate making machine. A 200 to 500 square feet plot is also sufficient to start the business provided that the plot or space has ample and uninterrupted supply of water and electricity which are required to make the paper plates and other disposables. 

• Consider Raw Materials Required

The raw materials required for the paper plate making business are few and easily available. The main requirement to make paper plates and other disposables is good quality scrap paper & polyethylene sheets. Further for the packaging of the plates, polythene bags and hessian sacks are required. Usually the cut to size paper is readily available in two varieties, namely thick and thin. 

• Consider Equipment Required

The equipment required for the paper plate making business are vital for the business and include –

• Paper Cutting Machine
• Double Die Press Machine
• Packaging Machine
• Bag Sealing Machine
• Weight Scale

The paper cutting machine cuts the plates, cups or glasses in the required shape and dimensions, the double die press machine helps mount the die and press the paper under a certain temperature for the plates to retain the shape, the packaging machine helps stack and packs the plates and other items. The machines can either be manual or automatic, as per the budget constraints of the entrepreneur. Along with this essential equipment to make the paper disposables, basic furniture is also required such as table and chairs.This is the list of equipment required for paper plate making as well as for other disposables.

• Calculate Investment Required

The investment needed to start the paper plate making business depends on the type of machine to be purchased and the land for the unit, whether leased or self owned. The machines usually cost anywhere between ₹75,000 to ₹1,50,000. According to the costs and type of machine, the output of the machine also varies. A manual machine makes approximately 22 plates at one time while an automated machine manufactures 100 plates at a time. The discussion of which machine to invest in depends on the investable amount available. Apart from machines the paper plate making business also requires capital for purchasing the raw materials and other furniture and essentials, transporting the ready plates to the retailers and wholesalers, marketing the business, acquiring various registrations and for miscellaneous expenses. Roughly it can amount to ₹5 lakh to ₹10 lakh to start the business. Entrepreneurs can apply for a loan to arrange for capital to start the paper plate business. To find out if you are eligible to apply for a loan, you can take funding readiness analysis to ascertain whether you meet all the requirements needed for a loan application.

• Learn Of Registration Required

The paper plate making business along with other disposable items business requires certain registrations too, which are necessary to start and operate a business. These include-

• • Business Registration- this registration incorporates the business as any one of the business entities such as Company, Limited Liability Partnership, Sole Proprietorship or Partnership.
  • Udyam Registration- this registration gives an identity to and recognises small and medium businesses.
  • GST Registration- this registration is required in order to comply with the taxation structure of the country.

• Plan Marketing And Advertising

Marketing and advertising also forms an integral part of starting a paper plate making business. It involves planning a marketing strategy for the business where the plates can be supplied to wholesale and retail shop owners or can directly be supplied to caterers who provide catering for functions and to restaurant owners. 

The advertising and marketing can be done via online retailers and platforms too such as Amazon or Flipkart. Additionally the paper plates have designs or prints on them thereby creating a unique product which can be the USB for you as an entrepreneur. Offering different patterns or designs or even packages (with plates, spoons, cups, glasses together) will help create an identity for the business and make it a brand which is well recognised.

While considering all the above steps to start the paper plate making business, you must also consider the rate of return and the profitability of the business. This calculation will help judge the feasibility of the business and determine its growth in the future. Given the low investment, reasonable demand and good profit percentage, the business is bound to provide a good rate of return.

These are the requirements and steps necessary to start a paper plate making business along with other disposables. We covered all the necessary steps and details right from making a business plan to the area required to the equipment and materials required to the investment needed to the registration necessary to marketing the business and calculating its profitability. If you require further assistance at any of these steps in the paper plates business, deAsra Foundation is only a call or email away. Wishing you a successful start to the paper plate and similar disposables items business!