Business Idea Paper Cup

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Business Idea

 Paper cup manufacturing

Things Required:

1. Paper cup machine FullyAtomatic


2. Paper Blank(papersheet used for making cup)
3. Pencile Heater
4. Bottom (covering of paper cup from down, need separate machine for
cutting papersheet into Bottom)
5. Only 2 person required
6. Need small space for both warehouse and machines setup(machines are
small in size so no need for large space)
7. Cartons for packaging(5000 pieces in 1 carton)
8. Dyes/mould (depending on size)
9. Land required 400-500sqft area is sufficient
10.No civil and legal authority permission needed
11.Food grade paper(recyclable)
12.GST number required for selling
13.Electricity(bill to 12000-15000 that also on double shift)

Process:
 Need only 1-2 operator
 Just add Blank to machine and rest work is done by machine only
because its fully automatic
 Even circle and bottom are attached through heater only that is installed
in machine only and no usage of any type of chemical aur glue
 Product is biodegradable as food grade paper is used to make it that can
be obtained from supplier like ITC
 Size of paper can be changed by changing the Dyes/Mould easily
 50 cups are there in a set
 Price of machine varies from 5lac to 7lac and government subsidy is also
there under start-up India
 3000 cups per hour can be manufactured
 Thickness varies from price ,quality and size i.e. from 180gsm to
230gsm
 Electric load of machine 3.5kilowatt
Costing
Food grade paper roll Rs 95/kg (90-230gsm)
Machine cost 5lac to 7lac
Electricity bill per month can be from Rs12000-15000

Cost of production
45ml- 21 paise (include all cost like labour, raw material, electricity,
packaging, transport etc)
100ml – 23 paise (include all cost like labour, raw material, electricity,
packaging, transport etc)

Profitability
If we have two shifts in a day of 8 hours the production will be around
24000 and production in a month including one day off in a weak then the
sum will be around 1200000 or 12lac and if we take a margin of 4% then
net profit will range from Rs55000 to Rs60000 minimum.

GAP
Gap in our case is the opportunity of using Biodegradable paper over
Plastic which is Non-biodegradable.
And consumer will definitely adopt such a product because there is no
chemical involved in food grade paper whereas plastic creates both
damage to environment and consumer health.

Value creation
Using new ways to do business with environment friendly product at less
cost is the value that my business creates both for consumer and
environment and even that is supported by government.

Value created against existing competitors


As government is focusing on doing business with ease and also not
damaging environment so making paper cups from biodegradable
Foodgrade paper is what makes me strong against my competitors.
Moreover easy to carry and less in weight with zero wastage and
government support gives me a great competitive advantage because
Food grade paper is the future for food products having a large
opportunity for growth.
Therefore my target customer will be the colleges and universities
because the large number of youth in our country so demand of food and
drinks will always are high. And to counter so much youth and end
consumer universities, colleges and educational institution are best. And
with help of government the selling of such a product is very easy
because of firstly ban on plastic and other thing is the low cost and with
high demand the food stalls or shops can easily switch to paper cups. As
both in winter demand of coffee and tea and demand in summers for
shakes, juices and other soft cold beverages.
So my target customers are basically youth but later this business can be
grown easily and can be scattered covering other food shops, food stalls
etc covering other local or nearby people.
For now I target Food stalls and food shops of two universities 1LPU
2GNDU
And I hope selling of 12Lac cups would be easy with a margin of 4% and
per month net earnings to be around Rs60000.

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