How to Start Paper Napkin Business
Paper napkin is a piece of tissue paper used for cleaning the hand or face which are absorbent, hygienic and small. Paper napkins are used widely in restaurants, parties, beauty parlors, homes, and offices. With the culture of fast food rising and impacting our dining habits, the demand for paper napkins has steadily risen. In this article, we look at the process of starting a paper napkin manufacturing business.
Manufacturing Process
To manufacture paper napkin, tissue paper rolls are fed to the flexographic printing machine with modification for cutting the printed tissue paper rolls into sizes that are pre-determined.
Machinery & Equipment
The machinery and equipment cost for setting up a paper napkin manufacturing unit is minimal and costs just around Rs.5 lakhs.
A two-color flexographic machine with the attachment of paper napkin, edge sealing and cutting machine would be required for a total investment of about Rs.5 lakhs.
Working Capital
A small paper napkin manufacturing unit with an annual sales turnover of about Rs.1 crore would require a working capital of Rs.10 lakhs towards the raw material, salaries, other expenditures and receivables.
Financial Performance
A typical paper napkin manufacturing unit with an investment of about 10 lakhs can generate about Rs.1 crore in annual sales turnover and a profit of about 5-8 lakhs after all expenditures. Typical profit on sales is 5% with the break-even point at 45% operating capacity.
Employment
Paper napkin units can generate direct employment for about 5 persons to 6 persons. Three persons would be required for administrative and marketing functions, whereas another three skilled or unskilled labor would be required to manufacture the paper napkins
source: https://www.quora.com/How-do-I-start-a-paper-napkin-business