The demand for paper cups and glasses is rising rapidly across hotels, restaurants, tea stalls, and juice shops.
People are shifting from plastic to paper products as they are eco-friendly and decompose easily.
This growing trend not only benefits businesses but also helps in protecting the environment.
Government Support for Paper Cup Business
To encourage eco-friendly alternatives and reduce plastic use, the government is promoting paper cup manufacturing through the Mudra loan scheme.
Under this scheme, you can get up to 75% loan for setting up your unit, while you need to invest only 25%. In addition, there is also a subsidy on the interest charged on the loan.
Investment Needed to Start
To begin this business, you will need at least 500 square feet of space. You’ll also need to spend on machinery, furniture, electricity, and installation.
The total setup cost can go up to ₹10.70 lakh, though a smaller unit can be started with less money.
Raw Materials and Production Capacity
For making paper cups, you’ll need paper reels (₹90/kg) and bottom reels (₹80/kg). Buying materials in bulk can help lower costs.
If you run the unit for 300 days a year, you can produce around 2.20 crore paper cups annually.
Machines Required
You can choose between two types of machines:
Small Machine: Makes cups of one size and costs around ₹1–2 lakh.
Big Machine: Can make cups of multiple sizes.
These machines are available in cities like Delhi, Hyderabad, Agra, and Ahmedabad or can be purchased online.
Earnings and Profit Potential
In bulk, each paper cup or glass can be sold for around ₹0.30 (30 paise). The price may go up with larger orders.
With regular production and good sales, this business has the potential to earn lakhs of rupees every month. Proper marketing and distribution can further boost profits.
