How to Start Paper Manufacturing Business in India?

Paper Manufacturing

Paper is one of the most widely used materials with a wide range of applications in our day-to-day life. It also finds applications across industries such as packaging, publishing, etc. In spite of people moving towards digital mediums, the demand for paper has been increasing over the past few years, which in turn is increasing investments in the paper and printing industry.       

Paper manufacturing is one of the major industries in India, providing employment opportunities to lakhs of people across the country. The Indian paper industry contributes to around 1-2% of the total paper production in the world. The paper industry in India has a huge potential to play a significant in the global paper industry, considering the abundant availability of raw materials and cost-effective human resources in the country.       

The Indian paper industry is expected to grow at a CAGR of 5.5% over the next five years. Growth of e-commerce, shift towards sustainable packaging, increase in literacy rate, etc. are some of the factors contributing to the growth of the paper manufacturing industry in India. The government’s measures to minimize the usage of plastic is helping the industry to grow.

The paper industry offers great opportunities for large industries as well as small and medium scale industries across the value chain. The industry has seen a large number of investments from small enterprises. In this article, let us have a look at how to start a paper manufacturing business while discussing the about raw materials used, manufacturing process, popular paper making business ideas, major players, etc.  

Raw Materials

Different kinds of raw materials such as softwood, hardwood, bamboo, etc. are used in the paper industry based on their availability. However, the Indian paper industry primarily uses bamboo which is widely available across the country.  

The raw materials for the paper industry in India comes from:

a) Forests that include bamboo, eucalyptus, etc.

b) Agriculture residues which include bagasse, rice, wheat, cotton stalks, etc.

c) Waste paper through recycling    

Paper Manufacturing Process

Paper is manufactured by processing the raw materials. Paper making process involves various steps such as wood preparation, pulp cooking, pulp washing, pulp screening, bleaching and paper making. Though the process might slightly vary depending on the type of paper, the overall process remains the same. The same applies to machines used for paper making as well. The machines required for paper making include pulp digester, disc filter, blow tank, vacuum drum, roll press, etc.    

Types of Papers

Paper manufacturing is a diverse industry with different kinds of papers that are used for various purposes. Some of the popular paper products manufacturing business ideas include tissue paper manufacturing, kraft paper manufacturing, stone paper manufacturing, thermal paper manufacturing, butter paper manufacturing, art paper manufacturing, synthetic paper manufacturing, seed paper manufacturing, notebook manufacturing, paper bag manufacturing, paper cup manufacturing, etc.

Major Players

Some of the major players in the Indian paper manufacturing industry include Andhra Paper, West Coast Paper Mills, Ballarpur Industries, JK Paper, Emami Paper Mills, Rainbow Papers, etc. Apart from these large players, there also exist several small industries in the paper manufacturing industry

Talk to Our Experts

As the investment required to start a paper manufacturing business starts from USD 70 lakhs, it is the most viable business for small entrepreneurs with limited financial resources. If you are planning to start paper manufacturing and looking for assistance in this regard, then kindly register with SolutionBuggy. We provide you access to trusted and verified consultants who can help you in setting up the paper manufacturing industry. We also help you in getting financial assistance from the government in the form of bank loans and reimbursements.

FAQs

As the demand for paper is increasing in India, paper manufacturing is a profitable business venture.

The investment required to start a paper manufacturing business varies depending on the type of paper you wish to manufacture. You can start a paper manufacturing business with INR 70 lakhs.  

Some of the popular paper products manufacturing business ideas include tissue paper manufacturing, kraft paper manufacturing, stone paper manufacturing, thermal paper manufacturing, butter paper manufacturing, art paper manufacturing, synthetic paper manufacturing, seed paper manufacturing, notebook manufacturing, paper bag manufacturing, paper cup manufacturing, etc.  

As the investment required to a start paper manufacturing business is less, it offers great scope for MSMEs.

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