Tissue papers are an essential commodity for humans throughout the world they were used both domestically and commercially for various purposes. Today we are going to learn about how to start a tissue paper business its market opportunities, Profit Margin, and Manufacturing process along with a detailed Business plan.
An Overview of Tissue Paper Business
Toilet paper Business involves making end products such as tissue rolls, wipes, napkins, and paper towels from the initial raw material called Jumbo tissue rolls which were made out of virgin wood pulp or through recycled paper. These large-sized paper rolls were cut into different types of tissue paper using special machinery and were finally sold into the market.
The overall process of making the end products from the initial raw material and selling them in the market is the key concept of the Tissue paper making business.
- An Overview of Tissue Paper Business
- Different Types of Tissue Papers and Their Usages
- Market Scenario and Usage of Tissue Papers
- Business Opportunities
- 1. Tissue paper Manufacturing Business
- 2. Selling Bulk Tissue paper Raw Material to Tissue paper Making Companies
- 3. Making end products from Raw Tissue Paper Material and Selling them in Market
- 4. Starting a Tissue Paper Distribution Business
- Tissue Paper Making Business Plan
- Tissue Paper Profit Analyses
- Import and Export Opportunities in Tissue Paper Business
Different Types of Tissue Papers and Their Usages
Tissue paper come in different sizes and shapes and their composition also differs based on the raw material.
A tissue paper made from 100% virgin pulp is costlier than the one made from recycled paper. Here are some common types of tissue papers and their sizes and applications. Most of the below tissue papers come in 1ply, 2ply and 3 ply thickness. The more the thickness the more will be the absorbent nature of tissue
|Type of Tissue papers||Common Sizes (in centimeters)||Commonly Used in.|
|Toilet Paper||9*10, 10*10||Personal Hygiene|
|Paper Towels||21*21, 23*20, 27.5*27.5||Used for household applications especially like Cleaning surfaces of the kitchen area, wiping off dust on surfaces|
|Facial tissues||15*20, 16*18||Cleaning skin, removing make-up, and cleaning external scars|
Market Scenario and Usage of Tissue Papers
The usage of Tissue papers has drastically increased over the years in several parts of the world. It has become so much common that, it is being sold as a basic item in every grocery shop where it was not sold earlier.
Tourism, hospitality, and restaurants are one of the main areas where tissue papers have high demand.
Globalization, improved logistics, and accessibility to raw materials for tissue paper manufacturing can be seen as some factors contributed to the growth of tissue paper usage in different parts of the world When we look at the global market of tissue paper, it is expected to reach USD 102.57 billion by 2026. Factors such as growing personal hygiene and sanitization practices can be considered as potential points that contributed to the growth of this industry.
There are a wide variety of business opportunities in Toilet Paper Business. Starting from complete manufacturing of tissue paper material to selling end products at an enterprise level. Here are four major options in this business.
1. Tissue paper Manufacturing Business
This comes under large scale manufacturing business. Where the main objective is to produce raw material (Jumbo rolls) from the 100 % virgin wood pulp or through recycling process and produce the paper material which in turn is used in the manufacturing of tissue papers.
Generally, these paper material are made into a large sized tissue rolls which are supplied to tissue paper making companies. As it is a completely manufacturing process it requires high investment, manpower and resources.
2. Selling Bulk Tissue paper Raw Material to Tissue paper Making Companies
In this model, you would purchase bulk amount of jumbo tissue rolls directly from the manufacturing companies and sell them to tissue paper making companies. In this type of business, you will be acting as a distributor or a supplier between the paper manufacturing company and the tissue paper company, so you need to be very good at marketing and supply chain.
3. Making end products from Raw Tissue Paper Material and Selling them in Market
This is one of the most seen business models in this industry. Here, you will manufacture various kinds of tissue paper products such as toilet papers, paper towels and tissue wipes from the raw material using different machinery. The investment requires to start this type of business can range from 8 – 10 Lakhs and requires 2- 3 workers.
4. Starting a Tissue Paper Distribution Business
Also commonly known as Toilet Paper Distribution Business here you would set up an enterprise company and procure tissue paper products from several companies and sell them to offices, restaurants, hotels, shops and other such commercial areas for a profit margin. In this type of business, one must be good at marketing, customer service and making deals. Profitability depends upon number of clients you can make.
Tissue Paper Making Business Plan
The investment and operation costs for running a tissue paper business depend upon the type of product that you were producing. For example, if your company manufactures 2PLY thickness normal toilet paper which is commonly available in supermarkets then you need an investment of up to 15 Lakhs. This will cover machinery, raw materials, wages to workers, and rent for the building. Again, this is just an average value based upon production capacity it can be more or less.
If your aim is to produce different types of tissue papers then you need to purchase different machinery and raw materials which can cost significantly. But you have a chance to diversify your business meeting several customer needs.
Let’s find some basic things of Tissue Paper Business Plan which play an essential role in whole business
Thorough market research is key to a successful business. It provides crucial insights for your business and gives you an idea on how to operate the unit, how much investment is required and how well your products can be marketed, and what are the marketing channels etc., can be planned at this stage
Business License and Registrations
You can register your business as under LLC or Private Limited or Partnership. Keep in mind along with your profile, business registration also plays a significant role in obtaining loans or funding from organizations.
Along with that, you need GST registration, Trade license, Udyam Registration, and Import Export Code, if you were going to import or export any goods for your business then you required this code
Tissue Paper Making Machine
This is the main component of your business. The price of the machine ranges from 5 Lakh to 10 Lakh.
Most of the Paper Napkin Making Machines come with a fully automatic process where you can adjust the product capacity, speed of the process, and cutting sizes of the paper material. The price of the machines depends upon capacity, mode of operation (Automatic or Semi-automatic), and the prices also vary depending on the type of tissue Paper material it works on and other features like coating, embossing, and folding methods
Price: 5 – 10 Lakhs
One can run this business decently in an area of 750 – 1000 Sq.ft which is sufficient for the Machine, storing Jumbo tissue rolls, and Packing material. On average the rent could be 15,000 to 20,000 rupees. You must make sure the rent should be at a minimal level and the unit should be at a reachable distance from nearby shops and market areas. It is also good if you can access it via public transportation.
Details: 750 – 1000 Sq.Ft
Raw Material – Jumbo Tissue Rolls
This is the main ingredient of the tissue paper-making business. The raw material is nothing but the Large-sized jumbo tissue paper roll also called as Mother reel, which is available in different quantities like 10, 15, 25, 50, 70, and 100 Kgs up to 1 Ton and measures 3 to 5 feet in size
Basically, we have to load this paper roll onto the Tissue paper making machine and then start the production process. The cost of the tissue rolls depends on thickness, the composition of paper material, and quantity you were purchasing. On average Mother reels cost around 15,000 to 65,000 rupees and if you were importing them from other countries, then extra custom charges and taxes would apply.
|Type of Tissue Jumbo Roll||GSM||Used for Making||Average Price|
|Napkin Tissue||15-18 GSM||Paper Napkins, paper towels||60 – 70 /Kg|
|Plain soft tissue||50 – 80 GSM||facial tissues and daily usage||80 – 90 /Kg|
|100% Virgin wood Tissue paper rolls||16-20 GSM||Personal hygiene and cleaning make-up, Used in Spas||100 – 120/Kg|
Tissue paper business doesn’t require huge manpower or technical knowledge. One can run this business with just 2 -3 workers, where one can operate the machine and the other can work on packing the products.
Requirement: 2 – 3 Workers
One good thing about this business is, that it doesn’t require too much of resources to operate the unit, just needs to ensure a good power supply of 3 kW is supplied to the machine throughout its operation. It is also good to have a backup generator for the safe side to prevent any voltage fluctuations
Details: Power supply of 3Kw
Tissue Paper Manufacturing Process
Steps involved in Tissue Paper making Process
- In the first step, Large Tissue Jumbo roll will be placed onto the tissue paper making machine.
- Later, manually we should drag one end of the tissue paper roll carefully and feed it to the rollers till the cutting machine
- And then we should switch on the machine and adjust the machine rotation such that, the tissue paper roll slowly starts to revolve and push the paper through the rollers
- These rollers usually contain small perforations on them which helps to make small bulge-shaped holes onto the tissue paper which is called embossing. This process helps in increasing the thickness of the tissue paper, absorption and gives softness to the tissue napkin
- Once the tissue paper embossing is completed it will be moved to the printing unit, which applies a design on to the tissue paper. This can be an optional set-up where you can switch off so that, you can make plain tissue papers
- Next, the tissue paper will pass through a folding drum where the tissue paper will be passed through two highspeed rollers
- These rollers push the tissue paper towards the cutting machine which separates the large tissue paper into small portions depending upon your required size.
- Finally, these tissue papers can be packed into different packets sizes like 50, 70 or 100
Tissue Paper Profit Analyses
One can make a decent profit from the tissue paper business. Considering their wide market opportunities and economical manufacturing process. One can expect a decent Return on Investment from this Business. However, one must remember that the initial expenses such as machinery and the raw material could be costly. Let’s do a rough profit margin estimation of a tissue paper making company that produces Tissue Paper Napkins and runs for 300 working days
Dear users, this is just a rough estimation for informational purposes only. Please do not use it or take it for granted. We sincerely request you to approach a professional who can guide you in providing a proper estimation report basing upon your requirement
|Automatic Tissue Paper Making Machine||550,000|
|Cost of Jumbo rolls||65/Kg|
|Daily Production capacity||2,50,000 tissues|
|Tissue paper Specifications||15 GSM, 1.35 gm each|
|Approx. Jumbo rolls required per day production||2 No’s (140 Kgs or two 70 Kgs rolls)|
|Approx. Cost of each Jumbo Roll||9,500|
|Cost of Jumbo Roll Per Month (25 Days)||Rs 475,000|
|Packing Material per month||Rs 10,000|
|Power consumption 3.5 Kw||10,000|
|Wages to Workers (2)||17,000|
|Repairs and Maintenance||5000|
|Daily Production capacity||250,000|
|Yearly Capacity (300 days)||75,000,000 Tissues|
|Total Number of Packets produced per year (100 in one pack)||750,000|
|Average Wholesale Selling Price of 100 pieces Tissue Paper Packet||13 Rs|
|Value of total packets produced per year||9,750,000 Lakhs|
|Approx. Interest to be paid per yearly||2,50,000|
|Total Expenses Per Year||7,096,000|
|(Production value – yearly expenses)||9,750,000 – 7,096,000|
|Consider only 70 % of sales were done in first year||1,857,800|
|Depreciation on Machinery (10% of machine cost)||55,000|
|Marketing expenses per year||200,000|
Import and Export Opportunities in Tissue Paper Business
Tissue papers have demand worldwide there are lot of Import and export opportunities in this business. For example, if you were to manufacture premium tissue papers you can import Virgin tissue rolls from other countries and manufacture the tissue papers and sell them for a profit in your country. On other hand, you can also export tissue papers to other countries where you can sell them for a good profit margin and expand your business. The key concept in this business is expand your market opportunities and keep up your product quality.