Paper cup manufacturing project report
Proposed manufacturing unit name
1. Need of Project:
As India rapidly economic growing country in the world, so we have much more responsibility to control the pollution in air, water and land. In this view, we are planned to start a Paper cup manufacturing unit, which will be substitute of Plastic Cups. In this journey, we will create a mark and reach the required destination as early as possible.
2. Paper Cups:
A paper cup is a disposable cup made out of paper and often lined with plastic to prevent liquid from leaking out or soaking through the paper. It may be made of recycled paper and is widely used around the country.
3. Plastics - Environmental Issues:
Plastics are durable and degrade very slowly around 100 years; the molecular bonds that make plastic so durable make it equally resistant to natural processes of degradation. In some cases, burning plastic can release toxic fumes. Burning the plastic (PVC) may create dioxin. Also, the manufacturing of plastics often creates large quantities of chemical pollutants. The production of polystyrene contributed to the depletion of the ozone layer. So 'no' to plastics and 'yes' to paper & cloth.
4. Name of the Applicant:
Customer Individual Name,
To set up Paper Cup Manufacturing Unit
Proposed Company Name, City
5. About our proposed unit:
The proposed Paper cup Manufacturing unit is likely to be situated in the______ Village/Panchyat/Town, about _____ KMS from District Head Quarter/Municipal city/Metro city. We have a 500 Sq.feet rental shed for the unit with ample space for storing and stocking of raw materials and finished goods.
6. Location of the site with distance from:
a) Nearest Highway : ____ kms from NATIONAL HIGHWAY NH 7
b) Nearest Railhead: ____ kms from _________Railway Station.
c) Nearest Port----: ____ kms from _________Port.
d) Nearest Airport-: ____ kms from _________Air Port.
7. Its Uses:
This paper cup manufacturing project profile views the use of drinking Tea and Cool Drinks. The paper cup finds extensive use in Railways, Functions, Festivals, Hotels, Meetings, household appliances, and domestic applications. Our product ranges from 50 ml to 250 ml, this cup manufacturing unit will be set-up as a small-scale unit.
Now our people and government have the awareness to control the pollution and all are engaged to use the eco-friendly products. Each plastic cup can take 50-80 years to decompose and that are ruining the nature as well human lifetime.
As there is a good production of instead of plastic cups, weight less as well as easy to carry all vendors, mainly no environment pollution, increase the demand of paper cups, user customer are to be encouraged in the modern days.
8. Market Potential:
Because the paper cup manufacturing industry is in a boom consumer products in India, the requirement of drinking items like Tea, Coffee, Cool Drinks for Railways, Functions, Hotels, Festivals, Meetings, household appliances, domestic applications as well as for replacement of plastic cups, Glass items. There is a big tremendous requirement of day-to-day life.
9. Names of Vendors willing to buy:
Vendors are welcomed our proposal of starting this unit at City and they have forward some letters to your good selves. Copy of the letter has been enclosed.
10. Basis & Presumptions:
1. Two shifts of 16 hours a day, 24 days a month is presumed. Efficient machines and workers are also presumed.
2. Minimum 2 month period is considered for achieving full capacity utilization.
3. Labour rates are as per the prevailing rates.
4. An average interest rate of 14% is considered.
5. The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.
6. The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity.
7. Costs in respect of machinery and equipment, raw materials and the selling prices of the finished products etc. are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors.
11. Implementation Schedule:
Normally Three months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc.
12. Production details and process of Manufacture:
The process of manufacture consists of the following operations and procedures.
1 PE Coated Paper roll
2 Cut to Board size
3 Single/Multi Color Printing
4 Ups forming (die cutting)
5 Bottom reel
6 Paper cup wall forming
7 Cup Bottom Shaping
8 Paper Cup Knurling and Curling
9 Inspection and Finishing
10 Testing Random Sample
11 Packing and Delivery
The process of manufacturing poly coated paper purchased from market then cut in the required sizes, fabricates outer shell then put in the bottom mould pressed and pasting and keep it in the final paper cup mould. After making the cup checked random pieces for customer requirement and then packed by plastic cover in 100 paper cups in a set.
13. Land and Building:
Land 500 sq.ft. }
Building 300 sq.ft }
14. Paper cup Machinery & Equipments Cost:
No. Description No. Rs.
1 Full Automatic Paper Cup Machine Price 1 5,50,000/-
15. Staff and labour:(Per Month)
No. Description Nos. Salary (Rs.)
1. Skilled Worker 1 -- 7,000
2. Unskilled Workers 1 -- 4,000
Total 2 -- 11,000
16. Raw Materials: (Per Month) (Rs)
1 Special type of paper (Poly coated paper)
2 Ton Side Paper @ Rs.80,000/-
(With Printing & Punching Chgs) 1,60,000
2 Packing Material 20,000
(Per Month) (Rs)
1 Power 500 units @ Rs.4.30/- 2,150
2 Water 500
18. Other Expenses: (Per Month) (Rs)
1 Postage and Stationer 500
2 Telephone 1,500
3 Consumable Stores 1,000
4 Repair and Maintenance; 3,000
5 Transport Charges 5,000
6 Insurance 1,000
7 Rental 2,000
7 Misc. Expense 500
19. Working Capital: (One Cycle)
Operation Cycle Method
1. The average time Raw materials are in stock 10 Days
2. Average time to produce goods or service 5 Days
3. Average time finished goods in stock 5 Days
4. Credit Terms from suppliers 5 Days
5. Average credit terms offered to customers 15 Days
6. Estimated sales next month Rs.2,15,000.00
7. Profit Margin (optional)% 15 %
Working Capital requirement for one operation cycle: Rs.2,40,000.00
20. Machinery Utilization:
The whole operation of Tea cup and Cool Drink Cups making process is involved simultaneously. So the cup machine utilization has been taken 80% per day on two shifts.
21. Financial Report:
(Projected Balance Sheet, Profitability & Cash flow statement for 5 Years)