Do you want to start a business in the pulp and paper industry? Find here a comprehensive guide to start a profitable paper mill business plan with plant machinery, setup, manufacturing process, and much more.
The paper industry produces different types of paper including value-added items. The list includes drawing sheets, paper rolls for notebooks, brown paper, paper bags, greeting cards, etc. Basically, the industry is plantation-based. Because you have to ensure the regular supply of eucalyptus and other trees as raw material at your factory.
Additionally, you can also use newsprint or used newspapers as raw materials. Generally, the paper industry uses cellulosic pulp which is prepared from softwood, bamboo, grasses, biogases, rags, and waste paper.
Is Paper Mill Business Profitable?
In this digital era, the demand for paper is still increasing. The global paper industry experienced stable growth during the last five years and is expected to continue its growth momentum. According to industry experts, it will reach approximately US $256 billion in 2017 with a CAGR of 5.9% over the next five years.
The paper industry is highly fragmented. A combination of factors such as demographic condition, economic condition, and environmental regulations have a significant impact on the industry dynamics.
Here are the 6 Steps to Start a Paper Mill Business
1. Create a Business Project Plan
Basically, paper milling is a medium and large-scale industry. Therefore, the business demands strategic planning and substantial capital investment. In starting the business, the first step is crafting a customized business plan. The business plan will help you in starting the business in a proper way. In addition, it will help you in securing funding from banks or other institutions.
You can craft the business plan with the help of specific software or you can take professional help from the experts. According to the investment capacity and specific production output, you have to craft the project report.
2. Business Compliance
Business registration is a must. According to the management pattern and investment ratio, choose the right form of business. Register the business according to your state law. Check the licensing requirements. Obtain the specific permissions from the Govt. authorities to start and operate the factory. In addition, talk to a tax consultant to identify the upcoming tax liabilities and compliances.
3. Plant & Machinery for Paper Mill Business
A medium-scale paper mill demands a 15000 Sq Ft built-up area for the operation. Additionally, you must have extra open sky space for other specific operations. Therefore, secure the place carefully. In addition, space must have a commercial electric connection and sufficient water supply. Basically, you have to arrange water for pulp making, steam making, and other domestic use. It is advisable to have space in an industrial zone.
Basically, a paper mill operation is a combination of several machine operations. Additionally, it depends on the production quantity output. Broadly, a paper mill consists of two different zones. These are the pulp making section and paper making section. Here we have compiled a list of basic machinery.
Waste paper pulping section:
- Hydro pulper
- Stock Pump
- High-Density Cleaner
- Turbo Separator
- Turbo Separator
- Johnson Screener
- Chest Agitator
- Stock Pump
- Single Disc Refiner
- Double Disc Refiner
- C.L. Box
- Fan Pump
Paper Making Section
- Wire Part
- Heavy Press
- MG Section
- MG Blower, Double Line
- Pope Reel
- Reeling Shell
- Machine Drive Arrangement
- Couch Pit Pump
- Backwater Pump
4. Raw Materials & Availability
Basically, different types of wood and waste papers are the major raw materials. Generally, you can contact the local waste paper dealers to have a regular supply of the waste paper at your factory. In addition, you can contact the sawmills for the regular supply of raw materials.
5. Paper Milling Process
Basically, paper manufacturing is a continuous process. Broadly, it includes pulping, stock preparation, and paper-making. It is advisable to obtain the manufacturing process technology from a Government research institute. However, paper making from waste paper is an easier option for new entrepreneurs.
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6. Business Operation & Staffing
This is a large industry. Therefore, it demands strategic planning with the proper day-to-day operation. Proper accounting, logistic management, and marketing are the major aspects you need to concentrate on apart from manufacturing aspects.
Basically, you have to hire two different types of manpower. One is the production staff and another is the operational staff. The operational segment includes accounting, administration, distribution, and marketing.
Basically, the paper milling business demands strong dedication to other entrepreneurship abilities. And definitely, the business is not everyone’s cup of tea. However, the business is highly profitable and ensures great social recognition.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.