How to start a paper manufacturing company in India?

Paper is one of the most widely used materials in our daily lives, whether it’s for reading a newspaper or wiping our hands with a napkin. It’s almost inevitable to not include paper in one form or the other in our daily routine. The Indian Paper Industry accounts for approximately 2% of the world's production of paper and paperboard. The estimated turnover of the industry is approximately Rs 35,000 crore (USD 7 billion) and its contribution to the exchequer is around Rs. 3000 crore (USD 0.6 billion). That’s a lot of paper! 

Starting a paper manufacturing company can be very profitable, as you would be expected to receive orders in bulks. A paper is more than a creation of wood pulp, it is a necessity for the society for fulfilling their basic needs. NCERT textbooks play a major role in educating a child and building his future and of course, they’re made up of paper. There are countless opportunities for a paper manufacturing company. As the saying goes, a word to the wise is enough.

According to the data from Statista, the following are the leading forestry and paper companies worldwide based on revenue in 2021 (in billion U.S. dollars).

Although India isn’t in the top 10, there’s still a lot of potential since we have 35 billion trees in the country. Although beautiful trees have to be sacrificed to make paper, it is still better for the environment as compared to plastic which cannot be recycled and has to end up in landfills which are ‘mountains of health problems’. 

Raw Materials in Paper-making

Not one but many different kinds of raw materials are used for producing paper, such as softwood, hardwood, bamboo, etc. They are used in the paper industry depending on their availability. In the Indian paper industry, the most used raw material for paper-making is bamboo since it is widely available across the country. The raw materials for the paper-industry in our country are typically extracted from the forests that are homes to bamboo, eucalyptus, etc. Agricultural residues which include bagasse, rice, wheat and cotton stalks are also used for forming paper. Recycling waste paper is one ethical way for utilizing raw material in paper-making.

Steps involved in Paper-making

The following steps are involved in paper-making:

• Raw material preparation: Wood fibers or recycled paper are collected and then sorted. Afterwards, they’re cleaned to remove any contaminants.
• Pulping: The raw materials are then broken down into pulp by mechanical or chemical methods.
• Cleaning and screening: In this step, the debris and impurities are removed from the pulp and then screening is done to ensure that there’s uniformity in the texture of the paper.
• Refining: The pulp is further refined in order to reach the desired consistency and enhance its properties.
• Incorporating additives: Additives such as sizing agents and dyes are used for improving the properties of the paper.
• Forming sheets: The pulp is distributed onto a wire mesh for forming sheets while simultaneously draining the extra water to consolidate it
• Pressing: Pressing is done in order to squeeze out any remaining water from the sheet with the help of rollers to compact it and improve the sheet’s density.
• Drying: With the help of heat and pressure, the moisture from the sheet is removed after which the sheet becomes dry. This process helps to make sure that the sheet doesn’t develop any molds or defects.
• Surface treatment: For this, coatings or treatments are applied to the surface of the paper to make it smoother, printable, etc.
• Cutting and packaging: The large sheet is finally cut into desired sizes before packaging and labeling the finished paper products for distribution.

Paper Business Types

The industry of paper manufacturing is diverse. Different types of papers are used for various purposes. Some ideas for paper manufacturing include tissue paper manufacturing, kraft paper manufacturing, thermal paper manufacturing, butter paper manufacturing, kitchen paper roll manufacturing, art paper manufacturing, synthetic paper manufacturing, paper bag manufacturing, notebook manufacturing, seed paper manufacturing, stone paper manufacturing, paper cup manufacturing, tissue paper manufacturing, toilet paper manufacturing, paper plate manufacturing and parchment paper manufacturing.

Registration, Certificates, and Licenses

Several registrations, certificates, and licenses are required to set up a paper manufacturing company. Some of these are mentioned below:

• Industrial License
• Factory License
• Environmental Clearance
• Pollution Control Clearance
• FSSAI License
• GST Registration
• ISO Certification
• VAT Registration

Additional documents might be required depending on the type of the paper manufacturing business.

In case of any doubts, connect with Registrationwala!

Conclusion

Starting a paper business is a great idea given the rising need of paper in our day-to-day lives. Although paper-making involves cutting beautiful trees, it is still not as bad for the environment as the plastic which cannot be recycled and has to end up in landfills which are responsible for a lot of health problems. Exposure to landfills has been associated with mortality from lung cancer and respiratory diseases and with hospitalizations for respiratory diseases, both in adults and in children. So paper is definitely a better, eco-friendly choice. There’s a lot of potential for paper businesses in the Indian as well as global market since the use of paper is inevitable in a lot of ways.

Starting a paper company involves a lot of steps, from buying land and machines to applying for all the required licenses and certifications. It’d all be easier if you have a companion by your side helping you from the beginning, from the incorporation of your company to applying for all the legal approvals. Registrationwala would love to be that companion! Connect with us now!

Frequently Asked Questions (FAQs)

Q1. Is paper manufacturing a profitable business in India?

A. Initiating a paper manufacturing company can be a very profitable idea, as you would be expected to receive orders in bulks. A paper is more than a creation of wood pulp, it is a necessity for the society for fulfilling their basic needs. NCERT textbooks play a major role in educating a child and building his future and of course, they’re made up of paper. There are countless opportunities for a paper manufacturing company.

Q2. How much does it cost to set up a paper manufacturing business?

The cost involved in starting a paper manufacturing business includes the cost of the land, machinery, license fees and the type of paper you want to manufacture. It can range from 70 lakhs to 1 crore. 

Q3. What are ideas for paper manufacturing business?

A. The industry of paper manufacturing is diverse. Different types of papers are used for various purposes. Some ideas for paper manufacturing include tissue paper manufacturing, kraft paper manufacturing, thermal paper manufacturing, butter paper manufacturing, kitchen paper roll manufacturing, art paper manufacturing, synthetic paper manufacturing, paper bag manufacturing, notebook manufacturing, seed paper manufacturing, stone paper manufacturing, paper cup manufacturing, tissue paper manufacturing, toilet paper manufacturing, paper plate manufacturing and parchment paper manufacturing. You can choose the one based on your interest and budget.

Q4. What are the approvals required for the paper manufacturing company?

A. There are several registrations and licenses required for a paper manufacturing company such as, the industrial license, factory license, environmental clearance, pollution control clearance, FSSAI license, GST registration, ISO certification, and VAT registration. Additional documents might be required depending on the type of the paper manufacturing business.

Q5. What are the raw materials used for making paper?

A. Raw materials for paper-making are: softwood, hardwood, bamboo, molasses, cotton stalks, bagasse and salai and sabai grass, and recycled paper. Raw materials are selected based on their availability in the country. In India, bamboo is widely used for paper-making.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.