How To Start a Profitable Paper Mill Business

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.

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, paper industry uses cellulosic pulp which is prepared from softwood, bamboo, grasses, biogases, rags and waste paper.

Paper Mill Market Potential

In this digital era, the demand for the 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 the 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.

Paper Mill Business Plan Sample Checklist

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 customised 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.

Business Compliance

Business registration is the 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.

Plant & Machinery

A medium scale paper mill demands 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 two different zones. These are 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
  • Thickener
  • Chest Agitator
  • Stock Pump
  • Single Disc Refiner
  • Double Disc Refiner
  • C.L. Box
  • Fan Pump
  • Centricleaner

Paper Making Section

  • Head Box
  • Wire Part
  • Heavy Press
  • MG Section
  • Framing
  • MG Blower, Double Line
  • Pope Reel
  • Reeling Shell
  • Machine Drive Arrangement
  • Couch Pit Pump
  • Backwater Pump
  • Rewinder

Raw Materials & Availability

Basically, different types of woods and waste papers are the major raw materials. Generally, you can contact the local waste paper dealers to have the regular supply of the waste paper at your factory. In addition, you can contact the saw mills for the regular supply of raw materials.

Paper Manufacturing 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 the waste paper is an easier option for the new entrepreneurs.

Also Read: Top 30 Most Profitable FMCG Business Ideas with Low Investment

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 apart manufacturing.

Basically, you have to hire two different types of manpower. One is production staffs and another is operational staffs. The operational segment includes accounting, administration, distribution and marketing.

Basically, paper milling business demands strong dedication with other entrepreneurship abilities. And definitely, the business is not everyone’s cup of tea. However, the business is highly profitable and ensures great social recognitions.