How to start paper manufacturing business?

paper manufacturing

Paper manufacturing is one of the popular small-scale businesses. In the write-up, I will provide comprehensive information opening and running the business. Being closely associated with the manufacturing industries, I can tell you about all the important details for establishing the business.

You might wonder how you should plant to start the business. In the following sections, you will learn all about starting pulp and paper factory for making paper products.  Moreover, you will get a complete step-by-step guidance here.

In the article, we will discuss the requirements of the project. We will talk about how to start the business. And, you will also get detailed instructions for building the necessary infrastructure for starting the production of paper.

Paper has got many applications including books and in almost every industry. However, the point worth noting is that making paper needs small investment. Ideally, you can start paper manufacturing industrial set up with investment as little as 1 lakh.

However, it is imperative that you find a suitable location for installing papermaking machinery. However, the location must be in accordance with paper size and volume. On the other hand, use of paper got a feather in its cap when plastic was banned.

As mentioned above, paper has got many applications including packaging and printing. It is so common in our day to day applications. Though there is great focus on digital mediums but the demand for paper has not come down. Instead, it has been steadily increasing.

 Paper industry is one of the leading industries in India employing hundred thousands of people throughout the country. India paper industry is quite developed generating around 2% of the total global production. However, the Indian industry has great scope for growth and can become a major international player.

The country has got abundant supply of raw materials and affordable labor costs. During the next 5 years, the paper industry in India will be growing at CAGR of 5.6% which is impressive. Many factors are responsible for the growth of the industry including better literacy rate, emphasis on sustainable packaging and surge in e-commerce.

Three basic factors for starting a paper manufacturing mill

There are many factors that are responsible for making a business profitable. Some of these factors constitute the building blocks. Three most important building blocks for the paper industry are Brand, Capital and Labour.

 Now we will talk about these three factors one by one:


This is the most important factor for any business. Name of your paper mill will be the brand for your business. It will act as the identity of your paper mill encapsulating all the values of the business. Your brand name will signify the quality of your products, competitiveness, customer service and appeal of the brand.

The brand will be the barometer of everything associated with your business. It will be the measure of what you deliver and how you incorporate the feedback of customers.


Labour is the most crucial element in building any company. It is imperative that you find out if adequate skilled labor is available in the area around the paper mill. For any business to succeed it is important that they are able to get labor at fair wages.

However, it is to be noted that you do not need just labor but skilled one. Quality of products will depend on the expertise of the workforce. There are many benefits of skilled workforce as they can adapt to change of technologies and easily use automotive techniques.

Capital paper manufacturing

Just the previous two factors, it is a very important to arrange adequate capital for setting paper manufacturing mill. There are many ways to arrange the finances or capital for starting your business. No doubt, you must have enough capital for purchasing, renting or leasing a good location.

However, ensuring enough capital for at least running operation of the mill for one year is mandatory. There are so many things to take care of including buying raw materials, arranging necessary infrastructure, marketing and transportation expenses.

It is obvious that one cannot take lightly to arrange for necessary capital. Even purchasing the high quality pulp and paper machines need fair dose of capital.

Production process and plan

Planning is a key element for succeeding at any business. Notably, we can manufacture paper pulp through two ways.  These are known as chemical and mechanical pulping. Both are excellent techniques for making pulp.

If you go for mechanical pulping, the process will make pulp with screening, beating, and deflaking. Thereafter, you will have to search for a reputed manufacturer of paper mill plant. Moreover, paper-making also requires use of oxygen.

If you are planning to open a big paper then it makes sense as well to install an oxygen gas plant for getting steady supply of the gas.  For smaller mills, there is option for using oxygen cylinders.  Adding oxygen in the paper-making process will increase the quality of process during the peroxide bleaching stage. One can add oxygen in the pulp in alkaline extraction.

 It is important that you purchase the best quality plant machinery and equipment. There is no denying the fact that high quality machine can manufacture the best quality products. Sustaining and staying on top in your business requires you to know all about your competitors in your area.  In any business, it is important that you differentiate your product from the competitors.

Ultimately, it is the quality of paper manufactured in you mill that will decide the trajectory of your brand. No denying, you must maintain good quality and deliver value to your customers. Promotion is also an essential part of the business.  Establish relations with local businesses dealing paper and start supplying to them.

Transportation is another crucial area of the business. Either you must have adequate number of vehicles of your own or else you must get them on hire or lease. Moving your product around is a must for ensuring timely delivery.  Distribution of the product depends on the efficiency of transportation.

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