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Are you planning to start your own business but worried about high investment costs? Don’t worry! We have a low-investment, high-profit business idea for you—the tissue paper manufacturing business.
Tissue paper or paper napkins have become an essential daily-use product in homes, offices, restaurants, hotels, and hospitals. The demand for tissue paper is constantly increasing, making it a profitable business opportunity. The best part? The government is also offering financial assistance under the Mudra Loan Scheme to help new entrepreneurs set up their manufacturing units.
Let’s explore how you can start a tissue paper business, investment details, profit margins, and how to apply for a business loan.
Why Tissue Paper Business is a Great Opportunity?
Ever-growing demand – Used in hotels, offices, hospitals, and households.
Low investment – Can be started with ₹3.50 lakh only.
Government loan support – Get funding under Mudra Loan Scheme.
High profit margin – Earn up to ₹10-12 lakh per year.
Simple manufacturing process – Easy to set up with minimal technical knowledge.
How Much Investment is Needed?
To set up a tissue paper manufacturing unit, you need an initial investment of around ₹3.50 lakh. If you do not have this amount, you can apply for a loan under the Pradhan Mantri Mudra Yojana (PMMY).
Investment Breakdown:
- Total Investment Required – ₹3.50 lakh
- Bank Loan under Mudra Scheme –
₹3.10 lakh as a term loan
₹5.30 lakh as a working capital loan
This means that you can start your business with minimal capital, and the bank will finance the rest!
How Much Can You Earn from the Tissue Paper Business?
The tissue paper business has huge profit potential due to the high demand and low manufacturing cost.
- You can produce 1.50 lakh kg of paper napkins in a year.
- The selling price is around ₹65 per kg.
- This results in an annual turnover of ₹97.50 lakh.
- After deducting expenses, the net profit is ₹10-12 lakh per year.
- This means you can earn ₹1 lakh per month in profit!
Bonus Tip: You can increase your earnings by partnering with supermarkets, multinational companies, or wholesale distributors to sell tissue papers in bulk.
How to Apply for a Loan Under the Mudra Scheme?
The Pradhan Mantri Mudra Yojana (PMMY) is a government initiative that provides loans to small businesses without collateral.
Steps to Apply for Mudra Loan:
Visit any nationalized or private bank that offers Mudra loans.
Fill out the loan application form with the following details:
Name & Address
Business Plan & Address
Educational Qualification
Current Income Details
Loan Amount Required
No processing fee or guarantee fee is required.
Once approved, the loan can be repaid in easy installments.
Loan Types Under Mudra Scheme:
Shishu Loan – Up to ₹50,000 (for startups)
Kishore Loan – ₹50,000 to ₹5 lakh (for growing businesses)
Tarun Loan – ₹5 lakh to ₹10 lakh (for expansion)
For the tissue paper business, you can apply for a Kishore Loan of around ₹5-8 lakh.
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