How To Start Disposable Plastic Cup Making Business

Do you want to start disposable plastic cup making business? Find here a business plan sample checklist for disposable plastic product making business.

Currently, the disposable plastic items are gaining popularity. The manufacturing process is simple. And you can initiate disposable plastic cup making business by thermoforming technique.

If you want to start a small scale business with little capital investment, then you can consider starting this business. Additionally, the business demands a small area of space for manufacturing operation. Also, you can sell the items on your local market.

Disposable Plastic Cup Market Opportunity

Basically, this type of the cups is popular as table and for packaging also. Some companies, such as coffee retailers and doughnut shops sell their products in disposable cups. Basically, disposable items are replacing the traditional items very fast.

The use of disposable items is increasing day by day because of several reasons. The list may include growing hygiene consciousness, low cost, easy usability and impressive appearance.

However, some of the major popular disposable items are disposable glasses, cups, plates, and spoons. These have become a part of the hectic lifestyle due to their convenience. Apart from the home use, they also come in handy during parties, picnics and other functions and get-togethers.

The major user of cups are the ice cream manufacturers. Actually, they use disposable plastic cups instead of paper ones. The main advantage of these plastic cups is that they are completely leak proof. In addition, plastic cups come in different sizes and they can hold bulk material easily in comparison to the traditional paper cups.

Disposable Plastic Cup Making Business Plan Checklist

In starting this business, conduct a market research prior. Identify the specific type of cups that have demand in the market. Additionally, identify the price of that cups that other manufacturers are offering. Find out other manufacturers of your are. Try to understand their operation and marketing strategies. Actually, these all will help you in crafting your business plan more perfectly.

Craft Business Plan

This is the most important aspect in starting the disposable plastic cup business. Actually, a business plan is a blueprint for starting and managing a business. Additionally, a business plan helps to procure finance from the banks or investors.

In the disposable plastic cup business plan mention your business goal or objective. Additionally, determine your mission and vision statement. Determine the form of organization and management pattern. Calculate the startup costs in detail. Generally, the startup cost includes machinery purchase, raw material purchase, preliminary expenses and other operational and marketing expenses. Craft a marketing plan also.

Registration & Licensing

Generally, this type of business doesn’t attract complicated licensing issues. However, you must check the Federal laws of your state. Additionally, check if it requires NOC from Pollution Control Board.

Register your business with the right form of organization. Generally, for a small-scale operation, it is better to form a proprietorship or partnership company. Also, you can consider an OPC or LLP company to get a corporate identity.

Additionally, register your business with MSME Udyog Aadhaar. In India, GST registration is mandatory for product-based companies. Also, you can register your company brand name with Trademark Registration. Finally, check the yearly tax and compliance liability.

Arrange Startup Capital

Though you can initiate the business with a small capital, the business demands investment in various operations. These are procuring the space, purchasing the machiner, raw materials and other operational expenses.

According to your business plan, you must arrange the startup capital. If you have that fund of your own its great, otherwise you can apply for the loan. You can also borrow funds from your friends and relative circle.

Setup the Unit

After arranging the fund, you have to establish the unit. If you have space in your home, you can start from there also. If you don’t have any space, consider hiring a space instead of purchase. Ensure that space has electricity connection and water resources.

Generally, you can start a small-scale disposable plastic cup making unit in a 1000 Sq Ft space. And you will need to determine specific spaces for raw material storage, manufacturing operation, finished goods storage and administrative jobs.

Equip your admin department carefully. From the very first day, you will need to generate the invoice, Challan, and money receipt. Additionally, you will need to have the control of stock. Hence, it is advisable to use accounting software for ultimate control and smooth running of the business.

Disposable Plastic Cup Making Machinery

With some simple machinery, you can start this business. The major equipment required by the unit for manufacturing plastic disposable cups are as follows:

• Automatic thermoforming machine
• Die Punch for cups
• Other accessories (Air compressor)
• Sheet extruder and scrap grinder
• Testing equipment

Procure Raw Materials

The main raw material required for manufacturing plastic disposable cups is High Impact Polystyrene (HPIS) sheet (15 MT per annum). Additionally, you will need to procure packaging consumables too.

Also Read: How to Start Pet Bottle Production Business

Manufacturing Process

First of all, drag the Polypropylene/Polystyrene sheet feeding reels of preset length from bobbin reel in the thermoforming plant. Here, the conveyor chains carry the sheet through the heater assembly to the forming table.

Then, punch the heated sheet to form the shape of the mold. Finally, stock the formed cups. And the punched waster sheet is wound on scrap sheet winder.

However, if you want to produce printed cups, print the sheets before forming into the cup. Taking 200ml. cup as a yardstick as it is mostly used for serving coffee/tea. Generally, the installed capacity of the machine with 5 cavities mold is approximately 52500 cups per shift. In terms of weight, a 200ml cup made of 0.7mm thick High Impact Polystyrene sheet is approximately 2.58 gms.

In this business, the raw material wastage is very high. Therefore, you will need to recycle the scrap. The scrap can be ground and extruded in sheet extruder.

Business Operation & Promotion

After the complete production, you will need to pack the cups and store. Basically, distribution and institution selling is the most proven ways of promoting this business. Generally, most of the food and beverages brands buy these cups. In that case, you will need to visit the companies to offer your products. Additionally, you must concentrate on the retail distribution for promoting the disposable plastic cup business widely.