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Business Idea: Earn Upto Rs 6.50 Lakh In Paper Napkin Manufacturing Venture; Check Investment Required, Other Details

New Delhi: Starting our own business is one of the financial dreams that many of us wish could come true. However, there are many things that prevent us from realizing our dreams of being an entrepreneur one of which is lack of funds. Generally, people believe that launching a new business requires a large financial investment. But, today in our business idea, we are going to tell you about a business idea where you invest money once but make a huge profit all year long. 

Business Idea: Paper Napkin Manufacturing Business

We are talking about the paper napkin-making business. Because paper napkins are hygienic and provide health benefits, people use them in their daily lives as facial napkins, toilet paper, paper towels, and tissue paper. They are used in homes, kitchens, washrooms, cars, restaurants, hotels, guest rooms, etc. You can consider starting a paper napkin manufacturing business given the vast need for these in people’s lives. You can earn a good income by starting this business, which can be financed with a one-time investment. Furthermore, the government will also help you start your business. So, with paper napkin making you can see your dream business come to life.

Business Idea: Capital Required To Start Paper Napkin Business

The initial outlay for machinery needed to start a paper napkin-making business will require money for raw materials, transportation, consumables, stationery, maintenance, power, etc. According to the Khadi and Village Industries Commission (KVIC) feasibility report, initiating a paper napkin business, the Financial Assistance Required will be Rs 12.83 Lakh. KVIC has broken the Cost of Project into the following

Particulars Amount In Lakh Margin Finance
Land Owned/Rente Owned/Rente Owned/Rente
Building & Civil work 3.00 1.20 1.80
Plant & Machinery 7.08 1.77 5.31
Other Assets(equipments & fixtures) 1.25 0.36 0.89
Working Capital Margin 1.50 1.50
Grand Total 12.83 4.83 8.00

Business Idea: Sources Of Fund For Paper Napkin Business

Capital/Internal Accrual: Rs 4.83 Lakh

Term Loan: Rs 8.00 Lakh

Business Idea: How The Government Helps In Paper Napkin Business

Alternatively you can also think of the PM MUDRA loan for initiating your business. The government’s help in starting the paper napkin business is its unique selling point. Bank loans are available to you through the Pradhan Mantri Mudra Yojana (PMMY). You can get a loan under this scheme of up to Rs 10 lakh, which is a reasonably good amount to start the business on a large scale. Because PMMY offers unsecured loans, no collateral is needed to apply for the loan, and the money will be disbursed without any problems. 

Business Idea: Profits From Paper Napkin Making Business

Your profit depends on production capacity of paper napkins annually. The KVIC report has estimated that your NET PROFIT AFTER TAX will be Rs 3.66 lakh in the first year, Rs 4.19 lakh in the 2nd year, Rs 5.01 in the 3rd Year, Rs 5.77 lakh in the 4th year and Rs 6.50 lakh in the fifth year.

(Disclaimer: This article is for sole information purpose and for readers’ project identification. The earning calculator is also mostly based on assumptive figures to give an example of certain type as mentioned by KVIC previous estimates. The Zee News article does not intend to give any financial advice of any sorts. For initiating any venture, you must do your own due diligence and market research.)


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