Paper Cup Making Business
पेपर कप बनाने का व्यवसाय · पेपर कप उद्योग
Form tea and coffee cups from printed PE-coated paper blanks on an automatic machine and sell by the thousand to tea stalls and wholesalers.
Investment
₹8.6 lakh
Profit (year 2)
₹24,000/month
Space
500 sq ft
Staff
2 + you
A paper cup unit loads printed, PE-coated paper blanks and a bottom reel into an automatic machine that curls, seals and forms cups, which are then counted and packed in sleeves. One operator and a helper can run a machine. Tea stalls, canteens, offices, caterers and juice sellers use paper cups in large numbers, and demand grew as thin plastic cups were restricted. The paper is most of the cost, and cups are sold by the thousand at a few paise of margin each, so the machine must run steadily at good speed with little wastage. The hard parts are coated-paper price changes, many units with the same machine competing on price, rejection from leaking cups, and rules on plastic-coated disposables that differ by state.
Skills needed: Machine operation and setting (supplier training, then practice), checking seal quality, and selling to wholesalers and bulk users.
Profit calculator
Change the numbers to match your town11 1,000 cups/day: Paper tea cups, 150 ml (per 1,000)
Total investment
₹8.61 lakh
Your own money
₹86,131
Subsidy
—
Bank loan
₹7.75 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹1,68,750 |
| Raw material & packing | −₹98,437 |
| Electricity | −₹5,535 |
| Salaries | −₹24,150 |
| Rent | −₹8,400 |
| Other running costs | −₹7,875 |
| Operating profit | ₹24,353 |
| Loan instalment (EMI) | −₹18,074 |
| You keep each month | ₹6,278 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
- Cash goes negative in some year: lower drawings, extend the tenure, raise own money, or take working capital as a separate cash-credit limit.
- Year 1 shows a loss at the assumed utilisation. Banks look closely at year-1 viability.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Automatic paper cup making machineOne size of cup per mould set; three-phase | ₹5,60,000₹3.2 lakh–₹7 lakh |
| Air compressor | ₹45,000 |
| Extra mould set for a second cup sizeadd-on | ₹60,000 |
| Weighing scale and packing tools | ₹9,000₹6,000–₹15,000 |
| Pallets, racks and tables | ₹20,000 |
| Machinery & equipment (without add-ons) | ₹6,34,000 |
| Udyam, pollution board and other registrations | ₹10,000 |
| Three-phase connection and wiring | ₹35,000 |
| Machine freight, installation and training | ₹25,000 |
| Trial runs (paper wasted in setting) | ₹10,000 |
| Working capital 15 days of raw material, 15 days of credit to buyers, 1 month of expenses | ₹1,47,311 |
| Total project cost | ₹8,61,311 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Paper tea cups, 150 ml (per 1,000) (per 1,000 cups) | ₹ |
|---|---|
| Printed PE-coated cup blanks and bottom reel (about 3.1 kg at ₹108/kg, incl. waste) | 335.00 |
| Packing sleeves and cartons | 15.00 |
| Material cost | 350.00 |
| Selling price | 600.00 |
| Margin before running costs | 250.00 (42%) |
Supplier listings show 150 ml cups at ₹0.65–1.00 each and ready blanks at ₹108–110 a kilo; ₹600 per 1,000 assumes a bulk rate below those listings. The weight of paper per cup is an estimate; weigh 100 of your own cups. Capacity assumes about 55 cups a minute.
Space, power and staff
500 sq ft
Rented shed · rent ≈ ₹8,000/month
Small-town rent. Paper and finished cups need a dry, dust-free store.
6 kW, three-phase
Bill ≈ ₹9,000/month at full capacity
2 staff + you
- 1 × Machine operator: ₹13,000
- 1 × Packing helper: ₹10,000
Licences and registrations
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
Pollution control consent and plastic-waste rules
if applicableWhen: Before starting · Cost: Varies by state
Paper cups have a thin plastic coating. Some states have restricted or banned plastic-coated paper cups at times, and producers may have registration duties under plastic-waste rules. Check your State Pollution Control Board before buying a machine.
GST registration
if applicableWhen: When turnover crosses the registration limit, or wholesalers want tax invoices · Cost: Free
Confirm the current GST rate for paper cups with a CA; paper-product rates were revised in 2025.
Food-contact packaging standards
recommendedWhen: When choosing paper and inks · Cost: None
Use food-grade coated paper and inks that meet FSSAI's packaging regulations; large buyers ask for a supplier declaration.
Shop and Establishment / factory registration
if applicableWhen: When you rent premises or hire staff · Cost: Varies by state
How it works
- Buy printed, die-cut blanks and bottom reel in the right GSM.
- Load the machine; set temperature and timing for a leak-proof seal.
- Run, and test cups from each batch with hot water.
- Count into sleeves of 50 or 100 and pack in cartons.
- Store dry and dispatch.
Loan route
Mudra loan (Tarun)
Own money ₹86,131 · Loan ₹7.75 lakh · EMI ≈ ₹18,074
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.29 lakh (general, urban) to ₹3.01 lakh (special category, rural). EMI ≈ ₹15,062–₹12,049.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Tea and coffee stalls
- Disposable-goods wholesalers
- Canteens, offices and hospitals
- Caterers and event organisers
- Juice, ice-cream and snack sellers
Ways to sell
- Bulk supply to wholesalers
- Direct supply to tea stalls and canteens on a route
- Custom-printed cups for cafes and brands
Season: Steady; tea cups sell slightly more in winter and the monsoon, and cold-drink sizes in summer.
Competition: Many small units and large automatic plants. Leak-free cups, correct counts and steady supply keep buyers.
Risks and how to handle them
A state restriction on plastic-coated paper cups
Check current rules first and ask suppliers about water-based or compostable coatings.
Coated-paper prices rise
Compare suppliers, hold two to three weeks of stock and quote prices for short periods.
Leaking cups are returned
Set sealing temperature carefully, test every batch and keep paper dry.
Machine runs below capacity for lack of orders
Line up wholesalers and a tea-stall route before buying, and ignore sellers' buy-back promises.
Tips from the trade
- See the same machine model running at a customer's unit and count its real cups per minute.
- Custom-printed cups for cafes earn more per thousand than plain tea cups.
- Start with the size most sold locally; each extra size needs its own mould set.
Questions people ask
Can one machine make all cup sizes?
No. Each size needs its own mould set, which costs extra and takes time to change. Most small units begin with one popular tea-cup size.
Do I need to print and cut the paper myself?
No. Small units usually buy blanks already printed and die-cut, plus bottom reel, from paper converters. Printing and die-cutting in-house needs much more investment.
How much investment is needed to start a paper cup making business?
About ₹8.61 lakh for a small unit: ₹6.34 lakh for machinery and equipment, ₹80,000 for set-up costs and ₹1.47 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a paper cup making business make per month?
At 45% of capacity, sales are about ₹1.69 lakh a month and operating profit about ₹24,353 before the loan instalment. After an EMI of about ₹18,074, the owner keeps about ₹6,278 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for paper cup making?
Automatic paper cup making machine (₹3.2 lakh–₹7 lakh); Air compressor (about ₹45,000).
Can I get a Mudra loan or PMEGP subsidy for paper cup making?
With a project cost of about ₹8.61 lakh, the bank loan of about ₹7.75 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹3.01 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
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Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Sources: IndiaMART: Balwan Engineering (paper cup machines) · IndiaMART: Small Business Solution paper cup making machines · IndiaMART: paper cup blank prices · IndiaMART: disposable paper tea cup prices · IndiaMART: disposable paper cup raw material prices
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.