Tissue Paper Napkin Making Business
टिशू पेपर नैपकिन बनाने का व्यवसाय · टिश्यू पेपर नॅपकिन उद्योग
Convert tissue jumbo rolls into folded, embossed paper napkins on an automatic machine and sell in packs of 100 to hotels, caterers and shops.
Investment
₹9.2 lakh
Profit (year 2)
₹40,000/month
Space
600 sq ft
Staff
3 + you
A napkin unit does not make paper. It buys large jumbo rolls of tissue and runs them through a machine that embosses, folds, cuts and counts napkins, which are then packed in poly bags of 50 or 100. One operator and two packers can run the line. Restaurants, hotels, caterers, sweet shops, offices and households use napkins daily, and buyers reorder every few weeks. The tissue is most of the cost and napkins are sold cheaply by the pack, so profit depends on volume, low wastage and steady buyers. The hard parts are thin margins, jumbo-roll price changes, many small converters with the same machine, and the bulky, low-value product, which makes transport beyond your district expensive.
Skills needed: Machine setting (supplier training), checking fold and count, and selling to hotels, caterers and disposable-goods wholesalers.
Profit calculator
Change the numbers to match your town1,000 pack/day: Paper napkins, 30 × 30 cm, pack of 100
Total investment
₹9.22 lakh
Your own money
₹92,250
Subsidy
—
Bank loan
₹8.3 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹4,00,000 |
| Raw material & packing | −₹3,02,500 |
| Electricity | −₹3,480 |
| Salaries | −₹34,650 |
| Rent | −₹10,500 |
| Other running costs | −₹8,400 |
| Operating profit | ₹40,470 |
| Loan instalment (EMI) | −₹19,358 |
| You keep each month | ₹21,112 |
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.
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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 napkin folding and embossing machineAbout 2–3 lakh napkins in 8 hours, 3 HP | ₹4,80,000₹3.8 lakh–₹6.75 lakh |
| Band sealer and counting table | ₹25,000 |
| Weighing scale | ₹9,000₹6,000–₹15,000 |
| Roll trolley, pallets and racks | ₹25,000 |
| Extra embossing roller for a second designadd-on | ₹40,000 |
| Machinery & equipment (without add-ons) | ₹5,39,000 |
| Udyam and other registrations | ₹4,000 |
| Three-phase connection and wiring | ₹30,000 |
| Machine freight, installation and training | ₹20,000 |
| Pack design and trial runs | ₹12,000 |
| Working capital 15 days of raw material, 15 days of credit to buyers, 1 month of expenses | ₹3,17,498 |
| Total project cost | ₹9,22,498 |
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 napkins, 30 × 30 cm, pack of 100 (per pack) | ₹ |
|---|---|
| Tissue jumbo roll (about 0.16 kg at ₹68/kg, incl. trim waste) | 10.90 |
| Poly bag and outer bag | 1.20 |
| Material cost | 12.10 |
| Selling price | 16.00 |
| Margin before running costs | 3.90 (24%) |
Supplier listings show napkin-grade jumbo rolls at ₹61–75 a kilo and plain 30 × 30 cm packs of 100 from about ₹16, with thicker or virgin-pulp packs at ₹38 and above. Paper weight per pack is worked out from 17 GSM single-ply tissue; weigh your own packs. Capacity follows machine listings of about 2.5 lakh napkins a shift.
Space, power and staff
600 sq ft
Rented shed · rent ≈ ₹10,000/month
Small-town rent. Tissue must be kept dry and clean; the product is bulky, so storage takes more room than the machine.
4 kW, three-phase
Bill ≈ ₹6,000/month at full capacity
3 staff + you
- 1 × Machine operator: ₹13,000
- 2 × Packing helpers: ₹10,000
Licences and registrations
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: When turnover crosses the registration limit; hotels and wholesalers want tax invoices · Cost: Free
Confirm the current GST rate for paper napkins with a CA; paper-product rates were revised in 2025.
Legal Metrology packer registration
if applicableWhen: Before selling packs with an MRP · Cost: Varies by state
Print the count, size, MRP, date and your name and address on each pack.
Shop and Establishment / factory registration
if applicableWhen: When you rent premises or hire staff · Cost: Varies by state
Pollution control consent
if applicableWhen: Before starting, if your state lists paper converting · Cost: Varies by state
Converting ready tissue with no pulping is usually a low-pollution activity. Check your State Pollution Control Board's list.
How it works
- Load the jumbo roll and set the napkin size, fold and embossing.
- Run the machine; check fold, cut and count on the first stacks.
- Collect counted stacks and pack in poly bags.
- Seal, bundle into outer bags and store off the floor.
- Deliver to hotels, caterers and wholesalers on a route.
Loan route
Mudra loan (Tarun)
Own money ₹92,250 · Loan ₹8.3 lakh · EMI ≈ ₹19,358
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.38 lakh (general, urban) to ₹3.23 lakh (special category, rural). EMI ≈ ₹16,132–₹12,905.
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
- Restaurants, hotels, dhabas and canteens
- Caterers and event organisers
- Sweet shops, bakeries and fast-food stalls
- Disposable-goods wholesalers
- Kirana shops and supermarkets
Ways to sell
- Monthly supply to hotels and caterers
- Bulk supply to disposable-goods wholesalers
- Custom-printed napkins for restaurants
- Shop sales under your own label
Season: Steady, with more demand in the wedding and festival season.
Competition: Many small converters and a few large tissue brands. Correct count, clean cutting and regular delivery keep hotel customers.
Risks and how to handle them
Margins disappear when jumbo-roll prices rise
Compare two or three paper suppliers, hold limited stock and revise rates with buyers promptly.
Price undercutting by other converters
Offer printed, coloured or thicker napkins and reliable supply instead of the cheapest plain pack.
Short counts or poor cutting bring complaints
Check the counter daily and keep blades sharp.
Tissue stock damaged by damp or fire
Store on pallets in a dry room, keep extinguishers and insure the stock.
Tips from the trade
- Hotels and caterers reorder monthly; ten such accounts give a steady base.
- Printed napkins with a restaurant's name earn more per pack than plain ones.
- Toilet rolls and kitchen towels need different machines; do not assume one machine makes all tissue products.
Questions people ask
Do I need to make the tissue paper myself?
No. Tissue is made in large paper mills. A napkin unit only converts ready jumbo rolls into folded napkins, which needs a much smaller investment.
What is the difference between cheap and costly napkins?
Mainly the paper: its weight (GSM), the number of plies and whether it is virgin pulp or recycled. Listings for the same 30 × 30 cm size range from about ₹16 to ₹89 a pack of 100.
How much investment is needed to start a tissue paper napkin making business?
About ₹9.22 lakh for a small unit: ₹5.39 lakh for machinery and equipment, ₹66,000 for set-up costs and ₹3.17 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a tissue paper napkin making business make per month?
At 40% of capacity, sales are about ₹4 lakh a month and operating profit about ₹40,470 before the loan instalment. After an EMI of about ₹19,358, the owner keeps about ₹21,112 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for tissue paper napkin making?
Automatic napkin folding and embossing machine (₹3.8 lakh–₹6.75 lakh).
Can I get a Mudra loan or PMEGP subsidy for tissue paper napkin making?
With a project cost of about ₹9.22 lakh, the bank loan of about ₹8.3 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 ₹3.23 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: Tech Pro Engineering automatic paper napkin making machines · IndiaMART: Royal Hi-Tech Machines (napkin machines) · IndiaMART: tissue paper raw material prices · IndiaMART: RP Enterprise plain tissue paper napkins · IndiaMART: paper napkin prices
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.