Feasibility study for mini-production of toilet paper. Brief business plan.
The prospects for starting a business in the production of toilet paper are obvious. Russian market This product, like other hygiene products, shows an annual growth of 7 - 9%. At the same time, in in monetary terms the market is growing faster (20 - 30%) than in natural terms. More and more people are switching to consuming more expensive two- and three-ply toilet paper rather than cheap single-ply.
Total - 2,780,000 rubles.
Total - RUB 2,532,060.
One ton of tissue paper yields approximately 11,100 rolls of toilet paper. Accordingly, 333,000 rolls can be produced from 30 tons. According to the above calculations, the cost of manufacturing one roll will be: 2,532,060 / 333,000 = 7.60 rubles. The optimal selling price for one roll to retail chains is 9.80 rubles. (28% markup). Hence the profit per roll is 2.2 rubles. Sales of the entire produced batch (333,000 pieces) will allow you to earn 732,600 rubles. per month. In this situation, investments in business pay off in 3 - 4 months of operation of the enterprise.
There are quite a lot of manufacturers of toilet paper production lines in Russia. It is recommended to choose manufacturers located in your region and who can carry out commissioning work. The toilet paper production line consists of the following machines:
Semi-automatic lines are offered to the attention of entrepreneurs who produce paper, at a price of 800,000 rubles and above. And the lines are automatic, at a price of 1,200,000 rubles and above.
For an enterprise that will engage in production, wholesale trade, and cooperate with retail chains, it is recommended to open a limited liability company. Before registering an enterprise, you need to find a premises in which production will take place and enter into a lease agreement. It is this production premises that will be indicated in the documents as legal address of this business. Prepared documents must be submitted to government authorities or multifunctional centers public services(MFC). If you plan to engage in production and wholesale trade, it is recommended to open a bank account.
OKVED 21.22 Production of paper products for household, sanitary and hygienic purposes.
If the enterprise carries out production and wholesale, then you can only apply the general or simplified taxation system (STS). Under the simplified taxation system, organizations are exempt from paying property tax, profit tax, and VAT. The simplified tax system is limited by the income limits of enterprises; in 2017, the income limit was increased to 150 million rubles per year.
The production of toilet paper in Russia is registered by GOST R52354-2005. For this type of activity, it is necessary to obtain permission from the sanitary and epidemiological supervision to begin business activities. As well as permission from the fire inspectorate. These two government agency will monitor the work of the enterprise. The premises in which production is located and people will work must comply sanitary standards and fire safety standards.
Waste paper is cleaned of debris, crushed in a crusher, adding water. Then the raw material is filtered through a sieve. 2. Washing of raw materials. The mixture is sent to the tank and washed well with water. The whiteness of the raw material will depend on how the mass is washed. 3. Grinding of raw materials. The raw material is crushed using water, then it is sent to the pressure tank.
The mixture is sent to a tank, where it is checked whether the proportions of raw materials and water are maintained. When the standards are met, it is poured onto the mesh table of the machine.
The excess liquid is compressed with a nylon mesh, then the mixture is transferred to a dryer, where at a temperature of 110 degrees, the paper dries. Strips of paper are wound onto reels. 6.Unwinding and embossing. Then the reel is placed on an unwinding machine, embossing and rewinding takes place.
The log is wrapped with a label, then it is cut into rolls of the required size. Packed and sent to retail outlets.
Toilet paper falls into the category of essential commodity products. This fact explains the high demand for these products among various segments of the population. Modern production technology allows us to produce various types of these goods. It should also be noted that this production technology is based on the same devices that are used in the production of disposable napkins and towels. This means that the launch of a workshop for the production of toilet paper will make it possible to produce a whole range of different products. In this article we propose to consider the production of toilet paper as profitable business and become familiar with all the nuances associated with the implementation of such a project.
The production of toilet paper and paper towels is very profitable business direction
Every entrepreneur drawing up a business plan must conduct economic research to determine the level of profitability of the business. The toilet paper business has a number of features. According to experts, this area has the highest level of competition. Every year, several dozen different companies appear on the domestic market offering the products in question. In order to be able to recoup all of his costs, an entrepreneur should take into account consumer needs. Single-layer paper has long lost its popularity. Today, buyers choose products with several layers impregnated with various flavors.
It should be noted that the high level of competition in this area is not an obstacle for new companies. According to experts, finding your audience is quite simple. To do this, the entrepreneur needs to offer consumers high-quality products that meet all modern requirements. . The main advantage of this business is the ability to sell goods in large quantities. As practice shows, even small retail outlets purchase these products in increased volumes. This factor contributes quick payback invested capital.
Competently organized business will allow you to receive high profits on a regular basis.
When drawing up a business plan, you should take into account all the features of the chosen direction of business activity. In this example, it is very important to identify those products that are more in demand by the population. This step will allow not only to obtain information about the size of production volumes, but also to determine the approximate level of profitability of the enterprise.
Business success largely depends on proper planning and organization of the technological cycle All types of toilet paper presented on the shelves of retail outlets can be divided into two conditional categories: a roll with a sleeve, and paper without a sleeve. It is important to note that these products are manufactured using the same equipment. The only difference between these categories is the cost of the products. Products that do not have a bushing are more profitable for both the end user and the manufacturing company. However, people with high level income, they prefer to purchase products belonging to the first category.
It should also be noted that there are two main methods of producing the goods in question. The level of initial investment and the rate of return on investment of the project depend on the choice of a specific technology.
According to experts, using the first method is more appropriate, despite the need to invest a larger amount for the purchase production technology. It should also be said that the cost of equipment with a simplified cycle is quite high, which leads to an unjustified increase in the cost of the goods themselves.
Having drawn up a business plan containing information about the intricacies and nuances of the chosen direction of business activity, you can proceed to the implementation of the project. At the initial stage of this process, you should decide on the form of ownership of the business.
An entrepreneur who wants to engage in this type of business should obtain the status of a legal entity. The fact is that most enterprises involved in the supply of raw materials cooperate exclusively with organizations. In order to register, you must have a rental agreement production workshop area of more than one hundred square meters. You can register a business either independently or through special agencies that provide similar services. The cost of registering a business is about ten thousand rubles. It is important to note that this type of business is subject to mandatory licensing. The cost of the license is one hundred and forty thousand rubles.
In order to begin production, it is necessary to obtain permission from the SES. This permission issued only to those entrepreneurs who have already registered for tax purposes and have a real estate lease agreement in hand.
Before deciding to create a business for the production of toilet paper, it is necessary to conduct a thorough and high-quality market analysis, as well as prepare a business plan The type of production in question requires a large premises. To organize a workshop for the production of toilet paper with a full production cycle, you will need an area equal to one hundred and fifty square meters. The ceiling height must be at least four meters. In order to find such real estate, you will have to spend a lot of time. As practice shows, renting such a workshop can take up a significant part of the budget.
The rental property should be divided into three main zones. The first zone will contain the workshop itself, where machines and other equipment for the production of toilet paper will be installed. The second zone is intended for storing raw materials and their further sorting. The third zone should be reserved for organizing a warehouse finished goods. In addition, it is necessary to equip a rest room and a locker room for workers, as well as install showers. In addition to the production workshop itself, you will need to organize an office for the company administration.
In order for the enterprise to operate at full capacity, it is best to organize work in several shifts. In addition to the auxiliary workers who will maintain the line, you will need to hire a process engineer and a storekeeper. In addition to the above workers, a driver with his own small van or truck may be required.
Adding such an employee to the staff will reduce the costs associated with finding contractors who will deliver finished products to customers. You will also need an accountant who will take over financial activities companies.
It should be noted that if an entire plant is opened, significantly more employees will be required. Some entrepreneurs combine several job positions in order to reduce costs. This step can lead to overload of workers, which will negatively affect overall productivity.
To make toilet paper and other similar products, you will need to purchase production equipment. Today, ready-made lines are available for sale that can significantly reduce costs. When choosing production equipment, experts recommend paying attention to such parameters as the complexity of commissioning work and the warranty period. As practice shows, the quality of devices depends on the price category of the equipment.
In order to get started, you will need to purchase a rewinder, a cutting machine and a sleeve unit. In addition, you will need packaging equipment finished products and a pasting table.
The main difficulty in this business is high competition and market saturation with products Toilet paper production - equipment cost:
Entrepreneurs who do not have such large capital are trying to reduce their expenses by purchasing used machines. Of course, this step will save money, but you should take into account the high probability of equipment failure. It is recommended to purchase a used machine for the production of toilet paper only if you are confident in the quality of the units offered. The best way out of this situation is to purchase those devices that are under factory warranty.
When choosing production equipment, it is very important to consider the quality and type of raw materials that will be used to produce the final product. . Today, toilet paper is made from waste paper or a special base.. The paper-cellulose base is produced in the form of rolls several meters wide. The weight of such rolls can reach five hundred kilograms. Purchasing a paper making machine allows you to produce this basis from recycled paper.
It is important to note that packaging, sleeves and labels must be ordered separately. When organizing a mini-workshop, the above-mentioned base is used, which is cut into separate rolls. The full production cycle involves independent processing of raw materials and production of finished products. According to experts, the second option is more profitable. It should be noted that regulatory authorities have established certain standards for processing raw materials. Today, it is allowed to use old printed publications, cardboard, books, as well as plain white paper. The choice of raw materials affects the quality of the finished product and affects its final cost.
For the successful implementation of this project, it will be necessary to conclude contracts with retail outlets. In the business in question, it is very important to find large buyers who will purchase wholesale quantities of goods. It is important to emphasize that in this case there is no need to conduct a large advertising campaign in order to attract the attention of the end buyer. To organize sales of existing products, you will need to hire managers who will independently call potential customers. In addition, you will need to advertise in printed publications, intended for entrepreneurs.
The equipment used in the production of toilet paper varies in complexity and price accordingly. The business plan of each project must contain a financial model. This model is compiled based on both current and planned costs. Using a financial model, you can obtain information about the level of profitability of the chosen direction and the rate of return on invested capital.
Let's take a look at the costs associated with opening of this production. The total cost of registering a business will be about one hundred and fifty thousand rubles. The cost of renting the necessary premises is about seventy thousand rubles per month. More than one and a half million rubles will be needed to purchase a production line. In order to buy raw materials, packaging and labels you will need about six hundred and fifty thousand rubles. The size of the expense item for employee salaries and other production costs varies from one hundred fifty to two hundred thousand rubles monthly. Summarizing all of the above, we can conclude that to organize this business, you need to have about 3,000,000 rubles.
The profitability level of the business in question is about twelve percent. This means that the invested capital will pay off after several years of continuous operation.
The toilet paper business is a high-cost project. However, a competent approach to the implementation of a business plan can not only reduce the rate of return on investment, but also significantly increase profits. For this purpose it is necessary to increase the offered range and work with different categories consumers.
Only a person who has been involved in such production for several years and knows all its subtleties and nuances can quickly set up the production of toilet paper as a business from scratch. If you don’t have such experience, then you need to develop it and also attend several trainings for beginning businessmen. Preparation may take about a year, but all possible risks, and can quickly become profitable.
To begin with, it would be wise to abandon the idea that the source of entrepreneurial profit can be the artisanal production of toilet paper. The only, and even then dubious, point of obtaining possible benefits from such production is the production of paper for household needs. In this case, both the quality of the resulting product and its cost (if we take into account the cost of energy resources spent on producing paper from waste paper) raise doubts.
An entrepreneur needs to immediately make plans for a mini-factory for the production of toilet paper, competently launch this production format and work hard to achieve self-sufficiency and profitability of the entire project.
To start a company you will need:
It is necessary to solve all the listed problems in a comprehensive manner before opening the production of toilet paper, otherwise all produced batches of goods may be confiscated by regulatory authorities as those produced in violation of business rules.
Of course, such sanctions cannot affect the production of toilet paper at home for one’s own needs.
The entrepreneur undergoes all registration procedures at the Federal Tax Service at the location where the toilet paper manufacturing plant will operate.
Before contacting the tax service, an entrepreneur needs to resolve two important issues:
The choice of form depends on:
The optimal form option for small enterprise with the sole owner is an individual entrepreneur ( individual entrepreneurship). The toilet paper workshop is no exception.
If there are still two or more owners, then you need to consider the possibility of creating an LLC or a production cooperative.
Before drawing up the statutory documents, the founders must already know the legal address of the place where either the production itself or its administrative body (directorate) will be located. This data must be included in the enterprise’s charter and registration cards, information from which is transferred to state registers.
Due to the fact that almost all toilet paper production technology is based on the use of semi-automatic machines, you need to look for a room for the workshop that is spacious and located either on the ground floor or in the basement. Also, the room must have good ventilation and heating, since people will work at the machines, and the lack of heating in winter can cause frequent illnesses.
Basic requirements for the workshop:
Once the premises have been selected, it is necessary to establish business contacts with its owner and try to conclude a preliminary lease agreement.
Why preliminary? At the stage of choosing premises, the future entrepreneur does not yet have the right to conduct business activities, since he is not yet registered with the state as an enterprise, but he must draw up preliminary agreements, from which it will be obvious that entrepreneurial activity in the listed territories will be carried out only after state registration, quite appropriate.
Some entrepreneurs simply register a business at their home address. But this approach is not entirely safe and can cause conflicts with the tax service.
Opening the production of toilet paper, which includes a cycle of processing waste paper into sanitary paper, is unlikely to be possible for a novice entrepreneur. Perhaps this initial cycle can be included in the expansion prospects, since the equipment for the production of toilet paper from waste paper will cost no less than 30 thousand US dollars.
It’s better to start with simple procedures for winding, cutting and packaging toilet paper rolls. A set of semi-automatic equipment for making toilet paper from rolls of sanitary linen costs no more than 10 thousand US dollars, and this is quite an affordable expense for a novice businessman.
But in this case, the question arises of where to get the raw materials for the production of toilet paper. Often, toilet paper base suppliers are waste paper recycling companies. There are such enterprises in many regions, and they are constantly open to cooperation. To establish contacts, in many cases it is enough to simply ask a query to an online search engine.
If there is direct access to the base supplier, then the entrepreneur can also count on being able to profitably and quickly buy raw materials for the production of toilet paper.
Suppliers themselves generally rarely deliver raw materials to workshops for the manufacture of products from raw materials, so it is necessary to include in the cost calculation transport costs for delivery.
Sales of manufactured products will be able to establish professional manager, which is still better to have on staff of the enterprise. You can independently organize sales through submission advertisements to local media about the sale of wholesale quantities of toilet paper, as well as placing such advertisements on regional electronic trading platforms.
For establishment own business To produce toilet paper, you must first register the enterprise.
Toilet Paper Making Machine
This type of product can be manufactured and self employed, but in order to cooperate without problems with large trading network organizations, it is better to register the Company with Limited Liability- OOO. List necessary documents to start production:
The next step is to select equipment. If the budget is small, then the best option will be purchasing a mini-plant, since it has a number of advantages over large-scale lines:
Business idea for toilet paper production
Finished production lines are divided into technological process into two types:
In Russia you can find equipment not only imported, but also domestically produced, new and used.
For example, the automated complex ALBP-1 (NIKA, Russia) is designed for the production of toilet paper from waste paper. Specifications:
More budget option complex for the production of toilet paper, but without a line for recycling waste paper - model ZS-E-1380. Specifications:
Electric mini-factory for the production of toilet paper from recycled materials from Russian manufacturer"OBM", Omsk.
Specifications:
If we consider the option of a full production cycle with the stage of recycling waste paper, then such a complex will consist of the following components:
The technology for making toilet paper includes three stages:
For short-cycle equipment, the first stage can be omitted; finished raw materials can be purchased from large enterprises.
For mini-plants that include a waste paper processing line, the first stage is the preparation of raw materials:
How is toilet paper made?
Paper making machine. Paper machine The second stage is performed by the paper machine: Third stage:
To make toilet paper, you can use ready-made paper raw materials, or, if the production line is full cycle, then waste paper. Recyclable materials, according to GOST, can be of several types:
Coated paper and gloss cannot be used in production. The density of the feedstock should be no more than 130 g/m2.
Sources of waste paper:
The cost of finished raw materials is 18,000 rubles per ton, and the price of waste paper is 2.5 rubles. for 1 kg.
To draw up a financial plan, we take into account the use of equipment with a capacity of 1,000 kg (10,000 rolls) per day - electric mini-line PM-1 (Omsk Paper Mill).
Product cost:
Sales price 1 roll. – 3.00.
Profit from one roll of toilet paper – 3.00 – 1.85 = 1.15.
Daily profit – 1.15 * 10000 = 11,500.00.
Profit per month - 11,500.00 * 22 = 253,000.00.
Costs for purchasing equipment – 1,900,000.00
The payback period will be 8 months.
These are preliminary calculations; the costs of purchasing/renting premises, advertising costs, maintenance of management personnel and subject to full sales of products were not taken into account. But even such superficial data indicate a fairly high profitability of a mini-factory for the production of toilet paper.
Due to its high profitability, the production of toilet paper today attracts many entrepreneurs who would like to successfully start their first business with minimal initial investment. However, the success of such a business largely depends on proper planning and organization of the technological cycle.
Before deciding to create a toilet paper business, it is necessary to conduct a thorough and high-quality market analysis, as well as prepare a business plan. It must take into account the planned investments, running costs and a forecast was made for future income to ensure a return on investment.
The following main advantages of producing paper consumables at home can be identified:
The main difficulty in this business is high competition and market saturation with products. This factor must be taken into account when planning future prices and sales strategies.
Important competitive advantage factories that produce these products in wholesale quantities is their low price. Thus, the guideline for ensuring stable demand for manufactured products is maintaining high quality product combined with an attractive price in the middle or low price segments.
Planning a business project should answer the following questions:
Profitability of toilet paper production:
| Expense item | Approximate price | Quantity | Sum | Ready paper base | $407.00/1t. | 1t. | $407,00 | Label | $853.00/1t. | 0.025t. | $21,33 | Cardboard sleeve | $293.00/1t. | 0.06t. | $17,58 | Glue | $1/1l. | 2l. | $2,00 | Electricity | $0.17/kW | 64kW | $10,88 | Rent | $5/1sq.m/1month. | 80sq.m | $400,00 | Operator salary | $200 | 1 person | $200,00 | And that expense | $1058,79 | Number of rolls produced from 1 ton of raw materials | 10500pcs. | Retail price for 1 roll | $0.21/piece | Income from the sale of 1 ton of finished products | $2205,00 | Profit | $1146,21 |
With monthly production and sale of the finished product in a volume of 1 ton, the initial investment will pay off in less than 2 years.
So, with proper planning, as well as efficient production and established sales, mini-production becomes a truly profitable enterprise with minimal initial investment.
Depending on the type of raw materials used, toilet paper production has two types of production cycle:
The production of a full cycle of finished products from waste paper, although more profitable, requires large initial investments in the purchase of expensive equipment, as well as a larger staff of specially trained employees to perform complex and labor-intensive work.
The most preferable for home production is an incomplete production cycle.
The technological cycle itself is simple, so it does not require special qualifications for personnel. In addition, machines for this type of production are not complex or high in price, so the investment in their purchase will be minimal.
The process of producing products from paper base rolls can be divided into stages:
The equipment used in the production of toilet paper varies in complexity and price accordingly. However, to organize mini-production at home, the required minimum is the purchase of the following machines:
The most affordable equipment on the manufacturers market:
In order to ensure convenient cooperation with retail chains and supermarkets in the future, it is necessary to register the business in the form of a “Limited Liability Company”.
Before registering a business, you must select the premises where the workshop will be located. It is this premises that will be designated in the registration documents as the legal address of the business.
When choosing a suitable room, you should take into account the important requirements that it must meet:
The optimal solution would be to choose premises on the outskirts of the city or in an industrial area to reduce rental costs.
An effective solution was proposed by a Japanese company in the field of paper waste recycling. They created the White Goat's machine, which recycles office paper waste into toilet paper. This office equipment has low productivity: out of 900 A4 sheets, 1 roll is obtained, but not earlier than after 30 minutes. But the cost of the processing unit is quite high - $95,000. Although the savings here are obvious. After all, the cost of one roll is only $0.17, and its retail price of this quality is $0.58. Recycling costs are water and electricity. But the payback period is very sad. After all, there are only 8760 hours in a year. Even if this 600-kilogram machine works continuously, then in a year it will be possible to recoup less than $8,000. And in 10 years, such a processing machine may cost half as much. After all, this is most likely a prototype. It is much more profitable to take paper waste from office work to a waste paper collection point to purchase toilet consumables.
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