04/26/2021 696 Business plans
Author: Emin
Toilet paper is an essential commodity. Due to the great demand for the product, the production of toilet paper is a promising and profitable business. In order to create a successful production in a highly competitive environment, a novice entrepreneur needs to draw up a clear list of actions and competently write a business plan.
Starting investments | 2 million rubles | Staff | 7-10 people |
Income monthly | 1 million rubles | Competition | High |
Expenses monthly | 800 thousand rubles | Payback | from 10 months |
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Toilet paper manufacturing technology
The toilet paper production process consists of several stages. A novice businessman must clearly understand what each of them is. Possession of such information will help you make the right management decisions and direct your business towards prosperity.
The main technological stages of making toilet paper from prepared base paper are:
- Installing the base on the drum.
- Passing through perforation blocks and embossing (if necessary).
- Winding on a wide sleeve or rolling into a log without a sleeve.
- Forming rolls of the required width on a cutting machine.
- Packaging in plastic or paper packaging.
Preparation of waste paper pulp
At this stage, secondary raw materials are purified from various impurities. Then grinding is carried out in a crusher with the addition of water. Through a special sieve, with the help of which recyclable materials are separated from small foreign inclusions during the first cleaning (paper clips, glass, clips, etc.), the wet crushed waste paper is filtered.
Washing of raw materials
The purified mass is sent to a tank, where the mixture is washed with tap and recycled water. The thoroughness of washing affects the quality of future paper and its cost. The water consumption and washing time are estimated. The longer the washing is carried out, the whiter the raw material turns out. The water remaining after the procedure is washed down the drain.
Fine grind
The resulting raw materials with clean water are crushed into a single water-paper mass by placing these components in a multifunctional mill. At the end of the stage, the mixture is transferred to a pressure tank.
Concentration regulation
After being in the pressure tank, the mixture is transferred to a container that regulates the composition of the mass relative to the proportions of raw materials and water. When the desired ratio of proportions is achieved, the waste paper mass is poured in a uniform flow onto the mesh table of the papermaking machine. This machine turns waste paper into finished paper.
Production of roll blanks
This stage is characterized by a multiplicity of actions, however, they are not so complicated.
Technology for the production of roll-type blanks:
- Using a nylon mesh, all water is removed from the resulting mass. The mesh also acts as a conveyor belt. Unnecessary water flows into the recycling water tank. This water is subsequently used for washing raw materials.
- The waste paper mass is moved into a drying drum, which rotates at a speed of ten revolutions per minute. The device is heated to 110 degrees using steam, due to which the mass dries out a little and is then removed with a scraping knife.
- The cut pieces are completely dried. Subsequently, they are automatically wound onto the sleeve, first into large bobbins, and then cut into blanks for rolls.
Unwinding and embossing
Once produced by the paper making machine, the reel is moved to the unwinding machine. The device embosses and rewinds into a log. The width of the skein is equal to a reel, and in diameter it looks like a regular roll of toilet paper. Rewinding forms the structure of the web. The number of layers of toilet paper depends on it, which affects the density of the roll.
Packaging and slicing
Labels are affixed to the logs, which must be ordered in advance from the selected printing house. Next, it is sawed into rolls using a special machine. Then the weight of the received rolls is checked, and after checking they are packed into boxes or plastic bags. Now the rolls are ready for sale.
The video allows you to visually familiarize yourself with the process of producing toilet paper. Filmed by Vladimir Prokopenko channel.
What will be required for implementation?
First of all, invest in renting a workshop and purchasing equipment. Non-residential premises on the outskirts of the city are suitable. The main thing is with high ceilings and an area of at least 100 square meters. It will need to be divided into compartments: actually, into the workshop itself and into warehouses for raw materials and finished products.
The cost of production equipment will depend on which line you choose - automatic or semi-automatic.
In the first case, the starting capital will increase significantly: you will need to pay at least 2,500,000 rubles for the machine. But personnel costs will be reduced - the process will be easier to maintain.
A semi-automatic line will cost 500,000 rubles; usually novice entrepreneurs choose this option. It includes:
- paper making machine with pulper, vibrating sieve, grinding, stirring and washing compartments;
- equipment for winding and cutting rolls;
- packaging machine;
- pasting table.
Additionally, it is worth considering the machine for the production of cardboard sleeves. The costs for it - from 100,000 rubles - will pay off quickly. Purchasing paper sleeves in bulk is less cost-effective than producing your own.
It is profitable to purchase Russian-made equipment - in terms of wear resistance and productivity, it is not inferior to foreign ones, but is cheaper. An additional advantage is the absence of problems with replacing parts and repair and maintenance.
At first, the staff will require four operators (2 shifts), a driver with his own vehicle, and a storekeeper. Accounting work can be outsourced or you can use online accounting services. This will work out to about 10,000 per year. You will also need a cash register.
It doesn’t make sense to invest in a large-scale advertising campaign at first. A business card website is enough.
You will receive great benefit if you decide in advance to find wholesale buyers in a suitable target audience. If you dump a little and have quality certificates in hand, such companies will always be found.
As for raw materials, it all depends on the “level” of your product. Simple toilet paper is made from waste paper. For exquisite paper you will need ready-made raw materials in rolls, as well as additional ingredients - flavors, dyes, etc.
An important point: the production of toilet paper will require not only official registration of the enterprise, but also sanitary permits, certificates of compliance with GOST for materials and finished products.
The paper production process itself is quite simple:
- Washing and crushing of the main raw materials, followed by draining the purified pulp into the grinding tank. The output is a water-cellulose pulp.
- After assessing the quality of the resulting substance and adding flavorings, it is sent to the paper production section, where it is dried on a special drum and wound into a huge roll.
- The future pipifax passes through a perforation mechanism if embossing is intended.
- The paper is wound tightly onto a long core and then cut.
The finished rolls only need to be packaged - in paper or polyethylene.
Relevance of the idea
Even in economically difficult times, the demand for toilet paper does not disappear, since these products are considered essential goods. Using advanced technologies, you can create an unusual design, add branded embossing and a pleasant aroma to the product. Such paper can be used not only for its intended purpose, but also as souvenirs or interior items for public institutions.
The technology for producing toilet paper is identical to the process for making kitchen napkins and towels. This allows you to expand your business if necessary.
Market description and analysis
Those who want to start a business from scratch need to conduct market analysis in the chosen area. Toilet paper is a specific product that is not sold in individual stores. Sales are carried out in household shops and supermarkets.
According to statistics, the domestic market for hygiene products is currently the most dynamically growing in the world. Its annual growth is 7-9%. According to experts, this trend will continue in the coming decades.
At the moment, consumer demand is also changing. Now people are choosing expensive multi-ply products instead of cheap single-ply toilet paper.
The level of competition between manufacturers of paper hygiene products is high. In addition to the well-known large giants, there are a huge number of small and medium-sized companies. However, not all such companies produce a high-quality product, so you can create a successful production by improving the properties of the product.
The target audience
Everyone uses toilet paper. The product is bought mainly by housewives or heads of families. Therefore, the choice of a specific type of product most often depends on the financial situation of the buyer and his social status.
The elderly population usually chooses the most common rolls, sold at a low price. Women housewives are more attracted to more expensive options - they also care about the appearance of the product for using sanitary paper at home.
Competitive advantages
In a highly competitive environment, it is especially important for a new entrepreneur to interest a potential consumer. Not only advertising can attract attention to products.
Competitive advantages of a business can be:
- Unusual branded imprint on the product. This technique is used by such giants as Kleenex and Zewa.
- Production of “comic” products. The paper can be made into banknotes or jokes can be printed on it. Such products are very popular as souvenirs.
- Creation of an exclusive line of fragrances for toilet paper.
- Development of a bright product packaging design.
Advertising campaign
Using an advertising logo will bring recognition to the manufacturer. They are used to mark the labels of finished products. The logo can also be applied to the sleeve of the product, however, it is worth understanding that this option will cost the businessman more than the production of conventional sleeves.
You can also launch an advertising campaign on regional television. Despite the significant expenses, this will help take the business to a new level and attract the attention of more consumers.
Step-by-step opening instructions
In order to open their own business, any aspiring businessman needs a clear plan of action. It is important to think through all the nuances in advance - think about which premises are suitable for production, where to purchase the best equipment and how to select conscientious personnel.
To open your own production you need to take several steps:
- Analyze the market and draw up a business plan with financial calculations.
- Prepare all necessary documents for registering a business and obtaining the necessary permits.
- Buy or rent a premises, carry out renovation work.
- Purchase and test equipment.
- Hire qualified personnel.
Documentation
The best organizational and legal form for conducting business is a limited liability company. Registering an LLC is quite simple. In addition, suppliers for cooperation usually choose legal entities rather than individual entrepreneurs. A complete list of documents submitted to the tax authority is contained in the Federal Law “On State Registration of Legal Entities and Individual Entrepreneurs” dated 08.08.2001 N 129-FZ.
In addition to documents for registering a business, you need to think about licenses and permits. To sell manufactured toilet paper, you will need to obtain quality certificates.
To register you will need to collect:
- certificates for raw materials;
- premises rental agreement;
- certificate of OGRN (state registration) of the company.
Room
The area of the premises where toilet paper will be produced cannot be less than 100–150 square meters. m. You need to pay attention to the height of the ceilings - it should be 4 meters or more. There is another option - to equip your own garage with equipment and set up a mini-production.
The selected premises must have:
- water supply (production water requirement - 3 m3/day);
- sewerage;
- electricity (with three-phase power supply of 380 W).
The premises must be zoned and contain:
- production area;
- warehouse for raw materials;
- finished goods warehouse.
Equipment and inventory
Activity planning must necessarily contain a clause on the applicable equipment. In modern conditions, toilet paper manufacturers make do with four machines.
Minimum required equipment:
- Winding machine. With its help, rolls are formed. Toilet paper is produced in large rolls, which are then cut into regular rolls. This is done to save money and improve performance.
- Roll cutting machine.
- Machine for unwinding bobbins.
- Packaging machine.
Equipment can be purchased in online stores - prices are the same for all of Russia and on average are:
Name | Price, rubles per piece |
Winding machine | 18-530 thousand |
Band saw for cutting logs of toilet paper into rolls | from 120 thousand |
Unwinding and winding machine (pneumatic) | 550 thousand |
Rewinding machine with perforation and embossing of paper with any design | from 770 thousand |
Equipment for the production of cardboard tubes | from 180 thousand |
Equipment for the production of paper napkins | 450 thousand |
Automatic equipment for the production of toilet paper and kitchen towels (PRC) | from 1.4 million |
Automatic machine for gluing logs with labels | from 820 thousand |
Unit for mechanical stitching of paper layers | 290 thousand |
Toilet paper color printing module | from 1.2 million |
Scraper knife | from 6 thousand |
Metal container for circulating water | from 65 thousand |
Equipment for the production of paper napkins
Automatic machine for gluing logs with labels
Band saw for cutting logs of toilet paper into rolls
Automatic toilet paper and kitchen towel production equipment
Unwinding and winding machine (pneumatic)
Equipment for the production of cardboard tubes
You can create a universal working line. A multifunctional machine will cost more, but will allow you to produce various types of products. Continuous work with any raw material and the possibility of expanding production will help to significantly reduce the payback period of the business.
Staff
The number of hired workers depends on the scale of production. To save money, you can combine some positions. However, in this case, human resources may be overloaded, which may negatively affect business development.
There are no special requirements for personnel. The main thing is that the workshop employees are disciplined, well technically oriented in production processes and have the skills to work with the existing equipment.
The average salary of workshop employees in Russia is:
Job title | Salary, rubles |
Workshop worker (3 people) | 30 thousand/person |
Technologist | 40 thousand |
Driver | 30 thousand |
Accountant | 20 thousand |
Storekeeper | 20 thousand |
Equipment
Paper production is carried out using special equipment, depending on the specification - automatic or semi-automatic. The latter is cheaper, but requires more active participation of operators (technologists).
Equipment costs are divided into several sub-items:
- Paper making machine with a capacity of 1 t/d; The production line includes:
- pulper;
- vibrating sieve;
- multifunctional mill;
- washing plant;
- cleaners, mixers.
- Cost – 1.5 million rubles. plus 200 thousand rubles. – price of installation work.
- Reel-unwinding machine (capacity up to 125 kg/h) – 300 thousand rubles.
- Machine for cutting rolls (capacity up to 1200 rolls/hour) – 150 thousand rubles.
- Packaging machine (capacity 40 thousand rolls/day) – 25 thousand rubles.
Financial plan
To analyze the applicability of a business for an entrepreneur, it is necessary to draw up a financial plan. It will show how much money needs to be invested in such a startup, how quickly the enterprise will pay off and how much money will be spent monthly. Such analytics will help you decide whether it is worth opening your own production from scratch or whether it is better to purchase an existing business.
How much does it cost to start a toilet paper business?
The initial investment is quite large. Costs are justified by the scale of production. At this stage, it is better not to save on purchasing equipment or obtaining the necessary documentation.
Starting investments depend on the specific region and on average are:
Expenditures | Approximate prices in rubles |
Registration of an enterprise (state fee for LLC registration and legal services) | from 30 thousand |
Registration of a license | 150 thousand |
Rent for the first two months of rent | 100-200 thousand |
Room renovation | 200 thousand |
Purchase, installation and commissioning of equipment | 1.5 million |
Total | 2 million |
Regular expenses
The basis of a profitable business is accurate calculation, so monthly costs should be taken into account when analyzing the profitability of production. Such expenses will have to be incurred both by people starting the production of toilet paper from scratch, and by buyers of a ready-made business.
Regular costs include:
Expenditures | Approximate prices in rubles |
Rent | 50-100 thousand |
Salary including insurance contributions | 200 thousand |
Consumables (raw materials, labels) | 530 thousand |
other expenses | 60 thousand |
Total | 800 thousand |
Income
On average, 500 thousand rubles can buy about 30 tons of raw materials. This amount will produce approximately 272 thousand rolls of toilet paper. The cost of a roll starts from 4 rubles. Accordingly, if you sell all products at an average price, you can get 1 million rubles. Thus, the net profit will be 200 thousand rubles.
Location
The production location can be any.
The main thing: the workshop area is at least 150 square meters. m, ceilings - from 4 m, electricity, water supply and sewerage. The entire premises will be divided into three zones: the workshop itself with machines, a warehouse for raw materials and a warehouse for finished products. Convenient access and egress is welcome.
Calendar plan
It is important for a novice businessman to draw up a competent action plan before opening his own production. Making toilet paper is a serious process, so you shouldn’t rush into preparation. On average, starting a business occurs 4-5 months from the moment the idea arises. However, this period may extend due to various factors - difficulties may arise in finding premises or qualified personnel.
Typically, the calendar plan for opening a toilet paper business looks like this:
Stage | 1 month | 2 month | 3 month | 4 month | 5 month |
Market analysis | + | + | |||
Preparation of a business plan | + | ||||
Preparation of a package of documents | + | ||||
Obtaining additional permissions | + | ||||
Construction/rental of premises | + | ||||
Repair work | + | ||||
Purchasing and completing inventory | + | ||||
Recruitment | + | ||||
Opening | + |
Payback and risks
The main risk is that supermarkets may refuse to cooperate with small businesses. It is much more profitable for them to work with large factories and purchase branded products in large quantities. The way to avoid the problem is to negotiate with wholesalers or create your own dealer network to service retail outlets selling household goods in the region. The main thing is not to forget to take such risks into account when calculating the return on production.
Let’s assume that the monthly net profit is 200 thousand rubles, and the amount of starting investments is 2 million. Under these conditions, it can be calculated that on average a toilet paper manufacturing business will pay for itself in 10 months. This is not such a long time for such a large-scale production.
Business concept
According to market research, the toilet paper market grows by an average of 7-8 percent every year. Therefore, despite the competition, the opportunities for production development are great.
The first thing to determine is what price segment you will work in. Producing inexpensive but low-quality paper from waste paper is profitable in terms of the cost of raw materials. But consumers are becoming more and more demanding every year. They are ready to overpay for softness, multi-layeredness, a pleasant smell, even for beautiful packaging. Such paper is now presented in stores by foreign manufacturers (Turkey, Germany, Poland).
If you can produce a product of similar quality and set the cost lower, the production will quickly pay for itself.
However, there is a consumer for unsightly gray rolls. If you can conclude agreements with wholesale buyers “without claims”, for example, with those who purchase hygiene products for military units and remote enterprises, then the profitability of production will increase significantly. After all, you won’t need to spend money on expensive raw materials, washable sleeves, dyes and flavors.
Video
From the video you can learn all the pros and cons of starting a business producing toilet paper. Filmed by the Business Ideas channel.
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