§1What this business is
Kraft paper reels are coated on one side with a water-soluble adhesive on a coating machine, dried in a drying chamber, wound, then slit into widths and lengths; printing can be done on the plain side. Gummed tape cannot be peeled off without showing, so it protects cartons against pilferage.
Capacity: 500 kg a day; 1,50,000 kg a year. Year 1 at 50% (75,000 kg), sold at ₹90 a kg.
§2Is it right for you?
Who it is for
Someone selling packaging material to factories and e-commerce sellers.
Who it is not for
Someone with no packaging buyers in reach.
Advantages
- Tamper-evident — popular with pharma, cosmetics and food packers
- All raw materials are made in India
- Paper-based alternative to plastic tape
- Printed tape doubles as advertising
Drawbacks
- BOPP plastic tape is replacing gummed tape in many uses
- Profit is small in year 1
- Glue quality must be consistent
Skills you need
- Coating and drying control
- Slitting and rewinding
- Adhesive formulation
- Industrial sales
Why difficulty 2/5: Simple coating and slitting line; main challenge is selling against plastic tape.
§3Market
Who buys
- Pharmaceutical, cosmetics and food-processing companies
- Packers and movers
- E-commerce sellers and stationery shops
How it sells
- Packaging material distributors
- Direct supply to factories
Good to know
- The report says paper gummed tape will stay in use because of low cost, easy application and availability.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Coating machine | — | — |
| Drying chamber | — | — |
| Slitting and winding equipment (total plant and machinery ₹12.60 lakh; items not priced) | — | — |
From: PMEGP sample project report — Gummed Paper Tape (prepared by Udyami/Samadhan)
- Kraft paper in rolls₹50 a kg; 1,50,000 kg a year at full capacity
- Water-soluble adhesive (animal glue)₹3,50,000 a year at full capacity
- Glycerin, preservatives and other chemicals₹1,00,000 a year at full capacity
- Plastic cores300 at ₹150 each
From: PMEGP sample project report — Gummed Paper Tape (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent (check the category for your process)
- Local trade licence
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (this profile was made for it), MUDRA loans up to ₹20 lakh and CGTMSE cover for a collateral-free loan fit.
§7Money
How the investment is worked out: Samadhan sample report: plant and machinery ₹12.60 lakh + furniture ₹0.85 lakh + working capital ₹4.44 lakh = ₹17.89 lakh. Shed of 2,000 sq ft own or rented.
Working capital: Working capital need ₹4.19 lakh; bank limit ₹4.00 lakh. Stock is kept for 10 days.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: CAPEXIL
- Paper and paper-product exporters usually take membership of CAPEXIL.
§9Risks — where people fail
- Competition from BOPP tape
- Kraft paper price rise
- Humidity spoiling stock
- Slow-paying customers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working gummed paper tape making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Gummed Paper Tape Making?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.