§1What this business is

A jumbo tissue roll of 80–90 kg is loaded on a napkin machine that flexo-prints, embosses, folds, cuts and counts napkins, which are packed in 50 or 100 pieces. The report makes 30 × 30 cm, 17 GSM napkins: 2,500 packets of 100 a day. Restaurants, caterers, households and institutions are the buyers.

Capacity: 2,500 packets of 100 napkins a day, 7,50,000 packets a year; the plan starts at 50%.

§2Is it right for you?

Who it is for

Someone with links to restaurants, caterers or FMCG distributors.

Who it is not for

Someone who cannot manage dust-free, dry storage.

Advantages

  • Restaurants and homes use more napkins every year
  • Small space and team
  • Printed napkins for hotels add value
  • Good DSCR in the report

Drawbacks

  • Tissue paper price drives profit
  • Many local makers
  • Stock takes space and must stay dry
  • Price-sensitive buyers

Skills you need

  • Napkin machine setting
  • Tissue grade buying
  • HoReCa and retail sales
  • Hygienic packing

Why difficulty 2/5: Simple machine work with a clear market; margins depend on tissue price.

§3Market

Who buys

  • Restaurants, hotels and caterers
  • Households
  • Institutions, offices and vehicles

How it sells

  • Direct supply to HoReCa
  • FMCG distributors and kirana
  • Custom printed napkins for brands

Good to know

  • The report links demand to urban dining habits and restaurants focusing on tidiness.

§4Raw material & machinery

ItemQtyCost
Paper napkin machine with flexo printing, embossing, folding, cutting and counting (widths 22, 27, 30, 33 or 40 cm)1₹7,08,000 (plant & machinery total)

From: PMEGP sample project report — Paper Napkin (prepared by Udyami/Samadhan)

  • Tissue paper jumbo rolls, 17 GSM, soft or hard, 1-ply or 2-ply80–90 kg rolls at ₹60 a kg; 6.5 packets per kg
  • BOPP pouches and cartonspacks of 50 and 100 napkins

From: PMEGP sample project report — Paper Napkin (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

Ruby Paper Products · Hyderabad →SK Engineering Works · Delhi →Sky Engineering Company · Hyderabad →

In our raw material database

Viscose staple fibre (VSF) →Paper pulp (wood, bamboo and agro pulp) →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Legal Metrology packaged-commodity registration (for packed goods)
  4. Trademark for your brand name (optional)

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report was made for it), MUDRA for loans up to ₹20 lakh (the report's term loan is ₹8.00 lakh), CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: Sample report: building and civil work ₹3.00 L + plant & machinery ₹7.08 L + other assets ₹1.25 L + working-capital margin ₹1.50 L = ₹12.83 L. Own ₹4.83 L, term loan ₹8.00 L; a separate working-capital limit of ₹5.00 L.

Working capital: Working-capital margin ₹1.50 lakh plus a bank limit of ₹5.00 lakh; 1 kg of 17 GSM tissue at ₹60 makes 6.5 packets.

Year not printed on the sample report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

4818.30Tablecloths and serviettes of paper

Export council / board: FIEO (Federation of Indian Export Organisations)

  • HS heading from the ITC(HS) 2022 schedule; confirm the 8-digit line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Tissue price rise
  • Damp spoiling stock
  • Price competition
  • Credit to distributors

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working paper napkin making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Paper Napkin Making?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Paper Napkin (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.