There are many reasons why the paper cup industry has grown. Of course, one of the main reasons is its compatibility with nature - a-VIS plastic cups. They are the types that get thrown away and end up in landfills. Paper, however, takes a shorter time to decompose, whereas plastics take hundreds of years to decompose completely. Another reason for its growing popularity is that it is more hygienic, thus reducing the chance of foodborne illness. Paper cups are made of food-grade paper and lined with wax or plastic for handling hot and cold liquids.
Paper cups are a mass consumption required product, so once established, there is a good opportunity to turn the paper cup business into a profitable one. Most international food chains and fast-food restaurants are using paper cups and glasses to serve drinks, making the industry more lucrative as a business option.
Such operations can be started on a small scale and require a small investment of time, mainly the purchase of
paper cup machinery. One person needs about 500 square feet of space to set up machinery and start work. Paper cups can be made by semi-automatic or fully automatic machines. In addition, through market research, people can know that there are two kinds of paper cup demand at present, one is ordinary paper cup, with different sizes, and the other is printed with the name of the company.
What are the Industry Trends for Paper Cup Product?
Currently in the Indian beverage market, 80 percent of the cups used are plastic and the remaining 20 percent are paper. With the increasing awareness of the use of environmentally friendly cups and glasses, demand is also increasing and a 100% market position for paper cups is not far away. Eighty percent of paper cups are used in domestic service restaurants.
According to a survey conducted in 2021, about 20 million paper cups are used daily in India, with consumption increasing dramatically during weddings and festivals.
What are the legal issues involved in setting up a paper cup manufacturing unit in India?
To establish and operate this business, the following permits and registrations must be obtained:
1. The first step is to register the new startup business. it can be done with Company Registration with the Registrar of Companies
2. Obtaining the Health trade license under the Municipal Corporation Act 1957 from the local civil authorities like the State Municipal Corporation or the Health Department. This is required because of public health concern attached to the food-contact
3. GST registration for taxation purposes. It can be easily done online at gst.gov.in.
4. No-objection certification from the Pollution Control Board as the unit is legally bound to ensure that its operation will not harm nature.
5. Factory license under the Factories Act 1948 from the local Factory Inspectorate office.
6. Employee Provident Fund scheme And Employee’s State Insurance Registration is a must if the factory is employing more than 20 employees.
7. Udyog Aadhaar MSME or SSI registration for being eligible to receive government scheme benefits
8. Special permission from local authorities to use a diesel generator set as an alternate source of power.
Also, the paper cup making unit is required to follow GMP regulations (Good Manufacturing Practices) as approved by FSSAI and BIS.
1. FSSAI certification is a mandatory compliance certification required under the Food Safety and Standards of India. Since paper cups are a food-contact material it is essential to maintain the required standards as prescribed under the Act for the safety of materials that are in contact with food intended for human consumption. There is a special inclusion for such materials under the Packaging and Labeling heading which mentions that the containers should confirm to 10 approved Indian Standards Specifications when used receptacles for packing or storing food articles, partially or wholly.
2. BIS compliance certification from the Bureau of Indian Standards which covers 7 items under the paper and fiberboard packaging to be compliant with laid down regulations.
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