What is a tissue paper project report?
A tissue paper project report is a detailed project report (DPR) for a unit that converts tissue jumbo rolls into napkins, facial tissue, toilet rolls and kitchen towels. It sets out the machinery, raw material cost, market, project cost, means of finance, five-year projections, DSCR and break-even that a bank needs before it funds the unit.
Entrepreneurs use it to size the unit and apply for a term loan or PMEGP; lenders use it to check that the unit can repay from its own cash flow.
Also known as: project report on tissue paper, tissue paper business plan, tissue paper converting unit DPR, paper napkin and toilet roll project report.
What a bank checks in a tissue paper project report
A converting unit adds value to paper it buys, so lenders look hard at the gap between the jumbo roll price and the selling price per kg. These are the values in our sample report and why each one matters.
Jumbo rolls are bought in, so more than half of every rupee of sales goes back to the mill. A report showing a much lower share is overstating profit.
Cores, glue and ink make up the rest. A rise of a few rupees per kg in the jumbo roll price moves profit more than any other cost, so the report should test it.
Hotels, distributors and retail chains expect credit. Trade receivables are the largest current asset in the sample, so they drive the cash credit limit.
The debt service coverage ratio shows how many times cash flow covers loan instalments. The lowest year in the sample is 1.65, in Year 2, when principal repayment starts in full.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, suppliers and market.
Tissue paper manufacturing plant cost in India
The cost of a converting unit depends on how many product lines you run and how automatic the machines are. The third tier is the unit in our sample report; the first two are indicative ranges.
Small unit
₹15–45 lakh
About 200–500 kg per day, 1–2 napkin machines
- Machinery₹7–25 lakh
- Shed fit-out (or rent)₹3–10 lakh
- Working capital margin₹2–8 lakh
Fits PMEGP or Mudra, subject to limits
Mid-size unit
₹1–2.5 crore
About 800–1,500 kg per day, napkin, facial and roll lines
- Machinery₹60–130 lakh
- Land and building₹25–70 lakh
- Working capital margin₹10–25 lakh
MSME term loan, often with CGTMSE cover
Large converting unit
₹371 lakh
2,300 kg per day, 6,90,000 kg per year
- Plant and machinery₹194 lakh
- Land and building₹99 lakh
- Working capital margin₹32 lakh
Term loan ₹278 lakh (75%), promoter ₹93 lakh
Converting is not paper making: a tissue mill with its own paper machine, pulping and effluent treatment is a separate industrial project costing many times more. Every figure on this page is for a converting unit that buys jumbo rolls.
Small and mid-size ranges are indicative and exclude land unless stated. Costs vary with location, automation and machine make.
Tissue paper unit economics in our sample
The sample report models a 2,300 kg per day unit working 300 days a year, starting at 60% of capacity and reaching 80% in Year 5. Finished tissue is priced at ₹192 per kg ex-factory, averaged across napkins, facial tissue and rolls.
| Land and site development | 20.79 |
|---|---|
| Building and civil works | 78.03 |
| Plant and machinery | 193.73 |
| Other fixed assets | 24.45 |
| Contingencies | 13.59 |
| Preliminary and pre-operative | 8.26 |
| Working capital margin | 32.06 |
| Total | 370.91 |
| Promoter's contribution (25%) | 92.73 |
|---|---|
| Term loan from bank (75%) | 278.18 |
| Cash credit limit (separate) | 96.18 |
| Total project cost | 370.91 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Tissue paper manufacturing process in a converting unit
Each product runs on its own machine, but all of them follow the same path from parent roll to sealed pack. The steps below are the ones modelled in the sample report.
- Jumbo roll inspection
Each parent roll is checked for GSM, ply, softness and moisture, because a weak or damp roll breaks on the machine and wastes time.
- Unwinding and embossing
The roll is unwound under steady tension and passed between steel embossing rollers, which bond the plies and add bulk and pattern.
- Printing
Napkins for restaurants and brands are printed on a flexo unit with water-based inks, which is where most custom orders come from.
- Folding or rewinding
Napkins and facial tissue are cut and folded to size, while toilet and kitchen rolls are rewound on paper cores into long logs.
- Log cutting
A log saw cuts the rewound logs into single rolls; the end trims are collected and sold as waste paper.
- Counting and packing
Sheets and rolls are counted, bundled and sealed in poly packs or cartons that carry the declared count and weight.
Jumbo rolls and other raw materials
Tissue jumbo rolls come from tissue mills in virgin pulp, recycled fibre or mixed grades, with a lower price for recycled grades. Napkins, facial tissue and toilet rolls each need a different GSM and ply, so most units buy from two or three mills.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Tissue jumbo rolls of 13 to 18 GSM | 91% | 467.26 |
| Paper cores and tubes | 6% | 30.81 |
| Embossing glue and printing ink | 3% | 15.40 |
| Total | 100% | 513.47 |
Packing film and cartons are costed separately in the sample, at 6% of sales.
Tissue paper making machine list and sample cost
The sample unit runs three product lines: napkins, facial tissue, and toilet and kitchen rolls. A smaller unit can start with one napkin machine and add lines as orders grow.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Toilet roll and kitchen towel rewinding line | Embosses and rewinds parent rolls into logs on cores | 54.24 |
| Paper napkin machine with embossing and printing | Prints, embosses, folds and cuts serviettes | 42.62 |
| Facial tissue folding machine | Folds and interleaves sheets for tissue boxes and soft packs | 34.87 |
| Tissue bundling and packing machine | Counts, bundles and seals packs | 23.25 |
| Automatic log saw cutting machine | Cuts logs into single rolls | 19.37 |
| Core winding machine | Makes paper cores for the rolls | 9.69 |
| Air compressor and dust extraction | Runs pneumatics and removes paper dust | 9.69 |
| Total plant and machinery | 193.73 | |
Costs are the sample report's estimates for a 2,300 kg per day unit. Get current quotations before you finalise.
Who buys tissue paper from a converting unit?
Demand comes from eating out, travel, offices and hospitals, and from city households that now buy kitchen towels and toilet rolls every month. A converting unit wins orders on price per kg, accurate sheet counts and steady supply, more than on brand.
- Hotels, restaurants and caterers, often for printed napkins
- Distributors and wholesale stockists of housekeeping products
- Supermarkets and retail chains buying private-label packs
- Hospitals, offices and facility management companies
- Online marketplaces and quick commerce sellers
Freight decides the territory: tissue is light but bulky, so a truck fills up long before it reaches its weight limit. A unit placed close to its city buyers saves on freight against brands shipping from far away.
Licences and approvals for a tissue paper unit
A converting unit has a short approvals list, because it makes no paper and discharges no process effluent. As of October 2026 the items below usually apply; confirm each with your state authorities.
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board | CPCB's January 2025 classification puts paper products in the white category, excluding paper or pulp making and units with boilers. Check how your State Pollution Control Board treats tissue converting |
| Product standard | IS 14661 sets grammage, brightness, absorbency and strength for toilet paper in rolls; buyers and tenders use it as the quality reference |
| Packaged goods | Registration as a manufacturer or packer with Legal Metrology, and the declared count, weight and price on every retail pack |
| Plastic packaging | EPR registration on the CPCB centralised portal for poly-packed goods; micro and small brand owners are exempt from the EPR targets |
| Fire safety | Fire NOC where the state requires it; jumbo roll stores and paper dust make fire the main plant risk |
Mistakes that weaken a tissue paper project report
- Pricing per pack without a kg yield
Buyers pay per pack, mills charge per kg. The report must convert sheets, GSM and pack count into kg, or sales and margins come out wrong.
- Assuming no converting waste
Roll ends, log saw trims, breaks and misprints all reduce saleable output. Waste paper sells for much less than finished tissue.
- Mixing up jumbo roll grades
Costing virgin pulp napkins at recycled roll prices makes the margin look better than it is. Each product needs its own grade and price.
- Leaving out fire cover
Rolls and dust burn fast. Lenders expect fire insurance on stock and machinery, and fire safety equipment in the cost of the shed.
How NPCS helps you set up a tissue paper unit
- Product mix and capacityChoose between napkins, facial tissue and rolls, and size each line to your buyers.
- Machinery and jumbo roll sourcingCompare converting machines and list mills for the grades you need.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender wants.
- Approvals and layoutShed layout with fire safety, power load and the approvals list for your state.
NPCS's client list includes 2 assignments on tissue paper among 36 in hygiene products, including work for clients outside India.
What's inside the tissue paper sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS tissue paper project reports
These are tissue paper project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Paper Napkins, Toilet Rolls & Facial Tissue | 1000 Kgs/Day | ₹53 lakh | 96.6% | 25.4% | Get this report |
| Bamboo Paper Based Products Tissue Paper, Paper Bags & Plates | Tissue Paper per Packet 25 Pcs. each, : 7,000 Pkts. / Day Paper Bag per Packet 10 Pcs. each, : 7,200 Pkts. / Day Paper Plate per Packet 10 P… | ₹3.07 crore | 27% | 60% | Get this report |
| Tissue Paper | 6 MT/Day | ₹3.47 crore | 29% | 60% | Get this report |
| Tissue Paper from Recycled Paper | 20 MT/Day | ₹9.86 crore | 27% | 56% | Get this report |
| Tissue Paper | Tissue Paper, 20 MT Per Day | ₹21.01 crore | 27% | 59% | Get this report |
| Tissue Paper | 3750 MT/Annum | ₹22.12 crore | 46% | 40% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Tissue Paper project report: frequently asked questions
How much does it cost to start a tissue paper manufacturing unit?
A single napkin machine unit in a rented shed needs roughly ₹15–45 lakh, and a unit with napkin, facial tissue and toilet roll lines about ₹1–2.5 crore. Our sample report models a 2,300 kg per day converting unit at ₹371 lakh including land, building and working capital margin. These are indicative figures; your report works out the cost for your capacity and location.
Tissue paper ka business kaise shuru kare?
Start by choosing the products you will sell, such as printed napkins for restaurants or toilet rolls for distributors. Then fix a jumbo roll supplier, buy the converting machine that suits that product, and register under Udyam and GST. A project report with the cost, projections and DSCR is what the bank asks for before it sanctions a loan.
Which machines are needed for a tissue paper unit?
A napkin machine with embossing and printing makes serviettes, a folding machine makes facial tissue, and a rewinding line with a log saw makes toilet and kitchen rolls. A core winder, bundling and packing machine, compressor and dust extraction complete the set. In our sample the rewinding line is the costliest item at ₹54.24 lakh.
Is the tissue paper business profitable?
In our illustrative sample, a 2,300 kg per day unit reaches a 23% return on investment in Year 3. Break-even is at about 40% of capacity and payback takes about 3.4 years. Actual profit depends mostly on the jumbo roll price, the selling price per kg, wastage in converting and the credit you give buyers.
Can I get a PMEGP or Mudra loan for a tissue paper unit?
Yes, if the project fits the scheme. PMEGP covers new manufacturing projects up to ₹50 lakh, with a margin-money subsidy of 15–35% of project cost. Mudra loans go up to ₹20 lakh under Tarun Plus. Larger units usually take an MSME term loan, often with CGTMSE cover. Each lender asks for a project report with projections.
What is the difference between a tissue paper mill and a converting unit?
A tissue mill makes the paper itself from pulp or waste paper on a paper machine, which is a large industrial project with pulping, drying and effluent treatment. A converting unit buys the finished jumbo rolls from mills and turns them into napkins, facial tissue and rolls. Most first-time projects, and our sample report, are converting units.
Is the tissue paper project report PDF free, and can I use it for a loan?
The sample PDF is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not from a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Prime Minister's Employment Generation Programme (PMEGP)Himachal Pradesh Khadi and Village Industries Board, checked Oct 2026
- PMEGP scheme detailsState Bank of India, checked Oct 2026
- Project profile: paper napkin manufacturing unitKhadi and Village Industries Commission, checked Oct 2026
- Pradhan Mantri Mudra Yojana: Tarun Plus categoryPress Information Bureau, Government of India, checked Oct 2026
- Credit Guarantee Fund Trust for Micro and Small EnterprisesCGTMSE, checked Oct 2026
- Classification of sectors into red, orange, green, white and blue categories (January 2025)Central Pollution Control Board (copy hosted by Pollution Control Board, Assam), checked Oct 2026
- IS 14661: 1999 Toilet paper, specificationBureau of Indian Standards, checked Oct 2026
- FAQs on registration of PIBOs under the EPR guidelines for plastic packagingMaharashtra Pollution Control Board, checked Oct 2026
- Registration certificates of packaged commoditiesDepartment of Consumer Affairs, Legal Metrology, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.