Biodegradable Cutlery (Paper Straws & Spoons) Manufacturing

Automatic paper straw making machine in a small factory
"Profitable Eco-friendly Manufacturing Unit Setup 2026."

In 2026, plastic is almost banned globally. Restaurants, cafes, and juice centers are shifting to eco-friendly alternatives. Starting a paper straw or wooden cutlery unit is not just a business; it’s a solution to a global problem.


1. Setup & Machinery (The Basics) 🛠️

To start a small-scale unit, you need:

  • Automatic Paper Straw Making Machine: High speed with multi-cutter system.

  • Drying Machine: To ensure the straws are moisture-free.

  • Packing Machine: For hygienic and branded packaging.

  • Space Required: 500 - 800 sq. ft. area with proper electricity supply.


2. Raw Materials Needed 📦

  1. Slitting: Cutting the large paper rolls into narrow strips.

  2. Rolling: The machine winds 3-4 layers of paper strips into a tube using glue.

  3. Cutting: The automatic cutter clips the tubes into desired straw sizes.

  4. Drying: Straws are kept in a drying room for 2-4 hours.

  5. Packaging: Straws are counted and packed into paper boxes.


💰 Project Cost & Estimates (2026)

Investment ItemEstimated Cost
Machinery (Automatic)₹3,50,000 - ₹5,00,000
Raw Material (Initial)₹50,000 - ₹80,000
Licenses & Legal₹15,000
Misc (Rent/Elect/Labor)₹40,000
Total Startup Capital₹4.5 Lakh - ₹6.5 Lakh

📈 Market & Earning Potential

  • Target Market: Local cafes, 5-star hotels, juice parlors, event planners, and export markets.

  • Estimate Earning: On a production of 1 lakh straws per day, you can keep a margin of ₹0.10 to ₹0.15 per straw.

  • Monthly Profit: After all expenses, you can easily earn ₹60,000 - ₹90,000 per month.


❓ FAQs for Beginners

Q: Do I need a big factory?

Ans: No, you can start this in a small warehouse or even a large garage.

Q: What licenses are required?

Ans: GST Registration, Trade License, and MSME (Udyam) Registration.

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