Business plan for the production of toilet paper and paper towels using the equipment we produce
The purpose of our proposal is to create the production of toilet paper by rewinding from a paper base for sanitary and hygienic purposes.
Toilet paper has long become a necessity for people. These are products of daily demand that will always find their buyer. Therefore, its production will forever remain a reliable investment of money, bringing a stable profit. These products are made from a base called tissue paper (TPP). It has GOST R 52354-2005. It is also often called “tissue”. This raw material is sold in large rolls, the width of which is 1-2 m. Their weight ranges from 100-600 kg. The paper base is made from cellulose and recycled materials - waste paper.
Modern enterprises produce various models of machines and units for the production of toilet paper. Our equipment, produced by the Collyaris production company, designed for the production of toilet paper, is in no way inferior to world analogues, but is much cheaper than them. Our own production allows us to constantly improve our machines and create models for specific needs. Our technical specialists install and launch the lines, training the customer’s employees. We provide warranty and post-warranty service.
At the moment, we have developed machines of various modifications:
There are no approved standards for toilet paper consumption per person and, nevertheless, when determining the volume of possible sales, you can rely on the following figures. According to Russian analytical studies, the average Russian consumes 1.5 rolls of toilet paper per month. When calculating the procurement plan for commercial establishments, we proceed from the following indicators - 2 rolls (56 meters each) of toilet paper per person per month. In the Russian army, the consumption standard is 1 roll of toilet paper per month. We consider it quite acceptable and reasonable to rely on these consumption indicators when planning the volume of toilet paper production.
Production profitability when purchasing our equipment for the production of toilet paper and paper towels.
Calculation of possible profit.
1. Calculation of profit for the production of toilet paper from waste paper.
| Name | Prices in Moscow | Raw materials costs | ||
Approximate price rub. per unit | Quantity | Approximate price, rub. | Total, rub. | |
Toilet paper base | RUB 28,500 per ton | 30 t. | 855,000 | 1 093 100 |
Label (wrapping paper) | RUB 60,000 per ton | 750 kg. | 45,000 | |
Sleeve base (cardboard) | RUB 20,500 per ton | 1800 kg | 36,900 | |
Glue | 65 rub. per liter | 40 l | 2 600 | |
Workers | RUB 20,000 | 3 people | 60,000 | |
Manager | RUB 25,000 | 1 person | 25,000 | |
Rent | RUB 5,900 sq.m/year | 120 sq. m | 59,000 | |
| Electricity (8 kW/h*8 h)*30 days | 5 rub. per kW | 64*30=1,920 kW | 9 600 | |
Additional information
with a roll weight of 100 g.
From 1 ton of base we get approximately 10,500 rolls => from 30 tons, we get 315,000 rolls.
Cost of one roll = RUB 3.47
| Profit calculation |
| At the price of one roll in Moscow RUB 5.47/piece 315,000 rubles. (per month) X 5.47 rub. (per piece) = 1,723,050 rub. => Thus profit from one roll 2 rubles With an equipment cost of 1,250,000 rubles (1st LINE: 3 machines) and a monthly profit of 629,950 rubles, the payback period for the equipment will be just over 2 months. |
These calculations are based on the minimum workload of your production.
Technical characteristics of lines No.-1, No.-2, No.-3 and No.-4, allow rewinding during a work shift (8 hours), based on 3 logs per minute, 22 rolls each , which is about 31,000 pcs. rolls of toilet paper, or more than 2800 kg of base paper from waste paper with electricity consumption (56 kW) per shift.
Accordingly, in 26 working days, 73,000 kg of base paper, which is 800,000 pieces. rolls of toilet paper.
2. Calculation of profit for the production of toilet paper from a cellulose base.
| Name | Prices in Moscow | Raw materials costs | ||
Approximate price rub. per unit | Quantity | Approximate price, rub. | Total, rub. | |
| Toilet paper base | RUB 74,000 per ton | 30 t. | 2,220,000 | 2,468,300 |
Polyethylene film | RUB 180 per kg | 300 kg. | 54,000 | |
Sleeve base (cardboard) | RUB 20,500 per ton | 1800 kg | 36,900 | |
| Glue | 65 rub. per liter | 40 l | 2 600 | |
Workers | RUB 20,000 | 3 people | 60,000 | |
Manager | RUB 25,000 | 1 person | 25,000 | |
Rent | 5,900 sq.m./year | 120 sq. m | 59,000 | |
Electricity (9 kW/h*8 h)*30 days | 5 rub. per kW | 72*30=2 160 kW | 10,800 | |
Additional information
with a roll weight of 90 g.
From 1 ton of base we get approximately 11,100 rolls => from 30 tons, we get 333,000 rolls.
the cost of one roll is 7.41 rubles
| Profit calculation |
| 1. When the price of your product is 9.51 rubles. per roll 333,000 rubles. (per month) X 9.51 rub. (per piece) = RUB 3,166,830 => => RUB 3,166,830 - 2,468,300 rub. = 698,530 rub. (Your profit) Profit from one roll will be 2.1 rubles At a cost of equipment of RUB 1,610,000. (2nd Line: 3 machines) and monthly profit RUB 698,530. - the payback period will be about 2.5 months |
Technical characteristics of lines No.-1, No.-2, No.-3 and No.-4 allow rewinding per work shift (8 hours), based on 3 logs per minute, 22 rolls each, which is about 31,000 pcs. rolls of toilet paper, or more than 2800 kg of cellulose base paper with electricity consumption (56 kW) per shift.
Accordingly, in 26 working days, these lines are capable of rewinding 73,000 kg of base paper, which is 800,000 pieces. rolls of toilet paper.
The creation of the production we offer is not only a profitable commercial result.
The implementation of this project will have a significant socio-economic effect, which will be expressed in the following:
creation of new highly productive jobs;
partially solving the problem of household waste in cities (recycling waste paper).
Recommended parameters of the production room.
To accommodate the production and warehouse of finished products, a premises is required that would meet the following parameters:
1. Total area of the room, m2 - 100
2. Length of the room, m – 10.
3. Width, m – 10.
4. Power supply 15 kW.
5. Availability of exhaust ventilation.
Project break-even analysis can be calculated using the formula.
The critical sales volume can be calculated using the value of marginal income, which is defined as the difference between revenue and variable costs:
MD=N-Cv,
Where N is the proceeds from the sale;
Cv is the sum of variable costs.
The concept of “margin of financial strength” is closely related to the concept of “break-even volume”. The margin of financial strength (safety zone) is the difference between the actual and break-even volumes.
Breakeven=Const. ed./(1-Variable ed./Revenue)
By substituting the data, you can verify that the margin of financial strength is constantly growing, having more than doubled over the years of project implementation.
