How To Start Paper Envelope Making Business | SkillsAndTech

The presence of numerous festivals and occasions, celebratory events, business deals etc. like new year, Christmas, Diwali, promotion- celebration, clearance of job application, a surprise gift order, quota acceptation are made possible by wrapping this news and wishes in a paper envelope and passing it on further

Such events and necessities has contributed to the 185 billion of production of paper envelopes annually in India. More than an element of organisation and categorisation these paper envelops are used as an essential element and a prerequisite in the packaging, delivering and gifting industry

A product with such vast market, essential in demand with massive 24×7 sales and constant involvement in the packaging industry is giving you an opportunity to make a business out of it. And here’s why and how

Table of Contents

Market potential and uses

A paper envelope is a rectangular paper cover in which you send documents, greeting cards, letters, money, invitations, mails etc

The market for paper envelope has been expanding because of the increasing industrialisation, commercialisation and developing e-commerce space and level of documentation involved in these space

Moreover the properties of a the paper envelope of being light weighted, low of cost, environmentally safe has also contributed to its increasing potential

The current potential for paper envelopes is defined through the needs of different varieties of these envelopes by different consumer markets:

On the Basis of types :

Regular envelopes
Catalog envelopes
Booklet envelope
Invitation envelope
Remittance envelope

Secondly, depending on the type of paper envelope the usage of these differ among the various consumer segments

On the basis of uses:

Uses for mailing greeting cards
Used for sending invites
Used for packing essential documents: property papers etc
Used for transportation and delivery of products fragile in nature
Used in storing educational, office-oriented and commercial documents

Licenses required

The licenses required to set up this business are as follows:

NOC by the state pollution control board
MSME registration
GST registration

Investment required

The investment required to set up this business is ₹ 2 lakhs

Profits made

The profits made from this paper envelope making business are expected to grown at the rate of 13% every year

Target consumers

The target consumers for your paper envelope making business are as follows:

E-commerce spaces: E-commerce spaces require paper envelopes for the purpose of mailing the billing and shipping documents along with the parcel and packages
Parcel services: Parcel and courier services require paper envelopes for safe, protected, water-resistant and timely delivery of essential commercials and other documents
Educational institutes: These require paper envelopes for the purpose of addressing formal queries and complains
Commercial spaces: These make use of paper envelopes for safe keeping of documents and exchanging essential confidential and formal information
Government offices: These require paper envelopes for the purpose of ensuring privacy of personal residential data of public
Hospitals: The hospitals make use of paper envelopes for the purpose of ensuring confidential packaging of test results, hospital bills etc
Greeting and invitation purposes: These paper envelopes are also used to pass greetings and invitations from and to differentiate geographical locations

Area required

The area required to set up this paper envelope making business is 200 sq ft

Raw materials required

The raw materials required to set up this business is:

Paper roll
Printing ink
Glue
Colours
Ruler

Machinery required

The machinery required to set up this business is:

Paper cutting machine
Envelope punching machine
Paper lamination machine
Glueing machine

Manpower required

The manpower required to set up this paper envelope making business are:

2-skilled workers
2-unskilled workers

Moreover ample training to these workers in terms of the following must also be provided with:

Machinery usage
Equipment handling
Safety and precautions

Business model and growth

The business model of a paper envelope making business can be defined using these 4 variants

Value proposition: The value which a paper envelope business is likely to provide you is:

Low investment, abundant raw material and high rate of return
An essential element and intermediary in the packaging and delivery services

Target consumers: The target consumers for a paper envelope business is:

E-commerce spaces
Parcel and courier services
Educational institutions
Commercial spaces
Greeting and invitation purposes

Competitor review: The competitors in the paper envelope making business are as follows:

Vatvruksh
Pranita enterprises
Multi m enterprises
Conveo corporation

Marketing strategy

The marketing strategy that can be implemented through our paper envelope making business is:

Print media, newspaper articles,
Sales promotion measures: trade discounts, bulk discounts etc

Growth

The paper envelope making business has witnessed and has the potential of the following growth prospects:

The paper envelope and paper products has been seeing growing at the at the rate of 3.3% since the past decade
Moreover, with the extensive use of delivery and packaging services for exchanging documents globally because of busy work schedules contributed by majority working class population around the globe

Profit margin

The profit margin which this paper envelope making business is likely to yield is 10%-20%

Suggestions

You should probably hoard paper envelopes for the purpose of sending invites for the opening of your new paper envelopes making plant and here’s why:

Firstly, this business comes with an advantage of widely available raw material, low cost investment and higher rate of return
Secondly, a larger target customer base for this product is likely to bring massive sales and low competition because of numerous consumer niche markets

Lastly, this business can also be expanded to cater to the foreign demand because of its cost advantage and quality of paper in the secondary largest paper product producer, India.