How to Start a Tissue Converting Business: A Complete Beginner’s Guide

The tissue paper industry is one of the fastest growing segments within the paper and hygiene sector. With rising awareness around cleanliness, hygiene, and convenience, products like toilet rolls, facial tissues, kitchen towels, and napkins are witnessing consistent demand across households, offices, hotels, hospitals, and restaurants.

Starting a tissue converting business where jumbo tissue reels are converted into finished consumer products can be a highly profitable venture if planned correctly. This guide explains everything you need to know, from raw materials and machinery to investment, licensing, and market strategy.

What Is a Tissue Converting Business?

A tissue converting business involves purchasing jumbo tissue paper reels and processing them into finished products such as:

• Toilet paper rolls
• Facial tissues
• Kitchen towels
• Paper napkins
• Interfold and folded tissues

The conversion process includes rewinding, perforating, embossing, cutting, folding, and packaging, depending on the product type.

Why Start a Tissue Converting Business?

The business offers several advantages:

• Steady year round demand
• Low entry barriers compared to pulp manufacturing
• Scalable operations (small unit to large factory)
• Wide customer base: retail, HoReCa, healthcare, offices
• High repeat purchases

With proper branding and distribution, tissue products quickly become everyday essentials.

Step by Step Guide to Starting a Tissue Converting Business

1. Market Research & Product Selection

Before investing, decide which tissue products you want to manufacture:

• Toilet rolls (single ply / double ply)
• Facial tissues (box or pocket packs)
• Napkins (printed or plain)
• Kitchen rolls (high GSM, embossed)

Study:

• Local demand
• Competitor pricing
• Bulk buyers (hotels, restaurants, hospitals)
• Retail vs institutional sales mix

💡 Tip: Many beginners start with toilet rolls and napkins, as they require simpler machinery.

2. Raw Materials Required

Key raw materials include:

• Jumbo tissue paper reels (virgin or recycled pulp)
• Paper cores (cardboard tubes)
• Packaging materials (LDPE, BOPP, cartons)
• Adhesives and inks (for printed napkins)

Ensure a reliable supplier for consistent quality and GSM.

3. Machinery & Equipment

The machinery depends on the product range and capacity.

Common machines include:

• Tissue paper rewinding machine
• Embossing unit
• Perforation system
• Slitting and cutting machine
• Napkin folding machine (if applicable)
• Automatic or semi automatic packing machine

Investment range for machinery:

• Small setup: ₹8–15 lakhs
• Medium setup: ₹20–40 lakhs
• Fully automatic line: ₹50 lakhs+

4. Space & Infrastructure

Typical requirements:

• Factory space: 1,000–3,000 sq. ft.
• Stable electricity connection
• Good ventilation and dust control
• Storage for jumbo reels and finished goods
• Easy logistics access for trucks

5. Manpower Requirements

A small unit can operate with:

• 2–3 machine operators
• 1 helper / packer
• 1 supervisor or owner manager

As automation increases, manpower needs reduce.

6. Licenses & Legal Registrations

To operate legally, you’ll need:

• Business registration (Proprietorship / LLP / Pvt Ltd)
• GST registration
• MSME (Udyam) registration
• Factory license (as per state rules)
• Pollution Control Board consent (if required)
• Trademark registration (recommended for branding)

7. Cost & Investment Breakdown (Indicative)

Component	Approximate Cost
Machinery	₹10–30 lakhs
Raw materials	₹3–5 lakhs
Factory setup	₹2–5 lakhs
Packaging & branding	₹1–3 lakhs
Working capital	₹3–6 lakhs

💡 Total investment typically ranges between ₹15–45 lakhs, depending on scale.

8. Pricing & Profit Margins

Profit margins depend on:

• Product type
• GSM and ply
• Automation level
• Sales channel (retail vs bulk)

Average margins:

• Toilet rolls: 15–25%
• Napkins & tissues: 20–35%
• Institutional bulk orders: Lower margins, higher volumes

9. Branding & Sales Strategy

To succeed, focus on:

• Attractive packaging design
• Consistent quality & softness
• Competitive pricing
• Distributor and wholesaler tie ups
• B2B sales to hotels, hospitals, offices
• Online marketplaces and local retail stores

Private label manufacturing for hotels and brands can significantly boost volumes.

Challenges to Be Aware Of

• Fluctuating paper pulp prices
• High competition in unbranded segments
• Quality consistency issues
• Logistics and storage management

Proper supplier contracts and quality checks can mitigate most risks.

Final Thoughts

Starting a tissue converting business is a practical, scalable, and demand driven manufacturing opportunity, especially in emerging markets. With the right machinery, product focus, and branding strategy, entrepreneurs can build a profitable operation within a short time.

If you’re looking for a manufacturing business with repeat demand, manageable investment, and strong growth potential, tissue converting is worth serious consideration.