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Start a Plastic Toothpick Production Business in India

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Toothpick production is one of the most neglected, but very active business. The demand for toothpicks is continuously high, as it is used daily in restaurants, homes, hotels, functions, and every other place where food is usually served. Besides, the raw materials required for making toothpicks are often available nearby, which means there is the low cost of production and full assurance of constant supply of raw materials, regular production, enhanced production ability, etc.

Since there is a vast market for toothpicks, starting a toothpick production business is no doubt a decision that you should consider. The plastic toothpicks are slowly getting more preference over the wooden or the other types of toothpicks.  Depending upon the type of machine, Plastic Toothpick Production can be completely automated or semi-automated. In this article know the necessary and essential steps involved while starting a toothpick production business.

Business Registration and Licenses.

The initial step will be registering your business. You can register your business as a sole proprietorship, one-person company (OPC), limited liability partnership (LLP), or as a private limited company.

You will need a local trade license and permit to operate the enterprise. As trade license is a mandatory document that requires to be applied to the municipal corporation. It is a granted by the State government to the owner of the business to commence operations of a company at a particular location. It needs to be renewed on an annual or periodical basis.

Udyog Aadhar – It is a twelve-digit unique ID which provides company its legal entity and other benefits from the government. It is issued by Ministry of Micro, small and medium enterprises. Obtain No objection certificate.

GST Registration – It is mandatory for any business having annual revenue of above 20 lakhs to do GST Registration. One can also do GST registration online.

Machinery and raw material.

In initiating a plastic toothpick production business, you need to have the following mechanism. In this type of manufacturing operation, automated injection molding machines are preferred. This is the most suitable because here precision molding requirements are necessary. Also, it ensures high production rate with the least time. Here the weight of the component generally exceeds 150 grams. Toothpick production business requires scrap grinding machine, different molds, weighing scale, packing machine, water cooling arrangements, dry color mixing apparatus, and the automatic injection molding machine with accessories.

The toothpick is made from hardwood, bamboo and plastic material. For making a wooden toothpick, you can quickly source the required material from the wood market while the plastic toothpick is made up of plastic granules. To produce plastic toothpicks, melt thermoplastic element in a pressure machine and injection speed. The primary raw material required is HDPE or PP granules. You can source it from the manufacturer or the local market. Apart from this you also need to arrange necessary consumables packaging.

Market Potential.

The toothpicks production already has a tremendous demand. The increasing habit of feasting out among the people of the city and rural areas has increased the need for this product. The toothpicks are used daily in homes, restaurants, hotels, etc. The growth rate of plastic toothpicks is 5 %. Apart from the domestic market, this product has excellent export potential. If you want to start an export-oriented business, then you have to maintain the quality of the product.

Business Plan.

Before starting a company, you need to write a good business plan. The plan should be a focus on staff, machinery, management structure, and a lease agreement. It should also cover the targeted market, growth potential, strategies, goals, and funding. You can add a probability study targeted at your competitors and consumers. The plan is essential because it gives a blueprint of how to continue.

  1. Write a business plan.

Even if the business structure and the market seem very simple, the need for a plan cannot be emphasized.  A business plan will help you to stay focused after starting so that you can achieve your goals within least time. Your business plan should highlight the required costs for starting and running the business.

  1. Funding Source.

If you cannot manage all the required money, you will require to approach investors, business credit institutions, or family and friends.

  1. Find a suitable place.

There are no hard rules for starting a toothpick production company. But the thumb rule regarding any business is that it should be near a targeted market. So, a toothpick production business should be established near restaurants, hotels and other places.

  1. Get the necessary equipment and hire staff.

Besides, you will need to hire a few more individuals to work with you. The number of people you will employ depends on the size of production.

  1. Find suppliers for raw materials.

Before starting your business, find a regular supplier for the raw materials. When you have a regular supply of raw materials, you will be able to ensure steady and enhanced production as well as profitability.

  1. Marketing.

Once production is started, you need to adopt some effective marketing tactics to attract consumers. You can reduce your prices slightly while not reducing quality.  Another way is to do some cold calling, or you can visit some of the hotels/ restaurants around you and inform them about your product and business.

In conclusion, toothpick production is a very profitable business that anyone can try into. It has a short payback period of between 1-3 years, and the return on investment is tremendous.

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