How to Start a Biodegradable Plate Manufacturing Business?

Suchandra Mukherjee

23 Jun, 2023

Solid waste management is a significant problem in today’s context. The rapid urbanization and population explosion experienced by many countries have led to severe challenges in managing solid waste. The plastic industry, which is involved in waste disposal, has been in existence for a long time. According to the World Economic Forum, global plastic production increased from 15 million tons in 1964 to 311 million tonnes in 2020. We will discuss here How to Start a Biodegradable Plate Manufacturing Business.

This number is expected to triple by 2050, raising concerns about environmental degradation and the impact of plastic consumption on human health. However, the green entrepreneurs in the country have taken these problems and converted them into an innovative business idea-a Biodegradable Plate Manufacturing Business. Continue reading for a brief overview of the business setup process and the legalities you must meet while setting up this business.

Requirements / Necessities for Biodegradable Plate Business

Apart from obtaining the necessary licenses and registrations, here are the other requirements for setting up your Biodegradable Plate Manufacturing Business:

1. Space Requirement

• Choose an appropriate location for your business, preferably around 500 sq. ft. in size.
• Select a place near your target market and ensure it has basic facilities such as water supply, drainage, and electricity.
• Divide the space into different sections for specific tasks like material storage, operation area, and finished goods storage.

2. Raw Materials

• Good quality raw material such as scrap paper is the primary material for making biodegradable plates. Two varieties of paper are available: thin-layered and thick-layered.
• Additionally, you will need polythene sheets and hessian sacks for packaging purposes.

3. Machinery/Equipment

There are two main types of machines: semi-automatic and fully automatic. Necessary equipment as per the biodegradable material may include:
o Disposable paper plate manufacturing machine.
o Areca paper plate-making machines.
o Thermocol plate-making machine.
o Thermoforming machines.
o Pulp moulding machines.

Licenses / Registration Required for Biodegradable Plate-Making Business

The licences and approvals that the entrepreneur will need will depend on the type of raw material used for manufacturing. However, you will need the following standard permits to start your Biodegradable Plate Manufacturing Business.

1. Registration of Entity: Incorporate your firm as a one-person company or any other suitable entity, depending on the size and scale of your company.
2. GST Registration: Obtain GST Registration^[1] if your turnover exceeds the prescribed limit.
3. Trade License: Obtain a Trade License from the local authority.
4. MSME: Get MSME Registration to become eligible for various facilities and schemes offered by the state or central governments.
5. CPCB Certification for Manufacturer: If you use compostable plastic to make biodegradable plates.
6. EPR Registration: if the products require plastic packaging.
7. Factory Licence: From the concerned state department
8. Fire NOC: From the State Fire Department

Required Documents

The required documents for starting Biodegradable Plate Manufacturing Business are as follows:

1. Applicant’s proof of address (Ration card, Bank passbook, Telephone bill, Aadhaar card).
2. Applicant’s proof of identity (Voter ID, Passport, Aadhaar card, Driving license).
3. PAN card.
4. Passport-size photographs (20 numbers for all application procedures).
5. Aadhaar card.
6. Set of documents required to Register a Firm.
7. Set of documents required to Register for Goods and Service Tax Identification Number (GSTIN).
8. Set of documents required to Obtain a Permanent Account Number (PAN) Card.
9. Set of documents required for a trade license.

Procedure in Biodegradable Plate Manufacturing Business

The manufacturing process involves four simple steps:

• Plate Cutting: Cut the raw material, for example, paper, into the desired shape or size for making plates.
• Die Pressing: Press the paper and polythene sheet together to form the plate shape.
• Separating Product from Die: Remove the final product from the double die press machine.
• Packaging: Collect, trim, and pack the paper plates for distribution.

Procedure for Registration

The Application procedure for registering a Biodegradable Plate Manufacturing Business is as follows:

1. Approach the office of the “National Cooperative Development Corporation – NCDC” to gather the necessary information for starting a biodegradable plate manufacturing business.
2. Contact the respective office authority to obtain detailed information.
3. Determine the location for your manufacturing unit and follow the steps below to obtain a license for the biodegradable plate manufacturing business.
4. Consult the local authority or body to clarify any updates on government norms, restrictions, or regulations for setting up a leaf plate manufacturing unit in your area.
5. Start the biodegradable plate manufacturing unit as an individual (proprietorship), partnership firm, or registered private company.
6. Choose a name for your company or firm.
7. Identify the appropriate provisions to register the company according to its class or type.
8. After the firm is registered, you will receive the Memorandum Of Association (MOA) and Director Identification Number (DIN). It is recommended to apply for trademark registration as well.
9. Once the company is registered, apply for, and obtain the “GST Identification Number.”
10. Complete the registration process for the Goods and Services Tax Identification Number (GSTIN) to obtain it.
11. Proceed with the “Permanent Account Number (PAN) Card” application to obtain the PAN for your company.
12. Open a business bank account by visiting the bank of your choice and following their guidelines.
13. If required, obtain a trade license from the local administration.
14. Apply for the necessary statutory requirements to begin operations.
15. Seek approval from the local authority, electricity board, and water board by submitting the relevant applications.
16. Once the approvals are obtained, install the required machinery, and create the infrastructure for biodegradable plate manufacturing.
17. Hire staff and commence the production of biodegradable plates.

Advantages of starting a Biodegradable Plate Manufacturing Business

• The biodegradable plate manufacturing business focuses on producing eco-friendly alternatives to traditional disposable plates, which are typically made of non-biodegradable materials like plastic or Styrofoam.
• By offering biodegradable plates, this business aims to address the growing concerns about plastic waste and its harmful environmental effects.
• The demand for biodegradable plates has increased as individuals and businesses seek more sustainable options for their food service needs.
• There are several avenues for selling your biodegradable plates. You can target the local market by establishing relationships with retailers or selling products directly through small distribution centres.
• Alternatively, you have the option to sell in wholesale quantities. Additionally, you can tap into the online market by leveraging Business-to-Business (B2B) platforms or selling directly to consumers through Business-to-Customer (B2C) websites.

Conclusion

Biodegradable plates have already gained widespread recognition, and their demand is consistently high. Embarking on a Biodegradable plate business can be profitable, especially for those looking to establish a small or medium-scale enterprise. It is worth noting that the Biodegradable plate industry falls under the purview of Micro, Small, and Medium Enterprises (MSME). By securing an MSME classification, you become eligible to access various facilities and support programs offered by the government, further enhancing your business prospects.

FAQ

Read our Article: Eco-friendly Construction Material Businesses in India: An Overview