Overview
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 organization and categorization 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.
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 industrialization, commercialization 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:
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- Regular envelopes
- Catalog envelopes
- Booklet envelope
- Invitation envelope
- Remittance envelope
- 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
- 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.
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Area required
The area required to set up this paper envelope making business is 200 sq ft.
- Paper roll
- Printing ink
- Glue
- Colours
- Ruler
- Paper cutting machine
- Envelope punching machine
- Paper lamination machine
- Glueing machine
- 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.
- E-commerce spaces
- Parcel and courier services
- Educational institutions
- Commercial spaces
- Greeting and invitation purposes
- 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.
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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:
- This business comes with an advantage of widely available raw material, low cost investment and higher rate of return.
- A larger target customer base for this product is likely to bring massive sales and low competition because of numerous consumer niche markets.
- 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.
