Tissue paper and napkin manufacturing is one of the fastest-growing light industries in Bangladesh. As hygiene awareness, urbanization, and hospitality businesses expand, tissue products have become household essentials. From restaurants to hospitals, from beauty parlors to transport hubs—demand is rising every single day. Therefore, setting up a tissue paper and napkin manufacturing plant in Bangladesh can be a profitable and sustainable business.
Importance of Tissue and Napkin Industry in Bangladesh
The tissue industry has quietly become part of everyday life in modern Bangladesh. Consumers prefer soft, hygienic, and eco-friendly paper products over cloth or plastic alternatives. Most important, this demand is no longer limited to urban elites—it’s spreading across small towns and rural markets too.
Because of this growing market, both local entrepreneurs and foreign investors are showing interest in establishing modern tissue plants. The sector requires moderate investment, simple technology, and provides consistent cash flow with strong domestic demand.
Project Overview
| Particular | Details |
|---|---|
| Project Title | Tissue Paper and Napkin Manufacturing Plant |
| Proposed Location | Dhaka, Gazipur, or Narayanganj Industrial Area |
| Land Requirement | 10,000 sq. ft. to 20,000 sq. ft. |
| Production Capacity | 2,000 kg tissue & napkin per day |
| Raw Materials | Jumbo Tissue Rolls, Glue, Wrapping Paper, Packaging Material |
| Major Products | Facial Tissue, Toilet Tissue, Kitchen Roll, Napkin |
| Project Implementation Period | 6–8 months |
| Total Project Cost (Estimated) | BDT 5.8 Crore |
| Employment Generation | 40–50 persons |
| Payback Period | 3–4 years |
Market Potential
The tissue paper and napkin market in Bangladesh is growing by approximately 12–15% annually. With an increasing number of restaurants, offices, hospitals, educational institutions, and household users, the potential is immense.
Besides that, government and private hospitals, aviation companies, and hotel chains now prefer locally produced, high-quality tissues instead of imported ones. Domestic production reduces logistics costs and provides faster supply to institutional buyers.
According to industry data, the national demand for tissue products already exceeds BDT 800 crore per year, with more than 25% annual growth potential in premium tissue categories.
Raw Materials Required
Tissue paper and napkin manufacturing mainly uses jumbo tissue rolls as the base material. These rolls are often imported from Indonesia, China, or Malaysia. The other key inputs include glue, packaging film, and paper cores.
| Raw Material | Source | Quantity per month | Average Cost (BDT) |
|---|---|---|---|
| Jumbo Tissue Rolls | Imported | 50 tons | 3,000,000 |
| Core Paper | Local | 5 tons | 200,000 |
| Glue | Local | 500 kg | 100,000 |
| Poly Packaging Film | Local | 1 ton | 180,000 |
| Cartons and Labels | Local | 500 pcs | 150,000 |
| Total Raw Material Cost/Month | 3,630,000 BDT |
Production Process
The production of tissue and napkin is simple and mostly automatic. Below is the process flow:
- Jumbo Roll Loading → Jumbo rolls are mounted onto the rewinding machine.
- Embossing & Perforation → Machines emboss the design and create tear lines.
- Cutting & Folding → Tissues are cut to standard sizes and folded.
- Counting & Wrapping → The machine automatically counts and wraps the tissues.
- Sealing & Packaging → Finished packs are sealed and labeled for retail distribution.
This process requires minimal manual labor and ensures hygiene, consistency, and productivity.
Machinery and Equipment List
| Machinery Name | Quantity | Approx. Price (BDT) |
|---|---|---|
| Tissue Rewinding Machine (2-Ply) | 1 set | 4,200,000 |
| Napkin Folding Machine (Automatic) | 1 set | 3,500,000 |
| Band Saw Cutting Machine | 1 set | 800,000 |
| Packing & Sealing Machine | 1 set | 600,000 |
| Core Making Machine | 1 set | 350,000 |
| Air Compressor | 1 unit | 250,000 |
| Glue Mixer | 1 unit | 100,000 |
| Trolley, Tools, Installation, Misc. | – | 200,000 |
| Total Machinery Cost | 9,900,000 BDT |
Infrastructure and Utility Requirements
A modern tissue plant requires a clean, dust-free, and ventilated factory area.
| Particular | Details |
|---|---|
| Land and Building (Leased/Owned) | 10,000–20,000 sq. ft. |
| Electricity Load | 50–60 kW |
| Water Requirement | 1,000–1,500 liters/day |
| Compressed Air | Required for machine operation |
| Workers’ Facilities | Washroom, rest area, changing room |
| Transportation Access | Near highway for logistics efficiency |
Manpower Requirement
| Category | No. of Staff | Average Monthly Salary (BDT) | Total (BDT) |
|---|---|---|---|
| General Manager | 1 | 80,000 | 80,000 |
| Production Manager | 1 | 60,000 | 60,000 |
| Machine Operators | 5 | 25,000 | 125,000 |
| Electrician | 1 | 25,000 | 25,000 |
| Mechanics | 2 | 20,000 | 40,000 |
| Quality Controller | 1 | 30,000 | 30,000 |
| Packaging Workers | 8 | 15,000 | 120,000 |
| Helpers | 5 | 12,000 | 60,000 |
| Security & Cleaner | 3 | 12,000 | 36,000 |
| Administrative & Sales Staff | 3 | 30,000 | 90,000 |
| Total Staff (30 persons) | 666,000 BDT/month |
Project Cost Estimate
| Particular | Amount (BDT) |
|---|---|
| Land & Building Development | 10,000,000 |
| Machinery & Equipment | 9,900,000 |
| Electrical Installation & Utility | 1,200,000 |
| Furniture & Fixtures | 500,000 |
| Raw Material (3 Months Stock) | 10,800,000 |
| Pre-Operating Expenses | 500,000 |
| Working Capital (3 Months) | 5,000,000 |
| Total Fixed & Working Capital | 37,900,000 BDT |
| Contingency (10%) | 3,790,000 |
| Grand Total Project Cost | 41,690,000 BDT (≈ 4.17 Crore) |
Financial Analysis
1. Sales Forecast
| Year | Sales Quantity (kg) | Sales Value (BDT) | Growth (%) |
|---|---|---|---|
| 1st Year | 480,000 | 28,800,000 | — |
| 2nd Year | 550,000 | 33,000,000 | 15% |
| 3rd Year | 630,000 | 39,000,000 | 18% |
| 4th Year | 700,000 | 45,500,000 | 16% |
| 5th Year | 780,000 | 52,000,000 | 14% |
2. Operating Cost (Annual)
| Expense Head | Amount (BDT) |
|---|---|
| Raw Materials | 43,560,000 |
| Salaries & Wages | 7,992,000 |
| Utilities | 1,200,000 |
| Maintenance | 600,000 |
| Transportation & Distribution | 900,000 |
| Administrative Expenses | 800,000 |
| Marketing & Promotion | 1,000,000 |
| Total Operating Cost/Year | 56,052,000 BDT |
3. Profitability Estimate
| Description | Amount (BDT) |
|---|---|
| Gross Sales Revenue | 33,000,000 |
| Less: Operating Cost | 26,000,000 |
| Gross Profit | 7,000,000 |
| Less: Depreciation (10%) | 1,000,000 |
| Net Profit Before Tax | 6,000,000 BDT/year |
| Net Profit Margin | ≈ 18% |
| Payback Period | 3.5 years |
SWOT Analysis
| Strength | Weakness |
|---|---|
| Low technology dependency | High raw material import cost |
| Strong local market | Limited brand loyalty in rural areas |
| Moderate investment size | Seasonal demand variations |
| Opportunity | Threat |
|---|---|
| Growing hygiene awareness | Price competition from imports |
| Scope for export to nearby countries | Currency fluctuation risk |
| Rising hotel and hospital sector | Technological obsolescence |
Environmental and Social Impact
Tissue manufacturing is an eco-friendly and socially beneficial business when managed properly. Modern machines minimize waste and energy usage. Waste paper scraps can even be recycled.
Besides that, it creates decent employment opportunities for women in packaging and quality control sections, supporting inclusive industrial growth.
Implementation Schedule
| Activity | Duration | Remarks |
|---|---|---|
| Land & Building Setup | 2 months | Site preparation |
| Machinery Procurement | 2 months | Import and customs |
| Installation & Trial Run | 1 month | Test production |
| Recruitment & Training | 1 month | Staff readiness |
| Commercial Production | – | Within 6–8 months |
Marketing Strategy
The key to success lies in branding, consistent quality, and affordable pricing. Businesses can adopt the following marketing approach:
- Distribution Partnerships – Build long-term relationships with wholesalers and retail chains.
- Institutional Supply – Target hotels, hospitals, airlines, and schools.
- Private Label Manufacturing – Produce for supermarkets and export brands.
- Online Sales – Use e-commerce and social media to build visibility.
Modern consumers want softness, whiteness, and hygiene—all of which can be achieved with good machinery and branding.
Risk and Mitigation
| Risk | Mitigation Strategy |
|---|---|
| Price fluctuation of raw materials | Secure long-term import contracts |
| Power outages | Install backup generator |
| Market competition | Focus on branding and service |
| Transportation delay | Use local suppliers for packaging |
| Machinery downtime | Routine maintenance schedule |
Potential Returns
Assuming efficient operations and stable market conditions, the plant can generate a net profit margin of 15–20%, and achieve a return on investment (ROI) of 25–30% annually after the first year.
Therefore, the project is financially viable and highly scalable. Entrepreneurs can start with small capacity and later expand to produce facial tissues, kitchen towels, and customized napkins for corporate clients.
Future Expansion
After establishing a successful domestic brand, the company can expand by:
- Exporting tissue products to Nepal, Bhutan, and Maldives.
- Adding new products like wet wipes and sanitary paper.
- Setting up regional distribution hubs in Chattogram and Sylhet.
- Partnering with hotels and supermarkets for private labeling.
Because the market continues to expand rapidly, diversification ensures long-term stability and growth.
Conclusion
The Tissue Paper and Napkin Manufacturing Plant in Bangladesh is a promising investment opportunity. The market demand is stable, production technology is easy to adopt, and profit margins are healthy. Moreover, the plant contributes to hygiene, employment, and national industrialization.
With proper planning, efficient machinery, and market linkage, investors can expect sustainable growth and social impact through this project.
Call to Action
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