Q. Is paper glass manufacturing business profitable?
Answer
In the paper glass industry the average net profit margin is 14% while the average ROI is 39%. Let's say a high-quality paper plate measuring 10 inches in diameter costs 1.25 rupees to produce and has a selling price of 3 rupees. Then if someone sold 100 plates he/she would earn 300 rupees. Bringing the total gain to 175 rupees. If someone is dealing directly with the target market this strategy will be successful. With an initial investment of Rs. 10 lakhs in machinery and Rs. 15 lakhs in operating capital a paper glass firm can expect a yearly revenue of Rs. 66 lakhs. With a total production cost of around Rs.57 lakhs the entrepreneurs would see a profit of Rs.9 lakhs.
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