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Proposal for a paper factory

Short answer

Nepal imports billions worth of paper while lokta and bamboo go unused. The proposal establishes a 2-tonne/day paper factory in Bhaktapur with an investment of Rs. 8.5 crore (60% loan), creating 80 jobs and recovering the cost in five years. It will reduce imports and export specialty paper.

Suppose that you are invited to submit a proposal on establishing a paper factory in Nepal. Show the title page, abstract, objectives and conclusion parts of your proposal.

Title page

                         PROPOSAL

    ESTABLISHMENT OF A HANDMADE PAPER FACTORY IN NEPAL

Submitted to:
The Managing Director
Nepal Industrial Development Corporation
Babarmahal, Kathmandu

Submitted by:
Himalayan Paper Industries (Promoters)
Pulchowk, Lalitpur

1 December 2026

Abstract

Nepal imports paper worth several billion rupees every year, while lokta, allo and bamboo, the raw materials of high-quality paper, grow in its hills. This proposal presents a plan to set up a paper factory at Bhaktapur Industrial Estate with a capacity of 2 tonnes per day. It will make writing paper, packing paper and handmade specialty paper. The plant will use local lokta and recycled waste paper. The investment is Rs. 8.5 crore (building, machinery and working capital), of which 60 percent is requested as a loan. The factory will employ 80 people. It is expected to start production within 14 months and recover the investment in five years.

Objectives

  1. To set up a modern paper factory in Nepal.
  2. To reduce imports of paper by supplying the domestic market.
  3. To use local raw materials and recycled paper.
  4. To provide jobs for 80 people.
  5. To earn foreign exchange through export of handmade paper.
  6. To follow environmental standards in treating wastewater.

Conclusion

The proposed factory is technically feasible, financially sound and useful for the nation. It will substitute imports, use local resources and create jobs, while recycling will help the environment. We request the Corporation to consider the proposal and to provide a loan and the necessary approvals so that the plant can start without delay.

The main risks are fluctuations in raw material prices and competition from imports. They will be managed by long-term contracts with lokta collectors, by quality control and by developing export markets in Europe and Japan.

✓ Answer checked by Claude Opus 5.5 (high effort)

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