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written by | October 11, 2021

The Flourishing Industry of Paper Bag Manufacturing in India

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Table of Content


The use of plastic has impacted the earth’s natural resources. It has impacted ocean life, as well as the air we breathe, resulting in various bodily ailments. Moreover, plastic is extremely difficult to destroy completely and this has harmed the environment around the world drastically. This has made the demand for paper bags increase remarkably as paper takes only 2 to 6 weeks to decompose. It does not cause pollution, and its fibres get weak only after a couple of recycling processes.

Today, you can see a majority of corporates, commercial businesses, offices, and retail outlets utilising paper for all their packaging requirements. Paper is safe, easy to decompose and recycle. Varieties of paper come with different levels of durability, depending on the industry for which they are used. Some products require a paper of extreme durability while others like jewellery or everyday use require a different variety. The physical properties of a sheet of paper are decided by its density, levels of porosity, thickness, and smooth texture. Let us understand some of the requirements of starting a paper bag-making business.

Did you know? 

Paper can be recycled at least six times to create new and sustainable products!

How to Start Paper Bag Industry?

The paper bag industry is free of competition and holds immense potential for any entrepreneur who wishes to set foot in the paper bags business. You could start this on a small scale at first to understand the ropes better. Paper bag manufacturing involves very low investments. You will need finance to bear the initial costs of purchasing the required machines, premises to conduct your business, and of course, employees. Initial research and a thought-out plan about your business, vision, marketing, sales, and profit margins help you move ahead in a cost-effective manner. Given below are the various steps you need to follow to set up a paper bag business.

Also Read: Successful Small Business Ideas for Indian Entrepreneurs

Research & Registration

Once you have decided on a creative and catchy brand name, in-depth research of the prevailing competition, suppliers, distributors, and demand will help you understand what category you need to focus on. You will have to register your company with the local municipal body to acquire a trade licence for your business operations. You will have to apply for registration to the Ministry of Micro, Small & Medium Enterprises (MSME). With this registration, you will be able to enjoy some benefits provided through government schemes.

You will have to get the right certificates based on whether your paper bag business is a proprietary one, a partnership, or a limited liability (LLB) one and register with the Registrar of Companies. You will also have to acquire a certificate from the Bureau of Indian Standards (BIS)  as well as register for GST. A certificate from BIS is obligatory to conduct your manufacturing operations.

Premises

Setting up your business in a locality that will be conducive to the growth of your business is imperative. Some of the key factors to consider include:

  • Road connectivity
  • Transport services
  • Marketplace
  • A regular supply of electricity

Easy access to the marketplace will help reduce the costs of distribution. You don’t need to set up your unit in a fancy location. A reasonably urban location will serve you to execute your manufacturing activities with efficiency.

Material Requirements

The quality of the paper should never be compromised. Everyone prefers quality products and therefore you should ensure the usage of quality raw materials. Some of the materials required include:

  • Quality rolls of paper
  • Requisite variety of ink and other chemicals
  • Resin
  • Flexo colour as well as polymer stereo

You can store the above materials in accordance with your manufacturing requirements as unnecessary bulk storage will make you incur increased costs.

Machine Requirements

Paper bag manufacturing can be done in two ways – manually or with a machine. If you choose to do it manually, you will have to bear additional costs like labour, stationery, cutting tools, increased amount of resin, as well as overhead costs like spillages, etc.  An automatic machine will help you craft the paper bags faster, provide a good volume, and take care of the entire process. Once you insert the paper rolls into the machine, you can sit back and watch the products being made. Depending on the number of paper bags you wish to manufacture in a single day, you can make an appropriate selection.

You will have to decide whether you want a machine that makes paper bags without any printing or with printing. Here too, you will have to decide on whether you want the printing in two or four different colours. Based on this, there are supplementary machines you will require for punching, handle-cutting, among others. The type of machine depends on the type of paper bags you wish to manufacture. The different categories of paper bags include bags for medical products, shopping, jewellery, party, everyday usage as well as those used by industries that require distinct varieties for the packaging of semi-finished products.

Finances

You can invest your own savings or take a loan. The investments to be made are dependent on the scale of your manufacturing. If you are planning a paper bags business on a small scale, and are keen to automate the manufacturing process, your investments in an automatic machine could vary between ₹5-8 lakhs. A completely automated machine will provide you with at least 15000 paper bags in one hour. A semi-automated one will cost you less than ₹3 lakhs. If you wish to proceed in a safe manner and decide on manual production, the initial investment will amount to approximately ₹50,000.

Labour

Whether you plan a manual production or totally automatic manufacturing of paper bags, you will require some employees. This depends on the manufacturing capacity you have envisioned. The best part is you do not have to employ highly qualified personnel. Individuals with some understanding of the paper bag business should suffice. You can always impart additional training if required.

Also Read: How to Start A Business Of Jute Bag Making

Promotions & Marketing

The right logo and brand name that spell out your product features solve half the issues of promoting your products. A good website that describes your product in minute details, the quality and usage of the paper bags, the available sizes, the colours, as well as your contact details will help people engage with you in a speedy manner. You should have a dedicated telephone line for dealers and distributors to connect with you during working hours. Upload quality images of your products on your social media platforms like Instagram, Facebook, Twitter as well as Pinterest.

Conclusion

The paper bag manufacturing business is here to stay and is going to flourish by leaps and bounds. It has no competition at all and has a global demand. The details of this article explain in very simple words, how to start a paper bag business. So, use this post and begin your business! 

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FAQs

Q: What is the anticipated growth rate of the paper bags business in the next few years?

Ans:

The government of India is expecting a compounded annual growth rate of at least 6.53%

Q: How much earnings can you expect in a day from paper bag manufacturing?

Ans:

The per-day earnings are dependent on your manufacturing capacity. However, on average, you can earn at least ₹2,800₹3,000 in a single day.

Q: What is the approximate profit you can make in the manufacturing of one paper bag?

Ans:

The manufacturing of one paper bag can yield a profit of at least 10 paise

Q: Is the paper bag business profitable?

Ans:

Yes.Paper bag manufacturing is highly profitable. There is no substitute for it and plastic has proved to have damaging effects on the environment. A proper business plan will help you yield profits in a short span of time.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.