How To Start Paper Bag Making Business

Rishita Jain Rishita Jain
Sep 23, 2020 5 min read
How To Start Paper Bag Making Business

With the rising toxicity and pollution levels in the environment, eco-friendly products have become the need of the hour. The governments and various companies across the world are finally discouraging the use of plastics which causes disastrous environmental issues. This has paved way for paper bag making businesses. Β Paper bags are in great demand nowadays for their recyclable and sustainable features in nearly every commences activity.

Reusable and Eco-friendly paper bag

Consumer Market Areas of Paper Bags

Following are some of the major areas where paper bags are used:

  • Gift packaging
  • Food packaging
  • Shopping
  • Medical use
  • Jewelry packaging
  • General purposes
  • Advertising

Market potential and opportunities

Paper has no real competing product. Plastic bags, once regarded as a substitute for paper bags have lost their market over time. Moreover, the establishment of consumer stores and shopping malls has further increased the demand for paper bags. Hence, the paper bag making business is a booming opportunity for new and aspiring entrepreneurs.

Global growth of paper bag market.

Paper Bag Making Business Cost

As paper bag making is generally a small-scale business, it will require minimal investment. The main areas of investment will be the cost of machinery, labor, and land. Β Maintenance, transportation, and marketing will contribute to variable investments.

The price of one fully automatic paper bag making machine is around 5 – 8 Lakhs INR. The price is dependent on the production capacity of the machine. One fully automatic machine can produce 15000 pieces/hour. Researching and proper planning as to where to spend and the choice of suppliers will also reduce your cost to a significant extent.

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Registering Your Company

You will need to register your business and obtain a trade license from a local municipal authority. Then you will have to get your UDYOG AADHAR registration completed. It is for businesses running under the name of small-scale industries. You can register your company with a name as a limited liability company or an individual household. You need to get a mandate or compulsory certification.

After all these things are taken care of, you can start your business professionally.

Selecting Location for Manufacturing Unit

Choosing an appropriate location according to your business size is very important. Moreover, the rented land cost must not outweigh your profits. To make transportation costs minimum, try to fix the location near the market and reduce the distribution channel. A semi-urban area is the best choice to establish paper bag making businesses. It reduces costs in taxes, rents, manpower, and other important obligations.

Raw Materials Required for Paper Bag Making

The quality of your products and eventually the profits; depend on the raw material used. Paper bags with outstanding quality and fine texture can boost your competitive advantages and steal the focus of the market. Therefore, the appropriate quality as well as quantity of raw materials should be ensured.

These are some basic raw materials required for paper-making:

  • Paper rolls
  • Printing chemicals, ink, etc
  • Gums
  • Strings
  • Polymeter Stereo
  • Flexo Color

You do not need to overstock them as it may cause unnecessary storage costs.

Paper Bag Manufacturing Machinery

First things first, determine the type of paper bag your business is focused on manufacturing, and then select the suitable machinery. The durability, reliability, and productivity of the machines should be checked thoroughly before purchasing. Depending on these factors, machinery costs from 5 lakhs to 10 lakhs.

Some of the basic features you can get when you buy a paper bag making machine are listed below.

  • Stereo design roller
  • Flat forming dye
  • 3 horsepower motor for the main drive
  • Double color or four color flexo printing unit attachment

We recommend you a visit to a paper bag manufacturing firm in order to know more about the working of machines.

Labor Required

Labor size depends on the size of the business but skilled manpower is a must. A healthy interactive training program can help them learn the manufacturing process and meet the requirements of the employer.

A small scale paper bag making business.

Steps To be Kept in Mind to Make Paper Bags

  • The very first step is to decide on the size of the product. It should meet the client's needs.
  • The next step is to print the logo. The print quality should not be compromised.
  • Then, the paper should be left for folding, pasting, and shearing which can be done through machines.
  • The last two steps are eyelet fitting and lace fitting.

Branding and Promotion of the Product

Presentation is every bit as important as manufacturing. Without the right promotion, no business can survive long-term. There must be a uniqueness in your product description to attract your client's attention. A logo represents the image of your company and good for promotion. You can hire freelancers to design your company's logo as you want. Also, you can use mediums like local magazines and newspapers for advertising about your paper bags.

Social media provides a great platform for promoting your product and reaching the consumer crowd quickly. Establish an online website which not only gains orders but also create an impactful image of your product on viewers. Research and conduct small surveys of the local and online markets.

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Profits Expected from Paper Bag Making Business

The paper bag making machine is capable of making 60 bags in a minute. You can make a profit of 10 paise per bag. So, you can get a profit of rupees 6 for every minute you invest in bag making. With smooth going production and marketing, you can expect to earn near about rupees 2800 on a daily basis. This sums up to rupees 70000 per month. Although these profits vary depending on various other factors in your business.

Concluding Words

Paper bag making can be really profitable if executed properly, taking care of all the above measures. This business is full of interesting opportunities, and the output, which is paper bag, is the need of the hour and this need will only escalate in the future. Anyone can start a paper bag making business because it doesn't require large investments or vast land space or even complex machinery. In fact, you can initiate your business at home too if you have sufficient space with proper planning and researching. So go forth, invest time and energy, and set up your own paper bag making business.

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