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How to Start Jute Bag Making Manufacturing Business

Any individual can initiate a jute bag-making business on a small-scale basis. The jute bag manufacturing process is not complex. Even, the business is a great income option for students and women also.

Jute is a naturally found, inexpensive, biodegradable fiber product. In starting a jute bag-making business you will need to be careful about the selection of the location. The easy availability of raw materials is an important factor. This business is also suitable for the northeast part of India including Tripura, Assam, Manipur, Sikkim, and Arunachal Pradesh.

Is Jute Bag Making Business Profitable?

For eco-friendly character, the demand for jute yarn, jute fabrics, and other jute items is increasing very fast. New technologies have evolved for the bulk use of jute as a raw material in the production of high-value-added and price-competitive final products.

Jute fabrics are strong, durable, light, colorfast, attractive, and cheaper than most fabrics made from other fibers. These are anti-static, UV protective, carbon dioxide neutral, and gets naturally decomposed. Jute fabrics are excellent raw materials for jute bags.

With the increase in population, the scope of trade and industry is also increasing. Bags are an essential commodity for a human. With the increasing awareness about the environment, pollution has increased the demand for jute bags exponentially.

Types and Use of Jute Bags

There are a lot of uses for a Jute Bag. Jute sacking bags are mainly used for packing cement, sands, agro products, sugar, and other bulky items. These bags are ideal for transporting bulk food items like onions, potatoes, flour rice, and fertilizers.

Apart from these, a colorful decorative jute shopping bag has very good demand.  Jute bags can be used as primary bags, carrying textbooks, folders, lunch boxes, etc.  It is also being widely used as an office bag for those who care so much for the environment and mind you, Jute bags come in various designs too. Different types of small purses made of jute for ladies are also very popular.

10 Steps to Start a Jute Bag Making Business

1. Get Trained

You can avail of training and marketing support from two Government departments. Those are  NCJD and JMDC. They have several schemes to support small-scale jute bag-making industries. Such as the “Basic Training Programme”, “Advance Training Programme”, “Advance Training cum Design Dissemination Programme”, “Technical demonstration” and “Buyer-Seller Meet”.

They are also providing marketing assistance to the jute entrepreneurs to sell their products through different Trade Fairs/Exhibitions in the country as well as in the foreign markets.

2. Create a Business Project Plan

It is important to draft a business project plan before actually launching a jute bag manufacturing business. It is advised to hire a plan writer and a lawyer to write the business plan.

Some of the basic chapters that must be included in your small-scale jute bag manufacturing business plan are the following:

  • Mission and Vision
  • Market and Demand
  • Manufacturing Process & Technology
  • Manpower Plan
  • Financial Plan
  • Operational Plan
  • Marketing Plan

3. Name your Business

Select a catchy name for your jute-making company. An attractive name not only fetches extra customers but also enhances the brand growth of the company. You can check our detailed guide on the steps to follow to name a business to learn more.

4. Jute Bag Making Business Compliance

In initiating the jute bag-making business, determine the ownership pattern of your company. If you want to start as a sole proprietor then it is advisable to get registered as a sole proprietorship, or as One Person Company. Otherwise, you can register the business as LLP. Pvt. Ltd. or Ltd. Company.

Read: How to Register a Company/ Startup in India

Obtain Trade License from the local authority. You will need to have GST Registration. You may also register as SSI Unit. Additionally, you can apply for ISO Certification. If you want to focus on the export market, then you will need to apply for IEC Code.

5. Arrange Funds

If you are short in budget, you will need to source funds from banks and financial institutions. There are several banks that provide funding for term loans and working capital loans. You can also reach out to personal loan apps for instant cash.

Also, do not forget to apply for a credit card for handling short-term day-to-day expenses.

6. Sourcing Raw Material

Both laminated and non-laminated jute fabrics are the main raw materials required for jute bag making. Other needed raw materials are dyestuff, printing gum, chemicals and auxiliaries, PVC buckle and bamboo sticks, sewing thread, hook, runner, chain, lining cloth, eyelet, and handle packing materials, labels, etc.

7. Jute Bag Manufacturing Machine

In establishing a jute bag-making unit you will need to install an industrial sewing machine. According to the required stitching pattern and production output, you have to select the right machinery for your business.

Different quality side sealing machines, lockstitch machines, and woven sack bag cutting machines you might find effective for jute bag manufacturing units.

8. Learn Jute Bag Making Manufacturing Process

The jute bag manufacturing process is simple. After procuring the raw materials, you will need to create the proper designs and patterns. As per drawing, design and size cut the jute fabric to make bags. After cutting, place the clothes on the table and print them.

Then stitch the cut pieces with the sewing machine. During the process of making the bags, you will need to fix the other consumables such as lining, buckles, chains, runners, handles of clothes, bamboo, and canes. After completion of the total works, pack the bags and dispatch them to the market for sale. Below, we list down the basic tools and equipment needed to make jute bags:

  • Sewing Machine
  • Working Table
  • Printing Table
  • Jute Fabric Cutting Machine
  • Lamination Machine
  • Screen Printing Machine
  • Scissors
  • Measuring Tapes
  • Lockstitch Machines
  • Nylon Thread
  • Sealing Machines

9. Cost of Starting a Jute Bag Manufacturing Business

The cost and startup investment will largely depend on the scale of production output. However, the minimum investment for establishing a jute manufacturing unit will be around Rs. 20 -25 lacs on a small scale with an automatic machine. The gross profit margin is more than 40%.

10. Create a Website

It is almost mandatory to have a website for any manufacturing business to be successful nowadays. This is mainly because more and more people are showing greater interest in buying products online.

Also, promote your website on social media platforms and develop an online community.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.