How to Start Paper Bag Making Business with Low Capital

Do you want to start a paper bag manufacturing business? in the paper bag industry? If YES, find here a detailed paper bag making business plan for your ready reference.

Basically, paper bags are recyclable. Additionally, these bags come in varieties of colours, patterns, and sizes. Additionally, these are biodegradable items. Therefore, in most of the cities, the plastic carry bags have been replaced by paper carry bags.

Read: Profitable Home Based Manufacturing Business Ideas

Nowadays, paper carry bags have a versatile use. Additionally, these bags also help in promoting brands of product-based companies. The manufacturing process is not complex. The business demands a small space for operation. Additionally, it demands small to moderate capital investment for starting.

Here is a 10 Step Paper Bag Making Business Plan

You can start the business in several ways. Basically, you can produce paper bags either as manually or commercially with the help of a machine. So, you will need to fix the business model of your own.

Determine, whether you want to start the business as home-based or will set a small manufacturing unit. According to this, you will need to craft the paper carry bag making business plan.

Before writing the plan, you must conduct a market survey first. Try to identify specific demand for the specific design and size.

Additionally, identify the local industries and companies that use paper bags regularly. Also, identify your potential competitors who are already in the market.

If you want to establish a commercial unit, then you must know the industry first. In writing the plan, mention what type of organization you want to form. In addition, mention your business objective, mission, and vision.  Calculate the financials including input costs and expected ROI. Also, have a plan and money for product promotion.

1. Different Types of Uses of Paper Bag & Size

  • Textile Shops
  • Jewelry Stores
  • Bakeries
  • Shoe / Chappal Shops
  • Grocery Shops
  • Fancy Shops
  • Book Shops
  • Gift Store
  • Sweet Shops
  • Snacks Stores
  • Meat / Fish Shops
  • Vegetable Shops
  • Stationery Shops
  • Hardware Shops
  • All departmental shops & consumer shops

2. Major Sizes of Paper Bags

Size in Inches & Size in Cms

  • 4.25X 6 / 11X15
  • 2 5.25X7.5 / 13X19
  • 3 6.75X8.5 / 17X22
  • 4 8.25X10 / 21X25
  • 5 9.75X12.75 / 25X34
  • 6 10.5X16 / 25X34

3. Paper Bag Market Potential & Opportunity

Paper is an eco-friendly product. It is made from natural raw materials and as an end product, the paper is bio-degradable. Paper has no real competing product.

Plastic which was rated as a substitute for paper has lost the race, being nonbiodegradable. Additionally, the establishment of shopping complexes and consumer stores has increased the demand for paper bags.

Basically, after banning plastic bags and pouches, the demand for paper bags and pouches is bound to increase manifold. Also, this product has good export potential.

Already, the consumption of paper boards used in the packaging industry has been increasing. Hence, starting a paper bag making business is a lucrative proposition for new entrepreneurs.

4. Business Registration & Licensing

Generally, this type of business doesn’t demand huge licenses and permissions. The first thing before starting a business is to procure a trade license from the local municipal authority.

You must apply for Udyog Aadhar and GST registration subsequently. However, you must check the local rules and regulations of your state.

ReadWhat is Udyog Aadhaar? Registration Process, Documents Required 

Additionally, you will need to register your business. For a small-scale operation, it is better to start as a proprietorship. However, if you have a financial partner, then you have to form a partnership organization.

5. Paper Bag Making Business Cost

In starting this business, you will need to invest as per the output of finished goods. Broadly, you will need to invest in procuring space, machinery, and raw materials. Additionally, you have to hire skilled manpower for unit operation, marketing, distribution, and administration.

An approximate investment around 10 Lac Rupees will be required to start a paper bag manufacturing business.

6. Unit Setup

If you want to start a commercial unit, You will need to acquire a space for the unit operation. According to your business size, you will need to acquire the space. However, you can start and run a small-scale operation with a 1000 Sq Ft space.

Determine the specific space for production operation, storage, and other necessary work. Additionally, you must have an electricity connection and water resources for regular unit operation.

7. Machinery

Basically, you can run the unit on a single automatic machine. Medium paper Bag Making Machine with gazetting facility, Bottom& Centre Pasting, with 2 HP Electric Motor & Control Panel, complete in all
respects. However, you may need some other electrifications and hand tools.

8. Raw Material

Definitely, you will need a single raw material. And that is paper. You will need to procure 60 GSM and 40 GSM assorted size Recycled Kraft Paper. Additionally, you will need to procure glue, eyelid, and ribbon for making bag handles.

9. Paper Bag Manufacturing Process

First of all, obtain the required size of the bag by fixing the exact size plate for flat or satchel to the size plate holder on the machine. Obtain the length of the tube by changing the size gear wheel, each Tooth of which represents one centimeter in length.

The tube, after being cut by the beater into the exact size as per the size gear, is carried forward by means of conveyor rollers to the delivery cylinder.

The delivery cylinder at the bottom folds the bag. It is pasted and the bag is carried by the folding cylinder to the delivery table. Finally, the machine releases the bag and delivers it in a vertical stack.

In manufacturing the bags, you will need to be careful about quality control. Basically, there is no standard as such. However, you will need to paper quality, size, and patterns according to the customer specification.

10. Promote Your Paper Bag Making Business

No business gets long-term success without the right promotion. So, you need to promote the paper bags too. However, according to your target demographic, you will need to promote the bags. Broadly, you can attract two different types of customers. One is individuals who look for single pieces of paper bags. And another is institutions that look for bulk quantity.

If you want to start a small-scale manufacturing business with low investment, you can consider starting a paper carry bag making business. Even, if you have sufficient space at home, you can initiate the business as home-based also.