How To Start Jute Rope Making Business In India

Introduction on how to start Jute rope making business in India

Are you planning to start a jute twine or jute rope manufacturing business? This blog includes how to start the business along with jute rope or Sutli manufacturing process, its raw materials, costings, and necessary machinery.

A step by step guide to start a Jute rope making business

Jute is a natural and eco-friendly fiber. Because of its good characteristics, it is well known as a golden fiber. Jute has various interesting properties like good tensile strength, low extensibility, silkiness, long stability, is heat resistant, having luster, and long-staple lengths. Currently, China, India, and Bangladesh are the three main jute producing countries in the entire world.

If you live in a jute producing area, then you might plan to start a jute twine making business with less investment. Comparatively, the business needs only small startup capital and area for operation.

Market potential to start a Jute rope making business in India

Generally, the jute sector plays a significant role in the economy of the jute producing nations. With jute, we can develop many value-added items. The list may comprise carpet, composites, apparel, decorative, fancy non-woven for new products, upholstery furnishings, decorative color boards, etc.

Traditional products mainly comprise of Hessian, Carpet-backing cloth, and sacking while diversified products comprise blankets, gift articles, decorative fabrics, shopping handbags, and wall hangings.

According to the quality and thickness, there are three various types of jute twines you can develop. These are general twine, export twine, and sacking twine. The general type of twine is mainly used in packaging. However, others are important components in producing fishing nets, carpets, clothes, etc. Additionally, different types of jute ropes are having huge potential in the export market as well.

Procedure to start a Jute rope making business

Design a perfect business plan before starting the business

Crafting a business plan is very important. Regardless of the scale of your business, design a specific business plan. First of all, you should determine what specific type of jute rope you plan to produce. And if you are willing to produce all three types, then fix the production capacity. Accordingly, you must establish the unit and take care of the financial aspects. Additionally, choose a marketing plan for the business.

License, registration, and permissions required for starting Jute rope making business

Generally, this kind of small manufacturing unit does not require any specific type of licensing. However, it is recommended to validate this aspect after confirming with the local authority in your region. Also, you must avail of a permit from the authority for setting up the factory and business. The specific requirement differs from state to state. Also, you will register your business. If you want to begin as a small-scale, it is recommended to initiate the business in the form of a proprietorship or partnership basis.

Registration of firm: It is very essential to begin your business either as a proprietorship company or as a partnership firm. When you are interested in starting this business as one Person Company, then you must register your company as a proprietorship firm. For a partnership firm, you should register as LLP- Limited Liability Partnership or Private Limited Company with Registrar of Companies (ROC).

GST registration: For any business currently getting a GST number (this is compulsory for all business post GST rule), with a tax identification number and an insurance certificate is very important.

Trade license: It is required to get a trade license from local bodies.

MSME/SSI registration: MSME/SSI registration will qualify you for availing government schemes and facilities, so if you are interested to receive any of the government subsidies or schemes then you should apply for MSME/SSI registration.

EPF registration: If you are hiring people for your operations as staff then employees provident fund for your staff. This employee’s provident fund is mandatory for all the business that has greater than more than 20 employees is working.

Trademark: To avoid any problems with your business brand name make sure you register it with a trademark that will protect your brand.

IEC code: Whenever you feel that your business has brought extra gains and it’s better to export to foreign countries then you must have an IEC code that is obligatory for exporting products for any business.

Arranging capital to start Jute rope making business

Initiating this type of product-based business requires upfront capital investment. The fixed capital investment comprises setting the plant, obtaining machinery, and other primary expenses. On the other hand, the working capital cost comprises obtaining raw materials, salaries of employees, logistics, and other daily expenses. So, according to the business plan, you should arrange the amount for the business. You can apply for project finance or only for machinery hypothecation. Also, you can approach a cash credit for working capital expenditures.

Establishing Jute rope manufacturing business unit

If you are not having your own space for setting up the unit, then it is suggested to opt for a rental place. It will aid you to reduce the startup investment if you own land. In selecting the location, make sure the electricity provision and water supply. Also, verify the distance from the nearby and transport facilities. Generally, about 800 sq. ft. area is enough for setting up a small unit.

Machinery required to start a Jute rope making business

Broadly, you can set up the unit in two modes. It can be done as semi-automatic or as fully automatic. However, being a beginner it is recommended to have the semi-automatic plant. Some of the basic machinery is listed below

Fibre extraction machine
Fibre carding machine
Semi-auto twisting machine
Automatic feed rope making
Hand making coil winding M/C
Rope finishing M/C
Weighing scales, etc.

Raw materials required to start a Jute rope manufacturing business in India

The basic raw material comprises two items. These are raw jute and packaging materials. The production process is easy. And it doesn’t require even skilled manpower. However, you can request the machine to supply the company to impart training to your employees. Some of the basic manufacturing steps comprise:

Extraction of fiber
Carding of extra fiber
Spinning.
Conversion of spun jute yarn into Sutli/rope.
Coiling of Sutli/rope.
Finishing
Weighing and packing.

Normally, jute rope making is a simple business to start. In addition to that, there are many options you can develop for expanding this business in the long run.

Investment required to start a Jute rope making business in India

The expenditure for jute rope manufacturing business

The cost involved in the jute rope making machine ranges from Rs. 50,000 to Rs. 1,00,000 based on the company you choose.

Cost for raw material is Rs. 30,000

The packaging cost is Rs. 10,000

The cost of advertising the product is Rs. 10,000

Salaries for the employees if you hire is Rs. 30,000

The total cost involved in starting the jute rope making business is Rs. 1,80,000

Profit margin in jute rope making business

The profit margin in the jute rope making business is 20%-25% as the investment is very low. The process of making jute rope is also simple and easy.

You may also check this: Cold-Pressed Walnut Oil Business Profit.

Marketing strategies to sell Jute rope in the wholesale market

You can sell the jute rope produced in the wholesale market of your city.

Online marketing to sell Jute ropes

Online sale: The present state of online marketing is very essential to showcase your present business with the aid of online marketing. By designing a website for your business or through dealing with another hosting site, you may sell your products.

B2B websites: Websites like – Alibaba, Indiamart, Tradeindia, ExportsIndia could be useful for a bulk order for your products.

B2C websites: To sell the products directly to the customer you may reach websites like Amazon, Snapdeal, Flipkart, etc.

In case if you are interested in this: Jute Cultivation.