Introduction to Jute bag making business plan, permissions, and license: Are you planning to start a jute bag business plan, here you get the detailed information related to set-up the business. In spite of using plastic bags which creates lots of pollution in the environment as it is a non-biodegradable component, using jute bags came into existence as they are biodegradable and does not cause any harm to environment. Jute is an organic vegetable fibre which is also famously known as ‘golden fiber’; it is one of the soft, bio-degradable, inexpensive, shiny, and strong natural fibres which can be recycled very easily without any harm.
Jute bags are more durable, light in weight, stylish, strong due to which these jute bags are mainly used especially for packaging and also in transporting cement, agricultural products, sand, glossary products, etc. Now-a-days designer jute bags are majorly used for shopping, textbook, carrier bags, many others, etc. The demand for jute bags has been increased due to the awareness about the eco-friendly nature of jute bags; even children are using these jute bags as they understood the importance of them in nature. This is the main reason why jute bag making business is famous for.
A guide to Jute bag making business plan, permissions, and license
Jute bag making business is a great opportunity for the individual who wants to start this business as it needs only a small investment. It is the best business especially for housewives and students to earn in their free time as they can do this business even from home.
Potential of jute bag business
Before beginning jute bag making business you need to go through the market and demand for jute bags in nearby your areas. Jute bag is an essential item and is daily used for carrying purpose; hence it has a huge demand in the market. It is the best and simple business to start as the demand for jute bags is increasing day by day, and the demand is stable throughout the year. Jute bags are used especially for packaging, transportation as well as for marketing purpose.
We all knew that the plastic covers are considered as major pollutants; therefore, people are preferring jute bag over plastic bags of its eco-friendly nature and less cost. Jute is the toughest organic fiber with its lightweight, high durability, softening and shiny nature; it is easily obtained in the market; do not need high-end technology for production. Jute fiber is carbon neutral, UV protective decomposable materials and hence it is having high requirement for packaging of sand, cement and agricultural materials. Some vital aspects that enhance potential of this business are listed below.
Low investment: For jute business it does not need more and thus you can initiate a business with low capital and few types of machinery.
Home based business: One can initiate jute bag business from home; It does not need more space for business operations.
Eco-friendly: The government took steps to increase the usage of eco-friendly products, and as result, they have banned the use of plastic bags and hence the jute bags are the best choice instead of plastic bags.
Designer jute bags: Jute products like ladies purse, various designer bags, carry bags, laptop bags, travelling bags are available in market therefore clients get attracted towards the jute products.
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Check out the list of few products which are made from Jute Fiber
- Calico Bags
- Carry Bags
- Conference Bag
- Conference Bags
- Designer Bag
- Drawstring Pouches
- Ladies Purse
- Promotional Bag
- Shopping Bag
- Wine Bottle Bags
Licenses required for jute bag business
This business doesn’t need lots of documents to deal with few documentation for jute making business.
- Registration of firm: You may initiate a small to medium sized jute bag processing unit either a proprietorship or partnership company. If you are developing this business as One Person Company, then you must register your company as a proprietorship. For partnership operation, you must register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
- Trade License: Get a Trade License from local authorities; you must have the VAT registration.
- SSI unit: Also, must register for SSI unit, and should apply for ISO certification.
- GST registration: Get a GST number by GST registration which is mandatory for every business proprietor.
- IEC code: If you are in preparation to export your bags then should apply for an IEC code.
Area required to develop a jute business (location)
Location choice is not a difficult thing to do but you should be aware while choosing the area for jute bag making business. You can initiate a business with minimum 500 sq.ft area, you should ensure that the place is having enough space for machinery and storage, and also ensure that it has the provision for water and power supply. The location must be easily reachable by transportation as well the raw material supplier should be near to your location. You can have business functions from home also that will reduce the money.
List of raw material for jute business
Jute is an organic fiber composed of vegetable fiber which is attractive, durable, shiny, soft, light weight, etc., therefore, the jute is finest raw material for jute bag preparation. The cost of one jute fabric roll is Rs 35 to Rs 40 per meter. Moreover, you require raw material like, eyelet, printing gum, PVC bucket, chemical, hooks; sewing thread also require as packaging material.
Required raw materials for jute bags
- Bamboo sticks
- Chemicals and auxiliaries
- Jute fabric
- Laminated and non-laminated jute fabrics
- Packaging materials
- Printing gum
- PVC buckle
- Sewing nylon threads
Machinery essential for jute bag making business
For production process of jute bag you require few machinery. There are various categories of machinery in the market currently. As per the product output and stitching pattern, you have to select perfect machine. You require a heavy duty industrial equipment and side sealing machine (with lockstitch) for side sealing and stitching purpose, other than this machine you require a regular sewing machine for adding design and decoration on a jute bags. It is recommended to select nylon thread for sewing purpose as it is tougher than other thread as well as nylon thread hold the stitches for a longer time.
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The machine needed for jute bag preparation:
- Fabric cutting machine
- Heavy duty sewing machine
- Ordinary sewing machine
- Stencil equipment for printing colouring paints
- Lockstitch machines
- Woven sack bag cutting machine,
- Side sealing machine
Other than heavy machines that are needed are some equipment for jute bag preparation that is mentioned below:
- Cottage steamer
- Cutting machine
- Cutting table
- Dye paste stirrer
- Lamination machine
- Rubber wiper
- Scissors, measuring tape and other equipment.
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Manufacturing procedure for jute bag making
- Get Jute Roll
For jute bag preparing one requires jute fabric which basically comes in the jute roll pattern, the cost of one jute fabric roll is around Rs. 35 to Rs. 40 per meter.
- Lamination of Jute
There are two kinds of jute bags, one is laminated jute bag and another is simple non-laminated jute bag. If you wish to develop a laminated one you must laminate the entire jute roll before cutting.
Better to use a cutting machine for cutting the jute roll in required size.
If you are willing to print the firm name or logo you can use screen printing machine to printing purpose.
Washing and drying
Wash the printed jute roll and let it dry in direct sunlight for a few hours.
You must have a heavy lockstitch machine or sewing machine for stitching work; stitch the cut pieces of printed jute roll.
After you have done with the stitching of printed cut pieces is done, the bag is now ready for attaching PVC buckles or bamboo for carrying purpose.
How to sell jute bags
Every business need advertisement to product sales, but in this case designer bags rarely required promotion; usually, retailers are a mostly proven method to publish product in the market.
- Local market for jute bags (retail market)
You can reach the local markets that are looking to sell jute bags and where the demand is more. Jute bags are immensely used in a construction site for cement packaging, sand and other material. Jute bags are also used for pesticides and animal feed product storage.
- Cable filler
- Cable jointing
- Landfill covering
- Packing pipe joints
- Shopping bags
- Specialty pulp
- Agricultural use
- Wholesale market
You can sell your jute bags in your local and current dwelling city in wholesale market.
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- Online selling of jute bags
Apart from the conventional way of promotion, you can select new concentrated online marketing method or open your own website to notify people and make an interface you and to customers.
Costs involved in setting-up the jute bag business
Below is the list of costs involved for starting a jute bag business
- Cost involved for the area to start the set-up is Rs. 20,000 per month
- Costs involved for total machinery is Rs. 1,00,000
- Costs involved for other furniture is Rs. 20,000
- Other expenses like licenses, permits, and other miscellaneous charges, etc. is Rs. 15,000
Jute bag making training centers, courses in India
In India, the National Centre for Jute Diversification – NCJD and Jute Manufacturers Development Council – JMDC conducts training classes on jute bag making. It trains the members by giving basic training program; advance training program; and advance training along with design patterns are the list of courses which they offer. They also provide complete technical demonstration and they even help us in arranging for buyer-seller meet. The training program in these briefly demonstrates and provides training on different designs of jute bags, their preparation, tricks and easy ways to prepare them. This skill development program will definitely help the entrepreneurs especially at the initial stages in clearing few doubts like how to set up a jute manufacturing unit based on their budget limit. These courses are provided in the association with TATA Power Delhi Distribution Ltd.
Frequently asked questions about Jute bag making business
The following are the frequently asked questions on jute bag making business. These include-
How do I start a jute bag business?
One can start the business by following the steps like getting the jute role, laminating it, cutting, printing, washing, drying and stitching.
Where are jute bags made?
Jute bags are made up of jute extracted from jute plants which requires lots of moisture content and grows well at humid climates.
How many types of jute are there?
There are two types of jute one is white colour jute and the other is dark jute or tossa. These are grown in India, Bangladesh, Thailand, China, south Asian countries and Brazil.
What is the average cost involved in making the jute?
The average cost involved to start a jute bag business is Rs. 2,00,000 to Rs. 3,00,000. You can start your own business at your home itself.
Where are the machines available for jute making business?
These machines are available online or in the markets. Where they can buy based on the size of the unit.
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