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Paper Bag Manufacturing Business Guide

Paper Bag Manufacturing:

Paper Bag Manufacturing Unit:

The ban on plastic bags will give a start for making paper bags. Many states in India have imposed a ban on plastic bags. Carry bags are needful items to carry our goods, so the best alternative for plastic bags is paper bags.  Paper bag making is best profitable business as people are more influenced by going green concept. Paper bags are trendy and even eco-friendly.  Demand for paper bags has increased in the market as it is cheap in price, easy to hold items and most important point is they don’t harm our atmosphere. Commercial sectors are also joined their hand with governments in fighting against plastic and introduced paper bags instead of plastic bags.

Paper is recyclable and even they made of 35% recycled materials. If you have skills and interest in starting paper bag manufacturing business you can set up your own manufacturing unit.

This article will give complete information about paper bag manufacturing unit:

  • Scope and Business Plan.
  • Complete information on the paper bag manufacturing process.
  • Unit Location and facilities required.
  • Machines and Raw materials.
  • Registration required.
  • Marketing and branding.

Business Scope and Opportunity in Paper Bag Manufacturing Business:

Scope: Paper bags are trendy and eco-friendly is rising exponential rate throughout the country.  Plastic bags are completely banned all the metro cities in India, even the small-town municipalities are also implementing the ban of plastic. Establishment of shopping complexes and consumer stores in the rural, semi-urban and urban areas, the demand for paper bag has increased. And paper bags are cheap and it plays important role in clean environment and it is easily deposable.  So, paper bag manufacturing unit can be a profitable idea that gives a kick start to your entrepreneur career. The use of paper bag as a common packaging material has increased significantly in:

  • Shopping malls.
  • Stationary shops.
  • Grocery Stores.
  • Vegetable shops.
  • Food stalls.
  • Medical stores.

Paper Bag Manufacturing Unit Business Plan:

To start a paper bag manufacturing unit, you need to deal with various streams like a manufacturing process, Investment, Location, raw material, registration, Marketing, and Branding. Capital required for paper bag production is bit high, but compared to its potential markets rate it can be the best business start with good profits.

Make a Study:

You should make a complete study of the paper bag manufacturing process. A complete study gives you information about size and strength of the market, production procedure, machinery, and manpower etc. It will also give you risk factors in this unit.

Paper Bag design:

At first paper bags are used by in hifi designer’s stores, mall, branded shops etc with their logo and brand names. But after GO Green Movement, paper bags usage increased widely in malls, food marts, grocery stores, stationery stores, food stalls, bakeries.  Etc. Paper bags available at low cites, so even the roadside vendors are providing paper bags for carrying goods.

Paper bags are made of wrapping bags, newspapers, old magazines etc. Paper bags are of many dimensions some popular dimensions are

  • Flat Paper Bag Dimension: 11cm/15cm, 13cm/19cm,17cm/22cm,21cm/25cm.
  • Gazetted Paper Bag Dimension: 8cm/12cm/12cm, 50cm/12cm/50cm.

Investment Required for Paper Bag Manufacturing Unit:

Investment for paper bag manufacturing unit required two types of investment. One is a permanent investment that includes land, building, and machinery. If you have enough capital you can investor can take a loan. The working capital investment includes manpower cost, raw material cost, rent and day to day operational costs. For working capital investment, you can take the capital loan as overdraft or cash credit facility from all banks or financial institutes.

Project Financial Report:

  • Plant capacity: 15 lakhs.
  • Plant and Machinery: 14 Lakhs.
  • Working Capital: 8 Lakhs.
  • Total Capital Investment: 30 lakhs
  • Break Even: 47%

After making a complete financial plan next is select the location:

Business Location:

Selecting the location for your manufacturing unit is the crucial step. In selecting the place, you should consider several points before you decide.  The main thing you should consider in selecting the business place.

  • Select the place where all amenities (electricity, water, and sufficient space) available.
  • The location you select should be near to market the can reduce the storage, transportation cost and can easily sell your product.
  • Availability of machinery and manpower in that locality.

Registration Process Required for Paper Bag Manufacturing Unit:

Once you can perfect location, next step is select a name. Best idea to brand your product will begin with the name. Which is needed to register your company before you can start trading. For complete information about registration, you can contact local company registration office for more details on registering and get appropriate forms.

To get business registration with ROC you need to apply for:

  • Trade License from the local municipal corporation.
  • Udyog Aadhar Number.
  • VAT Registration.
  • BIS Certification.

Raw Materials for Paper Bag Manufacturing Unit:

Raw materials required for paper bag manufacturing unit are:

  • Paper Sheets 40” *60”, 1800 sheets.
  • Paper roll colors and white 500 Reams.
  • Printing Ink chemicals etc.
  • Packaging consumable.
  • Eyelets.
  • Tags for handles,
  • Polyester Stereo etc.

You can find many manufacturers and distributors of paper roll in local markets. Even you can get the wholesale dealers in markets where you can get at a very reasonable price. Even many dealers will available online. Select the best dealers best of them so that you make the product at low price at high quality.

Machinery Required for Paper Bag Manufacturing Unit:

Buy a proper equipment for producing the paper bags. List of some machinery that required in making paper bags:

  • Testing scale machine.
  • Roll slitter motorized machines
  • Creezing machine.
  • Bag Cutting machine.
  • Printing machines.
  • Stereo Press and Stereo Grinder.
  • Eyelet fitting machines.
  • Lace fitting machines.
  • Punching machines.

Even many additional tools are available in that market that makes your production fast with high quality.

Manufacturing Process of Paper Bags:

Manufacturing process depends upon the volume and weight of the paper bags to be carried. Step in making paper bags:

  • Cutting paper as per the estimated paper bag size by cutting machine.
  • Printing the paper.
  • Making bags using automatic bag machine by folding, pasting and shearing.
  • Punching.
  • Eyelet fitting.
  • Lace fitting.

Paper bag making process can be a semi-automatic or fully automatic process as per your production rate and investment.

Manpower for paper bag manufacturing unit:

Manpower depends on requirement and quantity of bags you produce. You need manpower for operating machines, marketing and for packing. And you need some administrative staff, drivers, and security. For a small-scale paper bag manufacturing unit, you require 6 to 7 employees.


A perfect marketing process keeps you on the success path. Implement a proper promotional process that can drag you more customers.  Paper is mostly used in shops, retail shop, supermarkets, grocery stores, bakers and stationary stores. There are many ways get clients for your business.

  • Search for potential clients where they are still using plastic bags. Give the complete awareness about paper bags, and attract them with your complimentary bags. This can be the best process to get clients.
  • Design some attractive business cards and distribute them in your circles and the business people you meet.
  • Design website and social networking pages. Social networking is the best marketing strategy that makes your product reach many clients.
  • Keep small stalls in malls, exhibitions, social event etc., distribute sample paper bags to reach clients.
  • Contact the companies that are already promoting themselves as eco-friendly. They might consider moving their business over to you.

Implement all the latest marketing trends to reach clients.

Paper Bag Manufacturing Unit takes lots effort, time and money. To get the success you need to implement the perfect business plan and proper execution of marketing strategies. Even though it bit tough, still a profitable business idea that can drag you a good amount of profits.

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