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How to Start a Profitable Paper Bag Making Manufacturing Business

Do you want to start a paper bag making business from home or on small scale?  If so, this article will provide you with the necessary information for upcoming entrepreneurs who want to start a small paper bag manufacturing business.

The process of making a paper bag is simple. And with a small startup investment, any individual can start this business both full-time or part-time.

Paper carry bags are one of the most common packaging boxes used by sellers nowadays. Generally, textiles and cloth merchants, dry cleaners, bakers, grocers, stationers, and sweet sellers use these bags regularly. There are paper carry bags that can hold up to 20 kgs of weight without getting torn.

Bags that are made of a paper material called sarc-kraft can withstand such weight. Paper carry bags can compete with any kind of plastic bag in terms of all features. Also, it can cater to any kind of conceivably end-use. Simply, paper bags are durable, eco-friendly in nature, and convenient.

Paper Bag Manufacturing Project Plan for Beginners

Here are the important steps to follow to start a profitable paper bag manufacturing company:

1. Understand the Market

According to industry experts, the global paper bag market is increasing to a moderate CAGR of 4.4% every year. Factors like a strong and growing retail sector in developed regions, rising preference for paper bags across regions, and increasing penetration of retail outlets in emerging economies are contributing to the growth of the global paper bags market.

Many governments today are increasingly becoming environment-sensitive and at least project themselves to be so. Big business too wants to be seen as eco-friendly. Due to the ban on polythene carries bags, the demand is growing very fast.

The retail and the food and beverage industry largely contribute to the growth of the global market for paper bags. Both sectors are growing very fast both in developed and developing countries. Hence, this is the perfect time to start a paper bag-making business for new or first-generation entrepreneurs.

However, if you are planning to enter into the paper bag business n a small scale, it is important to collect information about the local market demand and trends. Do detailed market research and find out the gaps that exist in the market you are going to sell your products. It will help you in creating a proper business plan.

2. Create a Paper Bag Making Business Plan

As with any other business, you need to write a business plan document for your paper bag business. A business plan works as a roadmap for the future activities of the business. In addition, this plan is a must-have document for arranging funds from investors.

For small-scale paper bag-making businesses, one does not need a long and lengthy business plan. Some of the major topics that must be addressed are the following:

  • Initial startup and recurring costs
  • Target customers
  • Pricing plan
  • Hiring plan
  • How and where to sell?

3. Make Your Paper Bag Manufacturing Business Legally Compliant

It is most essential to abide by the legal requirements of the local government to run a hassle-free legally protected business.

Apart from registering your business, there are a few licenses and permits one needs to procure for the paper bag business. It is best to consult with the local government authority and a lawyer and get all the necessary and essential licenses.

Furthermore, buy business insurance to protect your manufacturing unit from any mishap.

4. Name Your Business

Though often ignored by many startups, a proper business name is critical to the long-term success of any business. Take some time off and select a catchy name for your business so that customers can relate to your products.

Learn More: How to Name Your Business? Step-By-Step Guidelines

5. Find a Proper Factory Location

For any manufacturing business, factory location is one of the key decisions that a business owner needs to take. As per area requirements, find a place that is not far off from the immediate local market. The less the transport cost for delivery of goods, the more will be your profitability.

6. Buy the Necessary Machine and Raw Materials

Before buying machines, it is advised to talk to machine sellers and if possible visit a local paper bag manufacturing unit. This will make you far more equipped to make a better decision in buying the right machines.

Broadly, you will find two types of paper bag-making machines. One is a semi-automatic and the other is a fully-automatic machine. Select the one as per your budget and capacity of production.

In addition, you need a regular supply of raw materials to make paper carry bags. Talk to local reputed suppliers and ensure a consistent supply of good quality required supplies. Some of the basic materials you need to manufacture paper bags are the following:

  • Paper rolls and sheets
  • Printing chemicals
  • Adhesives
  • Colors,
  • Polyester stereos
  • Eyelets
  • Strings
  • Laces

7. Paper Bag Manufacturing Process

The paper bag-making process depends on the volume and weight of the Products to be carried.  Accordingly, you need to use various kinds of papers with different GSM and Bursting Strengths.

The basic steps that are followed are mentioned below:

  • Cutting paper into proper size by cutting machine.
  • Printing the paper as per need.
  • Making bags by automatic bag-making machine by folding, pasting, & shearing.
  • Punching
  • Eyelet fitting
  • Lace fitting.

You can go by either a Semi-automatic or a Fully-automatic process according to your required production output and budget. In addition, you can operate the manufacturing business with 4 to 5 skilled and experienced manpower.

8. Calculate the Cost of Starting a Paper Bag Manufacturing Business

In starting a paper bag-making business, machinery plays an important role in overall success. You must select the machine according to the production output requirement and the types of bags that you want to produce.

Almost all sectors use different types of bags. The paper bags that textile stores use are different from the paper bags that medicine shops use.

Hence, selecting the machinery depends on the industry sectors that you want to cater to. Also, you may consider procuring a printing machine. Because most of the companies will ask you to print the logo, company name, and address on the outer side of the bags.

If you are from India, you can establish a fully-automatic paper bag manufacturing machine at a cost of Rs. 7 Lac per unit with a production capacity of 5000-10000 pieces/ hour.

Broadly, there are two types of units you can establish for producing paper bags. These are semi-automatic or fully automatic. Some of the most important machines are

  • Single Slit Slitting unit to size the paper from a big width to a small width to
    produce small bags
  • Paper cutting machine.
  • Double Color Flexo printing unit with attachment
  • Flat-type size plates and Sachet type size plates
  • Eye letting Machine
  • Bag cutting machine
  • Stereo rollers

Generally, a fully automatic paper bag manufacturing machine comes with all these machines assembled with a complete unit.

Other than the machinery cost, your other major investment will be factory rent, raw material costs, manpower costs, legal costs, and promotional expenses. In India, the approximate cost to start a small-scale paper bag manufacturing business with an automatic machine will be around Rs 15 Lacs to 20 Lacs.

We hope the above-mentioned information will help you in starting a profitable paper bag manufacturing business on a small scale.