How to start a Paper Bag Making Business? [A Complete Guide]

Table of Contents:

1. Paper Bag Manufacturing Business

2. Paper Bag Making Business: Uses

3. Future Of Paper Bag Business

4. Paper Bag Business Plan

5. Paper Bag Making Business

6. Paper Bag Manufacturing Investment

7. Mandatory Raw Materials For Paper Bag Making Business

8. Type Of Paper Bag For Manufacturing Business

9. New Technology For Paper Bag Making Business

10. Recycling In Paper Bag Manufacturing Business

1. Paper Bag Manufacturing Business

A paper bag is a carry bag made out of paper, usually produced from chemical pulp manufactured in the kraft process. The most relatable example includes the brown paper bags that we get from any and every retail outlet. These paper bags are made from kraft paper. Then there are the gift bags or tote-style paper bags. These are made from a variety of papers that differ in their quality, texture, colour, and print. They can also be made from recycled paper. Paper bags are commonly used in packaging, as sacks, or as shopping bags. Due to its eco-friendliness, paper bags are wanted by most companies to pack their products. The range of its use is vast-from food to medical items.

2. Paper Bag Making Business: Uses

Some of the areas where paper bags are used are:

• General-purpose
• Food items
• Medical use
• Jewellery packaging
• Party bags
• Shopping bags

The list is endless.

3. Future Of Paper Bag Business

Many countries have banned single-use plastic bags, naturally creating the use of paper bags as an alternative. Some laws require them to have a minimum percentage of post-consumer recycled paper content. The global Kraft paper market is estimated at USD 15.5 billion in 2019 and is estimated to reach USD 18.1 billion by 2026.

All companies want to pack their goods in paper bags, due to its eco-friendliness. Paper bags are biodegradable and recyclable. Hence, a paper bag making business is a good opportunity for business owners to make decent profits. In this article, we will describe how to start such a business.

4. Paper Bag Business Plan

You first have to make a business plan where the entire idea like logistics, funding, and other details are mentioned. Other information needed includes a list of employees required, location, and plant and machinery. The marketing plan must include a demographic study and a plan on how to market the product. Research well about your target customers. The list below can help you with this:

1. Bakeries
2. Cloth Merchants
3. Groceries
4. Jewellers
5. Mobile Shops
6. Retail Outlets
7. Restaurants
8. Sweet Shops

Try to reduce the distribution channels to keep the prices low and also increase your profit margin.

5. Paper Bag Making Business

You can visit a paper bags manufacturing firm to learn more about the working of machines.

1- Money Required to Start a Paper Bag Business

Paper bag making is a small scale business and will require a minimum investment. You have to plan and invest in land, machinery, and labor. A fully automatic paper bag making machine will cost around Rs 5 lakh-Rs 8 lakh. The price varies according to the production capacity. One fully automatic machine can produce around 15,000 pieces per hour.

A semi-automatic machine is also available whose price is below Rs 3 lakh. However, the production capacity is lower than the automatic one, and you will have to depend more on your labor. The Paper bag machine price for the manual type is around Rs 50,000. With an initial investment of around Rs 50 lakhs, you can hope to make roughly 60 lakh units/year.

Also read: Paper Cup Manufacturers in India

2- License And Registration

If you want to start paper bag manufacturing business on a small scale, you can operate from your home also. For this, you will only need a Trade Licence. But if you are planning something bigger, then you first need to register your company with the Registrar of Companies (ROC). Then you will have to apply for the Trade Licence with the local municipal authorities. You will also have to get your unit registered as a Small Scale Industry (SSI). To manufacture paper bags, you will also need a Bureau of Indian Standards (BIS) certification. You will also need some other documents for your daily business activities:

1. Current Account Number of the Company.
2. GST number.
3. PAN.

You have to fulfil all the above procedures and legal requirements before you can start your business.

Also read: Cardboard Box Manufacturers in India

3- Appropriate Location

Try to choose a location for your manufacturing unit should be located in such a place where you can reduce your costs. So, you will have to find such a place where electricity charges are less, labor wages are low, rent or the real estate costs are on the lower side, and the cost of other facilities is also less. A semi-urban area is most suitable for this business because of lower taxes. Also, it should be near to your market, to keep transportation costs minimum. To start a paper bag business in India, a manufacturing space of around 2000 square feet will be sufficient.

Also read: Carry Bag Manufacturers in India

4. Machines

There are two methods for making paper bags:

• Manually-It is a very time-consuming process, and the quantity produced is less. You will only need gum, paper, a ruler, and labor to make the paper bags. Though your investment will be low, you will earn less profits.
• By machine-Automatic machines are quite easy to operate. You only have to put paper rolls in the machine, and it starts to make the bags automatically. This machine can produce approximately 60 Kgs of paper bags in an hour, which translates to roughly 10,000 pieces. So, in an 8-hour shift, you will be able to produce around 480 Kgs that make a good quantity to meet your orders.

6. Paper Bag Manufacturing Investment

Types of machine required:

1. Without Printing- This machine can only make plain bags.
2. With Printing- This machine can print logos or designs. It comes in two options- two-colour or four-colour printing.

Some of the other ancillary machines to be purchased are:

• Bag cutting machine
• Creezing machine
• Cut handle machine
• Eyelet fitting machine
• Lace fitting machine
• Punching machine
• Roll slitter motorised machine
• Stereo grinder and press
• Testing scale machine

Also Read: Cloth Bag Manufacturers in India

7. Mandatory Raw Materials For Paper Bag Making Business

All raw materials should be procured in the right quantity to ensure a smooth flow of production. The raw materials needed for the paper manufacturing business include:

1. Kraft Paper sheets (They are made from cellulose fibres extracted from wood).
2. Paper rolls in different colours including white
3. Printing Chemicals, Ink
4. Eyelets
5. Laces and Tags
6. Polyester Stereo
7. Glue
8. Handles

8. Type Of Paper Bag For Manufacturing Business

There are a lot of niche products available for various markets:

• Paper bags for food items and groceries
• Bags for medicines
• Shopping bags
• Bags for industrial use
• Bags for packaging accessories and jewellery

Also read: Kraft Paper Manufacturers in India

Labour

Since paper making is a small scale business, it will not require much labor. You can run a production unit with around 10 people. Besides, you can hire a graphic designer to do the logo work and other designs.

9. New Technology For Paper Bag Making Business

The latest demand from various industries especially the food industry is for biodegradable packaging. The biodegradable packaging is made with recycled paper pulp. Enzymes drawn from cotton, wheat husk, or other organic material react with them. The paper is manufactured mostly by using carbon-neutral methods. Poly Lactic Acid ( PLA ), a polymer produced from corn or tapioca starch, is used to make the packaging leakproof.

While manufacturing paper bags for food items, you should be very careful. Toxic substances may end up in undesirable incidents. So be careful.

10. Recycling In Paper Bag Manufacturing Business

Paper bags are readily recyclable. The recycling process is done by re-pulping the paper and then pressing it into the required shapes. The waste paper is first collected, sorted by machine or hand, washed, turned to sludge, purified, poured, flattened, dried, bleached or coloured, cut, and packaged. But each step of the process requires intensive energy and the use of huge machines.

Most people want to use paper bags because of the environmental benefits. Besides, technical advancements have made them easy to carry, clean, and store items for a long time. So, it makes sense to start a paper bags business. We hope that the above article will clear all your doubts about this venture.

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FAQs

Q. Is paper bag making business profitable?

Ans- Yes, the paper bag making business is profitable in India but in the longer run. For example, A paper bag with 18cm x 25cm will cost around Rs 3.40 inclusive of labour and material cost. And the market price will be 3.50 rupees, hence, the profit per paper bag in India is 0.10 Paise.

Q. How do I start a paper bag business from home?

Ans- Paper bag making is a small scale business and will require a decent amount of investment. You have to plan and invest in land, machinery, and labour. A fully automatic paper bag making machine will cost around Rs 5 lakh-Rs 8 lakh. With an initial investment of around Rs 50 lakhs, you can hope to make roughly 60 lakh units/year.

Q. How can I start paper bag business in India?

Ans- These are the definitive steps or things to keep in mind before starting a paper bag making business:

• Step 1- Create a Business Plan Checklist
• Step 2- Pick your Niche, Location, Raw Material, Labour, Funding Procurement, Equipment + Training, and Register your Business
• Step 3- Get Proper Assistance to Set up the Business

Q. How do I start my own paper bag business?

Ans- Money Required to Start a Paper Bag Business: You have to plan and invest in land, machinery, and labour. A fully automatic paper bag making machine will cost around Rs 5 lakh-Rs 8 lakh. The price varies according to the production capacity. One fully automatic machine can produce around 15,000 pieces per hour.

Q. What are the raw materials required for paper industry?

Ans- The method of papermaking uses raw materials that include:

1. Wood Chips that contain Cellulose (naturally existent fibre component of wood).
2. Chemicals
3. Energy
4. Water

Q. How much investment is required to start making paper bags in India?

Ans- In India, the price of one fully automatic paper bag making machine is around Rs. 5 to 9 Lakhs. This price varies on the production capacity of the machine. A standard full automatic paper bag manufacturing can create 15,000 in just an hour.

Q. Is paper bag better than plastic?

Ans- Yes, Paper bags are better than plastic due to being eco-friendly and sustainable. Being a biodegradable substance it's easier to recycle and can also be used for composting purposes.

Q. What are the disadvantages of paper bags?

Ans- Some common disadvantages of paper bags are:

• Paper bags take up more storage area than plastic bags and are heavier.
• Paper bags are more costly than plastic bags.
• Unlike their polyethene equivalents, paper bags are not waterproof.

Q. What type of paper is used for paper bags?

Ans- Kraft paper is used for making paper bags. Its made of softwood sulphate which is generally a yellowish-brown, thick light-brown, white or cream paper-making material that weighs between 80 and 120 grams. The Kraft papers' tensile strength is very high.

Q. How do I sell paper bags at home?

Ans- Here are some of the best tips to sell your handmade paper bags from home:

1. Use Whatsapp for marketing
2. Facebook Marketplace for local outreach
3. Instagram Ads for target audience approach
4. Approaching local neighbourhood stores
5. Become a part of exhibitions, trade shows, arts & crafts fairs
6. Create your website or sell via eCommerce sites