Key points on paper bag manufacturing business in India

by varun · Published October 2, 2020 · Updated December 24, 2021

Paper bag manufacturing

You must have been increasingly using paper bags during your recent market visits. With recent ban on single use plastic bags in the country, paper bags have seen increased adoption. This is a good sign for our environment as paper bags cause less damage compared to plastic bags. With increasing public consumption of market products, a paper bag is surely a thing for the future. Paper bag market is expected to reach 5 Billion USD by 2024. This has been further added by increasing awareness towards the environment and harmful effects of single use plastic. Let us look at the key features of paper bag manufacturing business in India-

Harmful effects of plastic – We all know harmful effects of single use plastic on our environment. Recent studies have shown how increased use of plastic has caused damages to ocean, rivers and ground level water systems. Plastic has virtually contaminated our ecosystem. Some studies have even shown how food items stored in plastic can cause life threatening diseases like cancer.

Ban on Single use plastic – A ban on single use plastic was long awaited and this has been implemented by our prime minister Mr. Narender Modi. This move has created a tremendous opportunity for alternative products like paper bags in our country.

Technological advances – Recent technological advancement in paper bag manufacturing have opened the door for many entrepreneurs. A paper bag manufacturing business in India no longer requires huge investment like before.

Financial Requirements – Financial requirement for paper bag manufacturing business in India can be divided into following categories-

Land – A land is the first and foremost requirement for starting a paper manufacturing business in India. A land with size of 600 Sq. Ft is ideal for starting this business. Rent would be around Rs 15000 – Rs 30000 in Delhi NCR.
Bag cutting machine – A bag cutting machine can be an automatic or semi automatic one. These would cost around 5-10 lakhs in Delhi.
Other machinery – You would also require machinery like testing scale machine, stereo press, grinder, lathe fitting machine, punching machine etc.
Other expenses – This would include expenses on manpower, raw material and electricity. This would be in the range of 30-40% of overall cost.

Future of paper bag manufacturing is great in India. This current pandemic of Covid – 19 has taught us to be more environmentally focused than ever before. Government, citizens and private enterprises are beginning to realize what damage a single plastic can cause. This will result in increasing supply as well as demand for paper bags in India. However, this business is quantity as well as quality oriented. Before starting this business, you should clearly calculate costing and revenue at each and every step. One should have a keen eye on weekly sales numbers and their trends. Quality of product is also very important as it is directly related to consumption items like food. If one can manage both then one can be sure of success in this business.

In this article, we have discussed important points related to a paper bag manufacturing business. Meanwhile you can read more articles on various business and business related licenses here.