Jute Bag Making Business Plan
Jute Bag Making Business plan is is essential when you are starting a jute bag making business as it helps you run your business successfully.
Updated: May 31, 2024
Jute Bag Making Business Plan:
Jute Bag Making Business plan is is essential when you are starting a jute bag making business as it helps you run your business successfully by identifying key market dynamics, illuminating opportunities for competitive advantage, and providing key performance metrics to focus on.
Jute fabrics are durable, strong, colorfast, light, attractive, and cheaper than most fabrics made from other fibers. It is a naturally found, inexpensive, biodegradable fiber product which is eco-friendly as well. The demand for jute yarn, jute fabrics, and other jute items is increasing very fast with new technologies evolving for the bulk use of jute as a raw material in the production of price competitive and high value-added final products. Jute fabrics are excellent raw materials for jute bags as these are UV protective, anti-static, carbon dioxide neutral, and natural decomposition are possible.
Jute is considered as the second most important vegetable fiber after cotton. Jute bags are gradually gaining popularity across the globe on account of its recyclable, re-usable, non-toxic and biodegradable nature. Jute bags does not leave behind any remnants or polluting the environment if left unused as they get destroyed on their own.
The manufacturers and consumers have three alternatives such as paper bags, jute bags, and fabric (cotton, denim, canvas) bags due to pollution caused by the plastic bags. Paper bags are delicate and require careful handling as they might tear on carrying heavyweights and can get damp on carrying cool or frozen products where as bags made of fabric are durable but expensive at the same time. Jute bags are preferred over these wo bags as they are strong, cheap and reusable without any harmful effects.
Jute bags are now coming with lamination or a lining like LDPE, muslin, wipe clean and splash resistant to enhance the durability of the bag. Jute bags are also coming with a glamorous look with comfy handles, attractive prints, and straps, pockets, shapes, colors, etc.
Types of Jute Bags:
There are three different types of bags according to lamination or lining.- Unlaminated jute bags are biodegradable.
- Laminated jute bags are Food Grade LDPE, splash resistant, wipe clean
- Muslin Lined are one o the type of bag.
A jute bag comes in several different handle options such as Jute Handles, Flat Cotton Strap, Cotton webbing, filled with rope, Cane Handles, Drawstring and Rope with eyelets
Use of Jute Bag:
- Jute bags are the most common usable products that are sold in the market.
- Jute Bags are mostly used as shopping bag.
- Jute bags can be also be used as primary bags, carrying textbooks, folders, lunch, mails, etc.
- Jute bags come in various designs and different types of small purses made of jute for ladies are also very popular.
- Sacking bags made of Jute are mainly used for packing cement, sugar, sands, agro products, and other bulky items.
- Bulk food items like onion, potatoes, flour rice, and fertilizers are transported by using Jute bags.
- The printed jute bags can also be used for travel purposes.
- It can be used school bags and to carry lunch to work.
- Jute bags can be used as a gift bags and for promotional purposes as well as these are versatile.
Jute Bags Business Planning:
There are various things you need to consider when you start any business.- You will need a clear and informative business plan whether you are in the beginning stages of starting your own business or planning on taking it to the next level.
- All types of information a reader need to understand the purpose of your business and capabilities can be provided by a business plan.
- A business plan need to be created along with the training and capital as well as research must be done for the jute bag market before you start production.
- Jute bags manufacturing is an easy process once you are trained but you can sustain yourself in the market only if you know the market potential and trends.
- You need to get acquainted with the raw material suppliers, manufacturers and potential customers by become a wholesale dealer at first.
- You need to understand the fast-selling jute bag types and look for upcoming trends.
- Start establishing your production unit once you get a good hold of the market potential.
- A convincing business plan should be created by including the details of your objective, financial estimates, staffing, location, production timelines and marketing strategies. Register a company name and start production.
Identify the Demand:
The demand for the specific type of jute bag in the local market should be identified. Checking the retail price, who are the manufacturers and their marketing policy will help you in writing the business plan and starting your jute bag making business.
Create a a Business Plan:
- The objective of your business, target demographic and marketing strategy should be included in the Jute bags making business plan.
- You must offer the right product at the right price to the right audience as a jute bag manufacturer.
- A financial analysis of startup cost and marketing plan must be included in the Jute bags making business plan.
Select Location:
- You will need to be careful about the selection of the location as the easy availability of raw material is an important factor.
- The northeast part of India including Tripura, Assam, Manipur, Sikkim, and Arunachal Pradesh is the suitable location for starting this business.
- You need to create a business budget for your expenditure before you start looking for a business location.
- Check out the surrounding neighborhood before you buy or rent a building.
- The potential growth of your company should be considered when choosing a location for the business.
- Find out how it is zoned and how easy it is for customers to reach the Jute business location before you purchase a location for business.
- Some part of your business location strategy should be based on the amount of competition in the area.
- Check the local Federal laws and the upcoming tax liabilities before initiating the business.
Register Your Jute Bag Making Business:
- Your business must be registered with the proper form of business organization.
- You can look for a proprietorship company for a very small startup
- You may also go with the partnership, LLC, or INC companies depending on your business size and investment model.
- Generally, any specific licenses from the Government authorities is not required for this type of business plan.
- Training on jute bag making is offered by National Centre for Jute Diversification (NCJD) and Jute Manufacturers Development Council (JMDC) in India.
- Several schemes such as 'Basic Training Programme', 'Advance Training Programme', 'Advance Training cum Design Dissemination Programme', 'Technical demonstration' and 'Buyer-Seller Meet' are provided by them to support small-scale jute bag-making industries.
- Marketing assistance is also provided to the jute entrepreneurs to sell their products through different Trade Fairs/Exhibitions in the country as well as in the foreign markets.
Startup Cost for Jute Bag Making Business:
- The cost and startup investment depends on the scale of production output.
- The startup cost consists of procuring machinery, raw materials, and other resources including manpower as well as the marketing and distribution costs.
- It is better to start with your own fund if you are starting a small-scale unit.
- You can apply for a bank loan or venture capital investment or big investment.
Arrange Finance:
You can fund the business from your own savings or avail business loans or government grants.
Unit Setup for Jute Bag Making Business:
- Training, investment capital, understanding the market, thorough research of raw material suppliers, production machinery, employees, registrations, and much more are required to set up a jute bag manufacturing unit.
- You can set up a small jute bag making business with 500 Sq Ft of an area.
- The space must have a wide entrance and you must have an electricity connection for operating the machinery.
- You must craft a floor plan after securing the space.
- The space for the production area, storage, and an admin area need to be identified.
- Some space for office work including raising invoices, money receipts, etc. is also need to be considered.
Machinery for Jute Bag Making Business:
- Any heavy machinery is not required for the jute bag making business.
- Generally, you will need to procure Wooden Printing Table, The screen of Diff. Design, Rubber Wiper, Dye Paste Stirrer, Water Drum, Cottage Steamer, Tubes, Steel Spoons, Mugs, Bucket, Roper, Clips, Stools, etc., Lock Stitch Machine, Wooden Working Table, Cutting Table, Electric Fittings, Scissors, Measuring tape and other Equipment
- Various quality side sealing machines, woven sack bag cutting machines, lockstitch machines might be effective for jute bag making unit.
Raw Materials for Jute Bag Making Business:
- Jute fabrics is the major required raw materials for printed and decorated jute shopping bags.
- Both laminated and non-laminated jute fabrics are required for jute bag making.
- You will also need to procure the dyestuff, chemicals, printing gum and auxiliaries.
- A PVC buckle and bamboo sticks, sewing thread, packing materials, labels, etc. are also required.
- The raw materials can be easily procured from the local wholesale market.
Manufacturing Process for Jute Bags:
- The jute fiber stalks are put through various processes like retting, strepping, washing, removing excess water, drying in the sun, bailing, packaging and transportation to the mills where the threads are either single or double woven into jute fabric.
- You will need to install an industrial sewing machine for establishing a jute bag-making unit.
- You need to select the right machinery for your business according to the required stitching pattern and production output.
- You will need to procure the woven jute fabric from the wholesale market or manufacturers in the first step.
- You need to spread the woven jute fabric on the printing table and fix the requisite auxiliaries/ingredients.
- It can be printed by screen printing according to the design and color.
- The printed fabric need to be washed and dry under sunlight or through drier.
- You can then cut the printed fabric as per the required design and sizes of the bag and stitch the cut pieces by lockstitch machine.
- The PVC buckle or bamboo stick, etc. can be attached manually.
- The jute bags are ready for the market now.
Promote your Jute Bag Manufacturing Business:
- Retail distribution is the most effective way of establishing any product in the market.
- The institutional sales also can be considered.
- Concentrate on the online promotion apart from the offline promotion.
- You can secure a domain name, and build a business website according to the brand name of your company.
- Social media can also be used carefully for promoting your jute bag widely.
Business Compliance for Jute Bag Making Business:
- The ownership pattern of your company need to be determined while initiating the jute bag making business
- It is advisable to get registered as a sole proprietorship, or One Person Company if you want to start as a sole proprietor else you can register the business as LLP. Pvt. Ltd. or Ltd. Company..
- Trade License should be obtained from the local authority.
- You may also need to register as SSI Unit and apply for ISO Certification.
- You will need to apply for IEC Code if you want to focus on the export market.
Jute Bag Making Business plan is is essential when you are starting a jute bag making business as it helps you run your business successfully by identifying key market dynamics, illuminating opportunities for competitive advantage, and providing key performance metrics to focus on.
Jute fabrics are durable, strong, colorfast, light, attractive, and cheaper than most fabrics made from other fibers. It is a naturally found, inexpensive, biodegradable fiber product which is eco-friendly as well. The demand for jute yarn, jute fabrics, and other jute items is increasing very fast with new technologies evolving for the bulk use of jute as a raw material in the production of price competitive and high value-added final products. Jute fabrics are excellent raw materials for jute bags as these are UV protective, anti-static, carbon dioxide neutral, and natural decomposition are possible.
Jute is considered as the second most important vegetable fiber after cotton. Jute bags are gradually gaining popularity across the globe on account of its recyclable, re-usable, non-toxic and biodegradable nature. Jute bags does not leave behind any remnants or polluting the environment if left unused as they get destroyed on their own.
The manufacturers and consumers have three alternatives such as paper bags, jute bags, and fabric (cotton, denim, canvas) bags due to pollution caused by the plastic bags. Paper bags are delicate and require careful handling as they might tear on carrying heavyweights and can get damp on carrying cool or frozen products where as bags made of fabric are durable but expensive at the same time. Jute bags are preferred over these wo bags as they are strong, cheap and reusable without any harmful effects.
Jute bags are now coming with lamination or a lining like LDPE, muslin, wipe clean and splash resistant to enhance the durability of the bag. Jute bags are also coming with a glamorous look with comfy handles, attractive prints, and straps, pockets, shapes, colors, etc.
Types of Jute Bags:
There are three different types of bags according to lamination or lining.
- Unlaminated jute bags are biodegradable.
- Laminated jute bags are Food Grade LDPE, splash resistant, wipe clean
- Muslin Lined are one o the type of bag.
A jute bag comes in several different handle options such as Jute Handles, Flat Cotton Strap, Cotton webbing, filled with rope, Cane Handles, Drawstring and Rope with eyelets
Use of Jute Bag:
- Jute bags are the most common usable products that are sold in the market.
- Jute Bags are mostly used as shopping bag.
- Jute bags can be also be used as primary bags, carrying textbooks, folders, lunch, mails, etc.
- Jute bags come in various designs and different types of small purses made of jute for ladies are also very popular.
- Sacking bags made of Jute are mainly used for packing cement, sugar, sands, agro products, and other bulky items.
- Bulk food items like onion, potatoes, flour rice, and fertilizers are transported by using Jute bags.
- The printed jute bags can also be used for travel purposes.
- It can be used school bags and to carry lunch to work.
- Jute bags can be used as a gift bags and for promotional purposes as well as these are versatile.
Jute Bags Business Planning:
There are various things you need to consider when you start any business.
- You will need a clear and informative business plan whether you are in the beginning stages of starting your own business or planning on taking it to the next level.
- All types of information a reader need to understand the purpose of your business and capabilities can be provided by a business plan.
- A business plan need to be created along with the training and capital as well as research must be done for the jute bag market before you start production.
- Jute bags manufacturing is an easy process once you are trained but you can sustain yourself in the market only if you know the market potential and trends.
- You need to get acquainted with the raw material suppliers, manufacturers and potential customers by become a wholesale dealer at first.
- You need to understand the fast-selling jute bag types and look for upcoming trends.
- Start establishing your production unit once you get a good hold of the market potential.
- A convincing business plan should be created by including the details of your objective, financial estimates, staffing, location, production timelines and marketing strategies. Register a company name and start production.
Identify the Demand:
The demand for the specific type of jute bag in the local market should be identified. Checking the retail price, who are the manufacturers and their marketing policy will help you in writing the business plan and starting your jute bag making business.
Create a a Business Plan:
- The objective of your business, target demographic and marketing strategy should be included in the Jute bags making business plan.
- You must offer the right product at the right price to the right audience as a jute bag manufacturer.
- A financial analysis of startup cost and marketing plan must be included in the Jute bags making business plan.
- You will need to be careful about the selection of the location as the easy availability of raw material is an important factor.
- The northeast part of India including Tripura, Assam, Manipur, Sikkim, and Arunachal Pradesh is the suitable location for starting this business.
- You need to create a business budget for your expenditure before you start looking for a business location.
- Check out the surrounding neighborhood before you buy or rent a building.
- The potential growth of your company should be considered when choosing a location for the business.
- Find out how it is zoned and how easy it is for customers to reach the Jute business location before you purchase a location for business.
- Some part of your business location strategy should be based on the amount of competition in the area.
- Check the local Federal laws and the upcoming tax liabilities before initiating the business.
- Your business must be registered with the proper form of business organization.
- You can look for a proprietorship company for a very small startup
- You may also go with the partnership, LLC, or INC companies depending on your business size and investment model.
- Generally, any specific licenses from the Government authorities is not required for this type of business plan.
- Training on jute bag making is offered by National Centre for Jute Diversification (NCJD) and Jute Manufacturers Development Council (JMDC) in India.
- Several schemes such as 'Basic Training Programme', 'Advance Training Programme', 'Advance Training cum Design Dissemination Programme', 'Technical demonstration' and 'Buyer-Seller Meet' are provided by them to support small-scale jute bag-making industries.
- Marketing assistance is also provided to the jute entrepreneurs to sell their products through different Trade Fairs/Exhibitions in the country as well as in the foreign markets.
- The cost and startup investment depends on the scale of production output.
- The startup cost consists of procuring machinery, raw materials, and other resources including manpower as well as the marketing and distribution costs.
- It is better to start with your own fund if you are starting a small-scale unit.
- You can apply for a bank loan or venture capital investment or big investment.
- Training, investment capital, understanding the market, thorough research of raw material suppliers, production machinery, employees, registrations, and much more are required to set up a jute bag manufacturing unit.
- You can set up a small jute bag making business with 500 Sq Ft of an area.
- The space must have a wide entrance and you must have an electricity connection for operating the machinery.
- You must craft a floor plan after securing the space.
- The space for the production area, storage, and an admin area need to be identified.
- Some space for office work including raising invoices, money receipts, etc. is also need to be considered.
- Any heavy machinery is not required for the jute bag making business.
- Generally, you will need to procure Wooden Printing Table, The screen of Diff. Design, Rubber Wiper, Dye Paste Stirrer, Water Drum, Cottage Steamer, Tubes, Steel Spoons, Mugs, Bucket, Roper, Clips, Stools, etc., Lock Stitch Machine, Wooden Working Table, Cutting Table, Electric Fittings, Scissors, Measuring tape and other Equipment
- Various quality side sealing machines, woven sack bag cutting machines, lockstitch machines might be effective for jute bag making unit.
- Jute fabrics is the major required raw materials for printed and decorated jute shopping bags.
- Both laminated and non-laminated jute fabrics are required for jute bag making.
- You will also need to procure the dyestuff, chemicals, printing gum and auxiliaries.
- A PVC buckle and bamboo sticks, sewing thread, packing materials, labels, etc. are also required.
- The raw materials can be easily procured from the local wholesale market.
- The jute fiber stalks are put through various processes like retting, strepping, washing, removing excess water, drying in the sun, bailing, packaging and transportation to the mills where the threads are either single or double woven into jute fabric.
- You will need to install an industrial sewing machine for establishing a jute bag-making unit.
- You need to select the right machinery for your business according to the required stitching pattern and production output.
- You will need to procure the woven jute fabric from the wholesale market or manufacturers in the first step.
- You need to spread the woven jute fabric on the printing table and fix the requisite auxiliaries/ingredients.
- It can be printed by screen printing according to the design and color.
- The printed fabric need to be washed and dry under sunlight or through drier.
- You can then cut the printed fabric as per the required design and sizes of the bag and stitch the cut pieces by lockstitch machine.
- The PVC buckle or bamboo stick, etc. can be attached manually.
- The jute bags are ready for the market now.
- Retail distribution is the most effective way of establishing any product in the market.
- The institutional sales also can be considered.
- Concentrate on the online promotion apart from the offline promotion.
- You can secure a domain name, and build a business website according to the brand name of your company.
- Social media can also be used carefully for promoting your jute bag widely.
- The ownership pattern of your company need to be determined while initiating the jute bag making business
- It is advisable to get registered as a sole proprietorship, or One Person Company if you want to start as a sole proprietor else you can register the business as LLP. Pvt. Ltd. or Ltd. Company..
- Trade License should be obtained from the local authority.
- You may also need to register as SSI Unit and apply for ISO Certification.
- You will need to apply for IEC Code if you want to focus on the export market.