Paper Bag Making Business Plan
Paper Bag Making Business Plan is a business plan where the entire idea like logistics, funding, and other details like a list of employees required, location, and plant and machinery are mentioned.
Updated: May 31, 2024
Paper Bag Making Business Plan:
Paper Bag Making Business Plan is a business plan where the entire idea like logistics, funding, and other details like a list of employees required, location, and plant and machinery are mentioned.
The process of making a paper bag is simple and made out of paper. Usually, the paper used in paper bags are produced from chemical pulp manufactured in the kraft process. Brown paper bags are the most relatable example which are made from kraft paper that we get from any and every retail outlet.The gift bags or tote-style paper bags are made from a variety of papers that differ in their quality, color, texture and print. These bags can also be made from recycled paper and are commonly used as sacks, as shopping bags or in packaging because of its eco-friendliness.
Paper bags are also used for food items, medical use, jewellery packaging, party bags, shopping bags and many more general purpose. The use of paper bags as an alternative to plastic bags has increased now a day as single-use plastic bags are banned in many countries. A paper bag making business can be a good opportunity for business owners to make profits because of the increasing demand of paper bags. Many companies want to pack their goods in paper bags as paper bags are biodegradable and recyclable.
Paper bags are in high demand nowadays in almost every commences activity for their recyclable and sustainable properties. Paper bag making business is a booming opportunity for new and aspiring entrepreneurs as the demand for paper bags has increased with the establishment of consumer stores and shopping malls.
Paper Bag Making Business:
You need to follow the below important steps to start a profitable paper bag making business:
Create a Paper Bag Making Business Plan:- A business plan is a must-have document for arranging funds from investors, and it also works as a roadmap for future activities of the business
- Creating a paper bag making business plan is the first step before starting a paper bag making business where the entire idea like logistics, funding, and other details need to be mentioned.
- A list of employees required, location, and plant and machinery should also be mentioned in a paper bag business plan.
- A demographic study and a plan on how to market the product should be included in the marketing plan.
- Research well about your target customers before starting a paper bag making business.
- The number of distribution channels should be reduced to keep the prices low as well as to increase your profit margin.
- Initial startup and recurring costs, Target customers, Pricing plan, Hiring plan as well as How and where to sell? Should be included in a paper bag making business plan.
Expense Required to Start a Paper Bag Business:
- Paper bag making business will require a minimum investment as it is a small scale business.
- You need to first plan and invest in land, machinery, and labor.
- Machinery plays an important role in the overall success in starting a paper bag making business.
- The machine need to be selected according to the requirement of production output and the kind of bags that you want to manufacture.
- A fully automatic paper bag making machine will usually cost around Rs 5 to 8 lakh. But, the price may vary according to the capacity of production.
- Around 15,000 pieces of paper bag can be produced per hour with one fully automatic machine.
- Although, the production capacity of a semi-automatic machine is lower than the automatic one, you will have to depend more on your labor.
- Different types of bags are used by different sector.
- The paper bags that is used by textile stores are different from the paper bags that are used in medicine shops
- So, the machinery should be selected depending on the industry sectors that you want to cater to.
- Procuring a printing machine also need to be considered as companies can ask you to print the logo, company name, and address on the outer side of the bags.
- Single Slit Slitting unit is a type of machine that is used to size the paper from a big width to a small width to make small bags.
- Paper cutting machine, Flat type size plates and Sachet type size plates, Double Color Flexo printing unit with attachment, Eye letting Machine, Bag cutting machine and Stereo rollers are some of the most important machines required for this business.
- Usually, all these machines assembled with a complete unit in a fully automatic paper bag making machine.
- Factory rent, raw material costs, manpower costs, legal costs, and promotional expenses are your other major investment other than the machinery cost.
- The cost will be around Rs 15 to 20 Lacks to start a small scale paper bag making business with an automatic machine in India.
- Your cost can be significantly reduced by researching and proper planning as to where to spend and the choice of suppliers .
License And Registration:
- You can operate from your home if you want to start paper bag manufacturing business on a small scale.
- You will only need a Trade License for this.
- But, you first need to register your company with the Registrar of Companies (ROC) if you are planning something bigger,
- You will also have to apply for the Trade License with the local municipal authorities and get your unit registered as a Small Scale Industry (SSI).
- You will also need a Bureau of Indian Standards (BIS) certification to manufacture paper bags.
- Current Account Number of the Company, GST number, PAN are some other documents for your daily business activities.
- You need to purchase business insurance plan to protect your manufacturing unit from any mishap.
Name Your Business:
You should select a unique name for your business that customers can relate to your products as a proper business name is critical to the long-term success of any business.
Select Location:
- Your manufacturing unit should be located in such a place where your total costs can be reduced.
- Select a place where electricity charges are less, rent or the real estate costs are on the lower side, labor wages are low and the cost of other facilities is also less.
- The location should be near to your market to reduce the transportation costs.
- A semi-urban area will be the most suitable location for paper bag making business because of lower taxes
- A manufacturing space of around 2000 square feet will be sufficient to start a paper bag business in India.
Machines Required for Paper Bag Making Business:
- Paper bags can be made either by machine or manually.
- Making paper bags manually is a very time consuming process, and the quantity produced is also less.
- You will only need gum, paper, a ruler, and labor to make the paper bags manually.
- Investment to make the paper bags manually will be low, and you will also earn less profits.
- Automatic paper making machines are quite easy to operate you only have to put paper rolls in the machine, and it starts to make the bags automatically
- Approximately 60 Kgs of paper bags can be produced in an hour by an automatic paper making machine which translates to roughly 10,000 pieces.
- You can also have these machines with printing and without printing.
- Without Printing machine can only make plain bags where as with printing machine can print logos or designs.
- With Printing machine comes in two options including two-color or four-color printing.
- Bag cutting machine, Creezing machine, Cut handle machine, Eyelet fitting machine, Lace fitting machine, Punching machine, Roll slitter motorized machine, Stereo grinder and press and Testing scale machine are some of the other ancillary machines to be purchased.
Raw Materials For Paper Bag Making Business:
- All raw materials required or making paper bags should be procured in the right quantity to ensure a smooth flow of production.
- Kraft Paper sheets, Paper rolls in different colors including white, Printing Chemicals, Ink, Eyelets, Laces and Tags, Polyester Stereo, Glue, Handles are the raw materials needed for the paper manufacturing business.
Type Of Paper Bag For Manufacturing Business:
Paper bags for food items and groceries, Bags for medicines, Shopping bags, Bags for industrial use, Bags for packaging accessories and jewelry are various types of paper bag that can be manufactured.
Labour:
- Paper making business will not require much labor as it is a small scale business.
- A production unit can be smoothly run with around 10 people.
- An interactive training program can help the manpower learn the manufacturing process and meet the requirements of the employer.
- You can also hire a graphic designer to do the logo work and other designs.
Understand the Market:
- It is important to collect information about the local market demand and trends if you are planning to enter into the paper bag making business in a small scale.
- Detailed market research can be done to find out the gaps that exist in the market you are going to sell your products which will help you in creating a proper business plan.
Paper Bag Manufacturing Process:
- Various kinds of papers with different GSM and Bursting Strengths are used in the paper bag making process as it depends on the volume and weight of the Products to be carried.
- 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 are the basic steps that are followed for making paper bags.
- The very first step in manufacturing paper bags is to decide on the size of the product which should meet the client's needs.
- The next step is to print the logo of the company. The print quality should not be compromised for printing logo.
- The paper is then folded, pasted, and sheared through machines.
- Eyelet fitting and lace fitting are the last steps in manufacturing paper bags .
- Either a semi-automatic or fully-automatic process can be followed according to your required production output and budget.
- The manufacturing business can be operated with 4 to 5 skilled and experienced manpower.
Branding and Promotion of the Product:
- Presentation is as important as manufacturing since no business can survive long term without the right promotion.
- You must have a uniqueness in your product description to attract your client's attention.
- The image of your company and good for promotion can be represented by a logo.
- Freelancers can be hired to design your company's logo as you want.
- Mediums like local magazines and newspapers can be used for advertising about your paper bags.
- A great platform for promoting your product and reaching the consumer crowd quickly can be provided by social media.
- Establishing an online website not only help increase orders but also create an impactful image of your product on viewers.
- Small surveys of the local and online markets can be conducted.
- You can also research on the local and online markets.
New Technology For Paper Bag Making Business:
- Biodegradable packaging is the latest demand from various industries especially the food industry which is made with recycled paper pulp.
- Carbon-neutral methods are mostly used in the manufacturing of paper and enzymes drawn from cotton, wheat husk, or other organic material react with recycled paper pulp to produce biodegradable paper.
- Poly Lactic Acid ( PLA ) is a polymer produced from corn or tapioca starch, that is used to make the packaging leakproof.
- You should be very careful while manufacturing paper bags for food items as toxic substances may end up in undesirable incidents.
Recycling In Paper Bag Manufacturing Business:
- Paper bags are readily recyclable and the recycling process is done by re-pulping the paper and then pressing it into the required shapes.
- Collecting the waste paper, sorting by hand or machine, washing, turning to sludge, purifying, pouring, flattening, drying, bleaching or coloring, cutting, and packaging is involved in the process of recycling paper .
- But, intensive energy and the use of huge machines are required for each of these steps.
- Technical advancements have made the paper bags easy to carry, clean, and store items for a long time with the environmental benefits.
- A business plan is a must-have document for arranging funds from investors, and it also works as a roadmap for future activities of the business
- Creating a paper bag making business plan is the first step before starting a paper bag making business where the entire idea like logistics, funding, and other details need to be mentioned.
- A list of employees required, location, and plant and machinery should also be mentioned in a paper bag business plan.
- A demographic study and a plan on how to market the product should be included in the marketing plan.
- Research well about your target customers before starting a paper bag making business.
- The number of distribution channels should be reduced to keep the prices low as well as to increase your profit margin.
- Initial startup and recurring costs, Target customers, Pricing plan, Hiring plan as well as How and where to sell? Should be included in a paper bag making business plan.
- Paper bag making business will require a minimum investment as it is a small scale business.
- You need to first plan and invest in land, machinery, and labor.
- Machinery plays an important role in the overall success in starting a paper bag making business.
- The machine need to be selected according to the requirement of production output and the kind of bags that you want to manufacture.
- A fully automatic paper bag making machine will usually cost around Rs 5 to 8 lakh. But, the price may vary according to the capacity of production.
- Around 15,000 pieces of paper bag can be produced per hour with one fully automatic machine.
- Although, the production capacity of a semi-automatic machine is lower than the automatic one, you will have to depend more on your labor.
- Different types of bags are used by different sector.
- The paper bags that is used by textile stores are different from the paper bags that are used in medicine shops
- So, the machinery should be selected depending on the industry sectors that you want to cater to.
- Procuring a printing machine also need to be considered as companies can ask you to print the logo, company name, and address on the outer side of the bags.
- Single Slit Slitting unit is a type of machine that is used to size the paper from a big width to a small width to make small bags.
- Paper cutting machine, Flat type size plates and Sachet type size plates, Double Color Flexo printing unit with attachment, Eye letting Machine, Bag cutting machine and Stereo rollers are some of the most important machines required for this business.
- Usually, all these machines assembled with a complete unit in a fully automatic paper bag making machine.
- Factory rent, raw material costs, manpower costs, legal costs, and promotional expenses are your other major investment other than the machinery cost.
- The cost will be around Rs 15 to 20 Lacks to start a small scale paper bag making business with an automatic machine in India.
- Your cost can be significantly reduced by researching and proper planning as to where to spend and the choice of suppliers .
- You can operate from your home if you want to start paper bag manufacturing business on a small scale.
- You will only need a Trade License for this.
- But, you first need to register your company with the Registrar of Companies (ROC) if you are planning something bigger,
- You will also have to apply for the Trade License with the local municipal authorities and get your unit registered as a Small Scale Industry (SSI).
- You will also need a Bureau of Indian Standards (BIS) certification to manufacture paper bags.
- Current Account Number of the Company, GST number, PAN are some other documents for your daily business activities.
- You need to purchase business insurance plan to protect your manufacturing unit from any mishap.
- Your manufacturing unit should be located in such a place where your total costs can be reduced.
- Select a place where electricity charges are less, rent or the real estate costs are on the lower side, labor wages are low and the cost of other facilities is also less.
- The location should be near to your market to reduce the transportation costs.
- A semi-urban area will be the most suitable location for paper bag making business because of lower taxes
- A manufacturing space of around 2000 square feet will be sufficient to start a paper bag business in India.
- Paper bags can be made either by machine or manually.
- Making paper bags manually is a very time consuming process, and the quantity produced is also less.
- You will only need gum, paper, a ruler, and labor to make the paper bags manually.
- Investment to make the paper bags manually will be low, and you will also earn less profits.
- Automatic paper making machines are quite easy to operate you only have to put paper rolls in the machine, and it starts to make the bags automatically
- Approximately 60 Kgs of paper bags can be produced in an hour by an automatic paper making machine which translates to roughly 10,000 pieces.
- You can also have these machines with printing and without printing.
- Without Printing machine can only make plain bags where as with printing machine can print logos or designs.
- With Printing machine comes in two options including two-color or four-color printing.
- Bag cutting machine, Creezing machine, Cut handle machine, Eyelet fitting machine, Lace fitting machine, Punching machine, Roll slitter motorized machine, Stereo grinder and press and Testing scale machine are some of the other ancillary machines to be purchased.
- All raw materials required or making paper bags should be procured in the right quantity to ensure a smooth flow of production.
- Kraft Paper sheets, Paper rolls in different colors including white, Printing Chemicals, Ink, Eyelets, Laces and Tags, Polyester Stereo, Glue, Handles are the raw materials needed for the paper manufacturing business.
- Paper making business will not require much labor as it is a small scale business.
- A production unit can be smoothly run with around 10 people.
- An interactive training program can help the manpower learn the manufacturing process and meet the requirements of the employer.
- You can also hire a graphic designer to do the logo work and other designs.
- It is important to collect information about the local market demand and trends if you are planning to enter into the paper bag making business in a small scale.
- Detailed market research can be done to find out the gaps that exist in the market you are going to sell your products which will help you in creating a proper business plan.
- Various kinds of papers with different GSM and Bursting Strengths are used in the paper bag making process as it depends on the volume and weight of the Products to be carried.
- 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 are the basic steps that are followed for making paper bags.
- The very first step in manufacturing paper bags is to decide on the size of the product which should meet the client's needs.
- The next step is to print the logo of the company. The print quality should not be compromised for printing logo.
- The paper is then folded, pasted, and sheared through machines.
- Eyelet fitting and lace fitting are the last steps in manufacturing paper bags .
- Either a semi-automatic or fully-automatic process can be followed according to your required production output and budget.
- The manufacturing business can be operated with 4 to 5 skilled and experienced manpower.
- Presentation is as important as manufacturing since no business can survive long term without the right promotion.
- You must have a uniqueness in your product description to attract your client's attention.
- The image of your company and good for promotion can be represented by a logo.
- Freelancers can be hired to design your company's logo as you want.
- Mediums like local magazines and newspapers can be used for advertising about your paper bags.
- A great platform for promoting your product and reaching the consumer crowd quickly can be provided by social media.
- Establishing an online website not only help increase orders but also create an impactful image of your product on viewers.
- Small surveys of the local and online markets can be conducted.
- You can also research on the local and online markets.
- Biodegradable packaging is the latest demand from various industries especially the food industry which is made with recycled paper pulp.
- Carbon-neutral methods are mostly used in the manufacturing of paper and enzymes drawn from cotton, wheat husk, or other organic material react with recycled paper pulp to produce biodegradable paper.
- Poly Lactic Acid ( PLA ) is a polymer produced from corn or tapioca starch, that is used to make the packaging leakproof.
- You should be very careful while manufacturing paper bags for food items as toxic substances may end up in undesirable incidents.
- Paper bags are readily recyclable and the recycling process is done by re-pulping the paper and then pressing it into the required shapes.
- Collecting the waste paper, sorting by hand or machine, washing, turning to sludge, purifying, pouring, flattening, drying, bleaching or coloring, cutting, and packaging is involved in the process of recycling paper .
- But, intensive energy and the use of huge machines are required for each of these steps.
- Technical advancements have made the paper bags easy to carry, clean, and store items for a long time with the environmental benefits.