Paper Bag Manufacturing Business plan in India- 2019

Paper bag business plan

The paper bag manufacturing business can definitely survive for a long time, since it knows that its appearance was only before a few years. Therefore, it is the right time for you to enter the market and develop your company. The business of making paper bags is a very good business. In the immediate time, plastic bags are not being used to reduce pollution in the environment. Use of them has been stopped in many states. Because of this, paper bags are being used more nowadays. These bags are also more stylish to look at than plastic bags. So, if someone starts this business, then he can benefit greatly. These bags are commonly used in shopping malls, gift stores and clothing shops.

Paper Bags – Business Opportunity

Almost all sectors of society use paper bags and the actual use or purpose is different for each one. Paper bags are used to pack medical items. Here, you should check the quality and hygiene standards during manufacturing. The same rule applies to paper bags for packing food.

There are high levels of risk involved in making paper bags of food. The toxic substances used can end in undesirable incidents. Therefore, choose the correct manufacturing methods and perform a periodic inspection of the quality of the bags. With regard to specialization, you can mix all paper bags or specialize in the production of paper bags for specific industries. Listed below are some of the areas where paper bags are used.

  • Party bags
  • Shopping bags
  • Paper bags for food/ brown paper bags
  • Paper bags for medical use.
  • Paper bags for jewelry packaging.
  • Paper bags for industries to package their semi-finished products
  • General purpose

Investment required to start making paper bags

The main factor to consider in any business is how much money is required to start it. As the manufacture of paper bags is purely a small-scale business and will require minimal investment. Depending on your capacity, you can plan and invest in land, machinery and labor. Making it clear, finance is the only factor that decides the size of the business. Therefore, make sure you are not mistaken when planning large with less investment.

The price of a fully automatic paper bag manufacturing machine is starting 5 to 8 Lakhs INR. The price depends on the production capacity of the machine. A fully automatic machine can produce 15,000 pieces / hour.

You can also start this business with the help of :

  • Semi-automatic – 3 Lakhs INR. The production capacity will be low and will depend on your manual labor / workforce.
  • Manual manufacturing unit with the investment of INR 50,000 only.

Be sure of the resources you already have and what you will have to acquire. All this research and study will help you reduce your costs to some extent. Have proper planning of where to spend and who to buy. Your suppliers are also a factor to consider when it comes to investments. If you choose an incorrect supplier, the cost of manufacturing or production will increase, which will alter your investment plan and working capital.

Location selection for your manufacturing unit

Choose the most suitable location where you can reduce your manufacturing costs. This simply insists on finding a place where you have fewer charges for electricity, jobs for less wages, land for minimum rent and other similar facilities at a lower cost.

The land you rent for the business should not exceed your earnings. A semi-urban area will be the right choice for this business. This is because you can enjoy the benefits of the urban area and the rural area. Taxes and other obligations can be reduced to some extent. If you are delivering your manufactured bags to your customers, then you should plan the cost of transportation. To make it minimal, fix the location near the market. Also, try to reduce the distribution channel, as they can increase the price and decrease your margin.

Raw materials for the manufacture of paper bags

This forms the main part in the total requirements of the manufacturing process. The raw materials necessary for this business must be present in the appropriate quantity to guarantee a smooth flow of production. It should not be below the minimum level, as they can lead to work interruption and other problems that push the company to loss. Suppliers must be selected based on the quality of the material, the delivery function and the cost of the materials.

  1. Sheets
  2. Roll of colored and white paper
  3. Printing chemicals, ink, etc.
  4. Eyelets
  5. Laces and tags
  6. Polyester stereo

These are some of the elements that make up the term raw materials. It is also important to acquire them at the right time, since excess stock can increase operating costs by involving storage costs, inventory costs, maintenance costs, etc.

Paper bag making machine price

Paper bag making machine is required for this trade. With the help of this machine you can make a great business by making more bags in less time. The price of this machine starts from a minimum of 3 lakhs.

Where to buy paper bag manufacturing machine

Paper bag making machines are easily found in the markets. Not only this, this machine can also be easily purchased online. If you want to buy this machine or  You can buy it from there by going to the link &  you can google , paper bag making machine manufacturers, paper cutting machine price in india, paper bag making machine paper bag making machine manufacturers paper bags online india , buy  paper bags online india to search.

Other Machines required for the manufacture of paper bags

The machinery you acquire must be reliable and valuable. The durability of the purchased machines must be verified before buying them, since the quality of the machine used decides the quality of the product produced. With all this in mind, choose the best machines with the highest productivity.

I would recommend that you visit a paper bag manufacturing company and learn more about the operation of the machines. Beyond the knowledge you acquire through reading, a direct visit will give you a better idea to decide the type of machinery to be purchased. The machines cost from 5 lakhs to 10 lakhs depending on their capacity and the size of the bag manufactured. Some of the very important machines to buy are,

  • Test scale machine
  • Climbing machine
  • Bag cutting machine
  • Stereo press and stereo grinder
  • Lace machines
  • Eyelet machines
  • Punching machines
  • Motorized machine roll cutters
  • paper bag Printing machines

The machines used also vary in the level of performance. They can be fully automated or even semi-automated. Depending on this factor, the cost of the machines varies greatly and it is your choice to make the right decision taking into account your real need.

To print, you can buy machines that have an associated printing function or have a separate printing machine. Machine maintenance is mandatory and, in this concept, I suggest you adopt preventive maintenance. Preventive maintenance consists simply of taking care of the machine before it turns off or stops working.

Spending on preventive maintenance is better than repair costs. If you do not take care of your machines at regular intervals, there will be a decrease in the quality of the bags produced. In addition, the replacement cost of the machines after the breakdown will be high.

How to do branding:

To run this business better, you or your worker must be creative. You need to make the bag attractive in every way. You can also take help of graphics designer for this. You can use a special design for your company. You can brand your company using this design.

How to do Marketing:

You need the right marketing to spread this business in your market. You need to market the bags you have made at various big shopping malls, gift shops, etc. You can advertise in local magazines and news papers to market your bags. With this, you can also market your business by creating your own website.


This business does not require much labor because it is a small-scale business. There is only a maximum of 10 people working in the production unit. Again, if the size of your business is large, you will need more labor. The work does not need to be professional, but they must be skilled enough to make paper bags.

An orientation or training program for them to learn the manufacturing process will help them produce bags with common standards. There may be a graphic designer in the unit who is responsible for design work and other specifications. You can print your company logo if you want to popularize your brand. There are few companies that request paper bags with their desired logo and color. In such cases, you cannot make your brand more attractive or catchy in the bag. Therefore, printing decisions depend exclusively on customers.

Steps involved in the manufacture of paper bags

  • The first step is to decide the size that will be produced. The desired size is measured and cut accurately using the cutting machine.
  • The next step is to print the specified information or logo. Print quality should not be kept low.
  • Then, the paper should be left to fold, paste and cut. This is an automated process and you can do it with the help of machines.
  • The last two steps are buttonhole adjustment and lace.
  • These steps are not the only way to produce paper bags. Operations may differ with the use of different machines.

License required to start this business

As you know, any business that now operates in society will require a commercial license. This license can be obtained from the nearest municipal authority. Then, you must complete your UDYOG AADHAR registration. It is for companies that operate under the name of small-scale industries. There is a website for this registration that will allow you to obtain it online (

After registering Udyog Aadhar, register to get the GST number. BIS stands for Bureau of Indian Standards, and this is a mandatory certification necessary to operate this paper bag manufacturing business. Information related to this can be found at With all these records, you can continue with the start of the business without any legal problem.

Adopt viable promotional strategies and make it possible to improvise your business. It is completely in your efforts that your company survives in the market. In the end, you can completely rely on the manufacture of paper bags, since it has another dimension of style statement. Living standards have changed and, because of this, you will witness a continuous and growing demand for paper bags.

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