Paper Carry Bags Manufacturing Business Plan – Small Business

Paper carry bags are common packaging materials. It is being used by the textiles and cloth merchants, dry cleaners, bakers, grocers, stationers, sweet sellers etc. There are paper carry bags that can hold up to 20 kgs of weight without getting torn. Bags that are made of paper material called sarc-kraft can withstand such weight. Paper carry bags can compete with any kind of plastic bag in terms of all features and can cater to any kind of conceivably end-use.

Market Potential of Paper Carry Bags

Considering the sheer size of the existing market for plastic carry bags, it amounts to 600 billion bags. Many governments today are increasingly becoming environment-sensitive and at least project themselves to be so. Big business too wants to be seen as eco-friendly. Establishment of shopping complexes and consumer stores in the rural, semi-urban and urban areas, the demand for paper bags has increased. Due to ban on polythene carry bags the demand has been growing very fast.

Several local government bodies such as city municipal corporations and town-planning bodies have banned usage of plastic bags. In fact in all hill stations in India, the use of plastic bags has been banned. That day when consumers and business entities may have no option but to start using paper bags instead of plastic bags is not far off. The market size for paper bags, in India conservatively amounts to 100 million bags.

Production Process of Paper Carry Bags

Paper Carry Bags Manufacturing process depends upon the volume and weight of the Products to be carried.  Accordingly, you need to use various kinds of Papers with different GSM’s and the Bursting Strengths. Steps are following:

  • 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.

You can go by either Semi-automatic or Fully-automatic process according to your required production output and budget. In addition, you can operate the manufacturing business with 4 to 5 skilled and experienced manpower.

The major machinery required for Paper Carry Bags are

Automatic paper bag making machine.

Creezing machine.

Cutting machine.

Misc. tools and equipments.

 

Project Financial Snap shot for Paper Carry Bags

Plant Capacity: 15 lakh pieces Plant & Machinery: 14 Lakh
Working Capital: Rupees 8 Lakh Total Capital Investment: 30 Lakh
Break Even: 47%