Watch this video to learn how Jute and Cotton Bags business can be started with almost zero investment.
Here founder of No Plastic Shop, Mr Jagdish Bhatia is explaining how you can start and market your own business of Jute and Cotton Bags.
Jute bag manufacturing is presented as a growing business opportunity in India, particularly given the end of plastic use in many cities, which has led to increased demand for jute bags. This business can be started with a relatively low investment.
Here’s a summary of the key points for starting a jute and cotton bag manufacturing business:
- Business Appeal: Jute bags are eco-friendly and have an attractive appearance, making them a good business venture, especially with the rising demand after the ban on plastic in many cities.
- Manufacturing Process:
- Manufacturing jute and cotton bags is quite easy.
- The process involves marking the fabric roll according to the desired bag size using an inch tape.
- Then, the fabric is cut using a Cutting Machine.
- After cutting, the fabric is sent to the stitching section for final stitching and the addition of PVC buckles.
- Marketing & Raw Materials:
- Marketing is straightforward nowadays, and strategies should be based on identifying your target audience or customers.
- For raw materials:
- Cotton can be bought from any wholesale market.
- Jute can be found in the Lahori Gate Market in Delhi.
- For bulk jute, it can be procured from West Bengal.
- Area & Investment:
- Area: You can start this business on a small scale in an area of 2000 sq. ft..
- Investment:
- A small-scale business can be started by investing Rs. 20,000.
- For a larger volume or a good small-scale industry, an investment of Rs. 20 Lac may be needed.
- The investment also depends on the skill of your labor and the advancement of your machines.
- Production Capacity: On a small scale, you can initially make 2000-2500 bags per day.
- Machines & Manpower:
- Machines required include a Fabric Cutting Machine, Sewing Machine, and a Cutting Table.
- Electricity: Approximately 2kW-3kW electricity is needed.
- Manpower: For a small-scale operation, approximately 4-5 people are needed.
- Profitability & Licenses:
- Profitability: Initially, immediate profits might not be seen as you learn and expand.
- One meter of fabric can yield approximately 3 medium-sized bags.
- The cost of raw material is about Rs. 50 per meter.
- Jute bags can be sold in the market for approximately Rs. 100-Rs. 150 per piece.
- Initially, you can earn about Rs. 25,000 – Rs. 30,000 monthly.
- Profitability will increase as your volume and customer base grow.
- Licenses: For a small-scale business, you will need a GST Number & Udyog Aadhar.
- Loan: You can apply for a loan under the MUDRA Loan scheme based on the capital cost.
- Profitability: Initially, immediate profits might not be seen as you learn and expand.
- Getting Started & Support:
- You do not need extensive prior technical information or a course to start this business.
- Basic knowledge of stitching or having a machine at home is helpful.
- You can start with 1 or 2 machines and expand commercially with 4 machines or more.
- Work will increase by expanding marketing efforts.
Also look at the factory where our bags are manufactured and reach to you.
