Paper bags are quite in demand. The demand for these eco-friendly bags has grown high especially after the ban of single-use plastic bags. Paper bags are used for carrying food items, medicines, jewellery, groceries, clothing items and more. The scope of paper bag business is thus vast. If you are looking for the requirements for making paper bags then we are sure you already know the many benefits of setting up this business. So, without much ado let us acquaint you with the same.
Key Requirements for Making Paper Bags
Here are the key requirements for starting a paper bag business:
1. An Effective Business Plan
One of the first things you require is a promising business plan. Your plan should include details about sourcing logistics, funding, manpower and more. In order to create a workable plan you must set a budget first. This will also help you identity which industry you can cater to. There is a long list of industries to choose from including jewellery, clothing, electronics, pharmaceutical and food and beverages to name a few. An effective marketing plan must also be set beforehand. It is necessary to conduct an extensive study about the demographics, competitors and consumer expectation before preparing this plan.
You must plan to keep minimum number of distribution channels. This will help ensure high profit margin.
2. Investment
Investment in terms of time, money and effort is needed to start any business. We are sure you have the time to operate the business and are ready to put the required efforts. When it comes to monetary investment, thankfully this business does not demand a huge sum of money. This is a small scale business that requires a fairly small investment. You mainly require investing in manpower, land and machinery. Let us take a closer look at al three:
- Machinery – A key requirement of a paper making business is machinery. You may choose between a fully automatic, semi automatic and manual type paper bag making machine.
- A fully automatic paper bag making machine costs between INR 5 lakh and INR 8 lakh.
- A semi-automatic paper bag making machine price is around 3 lakh.
- You can buy a manual type paper bag machine for INR 50,000.
You also need to choose between a machine that produces plain bags and one that enables the production of printed bags. You can print logos and designs with the help of such machines. You get a chance to choose between two-colour and four colour printing. Creezing machine, eyelet fitting machine, roll slitter motorised machine, testing scale machine, lace fitting machine and punching machine are among some of the other machines you may require.
- Manpower – An automatic machine requires lesser labour. You can produce approximately 15,000 bags per hour with this machine without onboarding a gamut of employees. The production capacity of a semi-automatic machine is lesser in comparison to automatic one. Conversely, the number of workers required is higher. If you choose a manual type paper bag machine then you need a fairly huge work force depending upon the production you aim. In addition to workers who will be directly involved in the production process, you may require a manager. For manufacturing printed bags, you will also need a graphic designer.
- Land – To set up machinery and operate your paper bag business, you require a space. The size of the space depends on the type and number of machineries you choose. It also depends on the number of workers you hire. Generally, a space of around 200 sq feet is sufficient for setting up this business.
While selecting a space, you must consider the location too. In fact, location is a key consideration as it will impact the overall company expenditure. For instance, if you set up your factory in a metropolitan, you will end up paying a huge rent. The manpower will also be costly in a big city and same goes for the raw material and electricity charges. Thus, it is advised to set up your factory on the outskirts of a city or in a small town. This will help reduce the overall cost to a large extent. However, the place you choose should not be far away from the market else you will end up spending a considerable amount on transportation.
While many business owners choose to buy the land to set up their business others choose to rent it. This is completely a personal choice and largely depends on your budget.
If you plan to start on a very small scale and have ample space to set up a grocery paper bag making machine at your home then you may operate from there as well.
3. Registration and Licensing
This is one requirement that you simply cannot miss. To set up a factory and start a paper bag making firm, you require registering with the Registrar of Companies (ROC). Thereafter, acquire the Trade Licence from the local municipal authorities. It is also essential to register as a Small Scale Industry (SSI) and acquire a Bureau of Indian Standards (BIS) certification.
On the other hand, a trade licence is all you need to start this business from home.
4. Raw Material
Every manufacturing business requires good quality raw material and this one is no exception. The raw material needed to create paper bags is as follows:
- Paper rolls in multiple colours
- Paper sheets
- Ink or Printing Chemicals
- Adhesive
- Tags and Laces
It is important to ensure the quality of the raw material to ascertain the quality of the end product. This is why you must approach a reliable dealer to procure this material. It is also important to plan and get appropriate quantity of raw material to carry out the production activities smoothly.
Operating a paper bag making business requires a good amount of knowledge about the field. These biodegradable and recyclable bags have become a good source of income for many small scale business owners. The key requirements for staring this business include an effective business plan, machinery, land, manpower, license, registeration and raw material. Why are these things essential for this business and what purpose they serve has been discussed in detail in the article. Do let us know if you require further information in this regard. https://zoombazi.com/