If we talk about Paper Bag, then it is a bag that is made of paper, generally these bags are made of thick paper i.e. kraft paper. Because they are commonly used as shopping bags, packaging and snack bags. Today, when bags made of plastic have been discontinued and the government has banned them, we can easily see paper bags being used more these days.
Presently the trend of Paper Bag is increasing at a very fast pace, so we can see such bags being carried here and there in the hands of both men and women. They can be seen everywhere like schools, malls, offices, grocery stores. Apart from this, presently famous clothing makers can also be seen designing different types of paper bags with their brand logo.
Therefore, it is being speculated that this trend of using paper bags has developed due to its use in the field of clothing. By the way, people having colorful, colourful and attractive bags made of kraft paper are kept eye on them, that is, this product is such that people’s eyes definitely go on it. Apart from this, these types of bags are also a suitable material for marketing of a company or brand because it is very easy to print a brand logo on paper as compared to other materials.
Apart from all this, many people prefer paper bags only because they are neat and easy to carry and feel good in their hands too. That’s why today we are going to talk about starting a paper bag making business in this article.
In the present scenario Paper Bag importance of
The importance of paper bags has increased in the present scenario because plastic bags have become a threat to the environment and they have already been banned in almost all the states. These bags are 100% recyclable, recyclable and biodegradable as well as eco-friendly and pose less risk to animals. In addition, these bags made of paper require less energy to be recycled as compared to plastic bags.
They have come a long way since their introduction in the middle of the eighteenth century. Presently, paper bags manufacturers are making different types of paper bags which are strong, long lasting and also look attractive.
- Paper bags are much more beneficial than plastic bags, they are eco-friendly as well as they can be reused and recycled easily. While plastic bags adversely affect the air pollution, natural environment, animals also die by eating them. Whereas paper bags do not pose any such danger.
- Presently Paper Bags are available in the market at competitive price hence they are being used extensively by corporates for various purposes like promotions, seminars, product packaging, and branding etc.
- If you want to buy them in bulk then you can get them at very low cost.
- Paper bags can also be used to carry items from grocery stores and premium quality paper bags can also be used as gift bags.
- Attractive paper bags can enhance the beauty of your hands, they are neat and easy to carry, hence they are also helpful in enhancing the look.
- Paper bags are used extensively in malls and exhibitions to distribute over the counter products.
- Apart from this, Paper Bag can be used as General Purpose, Industrial Purpose, Jewelry Packing, Medical Use, Shopping Bag, Party Bag, Food Item Carry Bag, etc.
Market analysis of paper bags
Paper bags have many qualities like durability, attractiveness, eco-friendly nature, easy to carry, perhaps this is also responsible for the increase in its demand. Although the global paper market witnessed a very slow growth during the year 2012 to 2016, the ban on plastic bags has projected this market to grow at a high pace.
According to a figure, the global market for paper bags was estimated at US$ 4500 million in the year 2017 and the market is expected to touch $ 7 billion by the end of the same valuation year. The growth of the global paper bags market is anticipated to increase due to the growing retail sector in developed regions and increasing penetration of the retail sector in the economies.
The growth in the end use segment in the retail sector will also contribute to the growth of the global paper bags market, it is expected. However, the sector is expected to grow at a CAGR of 4.3% as per the pre-estimated estimates.
How to start paper bag making business?
You might have got an idea of how profitable the paper bag making business can prove to be at present. But now the question arises that how can an aspiring person start this kind of business? However, the process of making paper bags can be easily accomplished with the help of machines and raw materials.
But depending on the size of the business, the size of the machinery used, the production capacity and the price may vary. And depending on their use, the quality of paper bags can also vary, although they can be made with many designs, strengths etc. Laminated, twisted, flat tap etc. are some of the major types of paper bags.
1. Manage land and buildings
If the entrepreneur wants to start the paper bag manufacturing business on a small scale, then it does not require a lot of land and building. If the entrepreneur wants to start this type of business even from a couple of rooms, that is to say, the entrepreneur needs 400-500 Square Feet or less space.
By the way, the entrepreneur should start this business only by taking a building built at a suitable location or renting some rooms. Because the entrepreneur may need additional investment of lakhs of rupees to buy the land and get it constructed.
2. Manage finance for paper bag business
Prepare a project report before arranging finance so that the entrepreneur gets to know about the cost involved in starting this business as well as the project report may be needed by the entrepreneur for taking loan from the bank. If the entrepreneur manages the finances without a project report or business plan, the finances may not be managed as planned, and the entrepreneur’s work may have to be stopped midway due to lack of finance.
So first of all prepare the project report of your paper bag business, and also manage the finance accordingly. To manage finances, subsidized loans under government schemes, loans from banks or other financial institutions or personal savings can be taken.
3. Required license and registration
- Entrepreneur can register his business under Proprietorship.
- GST Registration
- NOC from Fire and Pollution Department
- license from local authority
- Enterprise Registration or MSME Registration
- Brand Name and Trademark Registration
4. Purchase of machinery and raw materials
In paper bag manufacturing business, machinery is used based on the plan of the entrepreneur, the size of the plant because the price of machinery may vary depending on its production capacity, although there are two ways to start this type of business on a small scale. Variety of Machinery With Two Color Flexo Printing Facility which can cost Rs.6-7 lakhs.
And without Color Flexo Printing facility, which can cost around Rs 4 to 4.5 lakhs, is used. Kraft sheet, brown sheet roll etc. can be used as raw material which can cost Rs 30-40 per kg. Although this price may vary depending on the quantity of raw material to be purchased.
5. Paper bag manufacturing
If we talk about Paper Bag, then they are manufactured under continuous process in the process of paper roll making process. In this process, according to the production capacity of the machine, only as many rolls are loaded into the machine, that is to say, if the capacity of the machine is 60 kg per hour, then only 60 kg rolls are loaded in it.
After that, the machine automatically manufactures the paper bag by completing tasks like cut, fold and stitch, although this machine requires care during this process.