How to Start Paper Bag Manufacturing Business in India?

How to start paper manufacturing business

Paper bag manufacturing is one of the best manufacturing business ideas today considering the high demand for paper bags in the market. The paper bags are being used by a large number of businesses these days for their packaging needs instead of the plastic bags. Paper bag manufacturing requires minimal capital investment and is very suitable for entrepreneurs pondering on small manufacturing business ideas.  With various local governments across the country implementing ban on the usage of plastic bags, it is high time for businesses to enter into paper bag manufacturing.

Read: Best Manufacturing Business Ideas in 2021

But not many entrepreneurs are really aware about how to start a paper bag manufacturing business. Helping such entrepreneurs we will discuss various steps involved in starting a paper bag manufacturing business.

Market Research 

Market research is the most fundamental step before starting any business including the paper bag manufacturing. Thorough market research helps businesses to clearly understand various factors that determine the business success such as current trends in the industry, consumer behaviour and purchase patterns, untapped customer segments, etc. It also enables businesses to select their niche with regard to the paper bags that they want to manufacture. Businesses can do their own research or can rely on professional market research consultants.

Read: One District One Product: A Game Changer in the Indian Manufacturing Industry

Company Registration and Finance Planning  

After getting the detailed market research report, the first thing that businesses should do is to register the company with the ministry of Corporate Affairs. Then they should focus on fund-raising which is an essential prerequisite to run a business. There are several schemes such as CGTMSE, MUDRA Loans, Stand-Up India under which SMEs can get business loans at low interest with the help of the government. The government of India has recently revised the definition of SMEs with an intention to encourage small and medium businesses in the country.

Read: Technical Textiles: The New Growth Driver of Indian Textile Industry

Determine Plant Location and Procure Machinery

Selecting the appropriate location with availability of water, electricity and transport facilities to setup the plant is vital to start paper bag manufacturing business. Businesses can decide on the size of the manufacturing plant as per their budget and business expansion plans. When it comes to machinery in the paper bag manufacturing process, there exist a lot of machines such as printing machine, creasing machine, bag cutting machine, creasing machine, stereo press and stereo grinder, lace fitting machine, punching machine, etc. Setting up the paper bag manufacturing plant that involves different machinery is a complex process; therefore, businesses should consider taking help from expert consultants to mitigate risks and reduce costs.

Read: Opportunities in the Indian Toy Manufacturing Industry

Raw Material and Human Resources

Businesses should ensure sufficient amount of raw materials required before starting the manufacturing process so that the manufacturing will not get stopped due to lack of raw materials. Raw materials required for the manufacture of paper bags include paper sheets, paper roll colours, printing chemicals, eyelets, polyester stereo, etc. Apart from raw material collection, another important thing that businesses should consider is human resources. Though paper bag manufacturing is not a labour intensive process it requires at least 10 members to start the manufacturing process. Paper bag manufacturing doesn’t need professionals and businesses can train people after hiring them, following which they can start the actual manufacturing.

Marketing and Sales

Once the products are manufactured, then comes the marketing and sales activities. Marketing plays a prominent role in generating revenues for a businesses and helps them stay relevant in the competitive market environment. Today there are a lot of platforms for businesses to sell their products such as B2B platforms (Alibaba, Indiamart, etc.) and B2C platforms (Amazon, Flipkart, Snapdeal, etc.), and therefore all they need to sell their products is effective marketing strategy.

Given the tremendous business opportunities for paper bags manufacturing in the market, the single biggest thing that entrepreneurs foraying into the manufacturing of paper bags should focus on is quality of the final product.

SolutionBuggy is a unique platform that connects industries with professional consultants, enabling them to addresses their issues right from plant setup to execution. Till date, SolutionBuggy through its vast network of experienced consultants has helped thousands of industries setup the plant and run the business successfully. If you are an entrepreneur planning to start paper bag manufacturing business or an existing industry struggling with business operations, then register with SolutionBuggy and get access to hundreds of paper industry consultants who can handhold you in addressing your business problems.

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