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Jute Bags Manufacturing Business Plan – Profitable?

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jute bag making

Jute Bag Manufacturing Business Opportunity & How To Start:- Business Plan

Back in 1793, the British East India Company delegated the first export of 100 tons of jute and it was frequently exported since then. Trading of jute is presently centred in and around our country, Bangladesh being the largest jute exporter whereas India is the largest producer and consumer of the world. Making of jute bags can be regarded as a small scale business and the manufacturing process is also not complicated either. India is the largest producer of this naturally available, cheap and bio-degradable fibreand therefore it is the right thing to get started with this manufacturing business in India.

The environment friendly nature of jute and the improved technologies have contributed in the ever-rising demand of jute products. Jute bags are regarded as one of the most coveted by-products of jute owing to their strong, light, durable, colour fast, anti-static, UV resistant and carbon dioxide safe properties.

In recent times, jute bags are available everywhere from the roadside stalls to the perky shopping malls and most people are buying jute bags as they can carry a good weight, withstand pollution and all harmful chemicals and they are very cheap compared to bags made of other materials. All these imply that if you can get your business strategies right, you will never fall short of customers.

Get educated

People all across the country use jute bags to carry different things and some people use it in office and they are available in a wide array of sizes and you may get a bag as large as a big shopper and as small as a ladies’ purse. The recent surge in the eco-friendly products has also driven the public focus towards jute made items. If you are confused about where to get started then you can seek training and marketing aid of the Government of India. There are two departments, namely JMDC or Jute Manufactures Development Council and NCJD or National Centre for Jute Diversification,  each of them have different schemes for supporting small scale jute business. You can also get marketing assistance so that you may sell off your items in both domestic as well as international markets through various government aided fairs, exhibitions and establishments.

Some of the most significant jute business supporting schemes include:

  • Basic and Advance Training Program
  • Advance Training cum Design Dissemination Program
  • Buyer Seller Meet
  • Technical Demonstration

How to obtain business compliance?

Once you are trained to start your business, it is important to decide what kind of ownership your enterprise would have. You can start off as a sole ownership firm or as a Private Limited company and then obtain the trading license from the local authorities. It is up to you whether you are interested in exporting your products for which you will have to apply for the IEC code, VAT registration and ISO certification. Due to the harmful effects of polythene and rexin products, our government is helping the small scale jute businesses to set up without facing any hurdles. You can also avail raw jute at mill price from the Government aided Jute Raw Material Bank.

What equipments are required for making jute bags?

It is better to start with the making of ladies purse and totes, messenger bags and men’s office bags made of jute as they are in high demand all across the country.

You will require 2 heavy duty industrial sewing machines and side sealing machine for stitching the sides and handle and 3 regular sewing machines for adding sequences, décor and other items that are meant for increasing the beauty of your products.

Plus, you will also need toned or nylon threads as they are much stronger than regular threads and can hold the stitch in position for a longer span of time. Once you are ready with the tools and machines, you will have to look for workers who can complete the manufacturing process.

Jute bags manufacturing process involves:-

  • Purchase of white quality jute in rolls
  • Laminating of jute with LDPE/HDPE
  • Cutting of jute of required size with cutting knives
  • Stitching with heavy duty stitching machines
  • Designing and printing colors if required

Raw material requirements

Jute fabric in rolls. Dimension of roll is 200×1.2 meter From one roll 400 bags of 19” x 15” size can be
manufactured.

You can start this business with as low as 3 workers. Below are the details for 3 workers:-

  • Monthly production = 15000 bags
  • Jute Rolls required monthly = 35 Rolls
  • Rate of Rolls per meter is going to be around Rs 30
  • Total cost = 35 rolls x 200 meter x 25 = 175,000 monthly for jute fabric only

Jute bag manufacturing machines

  • Fabric cutting machine – price is around Rs 10,000
  • Heavy duty sewing machine – price is around Rs 30,000
  • Ordinary sewing machine – price is around Rs 10,000
  • Stencil equipments for printing colouring paints Rs 10000

Utilities:

  • Electricity: Power requirement is 2 HP.
  • Water : Water is not required for process.

How to promote jute bags?

Jute made bags hardly requires any promotion and therefore if your bags have amazing design and an affordable price, you will not have to worry about how to get it sold. You can approach the local shops that sell these kinds of products about whether they are looking for any supplier. You may also speak to the authorities of the posh shopping centres to find out if they allow you to establish an open stall. Though you will have to pay a fixed monthly rent, your products would get sold much faster and you can earn good revenues within 2 to 3 months.

It is also recommended to make a move towards selling your products online by contacting the managing executives of popular ecommerce brands. If possible, you can invest in building your own webpage where you will list down all the products, their pictures and specifications so that your customers can get your products right at their doorstep. In order to get your users converted faster, you can offer coupon codes, discounts, referral bonus as they are very popular these days and a proven method of attracting new customers.

What are the advantages of jute products?

If you can handle the aggressive competition among jute manufacturers to grab a strong foothold on the market, this is the right way to go. Jute bag business involves no complications and time-consuming procedures and the return on investments are quite high. All you need to do is launch your products with innovative designs in useful sizes and make them chic and fashionable.

While you should try to supply for the needs and demands for people belonging to all age groups, you should pay an additional attention to the teenagers and middle aged women. They are the most influential consumers of jute bags in our country as they require jute bags for carrying books, shopping and carrying essential items for working places. Since jute bags are able to carry a good weight without straining the bearer, no other bags can match the style and purpose of a jute bag.

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15 Comments

15 Comments

  1. krishna kumar

    September 21, 2017 at 9:11 am

    plz give the full details of the plant. for small scale plant
    accepting all about cost of the plant

    plz give full detail

  2. Kiran

    September 28, 2017 at 9:21 am

    What would be the initial investment or capital required to start small scale jute bags manufacturing unit. What will be the ROI period. Where will we get trained staff . Is there any training institute available in Andhra Pradesh.

  3. sunil

    October 26, 2017 at 2:54 pm

    Please guide where to buy raw materials n machines,

  4. Ashwani sharma

    November 22, 2017 at 3:53 pm

    New factory gute bages starting

    • Rakesh Kore

      June 14, 2018 at 4:35 pm

      Right know you are running jut bag business
      Can you suggest on that all about manufacturing costs and sale regards

  5. Sandeep Mate

    December 9, 2017 at 10:24 am

    Pl give me a details for mfg of Jute & its products.

    Thanks & regards
    Sandeep Mate
    BE(MECH), PGDMLM, DBM,LLB.
    Place:- Ghatanji, Dist:Yavatmal, Maharashtra – 445301

    • Anshu Gupta

      January 6, 2018 at 8:44 am

      I also want to start small business making jute bags are you interested in partnership. Thanks

  6. Pawan Sharma

    December 26, 2017 at 6:44 pm

    Hi I want to know more about Jute bags manufacturing unit, Training, Machines, Raw Materials etc Please guide me.I am based in Gurgaon.

  7. Vishal

    December 26, 2017 at 7:47 pm

    From where we can buy jute / machinery. ?

  8. Priya

    February 23, 2018 at 2:14 pm

    I want to start jute bsg business ,pl send muf detail

  9. Dinesh Raj Arora

    March 1, 2018 at 8:59 am

    Hi
    Want
    What would be the initial investment or capital required to start small scale jute bags manufacturing unit. Where will we get training . Is there any training institute available in Delhi faridabad.

  10. deepti

    July 18, 2018 at 6:40 pm

    Hello,
    i want to start d jute business.. frm where i will get the machine n fabrics… how much th total investment..plz guide.

  11. Chandra sekhar

    July 20, 2018 at 11:29 am

    Good Evening,
    We have capital to established one jute paper covers manufacturing unit at my Home town. I want entire details of Manufacturing units and required mechines where is it available full address and contact agent numbers or Distubuters adresss.

    Thanking you

  12. mahendra kumar

    August 13, 2018 at 7:54 am

    initial investment or capital required to start small scale jute bags manufacturing unit. Where will we get training. Iam from ghaziabad

  13. sushil pandey

    August 21, 2018 at 5:00 am

    i want to start this business in jharkhand , need help .please guide me

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