Requirements to Start a Jute Bag Making Business

Jute bags are in huge use today, owing to their nature of being less harmful to our environment or in other words the most environment-friendly products. These jute bags are 100% degradable, and most importantly recyclable compared to plastic or polythene.

A very large number of jute manufacturing units are operational in India. However, most of them have a very small size and are concentrated in rural regions.

There is still a large room available for those new entrants who want to be the part and parcel of this growing industry. So, take a step forward and take advantage of the ban on the manufacture and use of plastic bags by starting your own jute bag making business.

Requirements

In order to begin your jute bags making business, you will have to look for skilled craft workers, also called artisans. How many artisans you would like to hire will depend on the quantity and quality of jute bags you want to produce. For example, if you would want to have a production of 500 bags in a day, you will require 8-10 employees. Please keep in your mind that a single artisan can make up to 50-80 bags on a daily basis. In short, more you want to have the production, more you will require people.

You will also need to find reliable fiber suppliers. The major jute producing areas in our country India are West Bengal, Bihar, Assam, and Tripura. Suppliers from any of these states could provide you a reliable supply of raw materials.

Aspiring entrepreneurs will also require approximately 10,000 -12,000 square feet of land for plant construction and equipment like as sewing machines, screens for printing, and cutting tools. The rough estimated costs for setting up your jute manufacturing unit would be near around 2.5-3.5 lakhs of Rupees. That amount isn’t any more a huge investment.

You could expect a profit margin of approximately 20%-30%, catering to the domestic market.

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