Requirements for a Jute Bag Making Business

Jute bags are in huge use today, owing to their nature of being the most environment friendly products. Jute bags are also 100% degradable and recyclable.

A large number of jute products producing units exist in India. However, most of them are a very small and situated in rural areas. There is a large room awaiting to accommodate new entrants in this growing industry. So, take a step forward and take advantage of ban on manufacture and use of plastic bags by starting your own jute bag making business.

Requirements

To begin a jute bags making business, your first important step will be looking for skilled craft workers. How many artisans you wold like to hire will depend on your desired quantity and quality or jute bags. If you would want to have the production of 500 bags per day, you may require 8-10 employees. Remember, a single artisan can make up to 50-80 bags in a day. More you want the production, more you will require people.

You also need to find reliable fibre suppliers. The major jute producing areas in India are West Bengal, Bihar, Assam, Andra Pradesh and Tripura can provide you a reliable supply of raw materials.

A jute entrepreneur will also require approximately 10,000 – 12,000 sq feet of land for plant setup and equipment such as sewing machines, screens for printing, and cutting tools. An estimated operating cost for a jute manufacturing bags unit would be near about 2.5 – 3.5 lakhs, which we think isn’t a huge investment.

Generally speaking, you can earn a profit margin of approximately 20%-30%, catering to the domestic market.

Rais Dar

Rais Dar is an Experienced Business Consultant

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