How to Start Jute Bag Manufacturing Business

Do you want to start a jute bag manufacturing business project with a small investment at home? Find here a sample jute bag making a business project plan with the manufacturing process, cost, machinery, and raw materials.

Actually, jute is a long, soft, shiny vegetable fiber. It is also popular as ‘Golden fiber’. And currently, it is one of the strongest all-natural fibers available throughout the globe. Also, jute fiber is reusable and biodegradable.

Suggested Read: Small Scale Manufacturing Business Ideas

Jute fabrics are strong, durable, light, colorfast, attractive, and cheaper than most fabrics made from other fibers. Additionally, these are anti-static and UV protective. Therefore, jute fabrics are excellent raw materials for jute bags.

The jute bag-making process is simple. Additionally, there are several different types of bags that are very popular in the market. Also, the business demands a very small startup capital investment. Any individual can start this business even from home. Furthermore, this is a great opportunity for women, housewives, and moms too.

Different Types of Jute Bag & Market Potential

There are numerous different types of jute bags you can find in the market. According to lamination or lining, there are three different types of bags. These are

• Unlaminated – Biodegradable
• Laminated – Food Grade LDPE, splash resistant, wipe clean
• Muslin Lined

Additionally, a jute bag comes in a number of different handle options. These are

• Jute Handles
• Flat Cotton Strap
• Cotton webbing, filled with rope
• Cane Handles
• Drawstring
• Rope with eyelets

According to the use, there are several different types of jute bags. These are different in size, pattern, and color. These are

• Calico Bags
• Jute Carry Bags
• Shopping Bag
• Conference Bag
• Ladies Purse
• Designer Bag
• Jute Conference Bags
• Promotional Bag
• Jute Drawstring Pouches
• Jute Wine Bottle Bags
• Juco Bags

Decorated jute bags and shopping bags are very much in demand both in the domestic and international markets. With the increase in population, the scope of trade and industry is also
increasing.

As bags are an essential commodity for humans, so the demand for the product is growing day by day. The demands for the product remain consistent throughout the year. So, it is presumed that there is a good scope for starting such type of industry with huge export potential.

10 Steps to Start Jute Bag Manufacturing Business

1. Identify the Demand

This is the most important aspect you need to consider prior. You must identify the demand for the specific type of jute bag in the local market. Additionally, check the retail price, who are the manufacturers, and their marketing policy. These all will help you in writing the business plan and starting your jute bag-making business.

2. Create a Business Plan

Even, if you start the business from home, then also you must craft a business plan. And your business plan must consist of a financial analysis of startup costs and a marketing plan. Also, mention your business objective, target demographic, and marketing strategy. As a jute bag manufacturer, you must offer the right product at the right price to the right audience.

3. Register your Business

You must register your business with the proper form of business organization. For a very small startup, you can opt for a proprietorship company. However, you may go with a partnership, LLP, or private limited company according to your business size and investment model.

Generally, this type of business doesn’t demand any specific licenses from the Government authorities. However, check the local Federal laws before initiating the business. Also, you will need to check the upcoming tax liabilities too.

4. Cost of Jute Bag Making Manufacturing Business

Generally, the startup cost consists of procuring machinery, raw materials, and other resources including manpower. Additionally, you will need to have marketing and distribution costs. If you are starting a small-scale unit, then it is better to start with your own fund. Otherwise, you can apply for a bank loan or venture capital investment.

5. Arrange Finance

You can fund the business out of your own savings or avail business loans or government grants. We also help in financing small business/ personal loans through our funding partners.

Read: How to Get a Small Business Loan in India

6. Jute Bag Making Unit Setup

Generally, with 500 Sq Ft of an area, you can set up a small jute bag-making business. However, you must have an electricity connection for operating the machinery. Additionally, the selected space must have a wide entrance.

After securing the space, you must craft a floor plan. Broadly, you will need to identify the space for the production area, storage, and admin area. You will need some space for office work including raising invoices, money receipts, etc.

7. Jute Bag Making Machinery

Generally, the jute bag-making business doesn’t demand any heavy machinery. Simply, you will need to procure

• Wooden Printing Table
• The screen of Diff. Design
• Rubber Wiper
• Dye Paste Stirrer
• Water Drum
• Cottage Steamer
• Tubes, Steel Spoons, Mugs, Bucket, Roper, Clips, Stools, etc.
• Lock Stitch Machine
• Wooden Working Table
• Cutting Table
• Electric Fittings
• Scissors, Measuring tape, and other equipment

8. Raw Materials

The major required raw materials for printed and decorated jute shopping bags are jute fabrics. Additionally, you will need to procure the dyestuff, printing gum, chemicals, and auxiliaries. Also, you will need to have a PVC buckle and bamboo sticks, sewing thread, packing materials, labels, etc. You can procure the raw materials easily from the local wholesale market.

9. Jute Bag Manufacturing Process

First of all, you will need to procure the woven jute fabric from the wholesale market or manufacturers. Spread them on the printing table and fix the requisite auxiliaries/ingredients.

Then you will need to print it by screen printing according to the design and color. After that, wash the printed fabric and dry it under sunlight or through a drier.

Then cut the printed fabric as per the required design and sizes of the bag. Stitch the cut pieces by the lockstitch machine. Then, you will need to attach the PVC buckle or bamboo stick, etc. manually. Now the bags are ready for the market.

10. Promote your Jute Bag Manufacturing Business

As such any product on this planet needs promotion. And your jute bags are also similar. Generally, retail distribution is the most proven way of establishing any product in the market. However, you must consider institutional sales also.

Apart from the offline promotion, concentrate on the online one too. According to the brand name of your company, secure a domain name, and build a business website. Also, use social media carefully for promoting your jute bag widely.