Paper Bag Making Business Plan – Start Profitable Small Scale Manufacturing Business In India

paper carry bags business plan

This is perfect time to step into paper bag making business because of the ban imposed on use of plastic bags in various states of India. Government is taking necessary steps in educating people about hazards of plastics and related materials, and in many states of India we see that use of paper carry bags have overtaken plastic bags. Here in this article, we will discuss about business opportunity in manufacturing of paper bags in India.

In this comprehensive researched business plan, you will get clear understanding of the following points:-

  • Scope and opportunity in this business
  • How to start paper bag manufacturing unit
  • What types of machines are required in manufacturing
  • Requirements of raw material
  • Detailed information on paper bag manufacturing process
  • Profit margin in this business
  • Business promotion and marketing strategy

Paper Bag Making – Business Opportunity & Scope

In this time, paper bags have become style statemtent for the people of India and abroad. The demand of eco-friendly paper bag is rising at exponential rate throughout the county and it will continue to rise in coming years. After ban imposed on use of paper bags in Tier-1 cities of India such as Bangalore, Delhi, Chennai, Mumbai, Hyderabad, etc. In coming years, they are going to extend the boundries and will impose ban of all cities of India. With all these current scenario, I hope that you can now figure out the scope and opportunity in this business. Apart from all this, paper carry bags are cheap and it plays important role in clean environment and it is easily recyclable as compared to hazardous plastic carry bags. This is very great opportunity to earn profit from this business and save the environment at the same time.  The use of paper bag as common packageing material has increased significantly in the following places:-

  • Shopping Malls
  • Stationary shops
  • Grocery shops
  • Fruits and vegetable shops
  • Medical shops

Paper Bag Making Business Plan

Starting Paper Bag manufacturing Unit

In this section, you will get an idea on how to start paper bag manufacturing unit. I will discuss various points in this section such as location selection, raw materials and machines required for manufacturing, etc.

Location selection:

Location selection is very crucial in every business. You have consider several points before finalizing the location because it cannot be changes once you installed you machinery.  In paper bag manufacturing you should have to look for availability of following things:-

  • It should be easily accessable from the market where you will sell your product
  • Space for loading and unloading the trucks (for supply)
  • Availablility of labour in that locality. If labour cost is low then it is added advantage for you
  • Availability of electricity
  • Availability of water

Paper Bag Making Machines

Various types of machines are available for paper bag mmaking, some are automatic machines and some are semi automatic machines. Price of automatic machines varies from 5 lakh to 20 lakh INR. The price mainly depends up on motor speed which is directly proportional to production capacity.

Production capacity of automatic machine is generally 10,000 pieces per hour without printing.

Automatic Without Printing 12×18  to 40×60 cm Flat bags 120 piece/minute 5 lakh 12ft x 14ft
Automatic With Two Color printing 12×18  to 40×60 cm Flat bags 120 piece /minute 6.5 lakh 14ft x 18 ft


As you can see that machine is dual color printing feature takes more installation space because it has one additional printing unit attached to it. There are various other types of machines are available in the market and price for that machines depends upon features like laminating, printing, packing, multi color printing, etc.

Raw Materials Required For Paper Bags Manufacturing

Paper bags can be manufactured from various types of papers available in the market. You have to decide that what type of paper you are going to use for production. Different paper has different strength, if you are manufacturing paper carry bags for garments then the quality is going to high as compared to carry bags for carrying small things like medicines, grocery item etc.

Raw materials used in manufacturing are as follows:-

  • Paper roll (You can get it easily from paper mill)
  • Printing ink is required for printing of designs and logos
  • Gum
  • Strings

Paper Bag Manufacturing Process

Manufacturing of paper bag is fully automatic and simple. A operator can easily run one machine for production. Generally, when all things are loaded into machine then you do not have to do any work, Just sit back and relax.

The process of manufacturing is as follows:-

  • Cutting of paper according to size is done by automatic paper bag machine.
  • Pressing the side of paper with gum is done by pressing machine.
  • After that, printing is done with the help of printers
  • Punching is done for creating holes for strings
  • Attaching strings to hole is done automatically by machine

Profit Margin In Paper Bag Manufacturing

Production cost of 1 paper bag of size 18cm x 25cm is around Rs 3.40/- including material cost and labour cost. And market selling price of 1 piece paper bag is around Rs 3.50/- Total profit in production of 1 piece of paper bag is around 0.10 paise.

60 piece/minute 60 x 0.10 =  RS 6 6 x 60 = 360 Rs 360 x 8 = Rs 2880 2880 x 25 = Rs 72000


Above profit margin may vary and it will depends on production capacity and proper utilization of machine.

Business Promotion

Register your business in websites like,, etc. Also, Use social media to promote your business online. It is also important to get website done for your business. You can also contact paper bags dealers and can supply your product to them.


  1. Dear Sir,
    would like to know can news papers be used as raw material for paper manufacturing or other options for news paper recycling.

  2. Hi this is kamal from noida delhi ncr, just wanted to know that is there any paper manufacturering machine in the market that can be used by menual in low price in india,

    And can we purchased the automatic paper machine on installment or on loan in india.
    If is there any outlet in delhi ncr where we could go for visit.

  3. Hii
    I am Amit Mehra from Kota Rajasthan. I am Post-Graduate in Management, but Physically Handicap by leg which is my strength.
    I want to start Paper Bag Manufacturing plant.
    So, i wish to know that govt. going to help me or not.
    And is it ok if i will go for Digital Marketing for my business.

    Finest Regards,
    Amit Mehra

  4. Sir.
    I want to start a small business of paper bag nd stationary manufacturing ..can u guide me..ready to take franchisee also..

  5. Hi i also want to start paper bag manufacturing unit
    I want to know is it possible to make different size of paper bag on sigle fully automatic machine?
    Any special course or training required?
    Pls revert
    I am from mumbai

  6. Hello,
    I would like to know few things like:
    1. Any Govt. Aid or funding available.
    2. What abt training of operator of machine.
    3. Can newspaper be used in this machine as raw material.
    4. How can i get bulk orders abt bags.

    i request a call back to have detailed discussions.

    Arun Mishra

  7. Hello,
    I want to start paper bag manufacturing business. What is the minimum capital requirement to start? How do I get loan? Is there any unit where I can visit to see how the system works? I am from Lucknow.
    Thanks in advance.
    Best regards,

  8. Don’t go for this project. It is too late. Already hundreds have bought machinery and started. You will not be able to match with a small scale unit.

    Instead, there is a better business scope.

  9. Hello,
    I want to start paper bag manufacturing business. What is the minimum capital requirement to start? How do I get loan? Is there any unit where I can visit to see how the system works? I am from Mumbai Nallasopara
    Thanks in advance.
    Best regards,

  10. I would like to know few things like:
    1. Any Govt. Aid or funding available.
    2. What abt training of operator of machine.
    3. Can newspaper be used in this machine as raw material.
    4. How can i get bulk orders abt bags.


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