Steps to Commence a Jute Bag Making Business

Nabanita Kundu By: Nabanita Kundu
Jute Bag Making Business

Nowadays we are very much used to jute bags for shopping as well as traveling purpose. Earlier these are mainly used for the packing of cement, sugar and other commodities with heavy weight. But with the growing awareness of using eco-friendly material, plastic carrier bags have been gradually replaced by the jute bags as they are low-cost, hardy and most importantly bio-degradable items. It comes with attractive designs and shapes.

As you know jute is one of the strongest natural fibers and is readily available in the market. If you are thinking of investing and starting a micro-scale manufacturing business unit then jute bag making business is a great option as it has high demand in the market and it doesn’t demand high-end technology and machinery for its manufacturing.

Pros and Cons of Starting Jute Bag Making Business

India is the second-largest producer of jute after Bangladesh and the largest manufacturer of jute products including the bags all over the world. Moreover, a continuous research and development work have been carried out by the national authority in the field of jute agriculture, product designs and machinery development.  The demand of fashionable shopping jute bags go on increasing day after day thus venturing in the jute bag making business is a great opportunity to build an individual career to earn a good livelihood.

But along with many advantages, every business has its own limitations, so before commencing for the same you need to do a thorough analysis of the positive and negative sides of the business. So let’s find out the pros and cons of this business idea.

READ ALSO: Starting a Paper Bag Making Business – Small Scale Business Advice

Pros:

  • Small Investment: To start jute bag making business, you need not to arrange a huge amount of capital investment.
  • Home Based: You can easily start the business of jute bag making at home. You will not require a huge infrastructure to run the same.
  • Market Potentiality: There is a high demand for jute products in India and in international market too. Jute rugs have a regular demand for packing several items like rice, sugar, vegetables, cement, sands and much more.
  • Eco-Friendly: With the increasing awareness, the government has started many rules and regulations regarding the use of plastic, which makes the jute bags a perfect alternative for the same as it is eco-friendly in nature.
  • Designs: You can create various designs of bags with jute. Rugs are the most commonly used item from jute but it also has demand for making high-quality bags like a purse, file covers, jute folders, laptop bags, school bags and much more. Designer jute products are highly appreciated in the international market.

Cons:

  • Dependent on Nature: The manufacturing of jute is completely dependent on nature and monsoon is the best time for the production. So the prices and availability of the raw material is fully dependent on the climate condition.
  • Price: You will get plastic bags for free of cost from shops, but you will need to buy jute bags to substitute the plastic bags which are one of the main reason why plastic bags still has the maximum market share.

Above are just a few of the basic pros and cons of the business, so as mentioned earlier do a complete research of the business and then start planning to commence the same.

Jute Bag Manufacturing Process

To have a successful run in the business you need to have the expertise in the sector of the business. There are many government institutions which provide training regarding the manufacturing of jute products. Below is the basic process of manufacturing jute bags:  –

Required Raw Material: –

  • Laminated and non-laminated jute fabrics
  • Dye stuff
  • Printing gum
  • PVC buckle
  • Bamboo sticks
  • Sewing thread
  • Hook
  • Chemicals and auxiliaries and other miscellaneous items.

You need to buy the woven jute fabric and thread from your local market. Depending on your desired types of fashionable bags, you need to wash the raw fabric in different chemicals or printed by screen to get the attractive designs. The processed fabric is washed and then dried. Now it is cut on the desired size and shapes, and thereafter, the cut pieces are placed on the lock stitched machine with jute thread for hemming and herackele sewing. You should select the correct machinery according to your business and requirement of output. The industrial sewing machine needs to be installed as per the required pattern of stitching and output. Finally the accessories like PVC buckles, bamboo sticks, hooks are manually attached with the bags.

READ ALSO: Tea Bag Manufacturing – An Innovative Small Business Idea

Financial Aspects

Start-up Investment:

  1. Land and Building: If you have enough space in your home, then you can avoid the monthly rental on the workplace. Otherwise you need to rent a space of 750sq.mt on long term monthly rental of Rs. 15000
  2.  

  3. Tools and Machinery:(All amount in Rupees)

 

Particulars
Nos
Rate
Total
1) Printing Section
 
 
 
a) Wooden Printing Table
2
10000
20000
b. Screen of Diff. Designs
15
350
5250
c. Rubber Wiper
10
125
1250
d. Dye Paste Stirrer
4
3600
14400
e. Cottage Steamer
1
17500
17500
f. Water Drum
2
1900
3800
g. Tubes, steel spoons, mugs, buckets, roper, clips, stools etc.
 
 
6800
Total
 
 
69000
2) Stitching Section
 
 
 
a. Lock Stitch machine
4
4700
18800
b. Wooden Working Table
2
2000
4000
c. Cutting Table
1
1800
1800
d. Electric Fittings
 
 
4500
e. Scissors, measuring tapes and other equipment
 
 
2800
Total
 
 
31900
Total Machinary
 
 
100900

 

  1. Furniture & Fixture:

Office furniture like almirah, chair, rack, electrical fittings etc Rs.20000.00

TOTAL NON RECURRING/FIXED EXPENDITURE

  1. Land and Building: 15000
  2. Tools and Machinery: 1,00,900
  3. Furniture and Fixture: 20000

Recurring Capital per Month

    1. Monthly Expenses for Salary and Wages:

 

Particulars
Empl
Remuneration
Total
Master Printer/Designer
1
6000
6000
Master Cutter
1
5000
5000
Stitching Machine Operator
4
4000
16000
Skilled Printer
2
4000
8000
Add: Perquisite@20%
 
 
7000
Total
 
 
42000

 

  1. Raw Material Consumption per month:

 

Items
Qty
Rate
Total
Dye Stuff
10 kg.
600
6000
Printing Gum
10 kg.
60
600
Chemicals & Auxiliaries
L.S.
 
2800
Jute Fabric
6000 Mts
10
60000
PVC Buckle or Bamboo Sticks
10000
2
20000
Sewing Thread
L.S.
 
2500
Packing Materials, Needle, Label etc
L.S.
 
2500
Total
 
 
92400

 

  1. Monthly Other Expenses:

 

Particulars
Amount
Rent
5000
Tax & Insurance
2500
Electricity & Utility
2500
Office & Administrative Expenses
3000
Travelling & Transportation
2000
Repair & Maintenance
1000
Misc. Expenses
1000
Sales Promotion
1000
Total
18000

Required Steps to Start Jute Bag Making Business

For starting any business, the primary step is to know about the business in details and do a thorough research about the same. Below are the steps that need to be followed to start the business:  –

Know the Business: – Do a thorough research and analysis about the business and get all kind of required information about the same. Know the market, the customers and different business strategies.

Acquire the Skills: – To run any business successfully, you need to have the knowledge and skills of running the same. If you don’t have the skill, you can enroll for training from two government department- NCJD and JMDC which provides several schemes and programs to support small scale jute bag making business.

The program includes basic training, advanced training along with design dissemination program, technical dissemination and demonstration and also buyers and sellers meet.

They also provide assistance for marketing of jute products by letting the business participate in different trade fair or exhibitions in national and international markets.

Legal Regulations: – The legal formalities will depend on the type of chosen business, like if you want to begin a sole proprietorship then you need to register your business as One Person Company. Get trade license from the local authority along with vat registration. For exporting your product you need to apply for IEC Code.

The best part of starting a jute bag making business is that it can be started with a very small investment and can be done from home only.

So if you like the idea of commencing jute bag making business, it is a great option to venture into and if you want to look for more business options you can check the different categories of this website.

The jute bags are manufactured as per customer requirement regarding size and quality.

Summary
Steps to Commence a Jute Bag Making Business
Article Name
Steps to Commence a Jute Bag Making Business
Description
If you are thinking of investing and starting a micro-scale manufacturing business unit then jute bag making business is a great option.
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Home Business Ideas Center
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