How to Start Paper Bag Making Business – Step By Step Process

paper bag making business

So you want to start your own paper bag making business right? Just kidding, I know you want to start a paper bag business that is why you are here. Well, don’t worry. In this article, I have covered each and every information that you are looking for.

The paper bag industry is really big. There are many people who don’t like to use plastic bags. Instead, they prefer using paper bags. The demand for paper bags increased rapidly when few states announced a ban on plastic bags. Paper bags are recyclable and it’s eco-friendly too.

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Nowadays paper bags are trendy because of their stylish look and colors. There are many types of paper bags available in the market. You can start a paper-making business unit with small to medium range investment.

Things which I have covered in this article are:-

  • Market potential of paper bags
  • Investment requirement for paper bag making business
  • Selecting a proper place for the unit
  • Raw materials needed for paper bags
  • Machinery for Paper Bag
  • License required for the paper bag
  • Promoting & selling bags

1) Market Potential of Paper Bag Business

Basically, the demand for paper bags is really high due to their recycling nature. Also, it’s cost-effective and it doesn’t create any bad effect on the environment. The design and colors of paper bags are very attractive which attracts ladies quickly.

The manufacturer of plastic bags was in the highest top but now anymore. From 2015 to 2018 the demand for paper bags increased rapidly. The growth rate of paper bags is greatly high.

Lastly, the marking of paper bags is very easy too.  Malls, bookshops, vegetable shops, grocery stores are the main target. Also, you can export paper bags to other states or even countries for increasing your earnings.

2) Investment for Paper Bag Business

Actually, the investment for paper bag making business depends on the production quantity and quality. There are two types of investments required for the business. Firstly, fixed investment includes the cost of machines, land cost, labor rent, etc. Secondly, the variable investment which mainly includes the cost of raw materials, maintenance cost, etc.

You can start paper making business from small scale to large scale. As per your budget, you can invest in land or you can rent it. After land, you need to purchase machinery for the paper bag making business.

A fully automated paper bag machine costs about 4.5 lakh to 7 lakh depending on the production capacity. One fully automatic paper bag machine can produce 230 pieces per minute.

Also, you can start the paper bag making business with semi-automated machines. One semi-automatic paper bag machine can produce 60 to 80 bags per minute

3) Position for Bag Manufacturing Unit

Selecting the most suitable location for the manufacturing business is important. Finding an industrial area for your business is what I’m talking about. An industrial location can significantly reduce the cost of production.

An Urban area definitely is the best location for your business. Also, it has cheap rent because of the less popular. The cheap rated labors and electricity are also a benefit for your business.

Another most important factor which affects the margin is transport. I would strongly advise you to choose a location where you can easily manage your transportation.

4) Raw Materials Required for Paper Making Business

Various paper bags require different types of raw materials that are easily available in the market. In order to manufacture paper bags, you will require a few raw materials.

  • Paper rolls
  • Printing Ink
  • Gums
  • Strings

These are the basic raw materials required for producing paper bags. Raw materials are easily available in the market. Also, choosing the right raw materials for your business is important.

5) Machinery for Paper Bag Business

In the paper bag industry, it’s very important to select proper machines. Choosing the right machine for your paper bag is the most important decision. There are several machines used to manufacture paper bags. You can purchase machines according to your production requirements and budget. Semi-automatic and fully automatic both machines are available in the market.

Before purchasing the machine I would recommend you ask if they are providing support for installing machines or not.

List of machines for paper bags are:-

  • Roll Feeding Paper Bag Machine
  • Eyelet Punching Machine
  • Handle Rope Making Machine
  • Sheet Cutting Machine
  • Printing Machine (optional)

The price of paper bag machines varies on the type of paper bag you are about to produce and it’s capacity.

A semi-automatic machine with the capacity of 200-300 Mm, 100-200 Mm, 1-100 Mm (the shopping bag) in an hour cost about 4.5 Lakh / Unit

A fully automatic machine which can produce 1500 pieces/ hour of shopping and carry bags will cost you around 6 lakh

6) License required for paper bag business

Starting any business requires several licenses. Firstly, it’s important to register your company with ROC (Register of Companies) and then you can move to the next step.

After registering your company you need to apply for a trade license from your local trade authority (local Municipal Corporation).

Then you have to apply for Udhyog Aadhaar registration which you can do online at

BIS (Bureau of Indian Standards) registration also required in certain businesses

Lastly, GST registration is compulsory for all businesses in India. Once GST registration is done your company will be given a GSTIN number.

7) Promoting The Paper Bag Business

Promotion is very important for the success of the business. A proper plan for promotion can be a huge advantage for your business. There are many ways to promote business nowadays. You can contact malls, gift stores, grocery stores, etc. But I would recommend you to find out the distributor and then contract with him it will save you time.

Also, you can promote your product online. There are two ways to promote your paper bags online.

  • First is the free method which includes promoting your product in various social media platforms
  • Second is the paid method which includes promoting your product through ads campaign.

Final Word: – Starting a paper bag manufacturing is definitely a profitable business. I would advise you to visit a paper bag factory beforehand to get some knowledge and experience of the field. There are many things which you need to handle. Also, it’s a time-consuming process. It requires your effort, time and money.

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