Jute Bag Making | Small Scale Manufacturing Business Plan

Do you want to start Jute Bag Making Unit with small-scale investment? Are you looking for the detailed business plan for Jute Bag Making, here you get quality information related to business.

Jute is an organic vegetable fiber it is also known as ‘golden fiber’; it is one of the soft, shiny, inexpensive and strong natural fibers which are recyclable and biodegradable.

Jute bags are durable, strong, light in weight by considering this property Jute bags are used for packaging and transporting of cement, sand, agricultural product, glossary product etc.

Designer Jute bags are used as shopping bags, textbook etc.

With the increase of population and civilization, the demand for the jute bag is also increasing; awareness about the environment is also the reason for jute bag demand.

Jute Bag Making Business Plan, List of Machines, Profit Margin.

Jute Bag Making is a great opportunity for the person who wants to start a business with a small investment, it is the best option for housewife and students; any individual can start this business even from home.

#1. Potential of Jute Bag Business

Before starting jute bag making business you need to study market and demand for jute bags

Jute bag is an essential item for carrying purpose, therefore, the demand for jute bags is increasing day by day, and the demand for jute bag is stable through the year

Jute bags are used for packaging, transportation as well as marketing purpose.

We all knew that the plastic bags are the pollutant itself, therefore, people are prefer jute bag over plastic bag because of its eco-friendly nature and inexpensive

Jute is the strongest organic fiber with high durability, lightweight, softening and shiny nature; it is easily available in the market; does not require high-end technology for manufacturing

Jute fiber is UV protective, carbon neutral, decomposable therefore it demands to package of cement, sand and agricultural product

Some major points that increase the potential of business

Low capital: for jute making business does not require high capital investment you can start a business with low investment and some machinery

Home based business: you can start jute bag business from home; does not require huge space for operating a business

Eco-friendly: the government has already taken steps toward the eco-friendly product, and as result, they ban the use of plastic bag therefore the jute bags are the best replacement for plastic bags

Designer jute bags: various designer bags, ladies purse, laptop bags, carry bags, traveling bags are made from jute, therefore customers attract towards the jute products

List of Some Products That Made From Jute Fiber

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

#2. Licenses Required for Jute Bag Business

This business doesn’t demand lots of paperwork you need to deal with some documentation for jute making business.

#1) Registration of Firm: You may start the small to medium scale jute bag processing unit either a proprietorship or partnership firm.

If you are starting this business as One Person Company, then you have to register your firm as a proprietorship.

For partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC)

#2) Tread License: Obtain Tread License from local authorities; you will need to have vat registration.

#3) SSI unit: Also, register for SSI unit, apply for ISO certification.

#4) GST registration: Obtain GST number by GST registration which is compulsory for every business owner.

#5) IEC code: If you are planning for export your jute bag then you have to apply for IEC code.

#3. Area Required to Start Jute Business (Location)

Location selection is not a difficult task to do but you have to aware while selecting the area for jute bag making business.

You can start a business with minimum 500 sq ft area, make sure that the area is having sufficient space for storage and machinery, and also ensure that it has a facility like water supply and electricity supply

The area must be easily accessible by transportation also the raw material supplier is nearer to your location.

You can operate the business from home also it will save your money.

#4. List of Raw Material for Jute Business

Jute is organic fiber made up of vegetable fiber which is durable, attractive, soft, shiny, light in weight etc; therefore, the jute is best raw material for jute bag making

Jute fiber is available in laminated and no laminated roll form; with one roll of jute fiber you can make 350 to 400 jute bags of size 20” x 15”

The rate of one jute fabric roll is Rs 35 to Rs 40 per meter

Additionally, you need raw material like printing gum, eyelet, chemical, PVC bucket, hooks; sewing thread also you need packaging material

Required raw materials for jute bags

• Bamboo sticks
• Chemicals
• Chemicals and auxiliaries
• Dye
• Hook
• Jute fabric
• Laminated and non-laminated jute fabrics
• Packaging materials
• Printing gum
• PVC buckle
• Sewing nylon threads

#5. List of Machinery Required for Jute Bag Making Business

For manufacturing process of jute bag you need to install some machinery. There are various type of machinery are present in the market you have to select right machine according to stitching pattern and product output.

You need a heavy duty industrial machine and side sealing machine (with lockstitch) for stitching and side sealing purpose, other than this machine you need a regular sewing machine for decor and adding design on a jute bag.

It is advisable to choose nylon thread for sewing purpose because it is stronger than other thread, nylon thread hold the stitches for a longer time.

The Machine Required For Jute Bag Making

• Fabric Cutting Machine
• Heavy Duty Sewing Machine
• Ordinary Sewing Machine
• Stencil Equipment for Printing Coloring Paints
• Lockstitch Machines
• Woven Sack Bag Cutting Machine,
• Side Sealing Machine

Other than heavy machinery you need some equipment for jute bag making that is mention below

• Cottage Steamer
• Cutting Machine
• Cutting Table
• Dye Paste Stirrer
• Lamination Machine
• Rubber Wiper
• Scissors, Measuring Tape and Other Equipment.

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#6. Manufacturing Process for Jute Bag Making

Step 1 Get Jute Roll

For jute bag making you need jute fabric which generally comes in the jute roll form, the price of one jute fabric roll is Rs 35 to Rs 40 per meter

Step 2 Lamination of Jute

There is two type of jute bag one is laminated jute bag and other is simple non-laminated jute bag.

If you want to make laminated jute bag you need to laminate the entire jute roll before cutting.

Step 3 Cutting

Use a cutting machine to cut the jute roll in required size.

Step 4 Printing

If you want to print the company name or logo you can use screen printing machine for printing purpose, printing is immediately done after cutting.

Step 5 Washing and Drying

Wash the printed jute roll and let it dry under sunlight for a few hours.

Step 6 Stitching

You need a heavy sewing machine or lockstitch machine for stitching purpose, stitch the cut pieces of printed jute roll.

Step 7 Packaging

After stitching of printed cut pieces the jute bag is ready for market use, you can attach bamboo or PVC buckles for carrying purpose.

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#7. How to Sell Jute Bags

Every business need promotion to sell the product, designer bags rarely required promotion; generally, retailers are a most proven way to publish product in the market.

Local market for Jute Bags (retail market)

You can approach the local market that looking to sell jute bags. Jute bags are vastly used in a construction site for packaging of cement, sand and other material.

Jute bags are also used for animal feed product storage, and pesticides.

• Cable Filler
• Cable Jointing
• Landfill Covering
• Landfills
• Packing Pipe Joints
• Shopping Bags
• Specialty Pulp
• Agricultural Use

Wholesale market

You can sale your jute bags in your own city wholesale market.

Online Selling of Jute Bags

Apart from the old way of promotion you can choose new concentrated online marketing strategy Open your own website to aware people and get connected to customers.

Sell your product online using your website or another hosting site that helps to promote your brand.

B2B Websites:

Register your business on B2B websites like

• Alibaba
• Indiamart
• Tradeindia
• Exportersindia

etc. where you can sell your product on bulk orders.

B2C Websites:

Register your business on B2C websites like

• Amazon
• Flipkart
• Snapdeal
• Bigbasket

etc. where you can sell your product directly to the customer.

Export market of Jute Bags

You can export the Jute bags in foreign countries; you need IEC code for exporting jute bags.

Jute Bag Making (7 Step Guide) Manufacturing Business Plan