The use of jute bags has grown multifold especially after the dramatic reduction in plastic use. Their use serves plenty of purposes including packaging and shopping which were earlier occupied by plastic. Jute bags are in huge use because of their nature of being the most environment-friendly products when putting in comparison with other substitutes. Juts bags are also 100% recyclable and degradable products.

India no way falls behind in the number of jute bags producing units. There are a large number of manufacturers of jute bags operational in almost all states of India. There is a large room awaiting to accommodate new entrants in this growing industry. The real opportunity in India lies in the scarcity of units in the urban areas. The rural villages are already saturated. So, take a step forward and take advantage of the ban on the manufacture and use of plastic bags by starting your own jute bag making business.

Requirements

To open a jute bags making business, the first step that you need to take on priority is looking for skilled craft workers. How many artisans you would like to put for work in your factory will depend on your desired quantity and quality of jute bags production. For example, if you would want to have a production of 500 bags per day, you will require somewhere around 8-10 people. In case, you want double production, that is 1000 bags per day, you may require 16-20 employees. Please remember that a single artisan can make up to 50-80 bags in a day. In short, more production means more people.

You also need to find reliable fiber suppliers. The major jute producing areas in India are West Bengal, Bihar, Assam, Andra Pradesh, and Tripura from where you can procure or can provide you a reliable supply of raw materials.

A jute entrepreneur will also require approximately 10,000 – 12,000 sq feet of land for plant setup and equipment such as sewing machines, screens for printing, and cutting tools. An estimated operating cost for a jute manufacturing bags unit would be near about 2.5 – 3.5 lakhs, which we think isn’t a huge investment. Generally speaking, you can earn a profit margin of approximately 20%-30%, catering to the domestic market.

Plant Land

10,000 – 12,000 sq feet

Investment

2.5 – 3.5 lakhs

Tools & Equipment

Sewing machines, screens for printing, and cutting tools.

Profit Margin

20%-30%