Business Ideas

How to Start Jute Bag Making Machine Business in India: Step-by-Step Guide for 2025

Rudra Chauhan

By Asif Shaikh

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Tired of seeing plastic waste everywhere you go? Ever noticed how almost every shop, street vendor, and big store has now shifted from plastic bags to brown paper or jute bags? There’s a reason behind this change, and it’s created a massive business opportunity if you act soon. With the plastic ban taking effect and the demand for eco-friendly packaging at an all-time high, now is the perfect time to learn how to start a jute bag making machine business in India.

In this post, I’ll tell the why, how, and what of this growing business—from business setup and machine choices to profit margins, with real data and actionable advice. Whether you want to make jute bags or paper bags or just learn about sustainable packaging, you’re in the right place.

Why Eco-Friendly Bags Are in Demand: The Plastic Ban and Its Impact

Why did this ban become necessary? Let’s look at the numbers:

  • According to CSIRO, India produces 26,000 tons of plastic waste daily
  • In 2021, India used 21 million tons of plastic
  • 15 kg per person is the yearly plastic consumption in the country
  • Only 81% of plastic waste even gets collected

It’s shocking to see how Delhi tops the charts for plastic waste, with Goa following. Even with collection systems in place, a lot of people burn plastic out in the open. This isn’t just unsightly—it fills the air with toxins, poisons groundwater, and affects every living thing, including us.

The Process: How Jute and Paper Bags Are Made and Which Machine to Choose

Understanding how these bags are made will help you decide which setup is right for you, especially if you want to know about jute bag making machines for small businesses at home.

Three Ways to Make Jute or Paper Bags

  1. Handmade (Manual Folding)
    • Traditional method where the bag is folded and glued by hand
    • Good for unique or custom orders, but slow and labor-intensive
  2. Semi-Manual Machines
    • Small machines that speed up folding and gluing
    • Easier than by-hand but still require operator input
  3. Fully Automatic Machines
    • Complete automation for high output and consistency
    • Best choice for scaling up and handling large orders

Let’s focus on automatic machines since they provide the speed and quality necessary for large-scale supply. This is the preferred route for anyone serious about learning how to start a jute bag-making machine business in India from home or larger setups.

A Closer Look: The Fully Automatic Bag Making Machine

For example, “Sahil Graphics” offers robust machines that can handle a variety of bag sizes. Here’s what makes their machines practical and effective:

  • Roll Feeding Unit: Heavy paper or jute rolls are easily lifted via a hydraulic system
  • Touch Screen Controller: Sets the right grip and tension on the material for smooth processing
  • Edge Correction Unit: Keeps the roll centered and aligned
  • Photocell: Reads pre-printed patterns for accurate placement on bags
  • Glue Tank: Automatically dispenses glue as needed based on production rate

Here’s the typical process in the machine:

  1. Side Gluing—Glue is applies to one side of the material
  2. Tube Forming – The sheet folds and forms a tube
  3. Tube Cutting—Cuts the tube to the required length
  4. Creasing—Marks the bag horizontally to make folding easier
  5. Bottom Gluing & Opening—The bottom folds, glues, and seals
  6. Final Pressing & Conveyor Exit – Bags exit neatly stacked, ready for use

You can control bag length and width, and the machine adjusts for various thicknesses (usually 50 GSM to 150 GSM). Depending on the size and speed setting, you can make 30 to 200 bags per minute!

Here’s a quick table for reference:

FeatureRange/Info
Bag Length270 mm to 530 mm
Bag Width140 mm to 360 mm
Paper/Jute Thickness50 GSM to 150 GSM
Production Speed30-200 bags per minute

Requirements for Starting a Jute (or Paper) Bag Business

Space and Power: What You Need to Set Up

For a machine setup with printing (to add logos or shop names):

  • 1,500–1,700 sq ft area is ideal

For basic bag production without printing:

  • 1,000–1,200 sq ft is enough

You’ll also need a steady power supply and basic amenities for workers.

Licenses and Legal Steps

To get your business started safely and legally, you should have:

  • GST Registration
  • MSME Registration
  • Trade License
  • Pollution Control Board NOC
  • Fire Safety NOC

Checklist for licenses:

  • GST Registration
  • MSME Certificate
  • Local Trade License
  • Pollution Control NOC
  • Fire Safety NOC

Get these ready before you start production so you don’t face future problems.

Financial Support and Government Schemes

You don’t need to do it all on your own. There are government-backed loans and subsidies:

  • PMEGP (Prime Minister’s Employment Generation Programme)
  • MUDRA Loan schemes

You’ll need to provide a quote from your chosen machine supplier (like Sahil Graphics) and a business plan. These help in getting quick approvals and sometimes, partial loan subsidies.

Tip: Always collect a written quotation and project report from your supplier—it speeds up paperwork for loans.

Investment, Production Cost, and Profit Margin

Curious about the real numbers behind “how to start a jute bag making machine business in India”? Let’s break them down.

Machine Price and Overall Investment

  • Small manual or semi-auto machines: Start at ₹1 lakh
  • Good quality square bottom automatic machines: ₹60 lakh and up
  • Small business/home setups can start with approximately ₹3-5 lakh investment

If you’re looking for a “jute bag making machine for small business at home” or want to explore the “Jute Bag Manufacturing Plant cost in India,” start with a smaller machine and scale up as orders increase.

Raw Material and Production Costs

  • Brown Paper or Jute Roll: ₹45–50 per kg for 50 GSM thickness
  • Glue/Adhesive: Added per production run
  • Labor: Depends on output and shift system
  • Electricity: Varies by machine but is a monthly fixed cost

Sale Price and Monthly Profit Estimate

  • Finished bag (per kg) sells at ₹80–90 per kg
  • Handle (rope/strap) addition increases per-bag price
  • If you sell printed, customized bags, the profit per piece rises

Example:
If your machine produces 700–800 kg bags per day, and you keep a ₹1 margin per bag, you could cross ₹15 lakh/month in profits, especially if you add value by printing shop logos.

Here’s a simple estimation table:

ComponentCost (per kg)Sale Price (per kg)Margin
Raw Material₹50₹90₹40/kg

Multiply by your daily output and the days you run—monthly profit can scale up fast.

What’s great about this business? You can keep unsold stock for months, even years, without any product loss. Bags don’t spoil or expire, which makes stocking risk-free.

Environmental Benefits: Why Shifting Away from Plastic Matters

The switch to paper and jute bags is not just about making money—it’s about doing something good.

  • Each year, over 1 lakh sea creatures die from plastic hazards
  • Microplastics end up in the air, water, fish, and human bodies
  • Many new illnesses (with no known treatment) are linked to this pollution

Jute and paper bags decompose easily, cause minimal harm, and support a cleaner environment for everyone.

Key benefits to emphasize:

  • 100% biodegradable, unlike plastic
  • No toxic after-effects from production or disposal
  • Support local employment and cottage industries

When you make or use these bags, you protect both nature and your own health. Proper disposal and recycling will keep this cycle sustainable.

Conclusion

Starting a jute bag making machine business in India could be your way to a steady, scalable income while directly fighting pollution. Whether you begin with a small machine from home, use detailed business plan PDFs, or jump into a full-scale manufacturing plant, the path is clear, and the demand is real. The investment pays itself back thanks to rising demand, government support, and the long shelf life of the product.

यह भी पढ़ें.

Asif Shaikh

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