Business Plan For Manufacture of Paper Bag: Name-Sunita Deori Roll No.

BUSINESS PLAN FOR
MANUFACTURE OF PAPER BAG
NAME- SUNITA DEORI

ROLL NO. –
INTRODUCTION
Paper bags are the regular consumable item. We can find several uses of these bags in the retail
industry. The manufacturing process is easy. Raw materials are easily available. Also, the
business requires very small startup capital. Additionally, it does not require any complex
technology. And finally, the market is readily available.
Because of the biologically non-disposable nature of the plastic bags, Govt has banned the
plastic carry bags in many cities and urban centers. Here paper bags are fulfilling the gaps in
consumer product packaging. Due to these common factors paper bag making has become a
very profitable and lucrative manufacturing opportunity for budding entrepreneurs.
Paper bags are common packaging material. Generally, bakers and confectioners, grocers,
textile and cloth merchants, dry cleaners, sweet-meat dealers, etc. use this item widely.
Basically, the product has some distinct advantages particularly lower prices over the other
conventional packaging medium. Even, the hawkers and vendors on the footpath of packing
fruits, vegetable and candies, etc. use this product.
Paper carry bags are widely used in all types of trade. Some of the majors are textile shops,
bakeries, shoe/chappal shops, grocery shops, fancy shops, bookshops, sweet shops, meat/fish
Shops, vegetable Shops, Stationery Shops, hardware Shops, all departmental shops & consumer
shops.
The awareness of the hazards of plastic bags to the environment is increasing among the public.
Also, the Govt. imposes ban plastic bags throughout India and abroad. Hence, it is fueling the
great demand for eco-friendly paper bags. The Eco-friendly Paper bag manufacturing industry is
poised for higher growth with a bright future
After deciding the specific type of bags that you will produce, you will need to prepare the
project report. A customized project report not only helps in getting bank loans but also helps in
establishing the business properly with fewer mistakes.
IDEAS OF BUSINESS
ARRANGE FINANCE FOR PAPER BAG MAKING BUSINESS- Like any manufacturing business, paper
bags making business requires two types of capital investment. Fixed capital investment
includes land, building, and machinery. Either you can satisfy all the investment from your own
fund or you can apply for the term loan.
The working capital investment includes manpower cost, raw material cost, rent and day to day
other operational costs. We can also apply for the working capital loan as an overdraft or cash
credit facility from your nearby banks or any financial institutions.
SELECT THE LOCATION- Now, we need to select a location for the unit operation. If we have
space, we can establish the unit at home also. However, it is always advisable to start the
business in an industrial zone.
A 500 Sq Ft covered space is sufficient for the unit operation. If we don’t have your own space,
then start with a rental arrangement. Ensure, that space has electricity connection, water
supply, and easy transportation availability.
ESTABLISH THE UNIT- After getting the space, draw a floor plan. We can take the help of an
interior designer who has the professional experience of designing industrial units. Also, we
need to provide an electrical connection to the machines. Determine specific space for raw
material storage, machinery installation, and official work. Also, keep some space nearby the
main door for loading and unloading purpose.
Paper Bags will attract all consumers as this is an eco-friendly products. Consumers are
choosing paper bags over plastic bags, owing to the environment consciousness. Apart from
carrying various types of goods, paper bags can also be used for shielding and preserving. Rising
preference for paper bags in developed regions, increasing retail sectors, and growing demand
for food and beverage packaging are expected to be driving the global paper bags market.
SOURCE OF FINANCE AND MANAGEMENT STRUCTURE

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BUSINESS PLAN FOR

MANUFACTURE OF PAPER BAG

NAME- SUNITA DEORI

SOURCE OF FINANCE AND MANAGEMENT STRUCTURE

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