Paper Bag Project Report



You can now download Paper Bag Project Report in a short time. It takes many days to research this business and then write the project report for starting a paper bag manufacturing business in India. My question is Why spend so much time when we are here? Yes, I mean to say that the business plan is a crucial document that contains all significant details about the setup. You can immediately download the Paper Bag Manufacturing sample project report pdf format.

Paper bags are recycled. Additionally, these bags come in a variety of colors, patterns, and sizes. Additionally, these are biodegradable items. Therefore, in most cities, plastic carry bags have been replaced with paper carry bags.

Nowadays, paper carry bags have a versatile use. Additionally, these bags also help promote the brands of product-based companies. The manufacturing process is not complicated. The business demands a small space for operations. Additionally, it calls for small to medium capital investment, to begin with.

Paper Bag Project Report

If you are an individual who lacks time and wants to get the paper bag project report ready in a short moment. You are on the right page. We can provide you with this project report in a few minutes. Just make the payment and get the download link that gives you access to use our project report. If you want a project report for the bank loan, you can get a customised project report by paying an additional amount and getting the business plan as per your standard.

You can start a business in many ways. You can produce paper bags either manually or commercially with the help of a machine. So, you will need to fix your business model.

Determine whether you want to start the business as home-based or set up a small manufacturing unit. According to this, you will need a paper carry bag to plan to do business. Before writing the plan, you must first do a market survey. Try to identify specific demand for specific designs and sizes. Additionally, identify local industries and companies that regularly use paper bags. Also, identify your rivals who are already in the market.

If you want to set up a commercial unit, you have to know the industry first. In writing the project report, mention what type of organization you want to create. Also, mention your business objective, mission, and vision. Calculate financials, including input costs and expected ROI. Besides, there is a plan and money for product incentives.

What is Paper Bag?

Plastic is a big threat to our environment. It has caused a lot of harm to the mother Earth. Use of plastic and plastic products has so many disadvantages. They are non biodegradable, cause pollution to the land, as it takes millions of years to decompose plastic naturally.

A paper bag is a bag that is made from paper. Paper bag is usually used for storage and packaging. It is made from recycled paper and from old newspaper also. A different type of bag that can be reused is made from metal, synthetic material or plastic film. 

What is Paper Bag Manufacturing?

It involves making non woven bags of plastic, shopping bags produced from recycled paper, and food packing bag made from recycled paper. The process involves cutting, folding and pasting different sheets into rectangular or square shape before they are packed together with items like pencils, pens and markers in them. These can be sold at retail shops like Target, Walmart for resale purpose. Customers demand them for their use.

Ideal Capacity of Paper Bag Making Plant

Since you are new to this business, so you must know the ideal capacity of the paper bag making plant in India. It is an important factor to decide which type of paper bags you can manufacture. First you need to find which product in this niche is demanded more and then you will be able to decide the size of market. You must consider factors like location and availability of raw material also. Once you decide about all this, you need to know the capital investment you are ready to make and how many employees you would hire for production and other duties.

Paper Bag Business Plan

A clear paper bag manufacturing project report is crucial for your success as an entrepreneur. You wish to contemplate some important information like your initial costs, your target market, and how long it’ll see you interrupt even. Draft a proper paper bag manufacturing project report that describes your expected income, product and repair lines, expansion plans, and other details of your business. A well-drafted project report will facilitate you in applying for any bank loan. Therefore, you can get a well-draft project report from our website

Uses of Paper Bags

Paper bags are used at the following places. 

  • Textile shops
  • Jewelry Store
  • The bakery
  • Shoe / Slippers Shops
  • Grocery Shops
  • Fancy Shops
  • Book shops
  • Gift shop
  • Sweet Shops
  • Snack Store
  • Meat / Fish Shops
  • Vegetable Shops
  • Stationery Shops
  • Hardware Shops
  • All departmental shops and consumer shops 

Sizes Available in Paper Bags

Size in inches and size in cm

  • 4.25X 6 / 11X15
  • 2 5.25X7.5 / 13X19
  • 3 6.75X8.5 / 17X22
  • 4 8.25X10 / 21X25
  • 5 9.75X12.75 / 25X34
  • 6 10.5X16 / 25X34 

Paper Bag Market Potential

Paper is an environmentally friendly product. It is made from natural raw materials and as a final product, paper is biodegradable. There is no real competitive product of paper.

The plastic that was rated as an alternative to paper lost the race, being unprofessional. Additionally, the demand for paper bags has increased with the establishment of shopping complexes and consumer stores.

Actually, after the ban on plastic bags and pouches, the demand for paper bags and pouches increases manifold. Also, this product has good export potential.

The consumption of paper boards already used in the packaging industry is increasing. Therefore, it is an attractive proposition for new entrepreneurs to start a paper bag making business.

Future of Paper Bag Manufacturing Business in India

Almost all the countries of the world have banned use of plastic bags and this has created huge demand for paper bags in the world. It would be good if you manufacture bags that have a minimum percentage of post consumer recycled paper content as per the laws. The paper bag market in the world is estimated to be USD 18.1 million in the upcoming years. Earlier is was USD 15.5 million. Companies want to pack their goods in paper bags now because it is eco friendly. Paper bags are biodegradable and recyclable. A paper bag manufacturing business is a wonderful opportunity for entrepreneurs to invest their money. 

Requirement of Paper Bag in the market

As the government urged a ban on poly bags for environmental reasons, even some states and cities acted to ban poly bags altogether. Hence paper bag manufacturing has taken over the market. Where some time ago paper bags were only used in brands because they were well designed and expensive for small business owners. But now you can get the quality of different types and low-grade paper bags which depends on the demand of your city and market. You can easily know and understand market expectations by making it your business.

This business also has export potential as every country is serious about pollution points caused by plastic waste so they are banning plastic and there we can easily export our bags.

Paper Bag Business Registration and Licensing

Typically, this type of business does not demand much licenses and permissions. The first thing to do before starting a business is to obtain a business license from the local municipal authority.

You will have to apply for Udyam Registration and GST registration later. However, you should check the local rules and regulations of your state. 

Investment Required to Start Paper Bag Manufacturing

In starting this business, you have to invest according to the production of finished goods. Broadly, you will have to invest in the purchase of space, machinery, and raw materials. Additionally, you will need to hire skilled manpower for unit operation, marketing, distribution, and administration.

An investment of around Rs 10 lakh will be required to start a paper bag manufacturing business.

How do I Start a Paper Bag Business?

You can start a paper bag manufacturing unit if you have a good location for the set-up, raw material to make paper bag and the required machinery. 


If you want to start a commercial unit, you must obtain a location for unit operation. According to the size of your business, you will need to get the location. However, you can start and run a small manufacturing business with 1000 sq ft of space.

Determine specific locations for production operations, storage, and other necessary tasks. Additionally, you must have an electricity connection and water resources for regular unit operations.


Basically, you can run the unit on an automated machine. Medium paper bag making machine with gazetted facility, bottom and center pasting, with 2 HP electric motor and control panel, is complete by type.

You can make paper bags in two ways.


It is a time-consuming process, and you get less quantity as output. You would require gum, labor, ruler and paper for this methor. Although the investment is low, you can make profit. The profit earned from this method is less. You can do this type of manufacturing of paper bag at your home also. 

By Machine

Automatic machines are available in the market to manufacture paper bags. You just need to put paper rolls in the machine, and the bags come ut automatically. You can manufacture 60 kg of paper bags using machine. It accounts to 60,000 paper bags. Thus, in a work shift of 8 hours, you can make 480 kg of paper bags of good quality and meet your orders. 

Raw Material

Definitely, you will need the same raw material. And that is paper. You will need 60 GSM and 40 GSM mixed size recycled kraft paper. Additionally, you will need to purchase glue, eyelid, and ribbon to make the bag handles.

Types of Paper Bags in Demand

There are so many products that are packed in paper bags. Here is the list of business that demand paper bags. 

  • Paper bags for food items and groceries
  • Bags for medicines
  • Shopping bags
  • Bags for industrial use
  • Bags for packaging accessories and jewellery

Which type of Machinery should I buy for making Paper Bags?

You can get all the information here regarding which machinery you can buy to manufacture paper bags in India. 

Without Printing

This machine will manufacture paper bags without printing.

With Printing

This machine will help you make paper bags with printing. 

There are a few other machines that you can purchase.

  • Bag cutting machine
  • Creezing machine
  • Cut handle machine
  • Eyelet fitting machine
  • Lace fitting machine
  • Punching machine
  • Roll slitter motorised machine
  • Stereo grinder and press
  • Testing scale machine

How to Make Paper Bags for Business?

First, obtain the required size of the bag by fixing the flat plate to the size plate or the exact size plate for the satchel on the machine. Obtain the tube length by changing the shape gear wheel, each of which represents one centimeter in tooth length.

After the tube is cut by the beater to the correct size according to the size gear, the delivery cylinder is pushed forward through the conveyor rollers.

It is pasted and the bag is moved to the delivery table by a folding cylinder. Finally, the machine drops the bag and distributes it in a vertical stack.

In the manufacture of bags, you will need to be careful about quality control. Originally, there is no such standard. However, you have to print the quality, size, and pattern on paper according to the customer’s specifications.

License and Registration needed to start Paper Bag Business in India?

If you want to start a small-scale paper bag manufacturing business, then you can start it from your home also by taking only a trade license. But if you want to start at a higher level then you have to register your company with the ROC which is the Registrar of Companies, then you have to start with a trade license for which you can apply to the local municipal authority of your city. You also have to register in the MSME Udyam Registration unit which is Small Scale Industries from DIC which is a primary registration center. The paper bag industry also requires BIS certification which is the Bureau of Indian Standards.

How do I Promote my Paper Bags Business in India?

No business gets long term success without the right publicity. So, you need to promote paper bags as well. However, according to your target demographic, you will need to promote the bag. You may also attract two different types of customers. One is a person who looks for a piece of paper bag. And other institutions seek bulk quantities.

Sample Project Report Paper Bag Manufacturing Unit

In our project report format, we have covered all the necessary technical details, its diagrams, flow chart etc. and you can use it as and when required or deemed fit to include. We can also help you, prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the project report data of Paper Bag Manufacturing industry in PDF which you can use easily. 

For Whom is Paper Bag Making Project Report formats useful?

It is useful for all interested people who wish to grab knowledge about this profitable start up. 

  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers

In addition to those who want to prepare project reports themselves.

How to make Paper Bags at Home?

First, you have to set the paper in the machine, then you have to fill the gum and printing ink in the machine. You must also determine the speed required to make the paper bag according to the speed of the machine and the requirement of the customers. After starting the machine the paper through will start going from the machine and it will automatically start producing paper bags. And thus, you will get your paper bags ready in a second. If you have a paper bag with the necessary paper handle, then you have to stick the handle on it.

SWOT Analysis for Paper Bag Making Project Report PDF

Strength: Paper bag manufacturing businesses are never going to fail because nowadays everywhere in the supermarket, restaurants, Kirana store, jewelry shops, an others, there is a use of paper bags only. These bags are biodegradable and after the ban on plastic by the government, the business of paper bags started flourishing in many cities. Also, the paper bag manufacturing market would never going to fail due the tendency of its daily utilization. It requires less capital and it is labor-intensive.

Weakness: The paper bag manufacturing industry is very big where the new comers have to make extra efforts to stand into the industry. So, you have to face a large number of competitions and with your hard work and branding, you can become the talk of the market. As the paper isn’t that much costly so the bag manufacturing business may not give you that much profit that you want but yes, in long-term and in bulk selling, it is profitable.

Opportunities: In India, the paper bag making business is one of the most profitable small scale industry business that has having so many opportunities. For startup, you only make a deal with any nearby supermarket store or even Pizzas, Burgers are pack for delivery in paper bags, you can also make a deal with them. You may also sell your paper bag on Facebook, Whatsapp, etc. and gradually, you can have tie-ups with other big brands, chain outlets, and government offices.

Threats: The threat of the paper bag manufacturing business is that now it may not be much profitable. However, threats are not much as this has obtained a green flag to make the country more eco-friendly. 

How much labour is required in paper bag manufacturing company?

Paper bag making business is a small scale business. It doesn’t need much labour. You can start your own production unit by hiring minimum 10 people. You also need to hire a graphic designer who can manage the logo work and make designs.

Latest Technology for Making Paper Bags

There is a frequent demand for industries who are into paper bag manufacturing as it is much demanded by food industry. This biodegradable packing is made from the pulp of recycled paper. Enzymes are drawn from wheat husk, cotton and other organic matter reacting with them. Paper is manufactured using carbon neutral method. PLA that is poly lactic acid is a polymer obtained from corn is used to make this paper bag as leakproof. While you manufacture paper bags for food industry, you need to be very careful. Toxic substances can release undesirable products.

Recycling in Paper Bag Manufacturing Business

Paper bags can be readily recycled. The process of recycling is done by re-pulping paper and pressing it to make required shapes. The waste paper us collected, sorted by hand or machine, washed, purifird, poured and flattened, dried, coloured or bleached and cut into shapes and packaged. Every involved step needs intensive energy and so the use of big machines is made.

People wish to use paper bags because it has environmental benefits. Latest advancements in technology has made it easy for people to carry, clean and store their items for a long span of time. Thus it makes good sense to start paper bag making business in India. 

How do I promote my paper bag business?

Promotion is very important for every business, just like manufacturing. Without adopting promotion strategies, no business can survive in this world. There should be a uniqueness in the way you describe your product, so that you can attract your clients. A logo is important to represent your company and to promote your product. You can also contact freelancers who can design your company logo.

You can use various mediums like magazines and newspapers to advertise your paper bags. Social media plays a crucial role when it comes to promotion of your business in India. You can capture a wide market when you advertise your business through social media. You can also start your website and get orders by creating an impactful image of paper bags that you manufacture in your company. You can also conduct small surveys to capture local market.

Is it profitable to start paper bag manufacturing business in India?

Yes, a paper bag making business is profitable business in India in the long run. A paper bag of 18cm by 25 cm costs Rs 3.40 including labour and raw material cost and its maret price is Rs 3.50 then one bag gives you a profit of 0.10 Paise. You can easily calculate profit of the lot you manufacture or plan to do.

What is the expected profit from Paper Bag Making Business in India?

Paper bag making machine can manufacture 480 kg paper bags in a day. You can thus make a profit of 10 paise per bag. It is very simple to calculate your profit then. When your production and marketing is smoothly going on, then you can earn good money on a daily basis. Profit may vary depending on other factors also.

What is the selling price of paper bags in India?

The average selling price of paper bags in our country is Rs 7.5 per bag. Quality and size of a paper bag decide its price. If you are selling an eco friendly bag then the price is high by 20 or 30%. 

If you want to sell paper bag at high price then you shouls focus in the quality of your bag. If you are providing good quality paper bags to your customers then they are ready to pay for it too. You will have to sell low quality paper bag at low price. 

How do I sell paper bags in the market?

There are many ways to sell paper bag in the market.

  • Talk to local customers
  • Organize craft shows to show off your handmade paper bags.
  • Sell paper bags online.
  • Think out of the box.
  • Talk to other people who can guide you in increasing your sale and find out more opportunities of sale.
How to get order for paper bags from big brand retailers?
  • You can approach them directly.
  • You can convince them to buy your good quality paper bags and price as well your delivery schedule.
  • You must ensure timely delivery of paper bags to their store keeping customer satisfaction on top priority.
Contents of Paper Bag Industry Project Report
Sr. No.Particulars
2Project At A Glance
4Uses of Paper Bag
5Importance of Paper Bag
7Varieties of Paper Bag
8Description of Paper Bag Machine
9Paper Bag Current Market Analysis
10Paper Bag Manufacturing Process
11Break Even Point
12Raw Material Requirement of Paper Bag
13Paper Bag License &Registration
14Implementation Schedule
15Technical Process Flow Chart
16Project Economics
17Computation of Production
18Projected Profitability Statement
19Projected Balance Sheet
20Cash Flow Statement
21Computation of Working Capital Requirement
23Calculation of D.S.C.R
24Repayment Schedule of Term Loan
How to Download Paper Bag Manufacturing Project Report PDF

Now you need not wait for a project report at the door of the expert, as you can get your project report in hand, by instantly downloading it in pdf format.

First Step            –   Click add to basket  >>  Check Out  >>  Payment

Second Step       –  Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.


If you want to start a small scale manufacturing business with less capital then a paper bag making business is a great option for you. Even, if you have enough space at home, you can start a business home-based as well.

Setting up a paper bag making unit is a profitable venture needs a well written business project report that includes every crucial fact about this business-like market feasibility, future of business, legalities, quality, production etc. The paper bag manufacturing business can rise in a short time period, and it is a continuous business that can expand sales throughout the years. You just need to follow all the guidelines mentioned in our project report.

The paper bag making business project report is designed for an individual enthusiastic about investing in this business and willing to generate extra earnings with his investment in this business. The complete set up requires a detailed project report and business plan that can tell the entrepreneur in detail about the market research and a lot more. Our project report contains all the necessary details that you need to know before setting up your business. It will help you in assisting to write down the project report and applying for a bank loan.

Frequently Asked Questions On paper bag Making machine Project Report
How to start paper bag Making Business in India?

You can easily start a paper bag making business in India by exploring the market to know the best location in your area. You will also have to study the paper bag making machine project report to get every important detail about this business.

What are the requirements to start paper bag making business in India?

You require a well written paper bag making project report for this business. This you can get from our website in a gist of time. It contains every significant detail about this startup that can benefit you in making wise decisions. You will also have to arrange space and buy equipments that we have listed in the project report.

Where can i get paper bag making business sample project report for bank loan pdf?

Well, you can explore the best paper bag making business project report PDF on our website and take help by checking out all the important details for your new business from it. It will serve you as a guide using which you can write your own paper bag making unit project report and submit it to the bank to avail loan for your new venture.

What is the right paper bag making business project report format for bank loan?

We have clearly stated the right format for this start up in our project report. You can check out the paper bag making unit project report details by downloading it after making a nominal payment to us. We have covered every important aspect of this venture in our report.

Can I download paper bag making business project report in the format of excel or word file?

You can easily download this project report from our website in PDF Format and use it for writing your project report. If you want to get it in word or excel file. It is very simple to later convert the pdf to word or excel using free file converting tools.

Can I download paper bag making unit project report and use it for bank loan under pmegp mudra and other government scheme?

The main objective of this project report is to highlight all important aspects of this business for your new set up and to provide sample format for preparing project reports for other purposes. However, according to your need, we will prepare customized project report for your set up so that you can get loan from the bank under any scheme.


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