How to Start Biodegradable Plastic Bags Manufacturing Business?

To prevent from the environment from the harsh effects of plastics then we need to have the alternative of this plastic which is cost effective as well as bio degradable to all the peoples. So in this article, we will discuss all the important factors like investment, profit margin, market, marketing, etc on how to start biodegradable plastic bags manufacturing business?

When you buy anything from the market, then plastic bags are used to store and handle the products. These plastic bags are easily available in the market at the cheap price. But the decomposition of these bags can take up to hundreds of years and is a very hard task for all the countries in the world.

Plastics bags are non-biodegrade and gets dumps up on the land fills or in oceans which can take thousands of years to degrade. If you are thinking that why we can’t just recycle plastic bags? then let me tell you recycling plastic is not as easy as it look. First you have to manually sort all the waste from plastic like paper, vegetable waste, etc. Then the plastic need to be wash properly and then pass them through the metal detector to remove any metals parts.

The final plastic pellets quality is not as good as new one so many plastic manufactures dump plastic types like hard polymer to garbage instead of recycling. If the materials have mixes polymer then its hard to separate them into different types which is more cosier process and require more energy and electricity than making new one.

Products you can manufacture from this business

With the same machines and equipment, you make a varieties of product to sell in the market. You can manufacture small products for shops, groceries and large plastic products for restaurants, hotels, malls, etc. Some of the products are:

  • Customised Bags for Events
  • Compostable Bags for Food Storage
  • Compostable Bags for Grocery
  • Compostable Bags for Trash
  • Compostable Bags for Packaging

Machines and Equipment

To start biodegradable plastic bags manufacturing business, the list of machines and equipment you need will be:

Extrusion Machine- You need this machine to give the shape of the film or sheet using the raw material which is compostable granules. The market cost of this machine is approx. Four Lakhs Rupees.

Printing Machine- Using this machine, you can print the logo, company name and choose the colour according to the order from the market. Printing machine plays a important role in bags manufacturing business. The market cost of this machine is approx. Two Lakhs Rupees.

Sealing and Cutting Machine- Using this machine, you can seal or cut the compostable plastic according to the required size and quantity. The market cost of this machine is approx. Three Lakhs Rupees.

Note:- All the machine cost also depends upon the capacity. So the cost may vary according to the capacity.

Demand in the market

Compostable bags are better than regular plastic bags. As you know, using plastic bags are harming our environments and oceans. All the countries are trying to get the alternative of the plastics, so compostable bags will help you to capture the market of the plastics.

The compostable and biodegrade bags business is a high profitable business because now a days, people and government are supporting ban of plastic bags. To fill the gaps, these bags can help you replace the plastic bag market and gain profits.

Due to increase in environment awareness, government and large scale industries are encourage people to use bio-plastic in place of regular plastics. The results of which the bio-plastic industry is grown at very high speed in the last five years.


To make the compostable bags, first you need to compound the raw material i.e compostable plastic granules, by putting them in the hopper where they melt into the liquid form. After melting, the film or sheet is made using the Extrusion Machine which is then roll on the rod. Then the next step comes to the printing, you can print anything like trademark, logo, etc, on the plastic bags.

The Sealing and Cutting Machine cut and seal the bags according to the requirement. Then you can package them manually or using the packaging machine. You can find the raw materials by searching Bio Compostable Granules, Bio Plastic Granules, Biodegradable Granules on Google search.


To start this business, you require very small land requirement. For a small scale business, you will require 200 Sq Meter of area.

Manpower and Electricity

You will need seven to eight workers to start this business. The electricity requirement is approx. 30 to 40 kw of power.

Profit Margin

To start compostable plastic bags business, the cost of the raw materials i.e compostable plastic granules is 260 rupees per Kg. The price may be vary according to your market area and quantity. If you make 150 to 200 Kg of compost bags per day, then you can earn 1500 to 2000 of net profits.


You directly market your products to all the local shops, grocery store, supermarket, and anything which sells their products. If you aware them about the compostable bags as the better alternative to plastic bags in terms of environment and prise then you can easily make your place in the market. You can target

  • Departmental store
  • Grocery store
  • Supermarket
  • Boutique
  • Fast Food restaurants

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  • GST
  • CPCB Registration
  • NOC from Pollution Department

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