How to Start Paper Bag Manufacturing Business?

Due to the pollution caused by the plastic materials, many countries including India have ban plastic bags as an packaging source. Many states have many laws and guidelines regarding using plastic bags. Even non woven bags are also banned because it also has some polypropylene which is non biodegradable in our environment. The last option we have to store or package items is paper bags.

In this article, we will tell you most of the information regarding how to start paper bag manufacturing business in India? like

  • Investment
  • Machines
  • Area
  • Electricity
  • Raw Materials
  • Process
  • Government Schemes and many more.

Demand of paper bags making business

Paper bags are used in many store like

  • Grocery stores
  • Book stores
  • Food Outlets
  • Medical stores
  • Stationeries

Machines and Equipment

To start paper bag manufacturing business you will need a paper bag making machine which is available in the market in two option which are with printing and without printing. The second machine you need is Eye-let Punching Machine.

Paper bag making business are available in different sizes to make paper bags of different width and heights. Some of the models are:

Baby Model- Using this machine, you can make paper bags of size 05 * 12 cm to 15 * 22 cm.

Standard Model- Using this machine, you can make paper bags of size 12 * 18 cm to 26 * 36 cm.

Medium Size Model- Paper bags of size 12 * 18 cm to 28 * 50 cm.

Large Size Model- This machine is used to make large size shopping paper bags as the shopping bag require more width and height.

Types of paper bags

Using the paper bag making machine, you can make various types of paper bags like:

  • Party Bags
  • Shopping Bags
  • Food Bags
  • Medical Bags
  • Jewellery Bags
  • Paper bags to industries for general purposes.

Raw Materials

To start this business, as the raw materials you will require paper roll of 50 to 150 GSM whose market price is approx. 30 to 32 rupees per Kg. To paste the paper bags, you need glue. For printing purposes, you need ink as per your trademark and logo. If you are making paper bags with handle then you will need Eyelets, Laces and Tags. To make the paper bags, you can use brown paper, craft paper, white paper, greaseproof paper, etc.


Paper bag machine is a single phase machine which has 2 HP, 3 HP and 5 HP motor. The large size paper bag machine uses 5 HP motor to operate. The power load of without printing paper bag machine is 1.5 kw and with printing paper bag machine power load is 1.75 kw.


To start the paper bag manufacturing process, first, you have to set the paper roll on the paper bag making machine. Then you have to insert the glue on the paper side and bottom sticking in the cartridge which is used to stick the paper. Using the control panel, you have to determine the sizes and width and adjust the gear.

As it is a automatic paper making machine, once the size is selected, all the work is done by this machine. The process goes like folding, Side Sticking, Cutting, Bottom Sticking and at the end Eyelet Punching. Then laces are inserted on the paper bags as it passes from the Eye-let Punching Machine. Now, the product is ready to sell in the market.

Investment Requirement

The cost of the paper bag making machine is approx. 3.5 to 8 lakhs rupees. You can choose the type of the machine according to the size of the paper bag you want to make. For printing, you can choose from single colour, double colour or four colour printing.

The cost of the Eye-let Punching Machine is approx. 1.5 Lakhs rupees. To start this business, you need approx. 12 to 15 Lakhs rupees.

Profit Margin

You can make paper bags as per rupees 35 per Kg and sell them in the market at the rate of 44 to 46 rupees per Kg. According to this figures, you can earn a gross profit of 9 rupees per Kg of paper roll. It means from one hour of manufacturing, you can earn approx. 500 to 550 rupees of gross profit and approx. 4000 rupees of gross profit in one day. If we talk about the net profit, then you can earn approx. 2000 to 2500 rupees per day. All the number and profitability can be vary and depends upon your sales and market conditions.


In this business, you just need 3 to 4 worker to start the plant. Out of which, two to three unskilled and one skilled machine operator.

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