Paper Bag & Cloth Bag Manufacturing

About This Business

Start manufacturing paper bags and cloth bags as India progressively bans single-use plastics under the Plastic Waste Management Rules. Government orders mandating alternatives to plastic bags have created massive demand from retailers, restaurants, malls, e-commerce companies, and food delivery platforms. Paper bag making machines are affordable (starting around 1.5 to 5 lakh rupees) and the raw material (kraft paper) is easily available across India. Different bag styles (with handles, square bottom, twisted handle) target different customer segments and command different prices. The business suits entrepreneurs in tier 2 and tier 3 cities with low overhead, and large supply contracts with retail chains, restaurant groups, or food delivery aggregators provide steady volume that justifies machinery investment.

Skills Required

Steps to Start

1. 1Purchase a paper bag making machine (semi-automatic or fully automatic)
2. 2Apply for PMEGP or MUDRA loan for machinery and working capital
3. 3Source kraft paper rolls from local paper mills or wholesalers
4. 4Get orders from local shops, restaurants, and businesses replacing plastic bags
5. 5Register under Udyam and obtain necessary pollution clearances

Registrations Needed

Related Government Schemes

Related Bank Loans

Official Links