Paper Bag Manufacturing Unit information of project report

???? Basic Project Report: Paper Bag Manufacturing Unit
1. Executive Summary
Project Name: Paper Bag Manufacturing Unit

Business Type: Small-scale manufacturing

Product: Paper bags (various sizes, printed/unprinted)

Location: [Specify Location]

Project Cost: ₹X Lakhs (e.g., ₹10–25 Lakhs)

Funding: Own Capital + Bank Loan

Employment: 5–10 employees

Profit Margin: ~15% to 25%

Break-even Point: Estimated within 1–1.5 years

2. Business Objectives
To reduce plastic pollution by offering eco-friendly alternatives.

To produce high-quality paper bags for retail, food, and general use.

To achieve sustainable and profitable growth.

3. Market Potential
Increased demand due to ban on plastic bags in many regions.

Used in retail, grocery stores, food delivery, fashion stores, etc.

Opportunities for B2B (bulk orders) and B2C sales.

4. Product Details
Types: Flat paper bags, gusseted paper bags, handle paper bags.

Raw Material: Kraft paper, white paper, ink, glue, thread (for handles).

Sizes: Small, Medium, Large (customizable)

Printing Options: Flexo/Offset (for branding)

5. Manufacturing Process
Cutting: Paper rolls cut into sheets.

Printing: If required, printing is done on sheets.

Folding and Pasting: Sheets folded and pasted to form bags.

Drying: Glue dries in drying racks or machines.

Finishing: Handles attached (if applicable), quality check.

Packing: Final product is packed for delivery.

6. Required Machinery
Paper Bag Making Machine (semi-automatic/automatic)

Printing Machine (optional)

Cutting Machine

Creasing Machine

Eyelet Machine (for handles)

Estimated Machinery Cost: ₹4–10 Lakhs

7. Raw Material Requirement (per month)
Kraft paper: X tons

Glue: X kg

Ink: X liters (if printing)

Thread/Handles: As per design

8. Manpower Requirement
Machine Operators

Helper/Packers

Manager/Supervisor

Accountant/Admin

9. Cost Structure (Example for ₹10 Lakh Setup)
Fixed Capital: ₹6 Lakhs (Machinery + Setup)

Working Capital: ₹4 Lakhs (Raw material, labor, overheads)

Total Project Cost: ₹10 Lakhs

10. Revenue Estimates
Production: 20,000–50,000 bags/month

Sale Price: ₹1–₹5/bag depending on size & printing

Monthly Revenue: ₹1–2 Lakhs

Monthly Profit: ₹25,000–₹60,000 (after expenses)

11. SWOT Analysis
Strengths: Eco-friendly, low competition in rural/semi-urban areas
Weaknesses: Dependent on paper prices
Opportunities: Plastic ban, rising eco-awareness
Threats: Market fluctuation, cheaper alternatives

12. Compliance & Registration
Udyam Registration (MSME)

GST Registration

Trade License

Pollution Control Certificate (if applicable)

FSSAI (if supplying to food industry)