Jute Bags Making Business Plan – A Better Alternative To Go Green

jute bag business plan

Our world today is polluted to an extreme level. When we dispose of non-biodegradable materials on the streets, it is considered as pollution as well. In spite of the government imposing a ban on plastic bags, it has not stopped people from buying them. They are not only non-biodegradable but hazardous and toxic as well. For this reason, it is best to shift to better and more environment-friendly alternatives such as jute bags.

Jute is extensively grown in many parts of the world and is absolutely natural. There is no level of toxicity in jute, neither any hazardous chemical. Jute is also inexpensive so the investments in jute bags making business do not have to be huge.. Right from shopping bags to clutch purses for women, they are not only more attractive but safe as well. Starting this business in the small-scale would be very profitable as it will appeal to women and young girl alike. Gunny sacks can also be made from jute and the flexibility of the fibre enables the material to carry large amount of weight.

Jute Bags Business Planning

When you start a business, there are various things that you need to consider. The first and foremost is training. You need to consider whether you have sufficient training to start your business of jute bags. In case you do, you can enrol into many government aided and approved institutes that offer training opportunities.

Investment Ideas

When you have the training, the next thing is investment. It is the stepping stone of any business.  Whether small-scale or large-scale, proper investments have to be made to prevent incurring any major loss. Finding a proper location to start your business is also important.

Business Location

Choosing the right location means you find a location that is not only easily accessible and people are also able to locate it easily. Competing with large-scale markets may not be a wise decision, which is why starting smaller is better.

Business Naming

It is important to give a proper name to your endeavour. Since bags are mostly used by the female population, giving a cool and funky name to your business will automatically attract customers. When they see the name, they will be drawn to explore what you have to offer.

Legal Formalities

Last but not the least, the legal aspect has to paid sufficient attention. It is mandatory to file proper reports which are comprehensive and detailed. It is also important to ask for permission from necessary government bodies as well as register with local as well as national business guilds. Keeping your legal matters clear and devoid f any complication will ensure smooth running of your business.

Steps Involved in Jute Bags Making

The process of manufacturing jute bags is very simple and does not requires use of heavy machines. Below are the steps involved in jute bags making:-

  1. Get jute roll – The price of jute roll is around Rs 60/kg in India.
  2. Lamination of jute – If you want to make laminated jute bags then you have to laminate the entire jute rolls before cutting into pieces.
  3. Cutting – As per your size requirements, use cutting machines to cut entire rolls into small  pieces.
  4. Start printing – If you want to print company logo or any other design then you can use screen printing machine. Printing will be done after cutting process.
  5. Stitching of bags – Use jute bags sewing machine for stitching of bags. The price of semi automatic machine is around Rs 60,000 in India.

Jute Bags Making Machine

Here is the list of required machinery in jute mags making:-

  1. Lamination machine
  2. Cutting machine
  3. Screen printing machine
  4. Sewing machine

Raw Materials Required for Jute Bags Making

For the manufacturing of jute bags you will require woven jute rolls and threads for stitching.

Profit Margin in Jute Bags Making Business

Very good profit margin is there in this business. The market price of 15kg capacity shopping/grocery jute bag is Rs 50 and the cost of manufacturing is Rs 20 – 25 approximately without printing. The designer jute bags are much more expensive.

Business Opportunity

In order to have successful business, it is very important to appeal to the right kind of market. Starting a business in jute bag manufacturing means you first need to understand the major requirements of jute bags. Possessing extensive knowledge about it will help you flourish your business. You can conduct a survey or a review online. We all know that gunny sacks are made from jute.

Nowadays, shopping bags, ladies vanity bags, purses and college bags are being made from jute. The female population are more into shopping. Apart from continuing your own business of jute hand bags and purses, you can tie-up with some small-scale shops if you want and supply your jute bags to them as carry bags.


Jute bags are a wonderful alternative to plastic. It is very much in vogue nowadays which is why it is a great business venture to start with and also have a wide market.


1. What are the initial investment and operating costs for a jute bag making business?

The initial investment for a jute bag making business can vary depending on the size and scale of the operation. However, some estimates put the initial investment at around $10,000. Operating costs will vary depending on the costs of materials and labor, but can be estimated at around $5,000 per month.

2. How much jute is required to make a jute bag?

The amount of jute required to make a jute bag will depend on the size and style of the bag. A small bag may only require a few ounces of jute, while a large bag or one with elaborate details could require several pounds.

3. What are the marketing and sales strategies for a jute bag making business?

There are a few key marketing and sales strategies that can be used when starting a jute bag making business:
1. Use social media platforms, such as Facebook and Instagram, to create awareness about your business and promote your products.
2. Develop a strong online presence by creating a website and online shop where potential customers can learn more about your products and make purchases.
3. Make use of local marketplaces and craft fairs to sell your products in person and reach a wider audience.
4. Develop relationships with local businesses and organizations who may be interested in purchasing custom jute bags for their own use or as promotional items.

4. How can a jute bag making business be promoted?

There are a few ways that a jute bag making business can be promoted:
1. Create a strong social media presence and use hashtags to get involved in relevant conversations.
2. Develop relationships with eco-conscious bloggers and influencers and offer them free products in exchange for honest reviews and social media shout-outs.
3. Create attractive and informative packaging that highlights the eco-friendly benefits of jute bags.
4. Hold promotional events or pop-ups in green-minded locations, such as farmers markets or sustainable living festivals.
5. Sponsoring eco-friendly causes or fundraisers is a great way to get your business name out there, while also supporting a worthy cause.

5. What are the target markets for a jute bag making business?

There are many potential target markets for businesses that make jute bags. Some possible markets include retailers who sell eco-friendly or sustainable products, individuals looking for reusable shopping bags, and businesses looking for promotional materials.

6. What are the key success factors for a jute bag making business?

There are a number of key success factors for a jute bag making business, including:
1. A strong and competitive product offering: In order to succeed, a jute bag making business must be able to offer a strong and competitive product offering. This means having a product that is well-made, stylish, and affordable.
2. An effective marketing strategy: An effective marketing strategy is essential for a jute bag making business to reach its target audience and generate sales.
3. A strong online presence: A strong online presence is crucial for a jute bag making business in order to reach a wider audience and generate sales.
4. A well-trained and experienced workforce: A well-trained and experienced workforce is necessary for a jute bag making business to produce high-quality products.
5. A commitment to customer satisfaction: A commitment to customer satisfaction is essential for a jute bag making business to maintain a loyal customer base.

7. What are the opportunities for expansion of a jute bag making business?

The opportunities for expansion of a jute bag making business are many. The most obvious is to simply make more bags. Other options include adding new products, such as purses or wallets made out of jute, or offering customisation options to customers. Additionally, the business could expand its marketing efforts to reach new customers, or open new stores in additional locations.

8. What are the exit strategies for a jute bag making business?

There are a few different exit strategies for a jute bag making business. One option would be to sell the business to another company or individual. Another option would be to take the company public and sell shares. Finally, the company could be sold to a private equity firm.

9. What are the trends affecting the jute bag making industry?

The jute bag making industry is facing a number of challenges, including the rising cost of raw materials, competition from cheaper alternatives such as plastic bags, and the increasing popularity of online shopping.

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