On 2 Oct’19, the Indian Government will be imposing a ban on the use of Single-Use Plastic. The government will start a campaign related to the ban on the use of plastic products. This decision comes with a plan to reduce pollution.
This move of the government will surely affect the plastic manufacturers but will also open up new prospects for alternative solutions.
After 2 Oct’19 the business that will gain traction and is something people should be looking more into for investment is the ‘Jute Bags’ business. The demand for jute bags has increased rapidly after the ban on plastics in many states of the country. In such a situation, one can earn good money by making jute bags with less investment.
Process of Setting-up A Jute Bag Manufacturing Unit
According to handicrafts Division Ministry of textiles, to set up a jute bag manufacturing unit one needs to buy 5 sewing machines out of which 2 needs to be a heavy-duty machine.
These machines would require a capital of around Rs 90,000. The working capital required will be around Rs 1 Lakhs apart from the machinery purchase. While other expenses, including fixed assets, operating expenses, etc., will cost about 58 thousand rupees. This will bring the total capital cost for your project to around 2.52 lakh rupees.
The government will also help you in the funding by providing you swift & easy loans depending on your project cost. You can get 65% Mudra loan and 25% interest-free loan from National Center for Jute Diversification (NCFD) on this project. The balance of 25 thousand rupees you will have to arrange yourself.
Production Estimate
As per the above project plan, one can produce 9 thousand shopping bags, 6 thousand ladies bags, 7500 school bags, 9 thousand gents handbags, 6 thousand jute Bambu folders annually.
Annually, you will have to spend about Rs 27.95 lakh on Raw Material, Salary, Rent, Depreciation, Bank Interest, etc. while your sales revenue will be Rs 32.25 lakh. In this way, your operating profit will be 4.30 lakh rupees in a year. That is about 36 thousand rupees every month.
Also Read: Here’s How Plastic Ban Will Affect Businesses And Consumers
