May. 06, 2024
Packaging & Printing
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Paper bags are eco-friendly alternatives to plastic bags and have become increasingly popular due to their sustainability and biodegradability. They are made from sustainable resources such as waste paper and agricultural waste, which makes them a popular choice for environmentally conscious consumers.Starting a paper bag making business can be a lucrative venture and requires minimal investment. Here is an overview of paper bags industry and how to set up a paper bag making business.There are three kinds of paper bags that can be made using different processes. The V bottom bag, also known as a paper lifafa has the cheapest manufacturing process. A manufacturer can purchase automatic machines which make bags from reels of paper worth Rs 8-10 lakhs from many manufacturers in India.The SOS Paper Bag machine starts from Rs 70 lakh and the manufacturing process of both varieties of bags is identical. Paper reels are loaded onto these machines, the paper is printed, folded, pasted and cut in a single-line process and the finished bag comes out.The Paper Carry Bag machine has a semi-automatic process and a fully automatic process. One can make these bags on the SOS Paper bag machine and then manually paste handles to convert the bag into a carry bag with handles. Alternately a fully automatic paper carry bag machine will cost around Rs 2.5 crore to setup. That fully automatic production line will have two paper reels as inputs and two coils of paper rope. The paper bag on such machines will be manufactured using the same method with the addition of handles being made on a parallel line and then being fed and pasted before the end of the line and the final paper carry bag comes out fully formed.Another way to start a paper carry bag business is to use a manual process to make paper carry bags. In India fully automatic paper carry bag machines arrived 2012 onwards and historically handle bags were made by hand.The process to make paper carry bags by hand is to buy paper sheets instead of paper reels.Standard sheet sizes are 20x30 inch and 23x36 inch with which most common sizes of carry bags can be made. These sheets are between 100-150 GSM for low cost bags and 150-220 GSM for luxury bags. Sheets are then printed by offset machines, die cut using a pressing machine and then folded and pasted by hand and then handles are installed onto these bags to complete the process.Setup cost of such a setup is quite low as offset printing and die cutting can be easily outsourced, all you need is working capital for paper and a place for manual labor to work. There are sheet-to-bag machines also available that can fold and paste pre-printed sheets, but that process is not popular due to low speeds.The paper bag industry in India is quite fragmented and most of the successful manufacturers are focusing on exports. Indian recycled paper has a tremendous price advantage over the world and with low labor costs Indian paper bag manufacturers can penetrate foreign markets easily. Access to working capital is being supported by government schemes like Mudra and CGTMSE. Capex can be funded without collateral through several SIDBI schemes for which one can apply online with a quick turnaround time.The market is currently in a down cycle right now and that presents great opportunities for new entrants to purchase second-hand machines cheaply. There were around 300-400 new production lines set up in the last 2 years which first suffered due to covid and now due to lower demands. The market is about to have a lot of churn providing opportunities to destabilize entrenched suppliers in large buying houses. Trained operators of such machines are always in shortfall but due to the market conditions, these are also available easily.Usually such market downcycles last a few quarters with the impact being felt on quantities rather than the number of buyers. This is the perfect time for new players to establish themselves as no one is in a hurry for supplies but everyone is looking for a lower price. In this industry, most large players are within Rs 50-100 crore in turnover and are currently suffering from diseconomies of scale as their costs are adjusted for humungous growth making them unviable to compete with single machine manufacturers supplying locally to local buyers.Starting a paper bag making business is a lucrative venture that has gained popularity due to its eco-friendliness. By following the steps outlined above, you can start your own paper bag making business and not only a good income but also contribute to a sustainable future.(The writers is founder and CEO of Adeera Packaging)
Plastic grocery bags have been banned or taxed to discourage their use in other countries, and recently San Francisco approved similar measures. While reusable bags are touted as an obvious alternative to disposable bags, paper bags are also seeing a resurgence, and are the standard bags at upscale grocers like Trader Joe’s. Paper bags are often assumed to be more environmentally friendly, which begs the question: what is the true cost of both bag varieties?
Numerous reports have been published on this topic, with the Washington Post and Environmental Literacy Council providing particularly good comparisons. On most counts, plastic bags come out ahead, even after comparing the true cost of two plastic bags against one paper bag (to make up for differences in bag size). Plastic bags require 50% less energy to produce and cause significantly less pollution during manufacturing. Paper bags are recycled more often, but over 85% of paper and 97% of plastic bags end up in landfills, where neither biodegrades, and where plastic bags take 90% less space. Plastic bags are criticized for endangering certain marine animals, and because they often end up as litter since are easily blown about.
Another good measure of cost is the price of the two items, since neither is heavily subsidized, and since the price that stores pay for bags represents the direct cost involved in production. Plastic bags cost 50% less than paper bags in the US (2 cents for two plastic bags versus 3-4 cents for one paper bag). Advantage plastic.
On most counts plastic is the clear winner for the consumer, the environment, and businesses. In fact, after weighing the costs and benefits, the Natural Resources Defense Council recommends plastic bags to everyone unable to use a reusable bag, and recommends paper bags only for those living on the coasts (to protect marine wildlife). Perhaps, as with ethanol, paper bags have just become another easy way for politicians to score points for being green, rather than taking more beneficial (and difficult) steps to protect the environment.
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