Let us tell you how you can start this business and how much you will earn from it.
Nowadays paper bags are being used almost everywhere, whether it is Garment Shop, Bakery, Shoe and Chappal Shop, Grocery Shop, Book Shop, Sweat Shop or anyone else. Now customers also demand paper bags only. At such a time, if you set up a paper bag making unit, it can prove to be a profitable business.
Government will give 1 crore loan: If you want to set up a paper bag making unit, then the government can give you a loan of up to one crore rupees. You get this loan under the government scheme named Udyam Mitra. Know more about the other specifics of this business-
How much unit will start in: Under the Udyami Mitra Scheme of the Central Government, if you purchase land and building for setting up your unit, you will have to spend about 32 lakh rupees on it. However, you can also put this unit in a rental building.
Government will also support for training: For paper packaging products, training is provided by the Indian Institute of Packaging Mumbai and their branches. Similar training is provided by the National Institute of Design Ahmedabad and its branches for the design of bags and pouches. Apart from this, you can get complete information about hand holding services, mentoring etc. on the website of Udyami Mitra www.udyamimitra.in.
Machinery Expenses: You have to spend 14.65 lakh rupees on plant and machinery. 3 lakh in the name of other assets, Rs. 2.15 lakh on P&P Express, Rs. 4.67 lakh on contingents and Rs. 91.64 lakh as working capital margin. The working capital will also include a raw material.
There will be so much profit: According to the project profile, in the first year you can get a total profit of Rs 1 lakh 76 thousand. In the second year, you can earn a profit of 6 lakh 7 thousand rupees and in the next year it can increase to 10 lakh 78 thousand rupees. In the fourth year, it can be a profit of 12 lakh 17 thousand and in the fifth year, a profit of 13 lakh 56 thousand rupees.
How much loan will you get? According to Udyami Mitra, you can get a loan of about 1 crore 3 lakh rupees out of project cost. You may have to arrange about 45 lakh rupees yourself.
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