High Profit Business Idea: Start This Eco-Friendly Biz At Rs 3.9 Lakh And Earn Rs 7 Lakh In Paper Bag Manufacturing Unit

If you are willing to start your own venture that is both environment friendly and gives substantial return there is a business opportunity that you could think of. Today we will be discussing about Paper Bag manufacturing unit that can be started with small working capital.

Paper bags stand out as eco-friendly alternatives to plastic bags and thanks to their remarkable sustainability and biodegradability, there is a rising wave of popularity for these bags. Paper bags are significantly environment and wildlife friendly. These bags are crafted from renewable sources like reclaimed paper and agricultural remnants, making them the preferred choice for environmentally conscious individuals.

What sets paper bags apart is that they are not only 100% reusable but also easily recyclable and biodegradable. Recycling paper bags demands far less energy than their plastic counterparts, making them a responsible choice for reducing our carbon footprint. 

According to the Khadi and Village Industries Commission (KVIC) feasibility report, initiating a track suit manufacturing venture requires an investment of Rs 15.06 lakh.

KVIC has broken the Cost of Project into the following

Term Loan: Rs. 5.17 Lakh

KVIC Margin Money: As per Project Eligibility

Own Capital: Rs. 3.89 Lakh


Land:Owned/ Rented

Plant & Machinery: Rs 6.49

Furniture & Fixtures: Rs 40,000

Working Capital: Rs 8.17

Total 15.06


Own Contribution: Rs 3.89 Lakh

Bank Finance: Rs 5.17 Lakh

Working Capital: Rs 6 Lakh

Total: Rs 15.06 Lakh

For Machinery, you will have to decide if you want Large scale, Medium scale or Small Scale machinery. Depending on that you will have to spend from Rs 42,5000 to Rs 850000 on machinery. You will also require approximately 450-500 Square Feet Land, either your own space or rented and a couple of skilled and unskilled labour.

For Company you will have to obtain the GST registration, Udyog Aadhar, fire/pollution Registration as required.

KVIC projecting the Profitability Statement said that your net profit from 1 year to 6 year will range from Rs 2.28 to Rs 7.01. In the first year, you can earn Rs 2.28 lakh, Rs 3.56 lakh in the second year, Rs 4.17 lakh in the third, Rs 4.91 lakh in the fourth, Rs 5.67 lakh in the fifth, and Rs 7.01 lakh in the sixth year.

(Disclaimer: This article is for sole information purpose and for readers’ project identification. The earning calculator is also mostly based on assumptive figures to give an example of certain type. The article does not intend to give any financial advice of any sorts. For initiating any venture, you must do your own due diligence and market research.)


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