Manufacturing industry can be rewarding if you choose your products carefully. A thorough market study helps identify the products that are in high demand but short of supply. With the help of your financial advisor, you should be able to figure out whether or not you have the funds to support the manufacturing of those products.
If luckily, you can arrange funds to manufacture items that are high in demand then you may be on your way to generate a handsome income. Two such products that can help provide lucrative returns in the current times are paper bags and polythene gloves (better known as PE gloves).
Fortunately, both of them can be manufactured without heavy investment. Let us learn all about the manufacturing of these high demand products.
Paper Bags and PE Gloves Manufacturing – How to Get Started?
Paper bags have taken over the market mainly after the ban of single-use plastic bags in various parts of the world. The paper bag manufacturing industry is booming and is likely to witness further growth in the times to come.
PE gloves are also being used extensively. Thus, their demand is on a rise. If you are planning to enter the manufacturing business then paper bag making as well as PE glove making are two good options to begin with.
The following information should come handy for those considering to manufacture these products:
Which Industry to Cater to?
Paper bags are in high demand across industries. They are used for general purposes such as carrying grocery items. They are also used to carry food items, medicines, jewellery, clothes, electronic goods and other items.
Different kinds of bags are designed for carrying different types of items. PE gloves are also in demand in various industries including the food, beauty, cleaning and healthcare industry.
When you plan to enter either of these businesses, one of the first things to decide is the industry you want to cater to. Your selection of raw material and machinery will depend on it.
For instance, you need to opt for a grocery paper bag making machine if you plan to manufacture grocery paper bags. You may choose to stick to one industry or work for multiple industries.
Create a Business Plan
Once you determine the industry, it is time to create a business plan. This should include the amount of money you plan to invest in the business, the scale at which you want to start the business, the scope of funding, logistics, location of your factory and distribution channels. Don’t forget to plan about the procurement of raw material.
You should be able to start the business with an investment below INR 10 lac. It is important to research well about the industry and the target audience to draft an effective plan.
Buy/ Rent a Space and Machinery
Once your plan is ready and you are confident about the way forward, it is time to rent a space to set up the factory. If your budget allows, you may go ahead and buy the space. Next, look at the various available options in machinery and select the most suitable one.
You will get to choose between manual, semi-automatic and fully automatic PE glove making machines. Same goes for paper bag making machines. If you are bootstrapping then you may try to rent the machine.
It is essential to obtain a Trade License to start both these businesses. In the case of a paper bag making business, this is sufficient if you plan to start small and operate from home. To start a full-fledged paper bag making business, you require a Registrar of Companies (ROC) license.
Moreover, you have to register your company as a Small Scale Industry (SIS) and get a Bureau of Indian Standards (BIS) certification.
For PE glove making business, you need a certificate by CODOC, NOC by state pollution, standard compliance and sterility test passing certification.
Once you rent/buy the space, install the machinery, acquire the relevant licenses and complete all the paperwork, it is time to hire manpower. You do not require highly skilled staff for the manufacturing of paper bags and polythene gloves.
It is a good idea to hire newbies and train them on the job. This way you shall be able to hire employees at a reasonable pay package. If you choose an automatic paper bag making machine or automatic PE glove making machine then you require less staff to operate the machine.
In addition to the manufacturing personnel, it is important to hire a manager to manage your manufacturing unit efficiently. You may handle this task on your own if you are low on budget.
It is also suggested to build a marketing team to fetch good clients. A few sales personnel should also form a part of your team.
There is a good scope in paper bag manufacturing as well as PE manufacturing business. These businesses do not require much investment or technical knowledge. With some planning, you should be able to set up the factory and start operating. The key to succeed is to market your business effectively and provide high-quality products.