JUTE BAG MANUFACTURING UNIT
[CODE NO.4093]
Jute bags and jute products were manufactured for commercial trading in India since the seventeenth century. The advent of plastic had slowly captured the jute market and replaced a majority of jute products but with the disadvantages and dangers of plastic revealed, Jute bags have made a successful re-entry into the market. All credits to the increased awareness about using eco-friendly products and go-green initiatives from the governments.
Jute is a naturally occurring, inexpensive fiber that is biodegradable and environmentally friendly. Because of its natural golden shine, jute is also known as "the golden fiber." Jute is most commonly used to make consumer goods such as bags and rugs. When the jute industry started in India, one of the earlier developments was the manufacture of jute sacks. The bulk of jute sack production is used for all types of jute bags. Sacking bags, woven wholly from jute fabrics, are available as plain and twill bags. Jute bags, the other name for sacking bags are mainly used to pack cement, sugar and other bulky articles, which are packed in weight range from 50 to 100 kgs. These are tailored as per customer’s specifications in terms of size and to meet the ever increasing demand of jute bags in the farm sector, agro‐based industries and cement industries. The Jute Textiles Industry occupies and important place in the national economy.
Jute, the Golden Fiber as it is called, is a plant that yields a fiber used for sacking and cordage. Known as the raw material for sacks the world over, jute is truly one of the most versatile fibers gifted to man by nature that finds various uses in the form of Handicrafts. Next to cotton, jute is the cheapest and most important of all textile fibers.
Jute fabrics are strong, durable, light, colouyrfast, attractive, and cheaper than most fabrics made from other fibers. Additionally, these are anti-static and UV protective. Therefore, jute fabrics are excellent raw materials for jute bags.
Nowadays we are very much used to jute bags for shopping as well as traveling purpose. Earlier these are mainly used for the packing of cement, sugar and other commodities with heavy weight. But with the growing awareness of using eco-friendly material, plastic carrier bags have been gradually replaced by the jute bags as they are low-cost, hardy and most importantly bio-degradable items. It comes with attractive designs and shapes.
Pollution caused due to plastic bags has left the manufacturers and consumers with three alternatives: paper bags, jute bags, and fabric (cotton, denim, canvas) bags. Among the three, paper bags are delicate and require careful handling. They might tear on carrying heavyweights and can get damp on carrying cool or frozen products. Bags made of fabric are undoubtedly durable but expensive at the same time. Jute bags are strong, cheap and reusable without any harmful effects. Jute bags were primarily used as sacking bags for packing agricultural produce, sand, fertilizers, and cement. Jute bags are used today as shopping bags, lunch bags, sling bags, purses, promotional gifts, travel bags, water bottle covers, school bags, etc. To address the new-age customer needs, jute bags now come with lamination or a lining like muslin, LDPE, wipe clean and splash resistant to enhance the durability of the bag. Fashion designers have given jute bags a glamorous touch through attractive prints, comfy handles, and straps, pockets, colors, shapes, etc. Jute bags are no more boring simple bags but are fashionable and enhance your style quo. Jute bags are catering to people of different tastes and purposes.
COST ESTIMATION
Plant Capacity 200000 Nos/Day
Land & Building (3500 sq.mt.) Rs. 8.84 Cr
Plant & Machinery Rs.3.20 Cr
Working Capital for 1 Month Rs.11.83 Cr
Total Capital Investment Rs. 24.63 Cr
Rate of Return 38%
Break Even Point 44%
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
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