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Non-Woven Bag Making Business

नॉन-वोवन बैग बनाने का व्यवसाय · नॉन-वोव्हन बॅग उद्योग

Make D-cut and W-cut non-woven carry bags on an automatic machine from fabric rolls and sell by the kilo to shops and bag wholesalers.

₹10–25 lakhPrices not yet confirmed with suppliers

Investment

₹18.4 lakh

Profit a month*

₹73,000

Space
1,000 sq ft
Staff
4 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A non-woven bag unit feeds rolls of polypropylene non-woven fabric into an automatic machine that folds, ultrasonically seals and cuts D-cut (punched handle) and W-cut (vest style) carry bags. One operator and a helper can run the line. Bags are sold by weight to wholesalers, grocery shops, garment stores, sweet marts and medical stores, often with the shop's name printed. The machine is costly compared with most small businesses here, and the margin per kilo is ordinary, so the unit must run many hours and sell tonnes a month. The hard parts are regulation (some states restrict or ban these bags, and thin ones are not allowed), fabric price swings, and many competing units.

Skills needed: Machine operation and setting (supplier training, then practice), fabric buying, and selling to wholesalers and shops.

Profit calculator

Change the numbers to match your town

110 kg/day: Non-woven D-cut and W-cut bags

Add-ons

Total investment

₹18.4 lakh

Your own money

₹1.84 lakh

Subsidy

—

Bank loan

₹16.6 lakh

Mudra Tarun Plus

A typical month in year 2

Sales₹4,53,750
Raw material & packing−₹2,91,500
Electricity−₹11,700
Salaries−₹49,350
Rent−₹15,750
Other running costs−₹12,600
Operating profit₹72,850
Loan instalment (EMI)−₹38,644
You keep each month₹34,206

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 36% capacityDSCR 2.46 (banks like ≥1.5)Payback ≈ 2.7 years
  • Loans above ₹10 lakh under Mudra (Tarun Plus) are only for borrowers who have repaid an earlier Tarun loan.

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Investment breakdown

Machinery & equipmentPrice
Automatic non-woven bag making machine (D-cut / W-cut)40–120 bags/min as listed, about 6–8 kW, three phase₹12,50,000₹10.5 lakh–₹14 lakh
Air compressor₹45,000
Voltage stabiliser₹30,000
Weighing scales (platform)₹9,000₹6,000–₹15,000
Racks, pallets and tools₹25,000
Flexo printing machine for shop namesadd-on₹2,50,000
Machinery & equipment (without add-ons)₹13,59,000
Udyam, pollution board and other registrations₹15,000
Three-phase connection and wiring₹40,000
Machine freight, installation and training₹30,000
Trial runs (fabric wasted in setting)₹15,000
Working capital 15 days of raw material, 15 days of credit to buyers, 1 month of expenses₹3,82,540
Total project cost₹18,41,540

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Non-woven D-cut and W-cut bags (per kg)₹
Non-woven fabric roll (1.04 kg at ₹100/kg, incl. trim waste)104.00
Packing bags and strapping2.00
Material cost106.00
Selling price165.00
Margin before running costs59.00 (36%)

Wholesale rate per kilo for plain D-cut bags, as listed online; printed and loop-handle bags sell for more. Output assumes about 65 bags a minute, below the brochure speed.

Space, power and staff

1,000 sq ft

Rented shed · rent ≈ ₹15,000/month

Small-town industrial shed rent. Needs a level floor, three-phase power and dry storage for fabric rolls.

12 kW, three-phase

Bill ≈ ₹18,000/month at full capacity

4 staff + you

  • 1 × Machine operator: ₹15,000
  • 2 × Helpers for packing and loading: ₹10,000
  • 1 × Sales and delivery: ₹12,000

Licences and registrations

Registration with the State Pollution Control Board

mandatory

When: Before you start production · Cost: Varies by state

Non-woven polypropylene carry bags fall under the Plastic Waste Management Rules, which set a minimum of 60 GSM and require producer registration. Some states, including Maharashtra, have restricted or banned them. Confirm the position in your state before buying a machine.

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: When turnover crosses the registration limit; at this scale it usually will · Cost: Free

Confirm the current GST rate for non-woven bags with a CA.

Factory / Shop and Establishment registration

if applicable

When: When you rent the shed or hire staff · Cost: Varies by state

How it works

  1. Load the fabric roll and set bag width, length and gusset.
  2. The machine folds, seals the sides ultrasonically and punches the handle.
  3. Check the first bags for seal strength and size.
  4. Count or weigh bags, bundle and pack.
  5. Send bags for printing if the order needs a shop name.

Loan route

Mudra loan (Tarun Plus)

Own money ₹1.84 lakh · Loan ₹16.6 lakh · EMI ≈ ₹38,644

No collateral, no subsidy. Only if you have taken and fully repaid an earlier Tarun loan.

How Mudra works

PMEGP (new units)

Subsidy ₹2.76 lakh (general, urban) to ₹6.45 lakh (special category, rural). EMI ≈ ₹32,203–₹25,763.

Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Bag and packaging wholesalers
  • Grocery, garment and footwear shops
  • Sweet marts, bakeries and medical stores
  • Exhibitions, events and promoters

Ways to sell

  • Bulk supply to wholesalers by the kilo
  • Direct printed-bag orders from shops
  • Sub-dealers in nearby towns

Season: Steady, with higher demand before festivals and the wedding season.

Competition: Many units bought the same machines after plastic-bag bans, so plain-bag prices are tight. Printing, reliable weight and delivery keep customers.

Risks and how to handle them

Your state bans or restricts non-woven polypropylene bags

Check the State Pollution Control Board's current rules first; make only compliant GSM, and consider cloth or paper bags if rules are uncertain.

Fabric prices move with polypropylene prices

Quote for short periods, hold limited stock and compare two or three fabric suppliers.

Machine downtime with no local service

Buy from a maker with service in your region and keep fast-wearing spares.

A costly machine running at low utilisation

Line up wholesalers before buying, and avoid borrowing on the seller's output or buy-back claims.

Tips from the trade

  • See the same model running at a customer's unit and time its real output.
  • Printed bags for local shops earn more than plain bags for wholesalers.
  • Weigh rolls on arrival; fabric is billed by weight.

Questions people ask

Are non-woven bags legal?+

Under central rules they are allowed at 60 GSM and above, with producer registration. Some states have their own restrictions or bans. Check your State Pollution Control Board before investing.

Are non-woven bags cloth bags?+

No. They look like cloth but are made of polypropylene, a plastic. That is why plastic waste rules apply to them.

How much investment is needed to start a non-woven bag making business?+

About ₹18.4 lakh for a small unit: ₹13.6 lakh for machinery and equipment, ₹1 lakh for set-up costs and ₹3.83 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a non-woven bag making business make per month?+

At 50% of capacity, sales are about ₹4.54 lakh a month and operating profit about ₹72,850 before the loan instalment. After an EMI of about ₹38,644, the owner keeps about ₹34,206 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for non-woven bag making?+

Automatic non-woven bag making machine (D-cut / W-cut) (₹10.5 lakh–₹14 lakh); Air compressor (about ₹45,000).

Can I get a Mudra loan or PMEGP subsidy for non-woven bag making?+

With a project cost of about ₹18.4 lakh, the bank loan of about ₹16.6 lakh falls under Mudra Tarun Plus. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹6.45 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for non-woven bag making?+

Mandatory: Registration with the State Pollution Control Board. Depending on your set-up you may also need: Udyam registration, GST registration, Factory / Shop and Establishment registration.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.