The Only Guide You Need To Start A Gunny Bag Business

 

Logistics and storage are two basic components for industries to operate. One simple product that has been an integral part of both logistics and storage in India — Gunny bags. It is often overseen as a profound part of various industries. The reasons for this being 

—its habitual use in daily life, and 

—its relevance across numerous industries.

It is a simple product made out of jute fibres. However, in the forthcoming future, the reliance on gunny bags and jute is deemed to grow, at scale.

An Insight into The Gunny Bag Business

In 2019, a report by IMARC group valued the global jute bag business at 1.96 billion US dollars. In an industry of this scale, India presents itself as the largest producer of gunny bags. After cotton, jute is the most produced vegetable fibre in India. Relatively, more than 1 million metric tons of jute products were produced in India, in the financial year 2018-19. Amongst these products, gunny bags held the lion's share. 

 

Where did it all start?

The utility of jute fibres can be found since the times of the Mughal empire. It was used for various purposes from clothing to manufacturing ropes. With regards to gunny bags, in 1938, the Dutch government specified the transport of coffee from the East Indies to be carried out using bags made of jute. 

Bengal and parts of Assam were the prominent locations where gunny bags manufacturing was on a tremendous rise. From Calcutta, over 450 million gunny bags were reportedly exported by 1910. The prominence of these products has only grown and, at present, they are employed for a variety of applications. 

 

Uses -

Transportation

Vegetables, pulses, sugar, and many other commodities are transported using gunny bags. Since they are made out of jute which is a natural fibre, these bags act as ideal protective covers for such perishable goods.

Clothing and Fashion

Jute and gunny bags find a place in this rising trend in the fashion industry — sustainable clothing. This effectively means the use of eco-friendly fabrics to stitch and produce clothes.

Sandbags

This is an important and creative use of gunny bags. They are used to build temporary embankments in areas that are prone to flood. Similarly, they are also used to prevent soil erosion.

Gardening stock

Gunny bags are extensively used to store gardening and agricultural supplies. Since jute is recyclable, gunny bags do not harm nature after use.

Curing

The construction industry substantially makes use of gunny bags for the curing of cement. The capacity to retain water allows the gunny bags to be used for curing.

Overview of the Current Indian Gunny Bags Market

 

To date, India is the largest cultivator of raw jute fibre. Also, India facilitates the export of jute fibre to more than 180 countries. 

Besides, the Indian Government has prioritized jute bags manufacturing and import. In October 2020, the Cabinet Committee on Economic Affairs mandated the use of gunny bags to pack food grains. 

They have also encouraged Indian citizens to set up gunny bag manufacturing plants. As a tangible measure, the National centre for jute diversification (NCJD) and Jute manufacturers development council (JMDC) have collaborated to provide training in gunny bag making.

These efforts reassure the government's support for the gunny bag industry. Leveraging these opportunities and support, a business in the gunny bag industry is a lucrative prospect.

 

Forecasting the Future Market Demand and Market Opportunity

The export of gunny bags is invariably the biggest opportunity for any gunny bag manufacturing firm. With the European market gradually increasing its demand for Indian made gunny bags, its export is ripe for disruption. 

In India, the government has called for a ban on single-use plastic. This ban acts as a catalyst for the growth of the gunny bags industry. This is further fueled by the increasing awareness against the use of plastic and its after-effects.

Numbers too are voicing out the immense potential of the jute bag market. With an annual gross rate of 9.4%, the gunny bags industry is estimated to reach a valuation of 3.3 billion US dollars by 2026.

 

Manufacturing requirements:

Raw Materials

• Jute fabric,
• Dyes,
• Printing gum,
• Sewing thread,
• Chemicals,
• PVC buckles,
• Labels etc.

 

Machinery

• Sewing machine,
• Printing table,
• Cutting machine,
• Lock stitch machine,
• Textile printing paste stirrer,
• Scissors, measuring tape, electrical fittings, etc.

 

Major competitors:

• Shree Jee International India Ltd., 
• Coastal Packagers,
• Ashoka Exports, 
• Aarbur, 
• Hitaishi KK Manufacturing Co Pvt Ltd, 
• Howrah Mills Co. Ltd., 
• Gloster Limited, 
• Green Packaging Industries Private Limited, 
• R. K. Enterprise, Yucon Exports Private Limited, 
• Aditya Translink Pvt. Ltd, 
• G M Jute Exports Co.

 

Albeit the presence of competition, the gunny bag industry is fragmented. With the European and other markets embracing the jute revolution, the gunny bags industry is bound to scale newer heights. Entering the gunny bags market in 2021 with a tinge of innovation suffices for sublime, yet sustainable growth.