Jute Bags, Jute Sacks, Gunny Bags Manufacturing Industry

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Introduction
Jute is 100% bio-degradable & recyclable and thus environment
friendly. Jute is a natural fiber with golden & silky shine, and hence
nicknamed as The Golden Fiber.
Jute Bags/Jute Sacks/Gunny Bags have been widely used for packaging
of various commodities viz. Cereals, Cashew nuts, Ground nuts, Pea
nuts, Cotton, Palm Kernels, Gum Arabic, Coffee beans, Cocoa beans,
Rice, Paddy, Wheat, Maize, Copra, Lentils, Sugar, Cement, Fertilizers
etc.

Jute Gunny Bags are extensively used for carrying bulk material such as
pulses, grains, etc. from one place to another. Jute Gunny Bags are used
to store large anoints of weights in them. These bags are suitable to be
used in commercial and industrial places for transporting wheat, rice
and other grains.

Features:
 Eco-friendly nature
 Bio-degradable
 Can be easily re-used
 Easy to clean
 Excellent finish
 Smooth texture
 Highly spacious

Market Outlook
India exported Jute Bag to 185 countries globally with the total export
value of 181.39 US$ million in 2018. Top countries that import Jute
Bag from India are Ghana, USA, United Kingdom, Australia, and Côte
d'Ivoire.
India is the largest producer of raw jute and the second largest exporter
of jute and jute based goods in the world, next only to Bangladesh.
India, Bangladesh, China, Myanmar, Nepal and Thailand are at present
the major producers of Jute, Kenaf and Roselle fibres. India, Bangladesh
and China are the large producers. Jute is a natural fiber popularly
known as the golden fiber.

Jute Bag Export facts and Information:
• Total export of Jute Bag from India in last 30 days amount to
5,819.12 INR million.
• Major Indian ports for exporting Jute Bag products are
MUNDRA, KOLKATA SEA, NHAVA SHEVA SEA, COCHIN SEA,
PIPAVAV(VICTOR) PORT..
• The top international ports for importing Jute Bag are JEDDAH,
JEBEL ALI, JAKARTA, SHUWAIKH, and DAMMAM.
In recent years, jute cultivation has also been extended to the states of
Meghalaya, Tripura, Tamil Nadu, Maharashtra and Uttar Pradesh.

Jute industry, in India, is mainly a raw material oriented Industry.
Hence, majority of the jute mills are concentrated near jute growing
tracts of West Bengal along the banks of the Hugli River. West Bengal
alone accounts for 63.55 per cent of the total production of jute goods
in the country. Besides West Bengal, Orissa is the second largest
producer of jute goods in the country (about 17 per cent). Other
important centres of jute industry include Samastipur, Katihar and
Darbhanga in Bihar; Kanpur, Gorakhpur (Shahjanwan) in Uttar Pradesh;
and Raigarh in Chhattisgarh.

It is one of the cheapest and the strongest of all natural fibers and
considered as fiber of the future. Jute is second only to cotton in
world’s production of textile fibers. India, Bangladesh, China and
Thailand are the leading producers of Jute. It is also produced in
southwest Asia and Brazil. The two main types of jute, white jute
(Corchorus Capsularies)and dark jute or tossa (Corchorus Olitorius) are
grown in India, Bangladesh, Thailand, China and south Asian countries.

The global jute bag market reached a value of US$ 1.8 Billion in 2018,
exhibiting a CAGR of around 11.5% during 2011-2018. The global jute
bag industry is currently at a nascent stage with encouraging growth
aspects. The demand for jute bags has witnessed a surge over the past
few years, particularly in the European Union. This can be attributed to
the growing environment consciousness in the region.
With the increase of population and civilization, the demand for the
jute bag is also increasing; awareness about the environment is also the
reason for jute bag demand. The government has already taken steps
toward the eco-friendly product, and as result, they ban the use of
plastic bag therefore the jute bags are the best replacement for plastic
bags.

The imports of jute bags in non-producing countries have also been
facilitated by the ban on plastic packaging materials and bags.
Additionally, the benefits offered by jute bags such as their
biodegradability, durability, low cost, high strength, etc. have further
supported the market growth.
Some of the key players operative in the market include Aarbur, Ashoka
Exports, Hitaishi-KK, Howrah Mills Co. Ltd., Shree Jee International
India Ltd. and Gloster Limited.

1. What is Jute Gunny Bags Manufacturing industry ?
2. How has the Jute Gunny Bags Manufacturing
industry performed so far and how will it perform
in the coming years ?
3. What is the Project Feasibility of Jute Gunny Bags
Manufacturing Plant ?
4. What are the requirements of Working Capital for
setting up Jute Gunny Bags Manufacturing plant ?
Major Queries/Questions Answered in the Report?

5. What is the structure of the Jute Gunny Bags
Manufacturing Business and who are the
key/major players ?
6. What is the total project cost for setting up Jute
Gunny Bags Manufacturing Business?
7. What are the operating costs for setting up Jute
Gunny Bags Manufacturing plant ?
8. What are the machinery and equipment
requirements for setting up Jute Gunny Bags
Manufacturing plant ?

9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Jute Gunny Bags
Manufacturing plant ?
10. What are the requirements of raw material for
setting up Jute Gunny Bags Manufacturing plant ?
11. Who are the Suppliers and Manufacturers of Raw
materials for setting up Jute Gunny Bags
Manufacturing Business?
12. What is the Manufacturing Process of Jute Gunny
Bags?

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13. What is the total size of land required for setting up
Jute Gunny Bags Manufacturing plant ?
14. What will be the income and expenditures for
Jute Gunny Bags Manufacturing Business?
15. What are the Projected Balance Sheets of Jute
Gunny Bags Manufacturing plant ?
16. What are the requirement of utilities and
overheads for setting up Jute Gunny Bags
Manufacturing plant?
17. What is the Built up Area Requirement and cost for
setting up Jute Gunny Bags Manufacturing
Business?

18. What are the Personnel (Manpower)
Requirements for setting up Jute Gunny Bags
19. What are Statistics of Import & Export for Jute
Gunny Bags?
20. What is the time required to break-even of Jute
21.What is the Break-Even Analysis of Jute Gunny
Bags Manufacturing plant?
22.What are the Project financials of Jute Gunny Bags
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23. What are the Profitability Ratios of Jute Gunny
Bags Manufacturing Project?
24. What is the Sensitivity Analysis-Price/Volume of
Jute Gunny Bags Manufacturing plant?
25. What are the Projected Pay-Back Period and
IRR of Jute Gunny Bags Manufacturing plant?
26. What is the Process Flow Sheet Diagram of Jute
Gunny Bags Manufacturing project?

27. What are the Market Opportunities for setting
up Jute Gunny Bags Manufacturing plant?
28. What is the Market Study and Assessment for
setting up Jute Gunny Bags Manufacturing
Business?
29. What is the Plant Layout for setting up Jute

Table of Contents
of the
Project Report

Our Detailed Project Report contains
 Introduction
 Properties
 Uses & Applications
 List of Plant & Machineries
 Miscellaneous Items and Accessories
 Instruments, Laboratory Equipments and Accessories
 Electrification, Electric Load and Water
 Maintenance, Suppliers/Manufacturers of Plant and
Machineries

 Process of Manufacture
 Flow Sheet Diagram
 List of Raw Materials
 Availability of Raw Materials
 Requirement of Staff & Labour
 Skilled & Unskilled Labour
 Requirement of Land Area
 Built up Area
 Plant Layout

Project Financials
• Project at a Glance Annexure
• Assumptions for Profitability workings ………………………..1
• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & Building
Site Development Expenses

• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)
• Other Fixed Assets………………………………………..........….......6
Furniture & Fixtures
Pre-operative and Preliminary Expenses
Technical Knowhow
Provision of Contingencies
• Working Capital Requirement Per Month……………………….…7
Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store

• Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses
• Salary and Wages …………………………………………....……..9
• Turnover Per Annum ……………………………………….....…10
• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital

• Annexure 1 :: Cost of Project and Means of Finance
• Annexure 2 :: Profitability and Net Cash Accruals
 Revenue/Income/Realisation
 Expenses/Cost of Products/Services/Items
 Gross Profit
 Financial Charges
 Total Cost of Sales
 Net Profit After Taxes
 Net Cash Accruals

• Annexure 3 :: Assessment of Working Capital requirements
 Current Assets
 Gross Working Capital
 Current Liabilities
 Net Working Capital
 Working Note for Calculation of Work-in-process
• Annexure 4 :: Sources and Disposition of Funds

• Annexure 5 :: Projected Balance Sheets
 ROI (Average of Fixed Assets)
 RONW (Average of Share Capital)
 ROI (Average of Total Assets)
• Annexure 6 :: Profitability Ratios
 D.S.C.R
 Earnings Per Share (EPS)
 Debt Equity Ratio

• Annexure 7 :: Break-Even Analysis
 Variable Cost & Expenses
 Semi-Variable/Semi-Fixed Expenses
 Profit Volume Ratio (PVR)
 Fixed Expenses / Cost
 B.E.P

• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
 Resultant N.P.B.T
 Resultant D.S.C.R
 Resultant PV Ratio
 Resultant DER
 Resultant ROI
 Resultant BEP

• Annexure 12 :: Shareholding Pattern and Stake Status
 Equity Capital
 Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
 Determined Capacity P.A of Products/Services
 Achievable Efficiency/Yield % of Products/Services/Items
 Net Usable Load/Capacity of Products/Services/Items
 Expected Sales/ Revenue/ Income of Products/ Services/ Items

• Annexure 14 :: Product wise Domestic Sales
Realisation
• Annexure 15 :: Total Raw Material Cost
• Annexure 16 :: Raw Material Cost per unit
• Annexure 17 :: Total Lab & ETP Chemical Cost
• Annexure 18 :: Consumables, Store etc.
• Annexure 19 :: Packing Material Cost
• Annexure 20 :: Packing Material Cost Per Unit

• Annexure 21 :: Employees Expenses
• Annexure 22 :: Fuel Expenses
• Annexure 23 :: Power/Electricity Expenses
• Annexure 24 :: Royalty & Other Charges
• Annexure 25 :: Repairs & Maintenance Expenses
• Annexure 26 :: Other Manufacturing Expenses
• Annexure 27 :: Administration Expenses
• Annexure 28 :: Selling Expenses

• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P & M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV (Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV (P &
M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR

Scope of the Report
The report titled “Market Survey cum Detailed Techno Economic
Feasibility Report on Jute Gunny Bags.” provides an insight into
Jute Gunny Bags market in India with focus on uses and
applications, Manufacturing Process, Process Flow Sheets, Plant
Layout and Project Financials of Jute Gunny Bags project. The
report assesses the market sizing and growth of the Indian Jute
Gunny Bags Industry. While expanding a current business or
while venturing into new business, entrepreneurs are often faced
with the dilemma of zeroing in on a suitable product/line. And
before diversifying/venturing into any product, they wish to
study the following aspects of the identified product:

• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period
We at NPCS, through our reliable expertise in the project
consultancy and market research field, have demystified the
situation by putting forward the emerging business opportunity
in the Jute Gunny Bags sector in India along with its business
prospects. Through this report we have identified Jute Gunny
Bags project as a lucrative investment avenue.

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Jute Bags, Jute Sacks, Gunny Bags
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