§1What this business is

Polyethylene pellets are melted in an extruder, pushed through a ring die and blown into a film bubble, flattened and rolled, then cut and sealed into bags of different sizes and folded and packed. Low-density polyethylene makes soft bags; high-density polyethylene makes heavy-duty bags.

§2Is it right for you?

Who it is for

Someone with plastics experience and access to housekeeping, hospital or retail buyers.

Who it is not for

Someone not ready to track plastic waste rules and registrations.

Advantages

  • Every home, office and hospital uses garbage bags
  • One automatic machine does extrusion to sealing
  • Waste segregation rules push bag use
  • Repeat consumable purchase

Drawbacks

  • Raw material is most of the cost — thin margin (about 5–8%)
  • Plastic rules keep changing
  • Polymer price follows crude oil
  • Many small makers compete on price

Skills you need

  • Film extrusion
  • Thickness and strength testing
  • Compliance with plastic waste rules
  • Institutional and retail sales

Why difficulty 3/5: Simple machine, but thin margins and changing plastic rules.

§3Market

Who buys

  • Households
  • Offices and businesses
  • Hospitals, hotels and institutions

How it sells

  • Supermarkets and general stores
  • Wholesalers
  • Housekeeping and facility contractors

Good to know

  • The report says garbage bags are widely used in the retail, industrial and institutional segments.

§4Raw material & machinery

ItemQtyCost
Automatic garbage bag making machine (extruder, blower, gusset, pressing, rolling, cutting and sealing)1₹10,00,000
Testing equipment1₹1,00,000
Miscellaneous1₹80,000

From: PMEGP sample project report — Garbage Bags (prepared by Udyami/Samadhan)

  • Polyethylene pelletsLDPE for soft bags, HDPE for heavy-duty bags
  • Additiveslisted in the report
  • Packaging material₹0.53 L in year 1

From: PMEGP sample project report — Garbage Bags (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

Biogreen Bags · Bengaluru →Green Tech Bio Products · Coimbatore →Nova Engineering works · Ahmedabad →Oswal Engineering Corpn · Mumbai →P V Enterprises · Sangli →Plastemart.com · Mumbai →

In our raw material database

Low-density polyethylene (LDPE) →Linear low-density polyethylene (LLDPE) →Colour and additive masterbatch →Recycled plastic granules →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Fire NOC
  4. State Pollution Control Board consent (CTE/CTO)
  5. Trade licence from the local body
  6. Factory licence (depends on workers and power)
  7. Registration with the State Pollution Control Board under the Plastic Waste Management Rules
  8. Trademark for your brand (optional)

We can do this registration for you

§6Schemes & subsidies

Built for PMEGP; at ₹17.69 L it also fits MUDRA, CGTMSE and Stand-Up India.

§7Money

How the investment is worked out: Plant & machinery ₹11.80 L + other assets ₹1.50 L + working capital ₹4.39 L = ₹17.69 L; premises rented (₹30,000 a month assumed). Finance: own ₹1.77 L, term loan ₹11.97 L, working-capital loan ₹3.95 L.

Working capital: Working capital ₹4.39 L (bank ₹3.95 L); raw material ₹75.60 L in year 1.

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

3923.21Sacks and bags of polymers of ethylene

Export council / board: PLEXCONCIL

  • HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Rule changes on plastic bags
  • Polymer price rise
  • Machine breakdown
  • Credit to institutions

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working garbage bags unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Garbage Bags?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Garbage Bags (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.