§1What this business is
Fabric is cut into front, back-with-flap and gusset pieces, a patch pocket is attached, pieces are stitched with piping, and straps, buckles, zips and stickers are fitted. The report plans 60 bags a day on flat-bed and cylinder-bed sewing machines. Demand is year-round with a peak before the school session.
Capacity: 60 bags a day, 18,000 a year (10 hours, 300 days); year 1 at 60%.
§2Is it right for you?
Who it is for
A tailor or bag maker who can sell to school-supply shops and bulk school orders.
Who it is not for
Someone without stitching skill or sales contacts.
Advantages
- Every school child needs a bag every year or two
- Low power need (2 KVA)
- Can also make office, travel and promotional bags
- The report says it can start as a home-based business
Drawbacks
- Sales bunch up before the school session
- Branded and Chinese bags compete
- Low DSCR in the report (1.97)
- Designs must change with trends
Skills you need
- Pattern cutting and stitching
- Fabric and accessory buying
- Design
- School and dealer sales
Why difficulty 2/5: Stitching work is familiar; seasonal selling is the main challenge.
§3Market
Who buys
- School children and parents
- Schools placing bulk orders
How it sells
- School-supply and stationery shops
- Online shops (named in the report)
- Own website
Good to know
- Raw material is ₹10.32 L of year-1 sales of ₹25.65 L.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Ball press | 1 | — |
| Flat-bed single-needle sewing machine | — | — |
| Cylinder-bed sewing machine | — | — |
| Board cutting machine | 1 | — |
| Glazing machine | 1 | — |
| Skiving machine | 1 | — |
| Mini compressor | 1 | — |
| Zinc block for design embossing | — | — |
| Whole set with tools, furniture and electrification | 1 set | ₹12.00 lakh plant and machinery |
From: PMEGP sample project report — School Bag Making (prepared by Udyami/Samadhan)
- Cotton canvas, abrasion-resistant fabrics, Corduraraw material ₹10.32 lakh in year 1
- Straps, buckles, zips, piping, stickers
From: PMEGP sample project report — School Bag Making (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration and GST
- Trade licence from the local body
- Trademark for your brand if needed
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP and MUDRA fit a ₹17.59 L unit; CGTMSE for a collateral-free loan; Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: Samadhan report ₹17.59 L = plant and machinery ₹12.00 L, furniture ₹1.00 L, working capital ₹4.59 L; land rented or owned. Working-capital loan ₹4.13 L.
Working capital: Working capital ₹4.59 L; bank ₹4.13 L.
Year not printed on the report — check current machinery and raw-material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Export buyers look for test reports on fabric strength and safe dyes.
§9Risks — where people fail
- Unsold stock after the season
- Zip and stitching failures bring returns
- Fabric price rise
- Credit to dealers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working school bag making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration and GST, Trade licence from the local body), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 School Bag Making?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.