Name of the company:

Homekraft India
Document By ​Richa Verma

About the Company:

Homekraft India is a manufacturer

and exporter of bags and home
furnishings goods. It specialises in
goods produced from jute fabrics.

It has its production units in Kolkata

and has an office in Kalkaji, New
Delhi.

Homekraft India manufactures

various types of jute based
products. Their other products
include Beaded bags, Cotton bags,
Home furnishings, Jute jewellery,
Jute floorings and door mats, and
yoga bags.

The jute bag costs vary from size to

size but their price range is starting
from Rs.75-250/- per bag for a
minimum order quantity of 300 bags
each in each style.

Major customers of Homekraft India

are based in France, Germany,
Italy, Japan, Spain, the UK, and the
USA. Their customers are varied
and include Importers, Wholesalers,
Magazine Companies, Cosmetic
Brands, Pharmaceutical Industry,
Book Publishers, Departmental
Stores, Food Product Companies etc.

Historically, the company had been producing Leather Products as well. But the
company has shifted its focus to Jute due to the market demands and need of
sustainability.

About the Product:

Jute:
Jute is a natural vegetable fibre made from the outer stem and skin of the jute plant.
Also known as 'the golden fibre' due to its shiny golden colour and financial worth, jute
is valued for its versatility and wide range of applications.

What makes Jute sustainable?

There are many reasons why jute bags are considered to be an environmentally friendly
option:
● Biodegradability
The most important feature of jute is that it is bio-degradable and does not pollute the
environment. It does not leave any waste behind and keeps the environment clean.
● Cleaning the environment
According to studies and research, one hectare of jute plant can absorb upto 15 tons of
carbon dioxide and in return releases 11tons of oxygen during a season which is about
100 days. This is a boon for the already polluted environment.
● Contributes in decreasing Environmental pollution
Jute products help in decreasing environmental pollution as its use decreases the
demand for plastic bags which are non-bio degradable and pollute the surroundings.
Jute bags are more useful as compared to the plastic bags as they can be used again
and again.
● Eases the pressure on Natural oil stock
Petrol is a natural resource which is limited in nature. Plastic and poly bags are made
from petroleum products. This puts a lot of pressure on our limited petroleum reserve.
Therefore, the use of jute can really ease the burden.
● Requires less land for cultivation
Jute products require less land when compared to others. This can be helpful in
producing other crops like food crops. This will help in reducing food demand.
● Less requirement of fertilizers & pesticides
Jute requires fewer amounts of fertilizers and pesticides as compared to a crop like
cotton. This will in turn help the environment being clean as it will put less pressure on
soil. The jute crop helps in improving soil condition and fertility as the leftover like leaves
and roots work as a manure.
 ● Improves the soil
Jute helps in improving the condition of soil and also increases its fertility. Also, the
methods used in the production of jute and its by-products are very eco-friendly as well.
● Helps in maintaining Eco balance
Trees play an important role in our environment. We can maintain a perfect eco-balance
by promoting jute and its products. This will help in increasing the number of trees which
in turn will help in solving problems like loss of fertile soil, rain shortfalls, reducing forest
cover.

Market Opportunity

With the growth of population and export items the demand of secondary packaging is
increasing day by day. At present poly bags, paper bags are used in the purpose of
secondary packaging. Non-woven synthetic bags are also used in large shopping malls.
The reasons for the popularity of these bags are because of their low price. But these
bags are non- biodegradable and create a hazard to the environment. So the world is
demanding a substitution of these bags. In this scenario, jute bags would be a good
alternative.

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. This
can be attributed to the growing environment consciousness in the region.

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.

Latest reports find that 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. According to the reports,
the market is projected to reach a value of US$3.1 Billion by 2024.

The Company as the driver of Sustainable Business

The Company has focused its production to Jute Bags and various other Jute products
because sustainability has now become a key driver in any business’ success.
Moreover, the packaging in which they export the goods use minimal plastic. The
Company aims at removing the use of plastics from their end. The price tags and
threads used in the display as well were made out of Jute and Paper.
Now, even though the company claims that they are trying to be more Sustainable, they
are still offering bags that include use of plastics heavily because there is a demand for
it. Other than their sustainable products, the company does not disclose any information
about the production processes they are adopting in order to make their company’s
processes sustainable. This makes one wonder whether providing sustainable end
products without disclosing the means of making the product would make a company a
key participant as a driver of sustainable business as a whole.