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Thomas started his paper bag machine company, Universal Eco Bags, in 1986, selling paper bags and notebooks. But two years back, things took a new turn. Thomas developed a paper bag machine through which bags could be manufactured in a cheaper and cost-effective way. The earlier method was tedious and time-consuming. He used to use a box-like mold to create creasing on paper, which was then manually folded to make bags. Apart from being a slow process, producing bags of different sizes was also not possible. Thomas tried another machine, the HD punching machine, which could do the work faster but still the problem of manufacturing different sizes of bags persisted. 

The Bagmaster
Faced with the multiple problems, he decided to make a machine of his own. Thomas’ innovation runs on motor. The machine has a wooden platform with an iron ring in between as a partition. The paper is put in from one side, to be passed under six iron wheels that create the creasing. The creased paper is collected from the other side. It has a foot-operated accelerator through which the speed of the iron wheels can be controlled. The harder you press the accelerator, the faster the wheels will move. Thomas claims that one can make up to 1,000 bags per hour with the machine. But, of course, one has to have a full team of workers cutting and folding the bags to achieve that figure. The problem of different sizes is solved with the inclusion of six wheels that are spread on a distance that can crease 42 inches of paper at a time.

The machine has seen a good transformation from its prototype that didn’t function the way it does now. As Thomas says, “The first testing of the machine was a failure. When I passed the paper under the iron wheels, I got two pieces from the other side. Then I made some alterations and tried again, but with no success. The same thing happened three-four times, before it started working successfully.”

He now runs a factory in Kerala. Thomas has the capacity to manufacture one machine a day, which he sells at a 20% profit margin.
Strength: The easy-to-operate and easy-to-install features of the machine are its biggest draw. There are no technical skills required to operate it. Moreover, it is priced nominally at Rs 40,000, weighing just 85 kg, a great deal less than the HD punching machine that costs Rs 1.5 lakh. The paper bag machine can produce bags of different sizes. “I can guarantee that no other machine can crease 42 inches of paper at a time, except for my Bagmaster,” Thomas says.
Weakness: The machine does not churn out the whole bag; instead it performs the creasing part speedily. But all other functions that follow have to be done manually. The folding and cutting of the paper, punching holes, putting a thread, all these functions take up a lot of time.

Opportunity: Thomas wants to market his product as a tool to create self-employment opportunities. He believes that old age groups, housewives and the physically challenged can use this machine to earn some money. “A woman can at least make 300 bags a day through this machine. And she will get at least 20% profit margin on every paper bag she sells. It makes for a good part-time business”, he says.

Thomas is looking forward to exporting paper bags in the Western markets as he believes the demand for such bags is high. He is also planning to introduce a ‘buyback policy’, under which he will buy finished paper bags from the people he is selling the machine to. “I will sell this machine to people and they would be happy if I will purchase the finished bags back from them. Then, I will export all the finished paper bags,” he adds.

Threat: As of now there is no competition. But, if a paper bag machine is innovated wherein the process of folding is also mechanized, then it could be difficult for the Bagmaster to survive.