How To Start Paper Clip Manufacturing – Business Plan

Introduction on how to start a paper clip manufacturing business in India

Are you willing to start a paper clip manufacturing business? Well, you can find here a brief paper clip making business plan and some essentials for your reference.

If you are searching for a home-based small-scale manufacturing business opportunity, then this business could be a perfect choice. Basically, it does not demand much capital. And provide good returns for self-employment as well as a small business. Additionally, at any moment in time, you can grow your small venture too.

A step by step guide to Start a Paper Clip manufacturing business in India(market analysis, cost, and profits)

Basically, the manufacturing process of the paper clip is very easy. Additionally, with a single machine, you can begin and operate this business. Even the raw material needed for producing paper clips is available sufficiently.

Market potential for Paper Clip manufacturing business

Basically, paper clips are essential items for arranging loose papers. Therefore, these are famous stationery items in various organizations. The list includes schools, universities, colleges, offices, and administrative institutions as well.

Generally, these clips are available as steelmaking. Additionally, it comes with various types of designs. However, it is simple, elegant, and surpassingly functional. Actually, it aids to organize essential papers with a smooth stylish look. Therefore, this category of clips has a huge demand around the globe.

Business plan to start a Paper Clip manufacturing business in India

For initiating this business, you must conduct proper market research. Specifically, you must check out the demand-supply ratio in your region. Additionally, you must identify the specific length, design, and weight of the most famous paper clips. It will also aid you in crafting a perfect business plan and starting the business without any trouble. Next, we will discuss some of the most significant aspects of the business plan checklist.

Design the Paper Clip manufacturing business unit

Crafting a business plan is very significant for any business and paper clip manufacturing is not any exception. You must add the financial aspects too. Basically, a well-written business plan aids to get finance from the banks or from other capitalists. In the business plan, it is very important to carefully state your business objective, operation strategies, and marketing policies.

License, registration and permissions required to start Paper Clip manufacturing business in India

Generally, this type of manufacturing business does not need any particular license or approvals. However, you must verify with your state Government rule. Additionally, register your business with an appropriate organization form. Go to a tax consultant for tax liabilities and upcoming compliances. Below is the list of licenses required to start the business?

  • Register your business and ownership pattern in ROC.
  • Apply for Pan Card.
  • Get Trade License from Local authority.
  • Apply NOC from the Pollution Control Board.
  • Apply for ISI Mark at the Bureau of Indian Standards (BIS) which from time to time pertaining to quality, safety, and performance.
  • Should apply the Factory License to your State Govt. authority.
  • Get a GST number from the state sales tax department.

Investment required to start Paper Clip manufacturing business in India

Generally, this type of small-scale business demands start-up capital investment both for the fixed as well as for working capital expenses. Thus, you must plan for the capital for initiating this business. If you already have that finance with you as a part of your savings, or else you can apply for a loan. You can apply for a bank loan or venture capitalists to spend on your business.

Setting up the Paper Clip manufacturing unit in India

Now, you could be ready to establish the unit. If you have an area in the home, you can arrange the unit there. Otherwise, you have to get a location for beginning the manufacturing operation. Generally, you can begin a small-scale manufacturing operation with a 500 sq. ft. area. However, it is determined based on the size of your business. The unit must have a power connection, wide entrance, and water provision for domestic use.

Machinery required to start a Paper Clip manufacturing business unit in India

Several automatic paper clip making machines can be obtained from the market. Depending on the planned quality and production output, you must select the proper machinery for your business. Normally, you can get 100 – 110 pieces of paper clips from these machines. By only changing the die set you can develop different size clips for instance 24 mm to 35 mm.

Find Paper Clip machine manufacturers

The best way to procure paper clip machine manufacturers is to approach local industrial machine sellers. Currently, there are several online marketplaces that support you to contract manufacturers. You can verify online websites for instance,, etc.

Raw materials required to start a Paper Clip manufacturing business

Generally, the raw materials required are based on the particular type of finished goods you want to produce. If you want to produce a steel paper clip, then you should obtain galvanized stainless steel wire. However, the wire comes with a different gauge. And surely, it comes with a separate price. If you want to manufacture colorful paper clips then you should collect colorful rubber tubes from the local wholesale market.

Manufacturing process of Paper Clips

The paper clip manufacturing process is quite easy. The process starts with a huge spool of galvanized steel wire. First of all, you should feed the end of the wire into the paper clip machine.

Actually, a finished paper clip will have three bends. The machine forms the wire into these three bends by cutting it and sending it by three small wheels. The wheels are lightly roughened, and catch the length of the wire as it passes.

The first wheel turns the wire about 180 degrees, making the first bend, the second makes the next bend, and the third wheel will do the final turn. The entire process is so rapid; the machine can churn out several clips in a minute.

You should pack the finished paper clips into the particular size boxes. Then seal the boxes. Simultaneously, you can operate about 10 automatic paper clip making machines.

Profit margin for Paper Clip making business in India

Profit margin for Paper Clip making business in India.
Profit margin for Paper Clip making business in India

The minimum costs involved in the production of the paper clips are Rs. 1,00,000 including the machine and raw materials cost. You can get the returns within 3-4 months. It is purely based on marketing strategies. Because you can sell each of the packets having 10 clips for Rs. 10 hence if you make 1 lakh clips then you can earn Rs. 1 lakh but remember that the prices vary in retailer shops. However, even if you sell them at retailer shops with a price little less than the market price you can easily earn the profits within a maximum of 6 months.

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Where to sell paper clips after production

It is better to concentrate on retail distribution shops. You can sell them in bulk quantity to the local retailers available in and around your area. Apart from this, you can also concentrate on online selling. In online selling, you can get higher profits than the retailers. Hence it is better to target more on online selling apart from these retailers. There are several online marketplaces where you can sell your products for example Facebook marketplace.

B2B websites: You may register your Paper Clip making business on B2B websites like – Indiamart, Tradeindia, Exportersindia, etc. you can sell your product on bulk orders.

B2C websites: You can also register on B2C websites like – Amazon, Flipkart, Snapdeal, where you can sell your product directly to the customers online. 

The online market for Paper Clips
Social media is one of the largest and best effective methods to promote your brand online and it reaches the maximum number of customers. You can post a brief story along with the video that attracts more customers and helps to gain more clients.

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