Notebook Manufacturing Project Report, Business Plan
Introduction
Hello friends, today we are here with a new topic of Notebook Manufacturing Project Report and Business Plan. When you think about starting a profitable notebook and Notebook manufacturing business with less capital, it’s significant that you have a proper business plan guide with essential machinery, raw materials, and production method. Usually, notebooks and exercise books are very useful school stationery products. Any student has to come through these products in his or her entire school life. Moreover, the emerging education system has boosted the demand for different types of notebooks, pads, copybooks, and even registers that are being used in various offices for administrative and other works.
The Notebook making business can be a money-spinning business since it requires less space for operations, a small investment for obtaining required raw materials and machinery. This can be initiated from home as well.
A step-by-step guide to Notebook Manufacturing Project Report, and Business Plan
Market potential of Notebook Manufacturing Business
The major sales on book bindings and notebooks are made by students and commercial set-ups. Normally, the market is from retailers and also through supermarkets. Manufacturers can also collaborate with other educational and commercial offices for increased sales. There is a very good need for notebooks and book bindings in villages, semi-urban and urban regions. Since Government is supporting education and has initiated several schools and colleges in remote villages as well.
Market analysis of Notebook Manufacturing Business
Commonly, notebook has a huge market both in the developed countries as well as in developing nations. And the market for exercise notebooks was previously captured by the unorganized sections. However, there a few organized companies as well recently in the market. Currently, the exercise notebook market is growing at a linear pace. There are a few aspects such as growing economy, escalating middle-class, increasing literacy rate, etc.
There is a vast demand for improved notebooks, that have innovative 3D covers, in the past years. Besides, the demand for various types of notepads, graph books, writing pads, is on the rise.
Various Types of Notebooks
According to the size and its application, there are various types of Notebooks you can see in the market. However, you have to analyze the exact demand for the specific type of notebooks in your region. Here, we have listed various types of notebooks. For the Notebook manufacturing business, the main raw material is 40–50 GSM white sheets. You have to buy a gray board sheet, cover sheet, sewing wire, printing ink, glue, and other consumables.
- Notebooks for students
- Exercise books
- Drawing book
- Scrapbook
- Graph book
- Laboratory notebook
- Writing pad
- A graph-ruled composition book
Business plan to start Notebook Manufacturing Unit
It is significant to craft a business plan irrespective of the size of your business for starting and operating the business smooth manner. Here, you should include the marketing strategies and financial planning which aid you to secure finance for the business as well.
License, permissions, and registration required to start Notebook Manufacturing Business in India
Usually, for this kind of small business, there are not particular licenses or mandatory approvals. However, it is recommended to verify with your state laws. Moreover, take suggestions from experts on this small business consultant. It’s important to first plan to register your business with Registrars of Companies. Also, you can approach a CA and know about the tax liabilities of your business. Here you have the choice of selecting LLP, Partnership, or proprietorship depending upon your business model. It is significant to choose an organization type based on the size and management pattern you have.
Get a trade license through a local municipal authority. Apply online for MSME Udyog registration. This is very vital for start-ups as it will help to gain schemes by the government.
Get the ‘NOC’ from the State PCB. Now, Goods & Services Tax is mandatory for any business, and get it done as well. Secure the brand by doing trademark registration. Now let us get into details of the Notebook Manufacturing Project Report, and Business Plan.
Establishing the Notebook Making Unit
Establishing a Notebook-making unit is relatively easier than in other businesses. It can be established on a 1000 sq. ft area. Commonly, you require a specific location for storage, machine installation, and placing raw materials. If a separate office space is not there, then you should have a specific area for administrative works such as generating invoices, etc.
Machinery required to start Notebook Making Business
A semi-automatic plant is the best option while planning to begin a small-scale Notebook making business. You have to connect and machines must be installed properly. The essential machines are stated below:
- Disk ruling machine
- Semi-Automatic Paper Cutting Machine: It can cut 28 – 30 pieces every minute.
- Book Stitching Machine: Machine speed will be 180 staples/min.
- Book pressing machine
- Three Knife Trimming Machine:
- Punching machine
- Perforating machine
- Paper cutting machine automatic
- Manual press
Raw Materials required to start Notebook Making Business
Some of the primary necessary raw materials are wood-free writing paper, cover sheets, stitching wire, printing ink, etc. All the materials can be purchased through domestic sources except the stitching wire. For a small-scale business, it is better not to integrate the printing option. This way you have to approach other printing firms for the cover page printing purpose.
Procedure to start Notebook Manufacturing Business
The manufacturing process of registers, notebooks, exercise books, etc. is quite easy. In this method, first of all, rule the white papers with the help of the ruling machine as per the local necessity. Then, fold the ruled paper sheets into the desired size of the notebook (92/192 pages). After that binding, it using labels, grey boards, and covers paste over it.
It is suggested to obtain several multi-color good-looking covers from the wholesale market. Also, you can plan for getting your company-specific cover pages with the help of other printing companies. After pasting the covers will be cut properly for getting a finished product. The same process will be used for making the registers as well.
But the success of a Notebook making company is based on the distribution policies. So, you must think of creating an intensive retail distribution channel for your notebook.
In case if you miss this: How To Start A Vegetable Oil Production Business.
Notebook Manufacturing Project Report and Economics of Notebook Manufacturing Business in India
Fixed Capital
Machinery and Equipment:
Automatic Notebook converting machine: Rs. 6,10,000
Weighing machine Rs. 12,000
Total Rs. 6,22,000
GST 18%: Rs. 1,11,960
So, total fixed capital including GST: Rs. 7,33,960.
Recurring expenditure
a. Raw Material per Month:
Notebook Roll including GST @ 18%: Rs. 2,10,000
Packing materials: Rs. 19,000
Total: Rs. 2,29,000
b. Salaries & Wages Per Month: Rs. 32,500
c. Utilities per Month (Power supply, water supply, etc.): Rs. 15,218
d. Other Expenses Per Month:
Rent: Rs. 10,000
Postage and stationery: Rs. 1,000
Repairs and maintenance: Rs. 2,000
Traveling and transportation: Rs. 10,000
Insurance: Rs. 500
So, in total: Rs. 23,500
Recurring expenditure per month = a + b + c + d = Rs. 3,00,218
Recurring expenditure per year: Rs. 36,02,616
Total Notebook manufacturing project cost: Rs. Plant & Machinery + Recurring Expenditure for one month (known as working capital) = Rs. 7,33,960 + Rs. 3,00,218 = Rs. 10,34,178.
Means of Finance
Total Project cost Rs. 10,34,178
Promoter contribution 5 % (-) Rs. 51,709
Total Rs. 9,82,469.
Cost of Production Per Annum:
Total recurring cost: Rs. 36,02,616
Interest on total investment @12.5%: Rs. 1,29,272
Total Depreciation on Machinery @10%: Rs. 73,396
So, total cost of production per annum for Notebook making business = Rs. 38,05,284
Turnover Per Annum: Total production 42 MT
One year production: 42 MT
And total 5.88 pockets, selling price @ Rs. 7.40 per packet
Total Selling value: Rs. 43,51,200.
Profit calculation in Notebook making project report
Profit = Turnover – Cost of Production
= Rs. 43,51,200 – Rs. 38,05,284
= Rs. 5,45,916
Percentage of profit on sales = Profit per annum X 100/Turnover = 5,45,916 X 100/ 43,51,200 = 12.54%.
Rate of Return
= Profit per annum X 100/Total Capital investment
= 5,45,916 X 100/10,34,178 = 52.78%.
Break Even Analysis
Total Deprecation: Rs. 36,698
Interest on Investment: Rs. 1,25,000
Insurance: Rs. 2,400
40% of Salary: Rs. 1,56,000
40% of other Expenditure and Utilities excluding Insurance: Rs. 1,83,446
Total: Rs. 5,03,544
Profit per annum = Rs. 5,45,916.
Break-even Point:Â Â
= Fixed Expenditure per annum X 100 / Fixed Expenditure per annum + Profit per annum
= 5,03,544 X100 / 10,49,460 = 47.98%.
That’s all folks about the Notebook Manufacturing Project Report and Business Plan.
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