Staple Pins Project Report, Business Plan

Introduction to Staple Pins Project Report, Manufacturing Business Plan: Staple pins manufacturing has attained significance particularly the one made from galvanized iron wire type, mainly known as ‘white staples’. These staples are used in several ways like to staple sheets of paper, pin sandwich bags, album photos, cheque leaflets, common known bills, and it is obligatory for office use such as in banks, financial organizations, corporates, also in factory segments such as garment industry, rubber industry, leather industry, and extensively used in many stores that use to deliver goods and materials in packets.

A guide on how to start a Staple Pins manufacturing business, Staple Pins project report and business plan

Staple Pins Manufacturing Process
Staple Pins (pic source: pixabay)

These white shining staples that are good in good quality are even imported in the present times by various other countries, this causes an approximate foreign exchange economy of around Rs. 10 crores annually. In India, manufacturing has been restricted to the copper-coated staples and not the white shining staples, but regrettably, they face the problem of rusting. Therefore, the demand is growing for white staples manufactured using substandard wires in the market.

Business plan for Staple Pin Manufacturing Business

To start the profitable venture of Staple Pin Manufacturing Business, you need to design a perfect business plan to lay a successful path: 

  • Basis and presumptions
  • Implementation schedule
  • Market potential
  • List of approvals required
  • Raw materials required
  • List of machinery and equipment
  • Manufacturing process
  • Project economics
  • Profitability

Basis and Presumptions of Staple Pin Manufacturing Business

The Staple Pin Manufacturing Project Profile relies on the following assessments:

  • Working hours/shift: 8 hrs.
  • No. of shift/day:1
  • Working days: 300
  • Labor expenses: as per the State Government’s Minimum Wages Act.
  • Rate of interest: 15% per annum
  • Costs of machinery and equipment: Taken based on A particular dealer
  • Value of raw material: As per local market Packing material/others rate (on wholesale rate)
  • Land: owned
  • Building Construction
  • Break-even point will be estimated on a full capacity utilization basis
  • Pay-back time is 5 – 7 years

Implementation schedule of Staple Pin Manufacturing Business

The project implementation schedule of Staple Pin Manufacturing Business

  • Project preparation: 0-1 month
  • Location selection, acquisition of 1-2 months land and land development
  • Loan Sanction: 1-3 months
  • Building construction: 3-4 months
  • Connection of electric supply and water: 4-5 months
  • Obtaining machinery: 5-6 months
  • Electrification & installation:  6-7 months
  • Recruitment of staff and workers: 7-8 months
  • Trial run can be initiated in 8-10 months
  • Commercial production could start from 10-11 months

Market potential of Staple Pins

You may also check this: Paper Bags Project Report.

Market potential of Staple Pins
Staple Pins (pic credit: pixabay)

Staple-pins are highly used as stationery items in schools, universities, and in offices such as for any government offices like banks, post offices, and other places, court, business, and in domestic use too. Many stores like Xerox, bakery and sweet shops, etc. even use staple pins almost regularly chiefly for packing products. Even laundry services and various other stores use staple pins regularly. This clearly indicates the requirement for staple pins in the market. Not only in India but staple pin making business witness huge demand in the international market as also said for the potential reasons and uses in various stores and offices.

The other aspect which makes the staple pin-making business a profitable one is its cost, one has to take care of the prices and sell the merchandise. Here, it is essential to keep in mind the quality of the product and the cost of the staple pin manufactured. One should never compromise about it so that it can be favorable for the customer to purchase your product rather than opting for an imported one of the same quality.

List of approvals required for starting manufacturing of Staple Pins  

Below is the list of licenses, permissions, and registrations required for starting a Staple Pins Manufacturing Business:

  • Firm registration
  • MSME registration
  • GST registration
  • ROC
  • PAN Card
  • Aadhar registration
  • Registration of firm
  • Shop Act License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate (NOC) from pollution board
  • Trade license from the local municipal authority

Raw materials required to start Staple Pin Manufacturing Business

Performed wire: There are several grades of wire present in the market but it is recommended to select the white wire for producing the staple pin that is available in Rs. 500 to 600 per Kg as this will reduce the rusting risks for pins. One has to select the quality of the wire and should not compromise on the quality of wire as it will affect the end product and this is even determined on the basis of consumer and the market.

  • Adhesive materials
  • Other necessary materials

The machinery required to start Staple Pin Manufacturing Business

The majority of the operation is taken care of by the machine itself, so it is the primary and most crucial step in beginning the business. One has to obtain the machinery from a proper dealer who has a branded one. Go through all the advantages and problems in the reviews if available before purchasing. In the present day, we can find out several YouTube videos for any product or machine. So, it is recommended to do a proper analysis and proceed with the machinery acquisition.

Thus, it is necessary to order or purchase from a source that has the supply of branded and machines with a warranty.

The manufacturing process of Staple Pins

The staple pin-making process includes a procedure that is simple and most of the things are performed by the machine only. So one does not require any specific training for beginning this business and if he/ she is aware of operating the machine then it’s a quite easy procedure.

In the primary stage, the wires which you select have to be placed in the machine that will be cut into staple pins in the necessary size and length. The staple pin-making machine can provide about 20 to 25 pins at a time. Finally, one has to pack the pins in the required desired quantities in the packaging cartons.

Staple Pins Project Report/ Economics of Staple Pins Manufacturing Business in India

How About This: 1000 MT Cold Storage Project Report.

Economics of Staple Pins Manufacturing
Economics of Staple Pins Manufacturing (pic source: pixabay)

A. Fixed capital Per month (Rs)

(i) Land & building

Rented 250 sq m area (workshop, office & store) Rs. 10,000 per month.

(ii)Machines and Equipment

Shearing machine Rs. 74,000

Power press 20 Tons Rs. 1,10,000

Die with Auto feeder Rs. 35,000

Machine drivers Rs. 2,500

Measuring instruments Rs. 10,000

Office furniture Equipment

Electrification and installation @10 of total cost of machinery: Rs. 18,400

Total Rs. 2,49,900

Say Rs. 2,50,000.

iii) Pre-operative Cost Rs. 20,000

Total fixed capital (ii) + (iii) Rs. 2,70,000

B. Working Capital (per month)

Manager /Engineer: Rs. 12000

Skilled Worker-2: Rs. 12000

Semi Skilled Worker-2: Rs. 10000

Peon Cum Watchman-1: Rs. 5000

Sweeper (part time)-1: Rs. 2000

Helper-1: Rs. 4500

Total: Rs. 45500

Perquisites@ 20%: Rs. 9100

Total: Rs. 54,600

Say: Rs. 55,000.

Raw material

Tin plate 60000/ton 04 tons: Rs. 2,40,000

Packing material: Rs. 10,000.

(iii) Utilities

Power: Rs. 2500

Water: Rs. 500.

(iv) Other Contingent Expenses

Rent: Rs. 10,000

Postage & Stationery: Rs. 500

Repair & maintenance: Rs. 3,500

Transport & conveyance: Rs. 5,000

Telephone Charges: Rs. 500

Insurance: Rs. 1,500

Miscellaneus Expenses: Rs. 1,000

Total: Rs. 22,000.

(v) Total Recurring Expenses (pm)

Raw material 2,50,000

Personal 55,000

Utilities 3,000

Other contingent Expenses 22,000

Total: Rs. 3,30,000.

Total capital Investment

Fixed Capital: Rs. 2,70,000

Working Capital (for 3 months): Rs. 9,90,000

Total: Rs. 12,60,000.

Financial Analysis

(1) Cost of production (per year) in (Rs)

a) Total recurring cost: Rs. 39,60,000

b) Depreciation on Tools and office Equipment @ 20%: Rs. 9,500

c) Depreciation on machinery @ 10%: Rs. 18,400

d) Interest on total investment @ 12.5%: Rs. 1,57,500

 Total: Rs. 41,45,400.

Turnover

(2) Total Sales (per annum)

 By sale of 90,00000 @ 0.52 each = Rs. 46,80,000

(3) Profit (per year)

 Profit = (Total sale) – (Cost of production)

= Rs.46,80,000 – Rs.41,45,400

= Rs.5,34,600

(4) Net profit ratio = Net profit per year x100

Turn over per year = 5,34,600/ 46,80,000 x 100 =11.4%

Rate of Return = Net profit per year x100

Total investment = 5,34,600/ 12,60,000 x100 = 42.4%.

Break even point

Rent: Rs. 1,20,000

Depreciation on Machinery @10%: Rs. 18,400

Depreciation on Tools & office Equipment @20%: Rs. 9,500

Interest on Loan: Rs. 1,57, 500

40% of Salary & Wages: Rs. 2,64,000

40% of other Contingent Expenses: Rs. 57,600

40% of Utilities: Rs. 14,400

Total: Rs. 6,41,400

B.E.P. = Fixed Cost x 100/Fixed Cost + profit

= 6,41,400 x 100/11,76,000

= 54.5%.

Marketing strategies to promote your Staple Pins product

To sell your staple pins product you need to register it online on B2B websites and B2C websites. You can even distribute some samples in the nearby supermarkets, xerox shops, schools, colleges, stationery stores, offices, or in the wholesale markets where your product gets well purchased.

B2B websites: The websites like –

  • Alibaba,
  • Indiamart,
  • Tradeindia,
  • ExportsIndia will take the bulk orders for your product.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

  • Amazon,
  • Snapdeal,
  • Flipkart, etc. 

Conclusion

Staple Pins Manufacturing Business is a simple business with more profits. Staple pins have become a daily requirement in schools, offices, xerox shops, etc. So, you can earn good profits with a simple manufacturing process.

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