Note Book Manufacturing - Business Plan

There is always a demand for notebooks amongst students and businesses. Though the internet has changed the way we communicate and transfer messages, the requirement for writing tools and stationary has never decreased. In this article, we look at the procedure for setting up a note book manufacturing unit.

How are note books manufactured?

Note books can be manufactured with simple raw materials like white paper, outer cover, stitching wire, jute, twin and gum, which are commonly available. First, the papers of required number are arranged in order. Then the paper is perforated and stitched with the cover. Finally gum is applied and the pages are cut uniformly and packed.

Types of note book

Note books of all sizes and forms are in demand, based on the local market demand. However, some of the fast moving note book types are note books, record books and note pads. Note books are in demand throughout the year, with the demand spiking during the months of June to August. Record books are in demand across the year with demand originating primarily from offices, institutions and government organization. Similarly, note books or scratch pads are in demand throughout the year based on the amount of conference activity at a given location or town or city.

Investment required

An investment of about Rs.20 lakhs is required to setup a note book manufacturing business in India. The investment in equipment would be around Rs.5 lakhs with the balance requirement meant for working capital financing.

Time for setting up of business

The unit can be operation in less than 3 months from time of disbursement of loan or six months from time of conceptualisation of concept. Typically, the project is prepared and formalities like company incorporation or LLP registration is completed in a period of about 1 to 2 months. Then application is made to the banks for sanction of term loan and working capital facility. Banks take about 1 - 2 months for processing of application, taking the average time required to setup a business and get sanction at about 3 months. After the sanction, it takes about 1-2 months to procure and setup the machinery, getting electrical connection and recruiting staff, making the time to starting commercial production about 6 months from date of conceptualisation of idea.

Financial performance

A note book manufacturing unit setup with the investment mentioned above can generate a revenue of about Rs.60 lakhs in a year, working at 60% utilization and 300 days in a year. Cost of production for such a revenue would be around 46 lakhs, providing the business with a profit of Rs.14 lakhs per year.

Registrations required for note book business

Its advisable for a note book manufacturing unit to be setup as a LLP or private limited company, considering the revenue. If the unit would achieve a turnover in excess of Rs.40 lakhs per year, its best to incorporate a company. In addition to the business registration, tax registration like GST registration would be required. If the note books are given a unique brand name, then its advisable to obtain a trademark registration.

Company Registration

OPC Registration