Starting a notebook manufacturing business can be a profitable venture, as notebooks are always in demand by students, professionals, and businesses.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.
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.
Why Start A Notebook Manufacturing Business?
- A continuously improving literacy rate compared to previous years.
- Increasing numbers of students are getting access to educational facilities through different government schemes and community awareness.
- The standard of living in India has increased as compared to previous years, so students demand the best stationery for studying.
- People have started realising the importance of education, so they have now started spending more on education.
- India has a total student population of around 31.5 crores who always need stationery for educational purposes.
- Continuous development of new colleges and schools means more demand for stationery.
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.
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.
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.
FAQs
What are the main raw materials required for notebook manufacturing?
- Paper sheets (white/plain/ruled)
- Cardboard covers
- Ink for printing
- Binding materials (staples, glue, spiral rings)
- Packaging materials (plastic covers, cartons)
What is the investment required to start a notebook manufacturing business?
The investment depends on the scale of the business. A small-scale setup may require ₹15-35 lakhs, while a medium to large-scale business can need ₹50 lakhs to ₹2 crores.