Notebook Making Business- Requirements, License, Machinery, Investments, Profits, Marketing.

Notebook Making Business- Requirements, License, Machinery, Investments, Profits, Marketing

A notebook (also known as a notepad, writing pad, drawing pad, or legal pad) is a book or stack of paper pages that are often ruled and used for purposes such as recording notes, other writing, drawing or scrap  booking. Notebooks are available in the market in various sizes, shapes & pages. Their sizes vary according to the requirement. Demand of notebook will never come down as its need is still growing exponentially, it’s a business that can never suffer a customer loss, and it’s a business that can take one to stardom having its production. Notebook is a style of writing where people jot down what they have thought or heard at the spur of moment.

Notebook making Business

Uses & market analysis:

  • Artists often use large notebooks, which include wide spaces of blank paper appropriate for drawing. Similarly composers utilize notebooks for writing their “lyrics”.
  • Lawyers use rather large notebooks known as legal pads that contain lined paper (often yellow) and are appropriate for use on tables and desks.
  • These horizontal lines or “rules” are sometimes classified according to their space apart with “wide rule” the farthest, “college rule” closer, “legal rule” slightly closer and “narrow rule” closest, allowing more lines of text per page.
  • When sewn into a pasteboard backing, these may be called composition books, or in smaller signatures may be called “blue books” or exam books and used for essay exams.
  • Notebook pages can be recycled via standard paper recycling. Recycled notebooks are available, differing in recycled percentage and paper quality.

 

India has around 31.5 crores (315 million) of students. It has the most students in world. They all require notebooks for studying and writing. Indian Stationery market has tremendous potential for growth. Indian Stationery Market is estimated to grow at 10.5% CAGR during 2018-24. Indian stationery industry is fragmented and dominated majorly by unorganized business units. It largely comprises of office and educational products like School, Office, educational institute. School books are an important and major market component in the school stationery category.

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Types of Notebook:

There are many types of Notebook which are used across the world by writers, students, business men and women and anyone. There are some types of Notebook which is given below:

Spiral: The spiral notebook is the most common paper notebook. Students are the biggest users, and for good reason. They are cheap. They come in many sizes, with most ranging from 70 to 200 pages. They typically are wire bound and three-hole punched, and their pages are usually perforated for easy removal. The most common size is 8 1/2 by 11 inches. Spiral notebooks contain lined paper, either wide- or college ruled. Their covers are thin cardboard, polypropylene or flexible plastic.

Composition: The composition notebook is sturdier than the spiral notebook with a thicker cardboard cover. Composition notebooks are book-bound, meaning the pages are sewn and then bound like a book. They usually contain 100 college-ruled pages and measure 9 3/4 by 7 1/2 inches. The pages are not perforated, because they are not designed to be removed.

Lab or scientific: Lab or scientific notebooks are designed to keep a permanent record of scientific progress. Working scientists often use them to document patent claims. They are usually filled with graph paper that contains headings for recording research and experiment details. Soft-cover student notebooks are relatively inexpensive, but hard-bound notebooks used by scientists can cost as much as $20.

Business: Notebooks used for business often serve two functions: note taking and schedule keeping. Many notebooks in this category contain a built-in planner. They are usually bound in a heavier weight material, such as vinyl or leather, and contain legal-ruled paper.

High end: High-end notebooks feel luxurious inside and out. They contain heavy-weight papers, much more substantial than the flimsy paper found in the common spiral notebook. They are usually hardbound and covered in cloth or moleskin, a heavy cotton fabric with a velvety feel. Some are held tight with elastic closures. They range in size from pocket-sized to over-size. High-end notebooks may be filled with standard lined paper but more often contain blank, dot grid or
French-ruled paper. They cost from $5 to upwards of $20 per notebook.

Novelty or Specialty: Paper notebooks are offered in as many styles as there are consumers’ tastes and uses. Specialty notebooks contain waterproof pages that were originally designed for military use. “Notebooks” that are technically index card holders are useful for those who prefer to record one thought per card. Notebooks with covers designed by professional artists are valued for their art more than their usefulness. Letter-sized top-bound legal pads with extra stiff cardboard
backing make writing easy on the go.

 

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Requirements for Notebook Making Business :

  1. Area = 300 Sq ft – 1000 Sq ft (Production Area, Raw Material storage, Finish good area, Admin Area)
  2. Manpower = 3 Workers (Skilled & Semiskilled) & 1 Marketing Executive and 1 Supervisor
  3. Electricity= 2 KW – 7 KW
  4. Investment Capacity= 17 Lac

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space for power supply utilities and auxiliary like Generator setup. Also some of the area of building is required for office staff facilities, documentation, office furniture, etc. Thus, the approximate total area required for complete industrial setup is 1000 to 1500 Sqft. Civil work cost will be around 5 Lac Rs.(Approx).

 

Raw materials: Major raw materials are as follows:

  • Jumbo paper rolls
  • Notebook cover rolls
  • Other material( staple pins, glue, etc..)
  • Packing material

Average raw material cost for notebook of 160 pages is between 60 to 70 Rs. per notebook.

Note: Save your raw material from water & Rat.

 

Price of raw materials:

The prices of required raw materials in the local market is given below:

  1. Paper { 50 gsm } = Rate 60 – 62 /kg
  2. Cover (200 gsm) = Rate 2 – 3 /unit
  3. Stitching Wire (Pinup)
  4. Gum Gun

 

Where to buy Notebook Making Machine and required raw materials in India ?

If you want to buy Notebook Making Machine and raw material online then you can visit https://dir.indiamart.com/  and https://www.tradeindia.com/manufacturers to buy your favorite or required  Notebook Making Machine. However, the raw materials you can also buy from these above website but you can also search in your local market. So, I’ll advice you that first compare the price of online and offline then purchase the machine.

Manpower Requirement:

There are requirement of skilled machine operators to run the machine set. Experience quality engineers are required for desired quality control. Some helpers are also required to transfer the material from one work station to other. Office staffs are required to maintain the documentation. The approximate manpower required is 7 including 1 Plant operator, 1 unskilled worker , 1 Helper, 1 Security guard. 3 Skilled worker including Accountant, Manager and Sales person.

 

Notebook making Business

Credit: Indiamart.com(Ahamad Associates)

Machine required for Notebook Making Business:

  1. Stitching Machine (Pinup Machine)
  2. Edge Squaring Machine
  3. Cutting Machine
  4. Shrink Packing Machine

Machine Range Start from 2.5 Lac to 15 Lac.

 

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Machinery Required for Notebook Making Business:

Sl NoName of MachineryMarket price
1.Notebook Automatic heavy duty Stitching and Folding m/c (with PLC Controlled System, Servo Drive)4,72,000
2.Notebook Fully Hydraulic Edge Squaring machine Heavy Duty (PLC Controlled) Machine size 81 cms2,30,000
3.Notebook Heavy Duty Semi-Automatic Paper Cutting Machine (Electromagnetic clutch & Brake, Auto DAB, Motorized Back Gauge)2,80,000
4.Notebook Shrink Packing Machine60,000
5.Other Equipment & Hand Tools2,000
Total10,44,000
GST @18%1,87,920
Total Amount 12,31,920

 

Highlights: Production Capacity: 1900 pcs/hr and   Power Required:- 6 K.W.

Note: Machine Cost+18%GST+Transportation Charge+ Packaging Charges

Total Machine cost Consider 12.5 Lac (Including Transportation + Packaging)

Fully Automatic machine

  1. Stitching, Folding & Edge Squaring m/c (3 in 1)= 7,50,000
  2. Fully Automatic Cutting m/c = 6,40,000
  3. Packing m/c= 60,000

Total investment required for fully automatic machine = 17, 50,000 (GST + Transportation + Packing)

Highlights: Production Capacity: 2600 pcs/hr and   Power Required:- 7 K.W

                                     

Notebook Making Business Investment:

SLNO.Name of ParticularsAmount in RS
1.Land,  Building & electrification & Water Installation2,50,000/- (optional)
2.Plants & machinery (Incl. Freight )12,50,000/-
3.Obtain License50,000/-
4.Raw Material (Paper, pinup & Cover, Glu) (Paper=Rs 62 per kg )100000/-
5.Packaging material25000
6.Advertising & Promotion10,000/-
7.E-Loader (Mahindra)1,50,000/-
8.Working Capital2,00,000
Total20,00,000 (Approx)

Total Capital required = 20 Lac.

 

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Manufacturing Process:

Every notebook is composed of external cover and pages, the manner in which these two components are connected yields different types of notebooks. There are varied range of machine and methods to manufacture notebook but a general process includes

Notebook making Business

  • printing press which consists of a roller on which the pattern is mounted, this pattern is supplied with ink and this ink is printed on paper i.e.
  • Ruled page lines followed by which its allowed to dry down to prevent any spill marks often in heat chambers.
  • These pages are then cut into the required size based on notebook size and construction and by similar means cover is also printed with required image or detail and cut into required size based on size and construction of notebook.
  • Two page set stapled notebook are cut together and same goes for cover and then simply stapled at center and entire set is then folded with pivot as staples to obtain the required product.

 

Notebook making process time:

You can get upto 8 to 10 copies within 20-25 minutes.

 

Notebook packaging:

Once the copy is made, it has to be packed properly. So the packing must be in two categories. 1st retailer and  2nd for Dealers. You have to pack copies in small bag for retailer and in big bag for dealers. In which you can pack 4- 6 copies in a bundle or more. Or if you are confused then you can see the other competitive notebook making company in your area and then you can decide yourself. 

 

Documents & License:

  1. Adhar card, Pan card & address Proof
  2. MSME License
  3. GST Registration
  4. Establishment license
  5. Trade Mark (If Required)
  6. NOC (State Pollution Control Board)

Loan Facility:

  1. MUDRA LOAN 
  2. PMEGP LOAN

(Extra documents for loan)

ITR of last 3 years, Audit report (if company), Project report, Bank Statement of last 1 year.

 

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Notebook Making Business Profits :

Profit in this notebook making business are fully explained below:

  • In 1 Kg paper only 6 Notebook will manufacture (A4 size).
  • In 1 Kg paper only 9 small Note book will manufacture.
  • 6 nos. of notebook will manufacture in 1 kg. (Raw material cost = Rs 60)
  • Then costing of making one Notebook.
  • Raw material= Rs 10 per notebook
  • Cover page= Rs 2 / pcs.
  • Making= Rs 1

1 Note Book making cost = Rs 12 (60 pages)

M.R.P

Rs 28Rs 40Rs 60Rs 80Rs 100Rs 120
60 pages100 pages120 pages150 pages180 pages200 pages

 

Profits & margin: Rs 2 – Rs 3 (It depends on you).

  • Then this Notebook you can sell to wholesaler in Rs 14- Rs 15.
  • If you are making 2000 nos. of Notebook per day.
  • Then you make Rs 4000 – Rs 6000 profit per day.

 

Monthly expense in Notebook Making Business:

SlNo.Particulars of expenseAmount (Rs)
1.Salary of worker
  • Skilled worker (2nos.)
  • Unskilled labour (2 nos.)
  • Marketing Executive (1 nos)
45,000/-
2.Electricity Bill10000
3.Advertising + promotion5000
4.Miscellaneous (petrol & GST Return etc)10,000/-
Total70,000/-

 

Market Strategies for Selling Notebooks:

Marketing strategies are important for the growth of any business, and the Notebook Making Business is no exception. Following are the Marketing strategies & techniques that should be used by a Notebook Making company to sell notebooks in market:

  • Personal selling: Notebook Making Business who are new in the market should opt for this promotion technique where they should directly sell to distributors, wholesalers, retailers, etc.
  • Sales promotion: It is a promotional technique in which sales staff is hired to sell notebooks, and special offers are offered to customers to make purchases.
  • Introduce your product in local Private Schools, colleges, Universities and Stationary shop.
  • Advertisements: It is an expensive but highly effective promotion technique as it offers a mass reach for a company’s messages.
  • Direct marketing: Direct marketing is also one of the promotional strategies you can follow for Notebook Making Business.
  • Publicity: Ensure publicity for your company by distributing the pamphlets, putting flexies on the roadside at the huge public area.
  • Sell Online (Amazon/flipkart/messho) B2B platform (Tradeindia, Indiamart etc)

 

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F.A.Q.(Frequently Asked Question):

Q. What are the different types of books produced by a Notebook Making Business ?

Ans. There are various types of books that are produced by Notebook Making Business. A diversified syllabus for students requires different types of books. Some of the most popular books produced by Notebook Making Business companies are:

  • Notebooks
  • Diagram books
  • Text books
  • Graph books
  • Scrap books
  • Note pads
  • Drawing books
  • Science laboratory books
  • Exercise books
  • Reference books
  • Workbooks, etc.

Q. Is Notebook making Business profitable ?

Ans: If you’ll talk about profit then let me clear you one thing that every business have both dark and bright side, so it depends on you that how you run your business. By the way, initially you have to work hard but sometimes you’ll get to see Ups and DOWNs in your business. But one day will come your business will be in top level. So, if your sell will increase then your profit will also increase.

Q. How much time does it take to set up a Notebook Making Business ?

Ans. Notebook Making Business can be in operation within 6 months from the time of conceptualisation of the business plan. You can start the unit within 3 months of loan disbursement by banks. All government formalities, NOCs, and registration require around 2 months for completion.

 

Q. What is the total Investment in Notebook Making Business ?

Ans: If you want to start Notebook Making Business then you must have approx 20 lakhs to start this business. For more details about investment read investment section above in this article.

 

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