NSIC

Project Profiles

MANUFACTURING OF NOTE BOOKS (STATIONERY ITEMS)

1. INTRODUCTION
Stationery items like note books, exercise books, log books, etc are always in demand
for students. The demand for note books is more in the months of June to August in
every year. Similarly, registers are essential in every office, institutions, organisations,
etc. The size of the products will be decided as per the local market demands.

2. MARKET
There is increasing demand for note books as stationery items in view of rapid growth
in institutions and offices of government and commercial establishments. The market
is good particularly in tribals areas due to non-availability.

3. MANUFACTURING PROCESS
The manufacturing process of note books, registers, etc is quite simple. In this
process, first of all white papers are ruled with the help of ruling machine as per the
local requirement. The the ruled paper sheets are folded into the required size of note
book (92/192 pages) and hten after binding it with grey boards, labels and covers and
pasted on it. These labels can also be printed by the entrepreneur in his own unit and
various multi colour attractive covers can be purchased from the market. After
pasting the covers, cutting is done to give them the finishing touch. The same
procedure is followed for making the registers also.

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price
Total

92 pages

Nos
Rs.

70000
3.50
245000

192 pages

100000
5.50
550000

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Fixed Capital
Working Capital for
Preliminary & Preoperative Expns
Total Project Cost

Amount Rs.

85500
59400
5000
149900

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy/Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

22485
29980
97435
149900

NSIC

Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

Rs. 1500

per month

ii. Machinery and Equipment

S.No

Description

Qty.

1
2
3
4
5
6
7
8

Disk rulling machine - 36" with motor

Paper cutting machne - 32" with motor
Stitching machine with motor 0.5 HP
Perforating amchine - manual 18"
Press - manual - 15 x 20"
Furnitures and fixtures
Installation and electrification
Misellaneous expenses
Total

1
1
1
1
1
LS
LS
LS

Rate

21000
33000
15000
2500
3000

Amount Rs.

22000
33000
15000
2500
3000
3000
5000
2000
85500

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3
4

Description

Nos.

Manager/Entrepreneur
Skilled workers
Semiskilled workers
Unskilled workers
Total

1
1
1
2

Sal/mon. Amount Rs.

2500
2000
1500
1000

2500
2000
1500
2000
8000

ii. Raw Material (per month)

S.No

1
2
3

Description

White sheets - 44-50 GSM 18x622"

Grey board sheets
Printing ink, level cover sheets,
gum, binding cloth thread,
stitchingware, consumables, etc
Total

Unit

Qty.

Ream
Sheets

160
1500
LS

Rate

260
2

Amount Rs.

41600
3000
1500

46100

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

1000
100
1100

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Project Profiles

iv. Other Expenses (per month)

S.No

1
2
3
4
4
5

Description

Amount Rs.

Postage, Telephones & Stationery Expenses

Transportation & Conveyance Expenses
Advertisement Expenses
Repairs and Maintenance Expenses
Consumeble Stores
Miscellaneous Expenses
Total

500
500
200
500
500
500
2700

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

1500
8000
46100
1100
2700
59400

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

712800
12825
11692
737317

15%
12%

9. TURNOVER (PER YEAR)

S.No

1
2

Description

Note Books (92 pages)

Note Books (192 pages)
Total

Unit

Qty.

Nos
Nos

70000
100000

Rate Rs.

3.50
5.50

Amount Rs.

245000
550000
795000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

12825
11692
18000
38400
18240
99157

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

57683
7%
38%
63%