1.

1 Introduction about the product

India has around 30 crores of students studying and they

demand notebooks for writing their notes. Stationery market
of India has huge potential for growth in notebook making
business. Indian notebook making business is estimated to
grow at 10.5 % CAGR (Compound Annual Growth Rate) in the
upcoming years. Stationery industry is divided into many parts
and among them notebook making business is on top. It is used
in offices and educational institutes and has bulk demand.
The important factors in driving the market of stationery
products globally are:

o Increasing literacy levels

o Increasing access of education to the population
o Increasing number of schools and offices
o Increased expenditure on education
o Government initiatives like the National Policy on
Education and Education for all (Sarva Shiksha Abhiyan)
o Urbanisation of rural areas

Literacy rate of Men, Women in India

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The demand for book bindings and note books is more in urban,
semi-urban and rural areas as Government is emphasising on
education for all and has increased the number of colleges and
schools in remote villages.

1.2 Measurements of the product

Type Size Pages

Register A4 21 x 29.7 cm 386
Notebook 20 x 32.5 cm 160
Notebook 44 x 66 cm 210
Notebook 18 x 24 cm 188
Spiral Notebook 19 x 27 cm 210

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2.1 About MSME

Details of “Manjari Stationers”

Founded in 1985
Area Cover 2000 square feet
Founder Late Mr. Mahendra Agrawal
Initial Investment 2 lakhs
No. of workers 8-10 workers
Product Manufactured Manufacturing of registers,
notebook, spiral notebooks
only
Previous location where the Near Divya Honda, Old High
business was started Court, Gwalior
Current Location In the year 2000 shifted the
business to Nai Sadak,
Gwalior
Area of distribution Whole Chambal Region

2.2 About Company

“Manjari Stationers” is a notebook manufacturing company

started by the owner Late Mr. Mahendra Agrawal in the year
1985. The company has a strong sourcing network with the
leading stationery manufacturers and thus brings forth the best
designed writing notebooks. They offer a large assortment of
paper notebooks in various shapes and sizes. The notebooks are
available in various binding options too i.e.
Black/Bronze/Silver Twin Wiro binding, Stitched Spine
Binding, Spiral Binding, Perfect Binding with Soft/Hard Cover
and elastic. The complete range of products is subjected to

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stringent quality tests to ensure they are as per the norms of
management systems and professional’s demand. Mr. Ritik
Agrawal is the proprietor of the company under whose
headship the company is scaling new heights in its business
endeavours. The company hires staff for manufacturing of the
product on hourly basis and contractual basis. The company
provides on the job training for those who have no past
experience.

2.2.1 Impact on business activities during the Covid

According to a report by “Manjari stationers”, Nai Sadak,
Gwalior a leading supplier of stationary material, the Manjari
stationers supplies market is poised to grow during 2020- 2024.
The Manjari Stationers does its major business during the three
seasons – the beginning of the new financial year (March-
April), opening of new academic year (June-July) and during
the festival period. This year, the pandemic has disrupted the
entire school curriculum as schools were shut and transitioned
to online education. With most offices working from home, the
regular supply of various stationery products to commercial
establishments also did not happen the usual way.
While Ritik Agrawal, owner of Manjari stationers, shared, “We
have been in books trading business for over 30 years and are
providing services offline in whole Chambal region. Nearly 50
percent of our sales are hampered due to the COVID-19
pandemic. Our main business is to provide notebooks to
wholesalers, and it was severely affected due to the lockdown
as the most of the sales takes place in March.” When there was
a lockdown in India most of our orders stuck due to shut down

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and then with the permission of state government, we
completed the pending orders during the time which was given
by the govt in the morning and arranged transportation to
deliver the goods. He added: “This year, sales for stationery
have picked up.

2.2.2 Plus point of “Manjari Stationers”

In their industry the wastage which remains after the production
it also sale out for recycling of the paper.

2.2.3 License Required

o Trade License
o Registration of business according to the management as
well as size of the business
o Registering for Udyog Aadhaar MSME
o No objection certificate (NOC) from the concerned
state’s pollution control board
o Registering for a Trademark
o GST Registration

Figure: Machines used in the unit

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2.2.4 Investment for notebook manufacturing business
Investment for “Manjari Stationers” business. Here,
investment depends on business and above grounds, as the land
is owned by the owner itself so, a lot of money saved.

2.2.4.1 Business setup cost at a glance

o Machine cost: Rs 5,00,000- Rs 10,00,000
o Registration cost &Licence cost: Rs 50,000
o Staff: Rs 50,000 – Rs 60,000 (Monthly)
o Other cost: Rs 80,000 – Rs 1,00,000

Picture: Manjari Stationers entrance

2.2.4.2 Raw Material Requirement

There is no need to purchase the printing set up to kick start
your notebook making business in India on a small scale. Here,
owner may proceed ahead for getting cover pages printed from
different printing companies. Raw materials are the most vital
components of inventory for any manufacturing business, and

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thus, managing raw materials inventory has become the need
of the hour.

Maintaining raw materials in sufficient quantity and at the right

place by considering the safety factor is essential to eliminate
the scope for mishaps. Raw materials are the valuable resources
utilized by all the companies in the production part of finished
goods. Thus, meeting the raw material requirement would
ensure the successful accomplishment of the notebook
manufacturing business.

In order to manufacture notebooks and exercise books, the

raw materials should arrange in the following way-

o 40-50 GSM Sheet- It’s the key raw material in the exercise
book/notebook manufacturing business (ruled/unruled).
o Printing Ink- It consists of pigments and is used in
printing.
o Stitching Wire- It is coated with zinc and prepared out of
mild steel wire.
o Stitching Thread
o Grey Board Sheet
o Cover Sheet
o Glue

Picture: Manjari Stationers Raw Material

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To set up such units the only requirement is skilled labour. With
the rise in economic activities and literal activities the market
potential for book, binding is continuously increasing. Now the
students prefer to use binding, rolling books or plain exercise
books and left the idea to stitch papers in their homes. These
products are largely sold through school societies, retail outlets
and supermarkets.

2.2.5 Objective of the Company

• To provide the highest quality of paper

stationery products to the customers of
Mission their choice. We aspire to be the one step
solution, to your every stationery need.

• To provide you with the premium quality

products.We don’t just wish to provide
Vision you with notebooks; we wish to provide
you with trust.

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3.1 Manufacturing Process

Manufacturing a note book or exercise book is pretty easy but

only after a skilled or experienced knowledge. Most of process
done through machines every process has its own specific role.
Different types of products made through different process
starting of any production is same. Here, the process of Ropad
(register) making.

1) Ruling
First of all, the process begins with the ruling of paper sheets.
The labour inserts the right amount of printing ink into the
ruling machine and then labour start the machine and printing
ruling line on paper sheets begins.

Picture: Ruling Machine

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2) Folding
Earlier, few manufacturers wait for one day to let dry the ruled
ink so it didn’t flow but now with advance techniques it just
take few hours to dry up the ink. After ruling up the paper sheets
labour starts to fold the ruled paper sheets and cover sheets to
the required size and arranged the papers in order.

Picture: Folding of paper sheets and cover sheets

Here, the process divides into two different ways. One is

Thread Stitching and Second is Wire Stitching. Now, a
manufacturer does wire binding process to bind up the paper
sheets as the thread stitching gets costly.
(a) Thread Stitching
After, folding up the paper sheets the labour starts to stitch the
folded paper sheets through the thread stitching machine to
form a register.

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 Picture: Thread Stitching Machine

(i) Pasting
After, stitching of register labour start pasting the stitched paper
sheets into the cover sheets (Title). By the gum prepared in their
own industry. Manufactures wait for one day before cutting the
register to let dry the gum.

Picture: Pasting of notebook

(b) Wire Stitching

After, folding paper sheets labour starts wire stitching through
wire stitching machine firstly putting paper sheet inside cover
sheets and then it stitched.

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 Picture: Wire stitching machine

(i) Squaring
After, wire stitching labour put the notebook into squaring
machine and the register gets its shape without pasting.

Picture: Squaring Machine

3) Cutting
Manufacture required a right measurement of the register for
its final shape/look. For that manufacturer gives shape to the
register as per the requirement of their buyers. In the final
process labour takes the right measurement and put the register
into the cutting machine and cuts according to the
measurements.
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 Picture: Cutting Machine

4) Packaging
After, making of registers it is packed in bundle form as per the
requirements made by the wholesalers.

Picture: Packing of notebooks

5) Transportation
After, packing the bundles it is transported to the wholsalers of
the chambal region.

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 Picture: Transportation of notebooks

3.2 Manufacturing Cost

o Transport Charges- Rs. 20 per bundle

o Packing Charges- Rs. 10 per bundle
o Packing Cloth- Rs. 10 per bundle
3.2.1 Cost of production
Cost of production is the total cost incurred by a business to
either produce a product or offer their services. Production
costs typically include supplies and raw materials that are
consumed during production, along with labor expenses.

3.2.1.1 How cost of production is calculated by the owner

To calculate production costs in the most straight forward way
possible, you need to know two things: the fixed and variable
costs. By adding these to costs together and dividing by the
number of units produced, you get the average cost per unit.
The only way to profit from a goods is to have a higher selling
price than the production cost per unit.

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3.2.1.2 Out sourcing(cover/duplex)
Mostly the cover is outsourced by the company. It comes in the
form of ream. One ream contains 144 sheets. After printing
cover is known as title.
Lamination on the title is also outsourced and it is laminated in
two types either on full sheet or half sheet according to the
measurement.
Type Qty Per sheet Printing Per Title
price cost cost
Single/2 colour 144 0.86 15 paise 1.01 Rs.
Multicolor/4 color 144 0.86 60 paise 1.46 Rs.

3.2.1.3 Paper sheet costing

There are different types of measurement in paper and
according to different measurment there costing is calculated.
Type Qty Rates Final Costing
Ropad A4 1000 56 per/Kg 640 Rs.
Spiral A4 960 1.45 Rs. 1400 Rs.

3.2.1.4 Final Costing Per Product

1. Ropad A4- If the register is of 292 pages then, the costing
will be calculated like this.
S.no Items Rates
1 292 Page Ropad Rs 23.04
2 Title Rs 3.00
3 Labour Rs 00.80
4 Profit 10% Rs2.41
Total Rs 29.25

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2. Spiral A4- If the spiral if of 200 pages then, the costing will
be calculated like this.
S.no Items Rates
1 200 pages spiral Rs 17.14
2 Title Rs 5.40
3 Labour Rs 10.00
4 Profit 10% Rs 3.00
Total Rs 35.54

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4.1 HR Strategy

4.1.1 HR Strategy Selection of employees

1. on the Basis of experience
2. on the Basis of training
Reward - designing reward system for the employees.
Performance- developing performance appraisal programs.
HRM policies- developing policies relating to personnel
management of the firm.

4.1.2 Training and development

Any firm must invest heavily in training and organisational
growth. A company can develop itself through effective
training. Training is a learning process that refreshes,
reinforces, and imparts new knowledge and abilities. They can
increase their workplace effectiveness with effective training.
An organisation can achieve its desired success and long-term
sustainability through development. And organisational
development and personnel training are two things that are
highly important to these Manjari Stationers.

Picture: Training of an employee

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5.1 Marketing Strategy

The word promotion is one of the marketing strategies in the

marketing plan. “Manjari Stationers” has suggested few
amazing promotional strategies for selling their manufactured
notebooks in the market and they are the following given
below:
o Personal selling: Company sells directly to the
wholesalers, dealers etc.

o Sales promotion: Sales promotion is one of the

promotional strategies where “Manjari Stationers” hires
the sales executives.

o Direct marketing: Direct marketing is also one of the

promotional strategies they follow for notebook
manufacturing business.

o Publicity: They only do mouth publicity and dependent

on the name of their goodwill.

5.2 Unique Selling Proposition/Point of the

company
In whole Gwalior only Manjari Stationers having the
monopoly in Ruling and Sewing of notebooks.
Only they give orders for small sizes of duplex so that the cost
of production can decrease which results in reduction in the
price of the product.

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6.1 Financial Strategy

A large part of the business plan for any small business is the
financial section of the plan. The financial strategy includes
the income statement, cash flow statement and balance sheet.
For new businesses, these financial statements will be
projections, whereas for an existing the business the section
will contain several years of history as well as projections. In
addition, the plan should include the financial strategies of the
business in how finances are handled.
While starting a business the entrepreneur usually proposes his
plan to the investors to raise the investments if the business
plan is big then the entrepreneur goes for this option. Whereas
while starting a MSME the owner has doubts as the business
he will start will be of small scale so if he raises funds through
investors he has to give some amount of equity and profits to
them. This is one of the major reasons “Manjari Stationers”
didn’t raised funds through the investors or did a partnership.
They opted for other resources like taking bank loans from
bank and credit from the market by paying some rate of
interest. One of the prime reasons why small businesses should
learn business credit management techniques is to ensure
financial stability. When the cash flow is smooth, owner can
build a cash reserve for emergencies. Owner can enjoy
financial stability in the market as they may not feel the need
to take credit, and they can manage funds on their own.
• Bank Loans

Borrowing from a bank is a common way for small

businesses to raise money. Most banks offer small
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 business loan packages with interest rates that are higher
than those for mortgages but lower than the rates attached
to many credit cards. Bank loans typically come in two
varieties -- direct loans or lines of credit. Both types
usually require the business owner to secure the loan with
collateral, such as the owner's home or commercial
property.
Bank loan taken from:

1. Punjab National Bank: at interest rate of 7.5%

2. Indian Bank: at interest rate of 8%

• Cut Costs

Laying off employees is sometimes is necessary to save

the business or cut expenses to finance growth. Maybe
you can achieve the same ends by finding a smaller space
or less expensive area in which to operate.

• Credit from the market

Owners take credit from the market by paying slightly
higher interest rates when their bank loan doesn’t get
approved.

6.1.1 Means Of Finance

Serial No. Particulars Amount
1 Term Loan 1000000
2 Working Capital 2000000
Loan
3 Owner’s 1000000
Contribution
Total 4000000

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6.1.2 Implementation Schedule
The major activities in the implementation of the project has
been listed and the average time for implementation of the
project is estimated at 5 months:
Serial No. Activity Time in months
1 Preparation of 1
project report
2 Registration and 1
other formalities
3 Sanction of loan 2
4 Plant and 1
machinery
procurement and
installation
5 Electricity 1
connection and
installation
6 procurement of 1/2
raw materials
7 Recruitment of 1/2
staffs
8 Commercial 1
production

Picture: Letterhead of “Manjari Stationers”

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7.1 Recommendations

o It is really very difficult for interns to learn and collect

information from them in this short period because here
all the staffs always remain busy to do their daily tasks.

o They do not have an any social media presence or any any

website. They should build it as soon as possible because
many potential dealers are not being aware about their
company and products.

o They should hire some permanent workers as they will be

having an experience which will help the company to
achieve its goals timely.

o Instead of relying on the goodwill they should also adopt

various measures to deal with new wholesalers.

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8.1 Conclusion

The upshots of Prime Minister Shri Narendra Modi’s vision

concerning initiatives such as Vocal for Local & Make in India
have to lead to positive transformation in the growth and
advancement of the notebook manufacturing business in India.
Many small-scale manufacturing business lovers have jumped
into the sphere of notebook and exercise bookmaking business
owing to the Make in India initiative, a revolutionary step by
the Indian Government. When we talk about small-scale
business with endless possibilities, we are bound to take the
name of notebook manufacturing business. The future of this
business holds golden days for notebook making business
enthusiasts. The demand curve would never witness a
downward trend as notebooks are used regularly in schools and
offices. Thus, it’s not wrong to say that there is a vast scope for
those who are willing to initiate notebook manufacturing
business in India.
The project was good for us as we gained insights how
notebooks are manufactured. This helped us to define what
skills and knowledge are required for the setup. Overall, our
visit at Manjari Stationers has been a success. We were able to
gain practical knowledge.

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