Start A Pen Making Business In India – Tips & Advice
People of all ages use pens for various purposes, including studying, working in businesses, and holding down jobs. Demand for pens is high enough that you can find them at most retail stores and stationery shops. In addition to this regular supply, some companies produce larger stocks of the product than others – ensuring that it’s always available wherever people might need it.
It’s evident that there is a high demand for businesses that produce pens, as this tool is widely used in schools, colleges, and offices. This shows how important it is for companies to get involved in the pen manufacturing business.
Rephrase For the Pen manufacturing business, bulk production allows businesses to purchase raw materials at a lower cost in return for large supplies. This is because these materials are usually needed in large numbers, so purchasing them all at once saves companies money.
In the pen business, you have a choice to produce pens at an above-average price that will make them seem more luxurious than other pens, or else produce them at a lower cost that would be preferred by most people. You can choose which market your product will compete in – depending on what is best for your company and the cost of production.
Types Of Licenses Required For A Pen Making Business
- VAT Registration
- Firm Registration
- Current Bank Account
- Trade Mark
- GST Registration
- rade License
- Business Pan Card
- Service Tax
Types Of Raw Materials Required
The necessary ingredients and supplies for making pens will vary depending on the type of pen you plan to make. In cases where demand is high, it’s recommended that you stock more of these items than usual.
- Metal Tip
- Plastic adapter
- Pen Cap
- Carbon black
Equipment Needed For The Pen Manufacturing Business
You do not need regular money or working capital for equipment because most of them are one-time investments for the Pen Making business. The machinery that is employed in the production of pens is often utilised for the metal tip and the ink. The following are the various machines and equipment necessary for the Pen Making industry.
- Drilled Nozzle Plate
- Ink cartridges
- Centrifuging Machines
- Ink Filling Machines
- Weighing scale
- Stamping Machines
- Miscellaneous Equipment
- Cleaning tools
- Packaging material
The overall cost of production in the pen manufacturing industry is often lower than in other sectors. The reason for this is that raw materials are obtained in quantity at a reduced cost, making the final process less expensive. The investment necessary will be determined by the sort of pen you intend to make. In general, we’re assuming a pen that would cost roughly ₹5 to ₹10 in the market.
- Small-Scale Business: ₹40,000 To ₹1,00,000
- Medium To Large Scale Business: ₹2,00,000 To ₹10,00,000
Because the investment and raw material costs are modest, you may anticipate making a high profit from the pen-producing company. This would, however, also be based on the price at which you want to put your pen on the market. Since pen earnings are only realised when large quantities of pens have been sold, a price that is too low will result in little profit. If we average the figures, the monthly profits from a small-scale pen manufacturing firm should range from ₹30,000 to ₹80,000
With a strong brand name and a wide customer base, a pen manufacturing company that is well-established and operating at a high level may bring in more than ₹1.5 lakhs each month.
The Number Of People Needed For The Pen Making Business
Technically, you don’t need a lot of workers if you’re in the pen making industry since, after you learn and have some practice, creating pens is a straightforward operation. However, the number of raw materials needed and the number of pens produced would necessitate strong accounting to keep track of everything and to stay organised.
- Given the aforementioned circumstances, the necessary personnel for a small-scale pen manufacturing firm would be 1 to 3 skilled people.
- On a medium or big scale, Pen producing business would demand more management of the production process, and therefore more labour; consequently, for a medium-level Pen making business, the required workforce would be approximately 4 to 7 people.
Profitability Of Pen Manufacturing Business
As we all know, revenues in the pen making company are gained through bulk sales rather than single sales. As a result, the margin is rather low here; nonetheless, the profit for a decent pen-producing firm would be approximately 10% to 25% on average.
Local businesses do not have a wide range of products; rather, they offer the items that are in high demand in their area. However, they’d be open to supporting your startup, so you might use them to generate your initial sales.
The majority of merchants do carry pens, but they tend to just carry well-known brands. You might try your luck with them by touting some distinctive aspects of your brand.
This is your primary goal; stationery stores have a wide range of pens, from a ₹5 pen to a high-priced one. They would buy in quantity from you.
You may promote your pen on all E-commerce platforms and generate rapid revenues from a larger audience.