PROJECT REPORT

Of

NOTEBOOK MAKING UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Notebook Making Unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@[Link]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : NOTEBOOK

6 Name of the project / business activity proposed : NOTEBOOK MAKING UNIT

7 Cost of Project : Rs.24.34 Lakhs

8 Means of Finance
Term Loan Rs.17.91 Lakhs
Own Capital Rs.2.43 Lakhs
Working Capital Rs.4 Lakhs

9 Debt Service Coverage Ratio : 2.46

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 28%

13 Employment : 7 Persons

14 Power Requirement : 30.00 HP

15 Major Raw materials : Jumbo paper rolls, Notebook cover rolls, Other materials(staple pins, glue,etc.)

16 Estimated Annual Sales Turnover (Max Capacity) : 155.87 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 1000 Sq ft 5.00
Plant & Machinery 13.40
Furniture & Fixtures 1.50
Working Capital 4.44
Total 24.34

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.43

Working Capital(Finance) 4.00

Term Loan 17.91

Total 24.34
 NOTEBOOK

Introduction: 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 or memoranda, other writing,
drawing or scrapbooking. Note books 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.

Types of Notebook: In a world in which a touchscreen keypad is the

preferred way to communicate, writers, students, business men and women—
and anyone with a "To Do" list—still have a need for a word processor that is
decidedly low tech: the paper notebook.
 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.

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.

Global Paper Notebooks market size is estimated to grow at CAGR of almost

9% with USD 18.8 billion during the forecast period 2020-2024. The "YOY
(year-over-year) growth rate for 2020 is estimated at 7.5%" by the end of
2024.

Machines & equipments: Major machines are as follows:

Name Unit Price
Offset Printing machine 1 325000
Paper sheeter machine 1 250000
Paper folding machine 1 450000
Paper cutting machine 1 195000
Notebook Stapling machine 1 68000
Other machines & equipments Ls 52000
Raw materials: Major raw materials are as follows:
1. Jumbo paper rolls
2. Notebook cover rolls
3. Other material( staple pins, glue, etc..)
4. Packing material

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

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 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.

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 1500Sqft. Civil work cost
will be around 5 Lac Rs.(Approx.)
Power Requirement –The power consumption required to run all the
machinery could be approximated as 30hp.

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.

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of

Income Tax Act, 1961
Approvals & Registration Requirement:
Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require

Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.43 -

Reserve & Surplus 4.67 6.51 8.89 12.95 15.84
Depriciation & Exp. W/off 2.66 2.29 1.98 1.71 1.48
Increase In Cash Credit 4.00
Increase In Term Loan 17.91 - - - -
Increase in Creditors 1.20 0.16 0.17 0.18 0.19

TOTAL : 32.87 8.96 11.04 14.83 17.50

APPLICATION OF FUND

Increase in Fixed Assets 19.90 - - - -

Increase in Stock 3.92 0.55 0.58 0.65 0.64
Increase in Debtors 2.17 0.38 0.33 0.39 0.37
Repayment of Term Loan 1.99 3.98 3.98 3.98 3.98
Taxation - 0.98 1.33 1.94 2.38
Drawings 2.00 2.50 4.00 6.00 9.00
TOTAL : 29.98 8.39 10.22 12.96 16.36

Opening Cash & Bank Balance - 2.90 3.48 4.30 6.17

Add : Surplus 2.90 0.58 0.82 1.88 1.14

Closing Cash & Bank Balance 2.90 3.48 4.30 6.17 7.31
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 5.10 8.14 11.69 16.70
Add: Additions 2.43 - - - -
Add: Net Profit 4.67 5.53 7.56 11.00 13.46
Less: Drawings 2.00 2.50 4.00 6.00 9.00
Closing Balance 5.10 8.14 11.69 16.70 21.16
CC Limit 4.00 4.00 4.00 4.00 4.00
Term Loan 15.92 11.94 7.96 3.98 -
Sundry Creditors 1.20 1.36 1.54 1.72 1.90

TOTAL : 26.22 25.44 25.19 26.39 27.06

APPLICATION OF FUND

Fixed Assets ( Gross) 19.90 19.90 19.90 19.90 19.90

Gross Dep. 2.66 4.95 6.93 8.64 10.12
Net Fixed Assets 17.24 14.95 12.97 11.26 9.78

Current Assets
Sundry Debtors 2.17 2.55 2.88 3.27 3.64
Stock in Hand 3.92 4.47 5.04 5.69 6.33
Cash and Bank 2.90 3.48 4.30 6.17 7.31

26.22 25.44 25.19 26.39 27.06

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 92.80 109.23 123.50 140.04 155.87

Total (A) 92.80 109.23 123.50 140.04 155.87

B) COST OF SALES

Raw Material Consumed 72.00 81.84 92.16 102.96 114.24

Elecricity Expenses 2.28 2.51 2.74 2.97 3.20
Repair & Maintenance 1.86 3.28 3.70 4.20 4.68
Labour & Wages 4.03 4.44 4.92 5.51 6.18
Depreciation 2.66 2.29 1.98 1.71 1.48

Cost of Production 82.83 94.36 105.51 117.35 129.76

Add: Opening Stock /WIP - 2.72 3.10 3.51 3.98

Less: Closing Stock /WIP 2.72 3.10 3.51 3.98 4.43

Cost of Sales (B) 80.11 93.97 105.10 116.88 129.32

C) GROSS PROFIT (A-B) 12.69 15.26 18.39 23.16 26.55

13.67% 13.97% 14.89% 16.54% 17.04%
D) Bank Interest (Term Loan ) 1.94 1.59 1.15 0.71 0.27
ii) Interest On Working Capital 0.44 0.44 0.44 0.44 0.44
E) Salary to Staff 3.78 4.54 5.44 6.26 6.89
F) Selling & Adm Expenses Exp. 1.86 2.18 2.47 2.80 3.12

TOTAL (D+E) 8.02 8.75 9.50 10.21 10.72

H) NET PROFIT 4.67 6.51 8.89 12.95 15.84

5.0% 6.0% 7.2% 9.2% 10.2%
I) Taxation - 0.98 1.33 1.94 2.38

J) PROFIT (After Tax) 4.67 5.53 7.56 11.00 13.46

Raw Material Consumed Capacity Rate per sqft. Amount (Rs.)

Utilisation

I 50% 60.00 72.00

II 55% 62.00 81.84
III 60% 64.00 92.16
IV 65% 66.00 102.96
V 70% 68.00 114.24
COMPUTATION OF MAKING OF NOTEBOOK

Item to be Manufactured Notebook

Manufacturing Capacity per day 800 notebooks

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 2,40,000 notebooks

Total Production per Annum 2,40,000 notebooks

Year Capacity NOTEBOOK

Utilisation

I 50% 1,20,000.00
II 55% 1,32,000.00
III 60% 1,44,000.00
IV 65% 1,56,000.00
V 70% 1,68,000.00
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 4,000.00 4,400.00 4,800.00 5,200.00

Production 1,20,000.00 1,32,000.00 1,44,000.00 1,56,000.00 1,68,000.00

1,20,000.00 1,36,000.00 1,48,400.00 1,60,800.00 1,73,200.00

Less : Closing Stock(10 Days) 4,000.00 4,400.00 4,800.00 5,200.00 5,600.00

Net Sale 1,16,000.00 1,31,600.00 1,43,600.00 1,55,600.00 1,67,600.00

Sale Price per notebook 80.00 83.00 86.00 90.00 93.00

Sale (in Lacs) 92.80 109.23 123.50 140.04 155.87

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 2.72 3.10 3.51 3.98 4.43
Raw Material
(5 Days requirement) 1.20 1.36 1.54 1.72 1.90

Closing Stock 3.92 4.47 5.04 5.69 6.33

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 3.92
Less:
Sundry Creditors 1.20
Paid Stock 2.72 0.27 2.45

Sundry Debtors 2.17 0.22 1.95

Working Capital Requirement 4.40

Margin 0.49

MPBF 4.40
Working Capital Demand 4.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary

Plant Operator 10,000.00 1 10,000.00

Unskilled Worker 8,000.00 1 8,000.00
Helper 8,000.00 1 8,000.00
Security Guard 6,000.00 1 6,000.00

32,000.00
Add: 5% Fringe Benefit 1,600.00
Total Labour Cost Per Month 33,600.00
Total Labour Cost for the year ( In Rs. Lakhs) 4 4.03

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 12,000.00 1 12,000.00
Accountant cum store keeper 10,000.00 1 10,000.00
Sales 8,000.00 1 8,000.00
Total Salary Per Month 30,000.00

Add: 5% Fringe Benefit 1,500.00

Total Salary for the month 31,500.00

Total Salary for the year ( In Rs. Lakhs) 3 3.78

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 5.00 13.40 1.50 19.90
- 5.00 13.40 1.50 19.90
- - -
TOTAL 5.00 13.40 1.50 19.90
Less : Depreciation - 0.50 2.01 0.15 2.66
WDV at end of Ist year - 4.50 11.39 1.35 17.24
Additions During The Year - - - - -
- 4.50 11.39 1.35 17.24
Less : Depreciation - 0.45 1.71 0.14 2.29

WDV at end of IInd Year - 4.05 9.68 1.22 14.95

Additions During The Year - - - - -
- 4.05 9.68 1.22 14.95
Less : Depreciation - 0.41 1.45 0.12 1.98
WDV at end of IIIrd year - 3.65 8.23 1.09 12.97
Additions During The Year - - - - -
- 3.65 8.23 1.09 12.97
Less : Depreciation - 0.36 1.23 0.11 1.71
WDV at end of IV year - 3.28 6.99 0.98 11.26
Additions During The Year - - - - -
- 3.28 6.99 0.98 11.26
Less : Depreciation - 0.33 1.05 0.10 1.48
WDV at end of Vth year - 2.95 5.95 0.89 9.78
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter 17.91 - 17.91 0.49 - 17.91
Iind Quarter 17.91 - 17.91 0.49 - 17.91
IIIrd Quarter 17.91 - 17.91 0.49 1.00 16.92
Ivth Quarter 16.92 - 16.92 0.47 1.00 15.92
1.94 1.99
II Opening Balance
Ist Quarter 15.92 - 15.92 0.44 1.00 14.93
Iind Quarter 14.93 - 14.93 0.41 1.00 13.93
IIIrd Quarter 13.93 - 13.93 0.38 1.00 12.94
Ivth Quarter 12.94 12.94 0.36 1.00 11.94
1.59 3.98
III Opening Balance
Ist Quarter 11.94 - 11.94 0.33 1.00 10.95

Iind Quarter 10.95 - 10.95 0.30 1.00 9.95

IIIrd Quarter 9.95 - 9.95 0.27 1.00 8.96
Ivth Quarter 8.96 8.96 0.25 1.00 7.96
1.15 3.98
IV Opening Balance
Ist Quarter 7.96 - 7.96 0.22 1.00 6.97
Iind Quarter 6.97 - 6.97 0.19 1.00 5.97
IIIrd Quarter 5.97 - 5.97 0.16 1.00 4.98
Ivth Quarter 4.98 4.98 0.14 1.00 3.98
0.71 3.98
V Opening Balance
Ist Quarter 3.98 - 3.98 0.11 1.00 2.99
Iind Quarter 2.99 - 2.99 0.08 1.00 1.99
IIIrd Quarter 1.99 - 1.99 0.05 1.00 1.00

Ivth Quarter 1.00 1.00 0.03 1.00 0.00

0.27 3.98

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 7.33 7.82 9.54 12.71 14.94

Interest on Term Loan 1.94 1.59 1.15 0.71 0.27

Total 9.27 9.41 10.69 13.42 15.21

REPAYMENT
Repayment of Term Loan 1.99 3.98 3.98 3.98 3.98
Interest on Term Loan 1.94 1.59 1.15 0.71 0.27

Total 3.93 5.57 5.13 4.69 4.25

DEBT SERVICE COVERAGE RATIO 2.36 1.69 2.08 2.86 3.58

AVERAGE D.S.C.R. 2.46

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 30
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 4,02,840.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47

Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 4.57

Year Capacity Amount

(in Lacs)

I 50% 2.28
II 55% 2.51
III 60% 2.74
IV 65% 2.97
V 70% 3.20
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
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reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
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