Wooden Pencils: Bridging Tradition and Utility Report with Financials for New Startups

Despite digital advancements, the demand for traditional writing instruments like wooden pencils remains steady in educational and professional settings. This report explores the feasibility of establishing a wooden pencil manufacturing plant.

Market Potential

The consistent demand for pencils in education and office supplies markets ensures a reliable market.

Technical Feasibility

Raw Materials

  • Wood and Graphite: Primary raw materials for pencil production.

Production Process

  • Shaping and Grooving: Shaping wood slats and grooving them for graphite insertion.
  • Graphite Insertion and Assembly: Inserting graphite into the grooved slats and assembling the pencils.
  • Finishing and Packaging: Finishing the pencils with paint and erasers, and packaging them for distribution.

Plant Layout and Machinery A typical plant layout includes:

  • Shaping and Grooving Unit
  • Graphite Insertion Unit
  • Finishing and Packaging Unit

Financial Analysis

Total Project Cost

  • Land and Site Development: ₹1 crore
  • Plant and Machinery: ₹5 crore
  • Installation and Erection: ₹1 crore
  • Preliminary and Pre-operative Expenses: ₹1 crore
  • Working Capital: ₹1 crore
  • Total Estimated Cost: ₹9 crore

Revenue Generation Revenue from the sale of wooden pencils is estimated based on market rates.

Cost of Production

  • Raw Material Cost: ₹2 crore per annum
  • Operating Expenses: ₹1 crore per annum
  • Maintenance and Utilities: ₹0.5 crore per annum

Profitability Analysis

  • Total Annual Revenue: ₹20 crore
  • Annual Expenses: ₹3.5 crore
  • Net Profit: ₹16.5 crore
  • Rate of Return: 12%
  • DSCR: 1.4

If you require more detailed reports or specific information from BIIR Project Consultants for your any manufacturing plant startup, follow these steps to establish contact and obtain the necessary assistance:

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