Nat

raj✏

Busi
nesspl
an:

Execut
ivesummar
y:

I
ndi
anst
ati
onar
ysect
ori
soneoft
her
api
dlygr
owi
ngsect
orsoft
heI
ndi
aneconomyas
t
her
eisr
api
dri
sei
npercapi
taexpendi
tur
eont
heeducat
ion.Gov
ernmenti
sal
so
gener
ousl
yspendi
ngont
heeducat
ionsect
orl
eadi
ngt
other
api
dgr
owt
hofst
ati
onar
y
busi
nessi
nIndi
a.Accor
dingt
ooner
esear
chr
epor
tupt
o2012t
hissect
ori
spoi
sedt
o
gr
owatt
her
api
drat
eof32%.

Except2-
3maj
orpl
ayer
snamel
yITC,
NAVNEET,
andSunDar
am t
hissect
ori
slef
ttot
all
y
t
otheunor
gani
zedsect
or.Mostoft
hedemandoft
hel
ocalmar
keti
sbei
ngser
vedby
t
hel
ocalpl
ayer
.Ther
eisnotasi
ngl
epl
ayerwhocancl
aimt
hathei
sleaderi
nthe
st
ati
onar
ysect
or.Somepl
ayerhasadv
ant
ageousposi
ti
ont
hepr
oduct
ionofnot
ebook
whi
l
esomehasadv
ant
agei
nwr
it
ingequi
pment
s.

Thi
nki
ngont
hesepoi
nts,ourpl
ani
stoest
abl
i
shast
ati
onar
ymanuf
act
uri
ngpl
anti
n
Dandel
i
,Kar
nat
akaont
hebanksofr
iverKal
i
.Wear
epl
anni
ngt
opr
oducedi
ff
erentr
ange
ofst
ati
onar
yrangel
i
kenot
ebooks,exer
cisebook,aut
ogr
aphbooks,Not
epad,f
older
s,
st
ickf
il
es,
engi
neer
ingequi
pment
s,andXer
oxsheet
.

Tot
alcostoft
hepr
oduct
ionaspert
heassumpt
ionmadewi
l
lbet
othet
uneof2.
75
cr
oreandcompanywi
l
lachi
evebr
eakev ween2ndand3rdy
enbet earofoper
ati
on.

Looki
ngi
ntot
hef
actshownabov
eitcansaf
elybeconcl
udedt
hati
tispr
ofi
tabl
eto
f
orayi
ntot
hest
ati
onar
ysect
or.
I
ntr
oduct
ion

I
ndi
anSt
ati
oner
yIndust
ryi
samuchunor
gani
zedgr
oupofbusi
nessusual
l
yassoci
ated
wi
tht
heSchool
s,Col
l
ages,andOf
fi
ceandpl
aysav
erycr
uci
alr
olei
nwor
kingofany
or
gani
zat
ionacr
osst
hegl
obe.I
tincl
udes 
Paperst
ati
oner
y whi
chcompr
isesofav
ast
col
l
ect
ionofpr
oduct
sli
keexer
cisebooks,not
e books,st
it
ch,gl
ued&t
apepads,r
efi
l
l
pads,f
lapov
erpads,subj
ect
 books,pl
ast
iccov
er 
books 
etc.Thehugegr
eet
ingcar
d
mar
ket
,aut
ogr
aph 
books,par
tyi
nvi
teset
c,i
sal
soapar
toft
hissegment
.Indi
aist
he
15t
hlar
gestpr
oducerofpaperandi
tispoi
sedf
ort
heannualgr
owt
hrat
eof2% but
accor
dingt
otheNetscr
ibes'r
epor
tIndi
anst
ati
oner
ymar
ketpoi
sedt
ogr
ow at30%
annual
l
yti
l
l2012.
Inspi
te ofhav
ing huge y
oung,schoolgoi
ng popul
ati
on,I
ndi
a
consumesonl
yabout0.
6%oft
otalpaperpr
oduct
ionandal
sopercapi
taconsumpt
ion
ofpaperandst
ati
onar
yit
emsi
sonl
y8.
6kgperannum whi
l
esmal
lcount
rywi
thl
ow
popul
ati
onsi
zel
i
keFi
nlandconsumedar
oundwhi
ch429ki
l
ogr
am’
sin2000.Sot
her
eis
hugepot
ent
ial
ofgr
owt
hint
heI
ndi
anst
ati
onar
ymar
ket
.

Cur
rentScenar
ioi
nIndi
anst
ati
onar
yindust
ry:
I
ndi
an 
PaperSt
ati
oner
y I
ndust
ry,whi
ch i
sapar
toft
hehugeand scat
ter
ed I
ndi
an
st
ati
oner
yIndust
ry,hasbeengoi
ngt
hrought
remendousal
ter
ati
oni
nrecenty
ear
s.
Despi
tegr
owi
ngcompet
it
ionf
rom nei
ghbor
ingmar
ket
s,I
ndi
anst
ati
onar
yindust
ryhas
abl
etof
ir
mit
sfeeti
ntot
hemar
ketwi
thconst
anti
nnov
ati
onandmaki
ngi
tmor
eand
mor
ecust
omercent
ri
c..I
ndi
ancompani
eshav
elear
ntt
hati
nnov
ati
on,
per
for
manceand
v
ersat
il
it
yar
ethekeyar
eat
obef
ocusedupon.Taki
ngt
hepoi
ntsunderconsi
der
ati
on,
t
hebusi
nessmenar
enow r
esear
chi
nganddev
elopi
ngnew pr
oduct
s,ast
hemar
keti
s
nowmor
eofconsumeror
ient
edwhi
chi
sal
way
slooki
ngf
orcostef
fect
ivepr
ices.
Anot
hernot
ewor
thyt
hingaboutI
ndi
anst
ati
onar
yindust
ryi
dst
hati
tsl
eav
ingasi
def
ew
or
gani
sedandbi
gpl
ayerl
i
keCaml
i
n,f
abr
eCast
le,I
TCmaj
ori
tyoft
hemar
keti
sbei
ng
cat
eredbyunor
gani
zedl
ocalpl
ayerwhi
choper
atesonl
yinl
ocalmar
ket
.Theygi
vest
if
f
compet
it
iont
omaj
orpl
ayerandeat
sthei
rshar
e.Amongal
lty
peofst
ati
onar
yit
ems
Of
fi
cest
ati
onar
yisgr
owi
ngatt
hemaxi
mum r
ate.
Dr
iver
sofgr
owt
hinSt
ati
onar
ymar
ket
:
• Economi
cGr
owt
h
• Hi
gherl
i
ter
acyr
ate
• Mor
egov
ernmentspendi
ngoneducat
ion
• Popul
ati
ongr
owt
h
• Changi
ngdemogr
aphi
cs
– Ur
bani
zat
ion
– Hi
gherpr
opor
ti
onofy
oungadul
ts
• Bet
terl
i
vingst
andar
ds
• Gov
ernmentr
egul
ati
onsandt
axes
• Shi
fti
nfocusf
rom i
nexpensi
vet
oqual
i
typr
oduct
s

Fact
saboutI
ndi
anst
ati
onar
ymar
ket
:(Sour
ce:
Busi
nessl
i
neJul
y31,
2008)
I
ndi
anst
ati
onar
ymar
ketsi
ze:
Rs9000cr
ore
Not
ebook(paper
)mar
ketsi
ze:
Rs3000cr
ore
Penci
lMar
ketsi
zei
nIndi
a:Rs400cr
ore

Maj
orPl
ayeroft
heI
ndi
anmar :
ket
Ther
eisnotasi
ngl
emaj
orpl
ayerwhodoesbusi
nessi
nal
lthesegmentoft
he
st
ati
onar
y.Somedomi
nat
est
henot
ebooksegmentwhi
l
esomedomi
nat
eswr
it
ing
equi
pment
.Fol
l
owi
ngar
ethemar
ketl
eaderi
nthei
rrespect
ivesegment
:
Not
ebook Wr
it
ingequi
pment Ot
herst
ati
onar
y

I
TC(cl
assmat
e) Cel
l
o Kor
es
Nav
neet Rey
nol
ds Cannon

Sundar
am Mont
ex Caml
i
n

Fabr
eCast
le

Caml
i
n

I
TCenj
oys16%mar
ketshar
eint
henot
ebooksegmentwhi
l
ecel
l
oenj
oys68%i
nthe
wr
it
ingequi
pmentmat
eri
alandi
not
herst
ati
onar
yli
keCar
bonpaper
s,st
apl
esKor
esi
s
t
hemar
ketl
eader
.

Accor
dingt
oCLSAAsi
a-mar
ketr
epor
teachK-
12st
udentenr
oll
edi
napr
ivat
eschool
consumeseachy
earRs400wor
thofnot
ebooks,pens,penci
l
s,andot
herst
ati
oner
y
i
tems,andt
hisi
sjustRs70ay
earf
orpubl
i
cschoolchi
l
dren.Wi
th90m chi
l
dreni
n
pr
ivat
eand129m i
npubl
i
cschool
s,t
hismar
keti
swor
thaboutUS$1.
3bn.Wehav
e
added10m post
-secondar
yst
udent
s,eachof
whom consumesar
guabl
ylar
geramount
sofst
ati
oner
y.

Educat
ionst
ati
oner
y-Mar
ketsi
zeest
imat
es

Pr
ivat
e Publ
i
c Col
l
eges Tot
al

St
udent
senr
oll
ed 10 229

90 129

Numberofnot
ebookspery
ear 20 5 30 55

Costpernot
ebook(
Rs) 15 10 25 50

Tot
alspendonnot
ebooks(
Rsm 27,
000 6450 6000 39,
450
St
ati
oner
yspend,
year
ly(
Rs) 100 20 200

Tot
alspendonst
ati
oner(
Rsm) 9,
000 2580 2000 13,
580

Tot
almar
ket(
Rsm) 36,
000 9030 8000 53,
030

Tot
almar
ket(
US$) 900 226 200 1326

Spendi
ngperst
udent(
Rs) 400 70 800 232

SWOTAnal
ysi
s

STRENGTH:

1. Hugemar
ketsi
ze

2. Techni
cal
exper
ti
seofgr
oup

3. Unt
ouchedst
ati
onar
ymar
ket

4. Si
ngl
elar
gef
ir
m whi
chi
sful
fi
ll
i
ngal
ltheneedofst
ati
onar
ymar
ket
.
 5. Est
abl
i
shednamei
nthef
iel
dofeducat
ion.

WEAKNESS

1.I
twi
l
ltakesomet
imet
oposi
ti
ont
hepr
oduct
.

2.Est
abl
i
shmentofdi
str
ibut
ionchannel
.

OPPOURTI
NITY

1. Vent
urei
ntoOf
fi
cest
ati
onar
y,of
fi
cef
urni
tur
e

2.Di
ver
sif
yint
oPenbusi
nessbot
hcat
eri
ngt
oluxur
ysegmentandmass
mar
ket
.

THREAT

1.Compet
it
ionf
rom l
owpr
icedChi
nesepr
oduct

2.I
nfr
ast
ruct
urer
elat
edpr
obl
em l
i
kePoorpowersuppl
y.

Busi
nesspl
an

Fol
l
owi
ngr
awmat
eri
alsusedi
npaper
maki
ngwi
l
lbedescr
ibed

 Fi
bres

 Wat
er

 Fi
l
ler
s

 Ret
ent
ionai
ds

 Dy
es

 Fl
uor
escentwhi
teni
ngagent
s(FWA)
 Si
zi
ngagent

 St
arch

 Wetst
rengt
hagent

Fi
bres:
Hardwoodandsoft
woodcanbot
hbeusedt
oforpaperTy
pical
har
dwoodusedi
nthe
paperi
ndust
rycomesfr
om:

 aspen/
popul
us

 bi
rch

 beech

 eucal
ypt
Ty
pical
sof
twood:

 spr
uce

 pi
ne

 f
ir

 l
arch
Fi
bersf
rom t
ropi
calhardwoodtr
eesar
enotassui
tabl
eforpr
oduct
ionofpaper
.Thi
sis
cont
rar
ytowhatpeoplethi
nk.
Locat
ionoft
hepl
ant
:

Pl
antwi
l
lbel
ocat
edi
ntheDandel
i
,Kar
nat
akaont
hebankofr
iverKal
i
.

Reasonf
orsel
ect
ingt
hel
ocat
ion:
1.Si
tuat
edamidstt
hickf
orestwhi
chwi
l
linsur
econt
inuoussuppl
yofr
aw
mater
ial
(wood)

2.Ri
verKal
iwi
l
lbet
hesour
ceofwat
er.
3.Wel
lconnect
edt
hroughr
oadsandr
ail
net
wor
k.

4.Assur
edpowersuppl
y.

5. Pr
esenceofsemi
andunski
l
ledl
abour
.

Pr
oductr
angewi
thcapaci
ty
Not
ebook:

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty(Pr
oposed)

50pages 1,
50,
000

70pages 1,
50,
000

92pages 1,
50,
000

192pages 1,
50,
000

Exer
cisebook:

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty

100pages 1,
50,
000

200pages 1,
50,
000

Not
epad/st
ickPad/Fol
der
s

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty

Not
epad/st
ickPad/Fol
der
s 1,
00,
000
Leadpenci
l

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty

Leadpenci
l 1,
50,
000

Cl
utchpenci
l
s 1,
00,
000

Busi
nesspaper
/Xer
oxsheet

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty

75GSM 10,
000

70GSM 10,
000

Engi
neer
ingEqui
pment
:

Pr
oductcat
egor
y Pr
oduct
ioncapaci
ty

Dr
aft
er 2,
00,
000

T-
scal
e 2,
00,
000

Angl
es 2,
00,
000

Fi
nanci
als:

1.Landr
equi
rement
:6acr
e

Av
eragel
andpr
ice:
6lakh/
acr
e

Tot
alexpendi
tur
eonl
and:
36l
akh
Machi
ner
yandEqui
pment
:

Descr
ipt
ion Qt
y Rat
e Amount

Di
skr
ull
i
ngmachi
ne-36"wi
t or 5
hmot 22000 1,
10,
000

Papercut
ti
ngmachi
ne-32"wi
th 5 32,
000 1,
60,
000
mot
or

St
it
chi
ngmachi
newi
thmot 5HP 5
or0. 15,
000 75,
000

Per
for
ati
ngmachi
ne-manual
18" 5 3000 15,
000

Pr
ess-manual
-15x20" 3 3500 10,
500

Fur
nit
ure’
sandf
ixt
ures -
--
--
--
--
- -
--
--
--
--
--
--
--
- 10,
000

I
nst
all
ati
onandel
ect
ri
fi
cat
ion -
--
--
--
--
-- -
--
--
--
--
--
-- 6,
000

Mi
scel
l
aneousexpenses -
--
--
--
--
--
--
- -
--
--
--
--
--
--
--
--
- 5000

Aut
omati
cGroovi
ng 5 30,
000 1,
50,
000
Machi
ne(
Penci
l)

Automat
icSi
ngleSpi
ndl
eDoubl
e 5 30,
000 1,
50,
000
Shapi
ngMachine

Comput
ers 5 25000 1,
25,
000

Tot
al 6.
92l
akh
Wor
kingcapi
tal
:

A.Sal
aryandwages:

S.No Descr
ipt
ion Nos Sal
ary

1 Manager 4 3,
00,
000*
4=12,
00,
000

2. Ski
l
ledl
abor 18 1,
50,
000*
18=27,
00,
000

3. Semi
ski
l
ledl
abor 25 120000*
25=30,
00,
000

4. Unski
l
ledl
abor 32 72000*
32=23,
04,
000

Tot
al 92.
04l
akh

Rawmat
eri
al:

PaperPulp 25
Graphi
te 10
Dyes,Pr
int
ingink,bi
ndingcl
otht
hread 2
Glassmateri
al(Engg.Equi
pment 4
Fi
brebodyforpencils 5
Total 46

Ut
il
it
ies:

Uti
l
iti
es(
Annual
) Mont
hly No.
ofoper
ati
on
Power 30000 12 360000
water 25000 12 300000
Total 6.
6
 Ot
herexpenses:

Ot
herexpenses
Postage,Tel
ephones&St at
ioner
yExpenses 0.
75
Transport
ati
on&Conv ey
anceExpenses 5
Adverti
sementExpenses 1.
5
RepairsandMaintenanceExpenses 1
Miscell
aneousExpenses 0.
5
Total 8.
75

Tot
alcostofpr
oduct
ion(I
nfi
rsty
ear
)(i
nlakh)

S.No Costhead Amount

1. Land 36

2. Pl
antandmachi
ner
y 6.
92

3. Sal
ary
/wages 92.
04

4 Rawmat
eri
al 46

5 Ut
il
it
ies 6.
6

6. Ot
herexpenses 8.
75

Tot
al 235.
81

Pr
ofi
tabi
l
itypr
oject
ionf
ort
henext3y
ear
Sal
es YEAR1 YEAR2 YEAR3

SalesRealizati
on 249.88 299.
85 429.59
Costofmanuf actur
ing 149.91 149.
91 189.76
Rawmat eri
al 46 46 46
Uti
lit
ies 6.
6 6.
6 6.6
Salary/
wages 92.04 92.
04 92.04
Repair/maintance 1 1 1
Sell
ingandDi stri
buti
oncost 1.
5 1.
5 1.5
I
nterest 27.05 27.
05 27.05
Depreciati
on 6.
47 12.95
Grosspr of
it -
80.
694 -
37.19 46.
20
-
Losscarr
iedf
orwar
d 71.
69
Incometax 0.
00
Netprof
it -
80.
69 -
37.193 46.
20

Fi
rstt
woy
earofoper
ati
oni
nthebusi
nesswi
l
lgi
vel
osst
otheor
gani
zat
ionbutf
rom
t
het
hir
dyear
,itwi
l
lst
artear
ningt
hepr
ofi
ttot
het
uneof46.
20l
akh.

MARKETI
NGSTRATEGY:

a)Paperadv erti
sements
b)Booksexhi bit
ions
c)Publicrel
ationswitheducat
ionali
nsti
tut
ions
d) Di
rectmarketing
e)Mul t
ispecialt
yretai
lchai
ns(BigBazaar)
Concl
usi
on:
Wi
thabov
ebusi
nesspl
ani
tisv
erycl
eart
hatt
her
eismuchscopeofdev
elopmenti
nthe
f
iel
dofst
ati
onar
yinI
ndi
a.Wi
tht
hei
ncr
easi
ngl
evelofeducat
ionandgr
owi
ngofser
vice
sect
orl
i
keeducat
ionandhospi
tal
i
tysect
ori
ntheI
ndi
ather
eisev
erychancet
hati
nnear
f
utur
eal
sot
her
ewi
l
lbecont
inuousgr
owt
hofst
ati
onar
ysect
ori
nIndi
a.
St
ati
onar
ysect
ori
sst
il
lunt
ouchedbyt
hecor
por
ateast
her
eisnotmuchpl
ayeri
n
mar
ket
.Mostoft
hedemandi
sbei
ngser
vedbyt
hel
ocalpl
ayerwhodoesn’
thav
emuch
t
echni
calexper
ti
sei
nthepr
oduct
ionofst
ati
onar
y.Ther
ecostofpr
oduct
ioni
sver
yhi
gh
becauseofusageofobsol
etet
echnol
ogyandt
huspr
ofi
tmar
gini
sver
ylow.
Soi
tisv
erypr
ofi
tabl
etov
ent
urei
ntot
hisbusi
nessast
her
eishugedemandsuppl
ygap
t
il
lnow,
mar
keti
sfr
agment
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