How to Start Pencil Manufacturing Business, Mechanical Pencil, Profit, Loan

Pencil is very popular among children. Children buy pencils the most. Nowadays there is a lot of demand for mechanical pencils in the market.

So if you start a Mechanical Pencil Business then you will get a lot of profit from it and you can earn a lot by fulfilling market demand.

In this article, we’ll understand How to Start Pencil Manufacturing Business and How to Make Mechanical Pencils in detail.

How to Start Pencil Manufacturing Business, Mechanical Pencil, Profit

Table Of Contents

What is Mechanical Pencil

A Mechanical pencil is a type of pencil that doesn’t need to be sharpened every time. This is very popular because of its usability.

You don’t need to buy sharpener to use this type of pencil. The leads of this pencil are already so thin, that you can use it directly by putting it in the holder.

It is specially made for children, to reduce the use of wood. With the help of this, the wastage from common pencil rinds is reduced by up to 30%, around the globe.

Children even love Mechanical pencils than normal pencils. Mechanical pencils are also popular in the market by their name Mechanical Pencil.

Children’s attention always goes to Mechanical pencils. Mechanical Pencil is a little more expensive than other common pencils, but children definitely buy these pencils and this is the reason behind its very good marketing and profitable business.

Requirements to Make Pencils

To make Mechanical pencils, some essential materials are needed such as:

Raw Wood
Graphite Powder
Smooth Glue

With the help of these materials, Mechanical Pencil is made by pressing it in Pencil Manufacturing Machine. Let us now know how to make Mechanical Pencil.

How to Make Wooden Pencils

To make normal wooden pencils, you have to follow the below-given steps:

1. Take a sheet of soft wooden ply. Divide it into two halves.

2. Now separately cut these ply into the size of normal pencils. I.e. Height: 15 – 20 cms.

3. Now make crave groves on these plies vertically. To fill graphite clay.

4. Now, fill those groves with glue and put baked graphite clay lead on one part of the ply.

5. Cover the first ply with graphite, with next half part of ply. Press these plies very tightly.

6. Let it dry for the whole day under high pressure. Now cut these plies into different pencils.

7. Furnish these pencils by rubbing them on sandpaper.

If you want you can paint these pencils as well or sell them to any company whose brand name is already known such as: Natraj, Doms, Apsara, Camelin etc.

Requirements to Make Mechanical Pencils

How to Make Mechanical Pencil You will need the things given below:

File Sets
Sanding Paper
Brass Brush
Buff Machine
Shining Stick
Tweezers
Drawing Plate
Hammers
Ring Mandrel
Saw and Blades
Ring Clamp
Stone Setting Tools
Ammonium Chloride (to get Color Back for Metal)
Hand Cutting Machine
Hand-Cutting Machine Tools

How to Make Mechanical Pencils

To make Mechanical Pencils you can directly contact empty barrel manufacturers or suppliers. If you want to make it on your own, you will need a barrel manufacturing machine.

To manufacture Mechanical Pencils you have to follow the below-given steps:

1. Take an empty barrel. Add coupler to its one end. this coupler will attach the tip of the pencil.

2. Put cap at another end of the barrel. If you want you can add a rubber on the cap side.

3. This cap should be in tip-top pen style so that we can get pencil leads from it.

4. Now, fill the lead mechanism into the barrel. Woo-hoo !! Your mechanical pencil is ready to be sold.

You have to sell raw leads with your pencil to increase your business. The price of lead Manufacturing machine is around Rs. 50,000/- to Rs. 5 lakhs[$600 – $6,000].

You can buy this machine from any inventory around you, or you can buy it from any of the online platforms such as: Indiamart, Alibaba, e-Bay etc.

How to Start Pencil Business from Home

If you want to start manufacturing normal pencils from home it will be quite easier than Manufacturing mechanical pencils.

For mechanical pencils, you require few machines which are must to run your business for longer period of time.

Normal Pencils Requirements:

Soft Plywoods.
Glue.
Baked Graphite Clay.
Wood Furnishing Machine.

Mechanical Pencil Requirements:

Plastic/ Metal Barrels.
Coupler.
Cap and Pocket Pin.
Rubber.
Lead Mechanism.
Lead Furnishing Machine.

Apart from these things you will new some approved licenses and documents to start your business. Now, we’ll understand what documents are required to start Pencil Manufacturing Business.

Registration & License for Pencil Manufacturing Business

Registration & license for starting your Pencil Manufacturing business is a must.

Below given are the required registration & license details for your Pencil Manufacturing Business:

Current Account ( For Business Transactions).
Shop License (Gumasta License).
MSME Registration
Udyog Aadhar
GST License

How to Open Current Account for Pencil Manufacturing Business

To receive payment under your Pencil Manufacturing business name you must have a current account. For getting current account for your Pencil Manufacturing business you will need a shop license.

For issuing a shop license you will need your identity proof such as (An Aadhaar Card, Voter Id Card, Driving License, Etc.) and PAN Card.

If you have any of these identity proofs available, then you can easily apply for current account in any nearby bank.

These are a few reliable global banks for opening business current accounts:

SBI
BOI
ICICI
HDFC
AXIS BANK

How to Get Shop License for Pencil Manufacturing Business

To get a shop license for Pencil Manufacturing Business, you have to first select a location for manufacturing and supplying pencils.

If you’re renting any place in the market then you have to get a rent agreement where your Pencil Business name should be mentioned.

If you are starting this business from your home then you will need a new electricity connection in that particular room from where this business will be operated. A NOC from the owner of the house will also be required.

A banner including your Pencil business name and the address of your business is required in both cases.

A copy of your rental agreement and a photo of your business with the banner is enough for getting a shop license. If you are working from home then a copy of NOC will be used instead of rental agreement.

Loan Against Pencil Manufacturing Business

In the Business of Manufacturing Pencils, the investment cost is very less, so you will not require any type of loan for this but still if you don’t have enough money to start Pencil Manufacturing Business.

Or if you want to start a Pencil Manufacturing Business on large scale, then you can apply for loan.

To get a Pencil Business loan, you can apply to any of the finserve services or banks. Few countries even accept Gold Loans on behalf of reference.

Before applying for loan, you have to provide few necessary information in your loan file regarding the pencil business. Such as your needs and how much money you require, time of repayment, etc.

Then you have to deposit your file to the department. As soon as your loan is passed, all the money will be deposited into your bank account.

How to Start Pencil Manufacturing Business from Home

If you want to start Pencil Manufacturing business from your home, then you have to buy equipments as mentioned above. After that, get all the necessary documents verified by the state government for starting Pencil Manufacturing Business legally.

After that, you can start the business of Manufacturing a Pencil in one room of your house.

How to Get MSME Certificate for Pencil- Manufacturing Business

To register your Pencil Manufacturing business under govt. Policies and their scheme, you can register your ball- Manufacturing business under MSME facilities. MSME stands for Micro, Small Medium, and Enterprises.

It is a type of enterprise managing government that helps you apply govt. Loan schemes and benefits etc.

To get your own MSME certificate for a Pencil Manufacturing Business you can go to the website and apply for an MSME certificate for your Pencil Manufacturing business.

How to Get Udyog Aadhaar Certificate for Pencil Business

To get a loan for your Pencil business from govt. You should first, register your business in udyog aadhaar.

It will help you apply easily to the govt—loan schemes. And get subsidies in form of bank loans.

To get a udyog aadhaar certificate for your Pencil Manufacturing business you log on to the website and apply for the udyog aadhaar certificate.

How to Get GST Licence for Pencil Business

To start your Pencil Business you must also apply for GST License.

GST License stands for Tax on Goods and Services. This tax is retained in the final price and paid by the customers to sellers and by sellers to government.

The GST is a common tax used by countries globally. This license provides you the approval for the good quality of Pencil sold by you.

Corporations and individuals who are supplying goods can claim GST exemption if their annual turnover of less than Rs. 40 lakhs [$48,999] in a financial year.

Such businesses only require GST Registration. Vending Pencil without GST License is a punishable offense.

For starting your Pencil Business, this license is the first document that must be approved. To get your Pencil Business GST License you can simply log on to the website and start selling your Pencil.

How to Start Iron Business, License, Loan, Profit Loss

How to Sell Pencils from Home

If you want to sell all your Pencil from your home, you have two things for this:

First of all, you have to contact your nearby shopkeepers and tell them that you make Pencil.
If they need they can contact you at your number.
You can also provide them with a sample of 2-3 pcs. for free.
You have to reach all the nearby shopkeepers and contact them.

Once you get in touch with the shopkeepers, they will either give you feedback to make your Pencil better or they will buy Pencil from your home.

Apart from this, you can contact malls, megastores, wholesale stores, etc.
You can list yourself on a website like Indiamart, Alibaba, e-Bay, etc. to start your Pencil business online.
After that people will call you themselves, to buy Pencil from you.

Pencil Business Profit

There is a lot of profit in the business of Pencil manufacturing because the Pencil is used by every literate people who know how to write.

If you make pencils at home and sell them, then it costs you around Re. 1 to Re, 2 [$0.012 – $0.024] to make a pencil and these pencils can easily be sold in market for around Rs. 4 to Rs. 5 [$0.045 – $0.061] each.

In this way, if you sell 1,000 pens a day, then you can make a profit of Rs. 3,000/- to Rs. 4,500/-[$30 – $60] per day in this business.

If you buy pens from factory for selling purposes, then it will cost you around Rs. 3/- [0.036] each. You can easily sell these pens for Rs. 5/- [$0.061] in the market.

In this way, you can make a profit of Rs. 1000/- [$12] per day in this business. If you market your business properly, then you can easily earn 10,000 rupees per day in this business.

Hoping, you have completely read the article about How to Start Pencil Manufacturing Business.

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