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How To Start a Pencil Manufacturing Business

How To Start a Pencil Manufacturing Business

Pencil Manufacturing Business – A pencil is a slightly elongated object made of a wooden stick in a circular or hexagonal shape.  There is a lead of graphite or carbon in the middle of the wooden stick. Which is mainly used for drawing or writing. Pencil is a useful tool and is seen in all schools and also by various corporate offices.

Pencils are made from smooth wood and lead. Due to the smooth and simple operation of pencils, pencils are seen in various fields like copying, drawing, sketching etc. Coloured pencils are very useful in drawing and painting.

The main advantages of the advent of pencils are high lifespan, erasable, easy copying, low wear and tear, available in almost every colour. And also In the market, the sale of pencils is very good everywhere from stationery shops to grocery stores. Therefore, a good profit can be earned by the pencil manufacturing business it.

Market Potential for Pencils

While talking about the market potential of Pencils making business, the demand for wooden pencils in the market is increasing day by day. You can find  Pencil major uses in schools, colleges, universities, government offices, commercial establishments, NGOs, the construction sector, artists and other miscellaneous activities.

This is the reason that due to the construction of new offices and increase in population, there has been a steady increase in the demand for pencils.  In this age of digital advancement and various tools, their need has not diminished and they are still increasing every year. Also, it can be said that customers for Pencils Making Business will be easily found in both rural and urban areas.

There is no doubt about the acceptability of the product in the market as lead pencil still has a great command and respectable demand in the market. The product has also gained exceptional export potential.

Licenses and Registrations for Pencil Making Business

To start a small scale wooden pencil making business, you need to obtain the following registrations and licenses. It’s best to check with your state’s specific regulations.

You need to register the business firm of your interest with ROC.

You need to apply for a business license from the municipal authority of your area.

Apart from these, you need to apply for MSME Udyog Aadhaar Registration for your business.

What you need to apply for GST registration.

You also need to get NOC from your state pollution control board

Get the GST Number for your business. And also get IEC number, BIS certification and trademark registration.

Space for Pencil Manufacturing Business

You will need a commercial cover space, And It’s Depending on the size of your business. Generally, you can start a small scale pencil making business in around 1500 square feet area. You will need electricity and water connections. Also, verify if transportation is possible.

If you do not have an area, it is better to use the rental space and start a business. This reduces the overall project expenditure and you can use the money for business development and marketing purposes.

Investment for Pencil Manufacturing Business

You should have at least 2 to 5 lakh rupees, for It is necessary to start a small or medium scale business. This includes the cost of all raw materials and machines. And Where the price of the machine starts from Rs 1.5 lakhs and goes up to 15 lakhs depending on the pencil making capacity. However, if you are planning to make business at the rented place, you may need to invest extra for the space.

Raw Materials for Pencil Manufacturing Business

The raw materials required are wooden slate (6 ply), ball clay, graphite (advanced variety), glue, paint, dryer, varnish, lacquer, pigments, binder and sandpaper.  The Pencils are usually packed in cardboard cartons. So, You have to buy for the packaging material.

Machinery to Start Pencil Manufacturing Business

You can start building a wooden pencil in two ways. One is to obtain the lead or to manufacture the lead in your own unit.

You can make wooden pencils through a fully automatic machine. and This machine is integrated with a ball mill, kneading machine, filter press, automatic shaping and glueing machine for slats, Painting machines, embossing machines, end cutting machines, dies, cutters, tools and other miscellaneous machinery.

Manufacturing Process of Pencils

First, prepare the lead for pencils. it is mixed with a suitable amount of graphite powder and ball clay, after that this mixture is mixed with the help of a ball mill machine by adding water to it and grinding it well. 

After that, this mixture is quenched and the cake which comes out due to pressure is dried in the Banking Oven.  This dried mixture is thoroughly whipped in a Kneading Machine for further homogenizing. 

The whipped mixture is put in an extrusion machine to be billeted.  This has to be done so that the entrepreneur can prepare the lead slip of size according to the need. 

After that, they are marked by sorting the Lead Slip. Then for manufacturing pencils, the wooden slate is put in an automatic shaping and grooving machine where the grooves are prepared according to the measurements as per the requirement. 

After that various types of processes like glueing, painting, cutting etc. have to be done in the Pencils Manufacturing business. 

By carrying out all these processes, in the end, 10 to 12 pencils of pencils are packaged in a box and sold in the market.

Packaging for Pencil Business

The packaging depends on the number of pencils you want to combine in each separate packet. To make an attractive pack of pencils, you have to paste some funny pictures of cartoons for the kids to attract. Along with this, if possible, you can also put a small rubber of attractive colours on the end of the pencil.

For better packaging ideas, you can contact your local package store where you can get various package sizes and colours. You can also order your own customized package designed for your company with your company logo.

Marketing for Pencil Making Business

You can directly go to the local stationery or contact the supermarket. The best way to sell a product is to do marketing through the students near your home or unit. When your pencil gets the required reputation, you can approach bigger stores to promote your business.

In this way, you can grow your business and earn good profits.  Make sure you produce a high-quality pencil and never compromise with your product, adjusting the price below the market price. Since there are a large number of competitors in the market, who are already established and getting great business, you need to establish your brand.

Final Thoughts of the Business

Currently, some brands sell high-quality pencil-making machines on the internet.

The market potential of pencils is increasing day by day.

If proper planning is done with proper analysis and forecasting, you can get a lot of money from pencil making venture.

If you are not confident enough about large scale pencil making business, it is recommended to start from home in the beginning and get an idea about your immediate market.

How To Start a Pencil Manufacturing Business

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