Start a profitable pen manufacturing business | Business Plan

It doesn’t matter where you live, which religion you follow, whether you are a boy or a girl, whether you are from a developing or a developed country. You have indeed used a pen in your life. And heard the quote “Pen is mightier than the sword” given by Sir Edward Bulwer-Lytton.

Every person in this world, whether a doctor, a student, a businessman, or an engineer, uses a pen in their daily life. They may use a digital pen, but 75% of the world’s population extensively uses it. Many industrialists who manufacture pens are making a lot of profit from it and will make a profit from it for the next few decades.

Pen

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This article will primarily discuss about the pen manufacturing business. So a lot to know, a lot to discuss, and without wasting any time let us now begin

Resources required for manufacturing a pen

You will require a lot of resources for manufacturing a pen which are:

#1 Raw materials required to start a pen making business 

Various raw materials such as pen cap, ink, outer plastic body, pen refill, downside cap( in some pens), metal tip (nib) are required for manufacturing a ball or gel pen.

#2 Machines required to start a pen manufacturing business

Various machines are required to manufacture a pen which is as follows:

Ink filling machine

A machine that is used to fill ink inside pen refills. This machine has various variants, from large to small. Small will cost you about $200 in the United States and Rs. Ten thousand in India and large will cost you about $2,000 in the United States and Rs 1,00,000 in India.

Metal Tip Fitting machine

This machine is used to fit the metal tip with a pen. Depending on its size, this machine will cost you about $200-$300 in the United States and about Rs 14,000-15,000 in India.

Punching and stamping machine

The punching machine will punch the ball pen refill inside the plastic body, and the stamping machine will print your company name on it. In the United States, you can buy this type of machine for about $5,00-$2,000, and in India, the same will cost you around 50. 000- 60,000 Rs.

Centrifuging machine

This machine is used to remove air gaps between metal tips and refill to ensure the smooth flow of ink.

Or

If you have some extra money, you can buy an automatic machine that will do all the tasks. That machine will cost you about $8,000 in the U.S or Rs 4,50,000 Rs in India.

#3 Land and Building

It would be best if you had a proper place to establish your manufacturing unit. Generally, people do pen manufacturing as a small-scale business, so you can easily do it in your home.

But if you are doing it on a large scale then, in that case, you should prefer a proper place where transport facilities are readily available, workers are easily available, roads are good, and suppliers and distributors are not too far. 

#4 Workers and other resources

If you are doing it on a small scale, you can do all the work yourself. Still, it would be best if you only had only unskilled workers for packaging, transportation, cleaning, and other activities on a large scale. Operating a pen manufacturing machine is very simple, so anyone can easily do it. Also, you need some additional resources like electricity, water, transportation facilities, etc., for your pen-making business.

Gel and Ball Pen Manufacturing process

Manufacturing gel and ball pens are very easy. You need to install all raw material appropriately in the machine, and the rest will do the work machine. The process of installing raw materials is straightforward and is different for different company machines. That machine company will guide you properly on operating it, so you do not have to take any tension related to the pen manufacturing process.

Arrangement of funds/money for pen manufacturing business 

Most people do pen manufacturing business on a small scale, and they generally use their savings in it. A person in the United States needs about $10,000. In India, they need about 5,50,000 Rs to start a pen-making business that is not very large, and people arrange it easily. But still, if you do not have money then for collecting funds, you can take advantage of various government schemes specially started for small scale industries

Profit margin in a pen manufacturing business

Since many pens come under a cheap item, you cannot earn too much on one pen. It would be best if you manufacture pens in large quantities to sell more and your overall profit rises.

For example, Suppose the cost of production of one pen you produce is 2.75 Rs (cost of production involves all cost of raw material, electricity expenses, labor expense, transport expense, or any other expense made on manufacturing a product, and Rs is the currency of India you can adjust it accordingly as per your country) then you sell it to a distributor for Rs 3, a distributor will sell it to a wholesaler for Rs.3.5, a wholesaler will sell to a retailer for Rs.4 and retailer to the customer for Rs.5. In this cycle, you made only Rs 0.25 per pen. So it would help if you sold more to make profits.

Summary 

Anyone can quickly start a pen manufacturing business with a small investment of $10,000 because manufacturing a pen requires a machine, some raw material, and workers. But since you can do all the work by yourself on a small scale, you are not required to employ any worker.

Conclusion

Yes, pen manufacturing could be a perfect business for earning profits. But every business requires patience and dedication for achieving success. Making money in any way is not at all easy. So be prepared to do a lot of hard work if you plan to do a pen manufacturing business.

Frequently Asked Questions

Which resources are required to manufacture pens?

Raw material, machines, buildings and workers are required to manufacture pens.

How I can arrange funds for the Pen manufacturing business?

You can use your personal savings or take benefit of government schemes or take a bank loan for starting a pen manufacturing business.

How much money is required to buy a pen manufacturing machine?

You can buy an automatic machine that will do all the tasks. That machine will cost you about $8,000 in the U.S or Rs 4,50,000 Rs in India.

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