BUSINESS PLAN
Report on
RETAIL STATIONERY SHOP
PROJECT ON STATIONERY SHOP
HIGHLIGHT OF THE PROJECT
A. NAME OF THE UNIT M/S( As per Udyog Adhar Registration)
I CONSTITUTION PROPRIETORHIP
II PROMOTER Trainee with Skill Knowledge on respective
Project
III PROPOSED LOCATION URBAN/SEMI URBAN AREA
B TOTAL PROJCT INVESTMENT
I FIXED CAPITAL Rs.41,5000.00
II WORKING CAPITAL Rs.1,58,500.00
III TOTAL Rs. 2,00,000.00
IV MEANS OF FINANCE
V PROMOTERS CONTRIBUTION Rs. 50,000.00
@25%
VI BANK LOAN @75% Rs. 1,50,000.00
VI TOTAL Rs. 2,00,000.00
VII PROJECTED NET PROFIT 01 02 03
04 Year 05 Year
(Rs. 000) Year Year Year
55.42 84.26 113.10 142.94 146.54
C FINANCIAL ANYLASIS
I PERCENTAGE OF PROFIT ON SALES 5.79%
II PERCENTAGE OF PROFIT ON TOTAL INVESTMENT 47.93%
III BEP 31.29%
IV AVERAGE DSCR 1:3.43
V DEBT EQUITY RATIO 3:1
VI LOAN REPAYMENT PERIOD 05 Years
RETAIL STATIONERY SHOP
1. Introduction:
Stationery items like notebooks, exercise books, logbooks, pen, pencil, high lighter, marker,
sharpener, file, folder, papers, eraser, stapler, items required for various project, pencil box
etc. are compulsory items for students. The stationery business is a customer’s driven The
Stationery ha historically means a wide range materials, papers, and officials supplies,
writing implements, greeting cards, glue, pencils case etc.
2. Market Potential:
In the global market in writing instruments is estimated about USD 38 billion of which global
pen market accounts for nearly USD 30 billion. In India market consists of around 15
largescale, 100 medium scale, and 1000 small scale manufacturing units. These units have a
combined production capacity of over 10 million pieces a day. About 80% of revenue of the
pen industries in India comes with a price range of up to Rs. 15/-. A small percentage of pens
is priced in the range of Rs. 100/- to Rs.300/- and miniscule of the market is contributed by
the super premium segments in which the price tag goes high as Rs. 1,00,000/-or more. While
the market for lower price range (up to Rs. 15/-) is growing a rate of 7% to 8% annually, the
market for the pen is growing at 8% to 10%. Besides the global Stationery products market
size was valued at USD 90.6 billion in 2018 and expecting to expand at 5.1% over the
forecast period. Growing literacy rate across the country and the increasing numbers of youth
inclining towards higher education are among the prominent factor for the market growth. In
India the stationery industry is worth Rs. 4000 core, comprising of wide verities of products
and categories. It can right be classified in to paper products, writing instruments,
computers stationeries, school stationery, and office stationery. Though the Indian
stationery industries are dominated by the local stationery players, and a large numbers of
players are now entering in the industry.
In India, major demand for stationery products is generated from education sector due to
increasing enrolment of students in schools and higher educational institutions. Further,
growing e-commerce industry in the country is also contributing to rising sales of stationery
products. Office segment is the second highest consumer of stationery products and is
anticipated to register healthy growth during the forecast period due to growing demand for
stationery products in the service sectors. Amongst all, paper stationery accounted for the
major revenue share in the overall India stationery market. Exercise notebooks, copier paper
and premium paper stationery are the key revenue generating segments. Furthermore,
exercise notebook segment has captured highest share in paper stationery market. Amongst
all the regions, the Northern region accounted for highest revenue share in 2017. Market is
expected to flow on account of growing youth population and literacy rate across the country.
In large offices you often have a stationery cupboard you can pull stuff from. In your home or
small office you need to think ahead.
3. Stationery stores for sale
Pens – blue, black, red
Highlighter Permanent marker (Text / Sharpie)
Pencil and pencil sharpener
Colour pencils
Colour pens
Colour markers
Eraser
Correction tape / fluid / Liquid Paper
Mechanical pencil and spare leads
Plain paper (for printer)
Notebooks, ruled paper, binder books
Scrapbook, art book
Ruler
Glue
Sticky tape + dispenser
Packing tape + dispenser
Bulldog / Fold back clips
Stapler and staples
Rubber bands
Paper clips
Hole punch: 2 hole, 3 hole, 4 hole
Drawing pins
Plastic file, paper file
Manila folders
Storage pockets
Arch folders: 2 ring? 3 ring? 4 ring?
Folder divider
4. Land & Building:
The promoter has taken a room on rent for the proposed project against monthly rent
of Rs. 4000 (Two thousand) the room size is around 600 square feet which will be
repaired with the materials available locally. The showroomwill be a well- ventilated
covered hall, and will also include storing 0f consumable materials with cash counter.
1. TOTAL FIXED CAPITAL:
Sl. Amount
Particulars Unit Price (Rs)
No (Rs)
1. Stores Furniture’s -- 25,000.00
(Racks)
2. Electrification -- 4,000.00
3. Front Rack -- 5000.00
4. Misc. Fixed Asset 7,500.00
Total 41,500.00
WORKING CAPITAL ESTIMATES:
Consumables Stores for Sale:
Sl Items Consumption Amount
Paper & Paper products
Exercise Books of various size ( plain, High Sale
rolled, drawing books, computer Item
printing paper, full scrape papers ,
colour paper, drawing sheet, Text
Books etc.
Writing instruments
Writing instruments( pen- blue, black, High Sale
red, green,- highlighter, permanent Item
marker, verities grade of pencil,
colour pencil, etc.
Computer Stationeries
computer paper, pen drive, computer Low Sale
cover etc. Item
School Stationeries:
sharpener, Erase, Mechanical pencil, Medium Sale
Correction tape, Scrapbook, spare Item
leads, Scrapbook, art book, Ruler,
Glue etc.
Office Stationeries.
Notebooks, ruled paper, binder books, High Sale
Sticky tape + dispenser, Packing tape Item
+ dispenser, Bulldog / Fold back clips,
Stapler and staples, Rubber bands,
Paper clips, Hole punch ( 2 hole, 3
hole, 4 hole), Drawing pins, Plastic
file, paper file, Manila folders, Storage
pockets, Enveloped ( different size),
Arch folders ( 2 ring, 3 ring, 4 ring),
Folder divider etc.
Total Rs. 1,48,500.00
2. MANPOWER (PER MONTH)
Nos. Salary Amount
Sl No Personnel’s
(Rs) (Rs)
1. Manager (self) 1 Nos Self
3. Helper 1 Nos @ 5,000.00
Rs.5000/-
5000.00
3. ADMINISTRATIVE EXPENSES (PER MONTH)
Amount
Sl No Description
(Rs. )
1. Utility (Electricity / Water 800.00
2. Rent /Office Stationary 4,000.00
3. Travelling Expenses 500.00
4. Advertisement /Publicity/packaging 700.00
5. Insurance 500.00
6,500.00
4. TOTAL WORKING CAPITAL REQUIRED
Sl No. Description Stock Amount ( Rs. )
Period
1. Consumable stores ----- 1,48,500.00
for sale
2. Manpower 30 Days 5,000.00
3. Administrative 30 Days 5,500.00
Expenses
1,58,500.00
5. TOTAL CAPITAL INVESTMENT OF THE PROJECT :
A Other Fixed Asset 41,500.00
B Working Capital 1,58,500.00
Total: 2,00,000.00
6. MEANS OF FINANCE
Promoters Contribution: 50,000.00
Loan from Bank 1,50,000.00
2,00,000.00
(Besides 7% Subsidy on Loan under SEP-I under NULM, Govt. of Assam)
7. PROJECTED SALES REALISATION: (EXPECTED SALE OF CONSUMABLE
STOCKS: )
Stock Sales Average margin on sales 16%
on sales volume. (amount)
Projected daily 4000/- Rs. 640.00
average Sales
Projected monthly 1,00,000.00 Rs. 16,000.00
average Sales
Projected Yearly Rs. 1,92,000.00
average sales turn
over
ANNEXURE-XIV
COST PROFITABILTY STATEMENT
(Rs .In Thousands ‘000)
Item /Year 1 2 3 4 5
Capacity Utilisation 50% 60% 70% 80% 90%
Sales turn over 192.00 230.40 268.80 307.20 345.60
Expenditures
Manpower 60.00 65.00 69.00 72.00 72.00
Administrative Expenses 66.00 70.00 75.00 80.00 80.00
Total Operating 126.00 135.00 144.00 152.00 152.00
Expenses(Total of C)
Operating Profit 66.00 95.40 124.80 156.14 156.14
Depreciation ( straight line
method)) 6.00 6.00 6.00 6.00 6.00
Interest 18.00 14.40 10.8 7.20 3.60
Net Profit (E-F-G)) 55.42 84.26 113.10 142.94 146.54
Cash Flow 61.42 90.26 119.10 148.94 152.54
ANNEXURE-XV
REPATMENT SCHEDULE
Interest rate @ 7%
( Rs. In Thousands, 000)
Year 01 02 03 04 05
Opening 150.00 120.00 90.00 60.00 30.00
Balance
Principal 30.00 30.00 30.00 30.00 30.00
Interest @ 18.00 14.40 10.80 7.20 3.60
12% P/A
Closing 120.00 90.00 60.00 30.00 NIL
Balance
ANNEXURE-XVI
DEBT-SERVICE COVERAGE RATIO
(Rs In Thousand ‘000)
Particulars
First Year Seco nd Year Third Year Fourth Year Fifth Year
A. INCOME
Net Profit 55.42 84.26 113.10 142.94 146.54
Depreciation 6.00 6.00 6.00 6.00 6.00
Interest 18.00 14.40 10.8 7.20 3.60
Total 79.42 104.66 129.90 156.14 156.14
B. COMMITMENT
Principal 30.00 30.00 30.00 30.00 30.00
Interest 18.00 14.40 10.8 7.20 3.60
Total 38.00 34.40 40.80 37.20 33.60
DSRC 2.09 3.04 3.18 4.20 4.65
1:3.43
Average DSCR
ANNEXURE- XVII
BREAK –EVEN ANALYSIS
(Rs. in Thousands, 000)
[Link] COST
Depreciation 6000.00
Interest 18,000.00
Fixed administrative overhead 12500.00
Fixed manpower 15,000.00
TOTAL 51,500.00
[Link] OF NET PROFIT 3rd
1,13,100.00
Year of Operation)
BEP Fixed Cost X100/ Fixed Cost + Net Profit
51,500X 100/ 51,500 + 113,100
31.29% ( on Sales)
ANEXURE XVIII
RETURN ON INVESTMENT
( Third Year of Operation)
(Rs. in Thousands, 000)
(a)Return on Sales Ratio: Net Profit X100/ Total Sales
Rs. 1,13,100.00 X 100.00/ Rs.2,05,420
=7.67 %
(b) Return on Total Net Profit X100/ Total Investment
Investment Rs. 102610.00 X 100.00/Rs. 2,00,000.00
=51.31%
