White Staple Pins

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Product Code 387502009
Quality and Standards IS 4224 : 1972
Production Capacity Qty. : 1300 Cartons (per annum)
Value : Rs.5850000
Uploaded on April 2007


The project is to manufacture staple pins especially of galvanised iron wire type, commonly known as white staples. These staples find wide application to staple sheets of paper, cheque, common known bills, album photos, sandwich bags and in financial institutions, offices, garment industry, leather industry, rubber industry and any shop delivering the materials in packets and so on.

These white shining staples of good quality are currently imported involving an estimated foreign exchange drain of Rs. 60 crores per year. In India, manufacturing has been limited to mostly copper coated staples, which unfortunately rust fast. Also some white staples made from substandard wires have been in the market. However, neither of these are comparable in quality and performance to these of white staples such as those of "MAX" of Japan.

Market Potential

White staples made in India can compete without strain against "MAX" of Japan especially since the matching quality is assured while the whole sales price is low per packet of No. 10 staples. With the assistance of sales representatives and a network of dealers organisation, it is apparent that the staple pins can be sold easily in domestic market. The project also envisages entering exports especially since the staple pins can stand up to the rigours of the International quality standards.

Basis and Presumptions

  • Capacity utilisation - 75% on single shift basis.
  • Time period (one year) - 300 days.
  • Labour wages-Estimated on the minimum wages.
  • Rate of interest -12% per annum.
  • Margin money -25% varying from State to State.
  • Operation period of project- 10 Years.
  • Building is of Own at the prevailing rate of market.
  • Cost of machinery and equipment is approximate to that prevailing in the market.

Implementation Schedule



Selection of site 2 weeks
Preparation of project report 4 weeks
Provisional registration 1 week
Financial arrangement 8 weeks
Procurement of machinery 6 weeks
Installation, electrification and commissioning of machinery 8 weeks.

Technical Aspects

Process of Manufacture

The process of making staple pins has been simplified with introduction of sophisticated fully Automatic Staple Pin Making Machines. The preformed round wire is fed to the machine which flattens it and produces the necessary staple pins in pre-determined lengths of 50 staple pins in each length. The formation of this length is assisted by the use of a special staple pin adhesive, also developed in India. The staple pin lengths are packed suitably with each packet containing 1000 pins. 20 of these packets are packed in a box and 40 of these packets are packed in cardboard carton.

Quality Control and Standards

The pins should be manufactured as per relevant Indian specification IS 4224:1972.

Production Capacity (per annum)

1300 cartons of staple pins

Motive Power 10 HP.

Pollution Control

Manufacturing of this product does not attract pollution control measures.

Energy Conservation

The unit is equipped with low powered machinery. The energy conservation efforts need in this unit are the creation of awareness among the workers.

Financial Aspects

Fixed Capital

(i) Land and Building
Total Built up area & covered area 200 Sq. mtrs.@ Rs 6000 / Sq Mtr 1200000
Construction Cost for Working shed, store, office etc 200 Sq Mtr @ Rs 7000/ Sq Mtr 1400000
Total 2600000

(ii) Machinery and Equipments




Amount (In Rs.)

Automatic staple pin making machines with electricals 12 200000 2400000
Double ended Bench grinder cap 8" wheel     25000
Common tools and measuring instruments     15000
Spares and fixtures     10000
Installation and electrification @ 10%     245000
Office equipment, furniture etc.     80000
Total 2775000
(iii) Pre-operative Expenses 40000
Total Fixed Capital (i+ii+ iii) 5415000

B. Working Capital (per month)

(i) Personnel Salary and Wages



Salary (Rs.)

Amount (In Rs.)

Manager/Foreman 1 18000 18000
Accountant clerk/typist 1 7000 7000
Skilled worker 4 7000 28000
Semi-skilled worker 6 5000 30000
Helper 2 3000 6000
Watchman 1 3000 3000
Total 92000
Add perquisites @22% 20240
Total 112240

(ii) Raw Material (per month)

Raw Material (indigenous)

(In Rs.)

Preformed wire (round wire)@ Rs. 70 per kg. 200 Kg 140000
Adhesive @ Rs. 250 per ltrs. 100 Ltrs. 25000
Packing material/boxes L.S. 40000
Total 205000

(iii) Utilities


(In Rs.)

Power 10000
Total 10000

(iv) Other Contingent Expenses


(In Rs.)

Postage and Stationery 1000
Travelling and transport 10000
Repairs and maintenance 3000
Advertisement and publicity 5000
Insurance 1000
Consumable stores 5000
Telephone charges 2000
Selling expenses 10000
Misc. expenditure 3000
Total 40000
(v) Total Recurring Expenditure (per month) (i + ii + iii + iv) 367240
(vi) Total Working Capital for 2 months 734480

C. Total Capital Investment

(i) Fixed Capital 5415000
(ii) Working Capital (for 2 months) 734480
Total 6149480

Financial Analysis

Cost of Production (per year)

(In Rs.)

Total recurring cost 4406880
Depreciation on machinery and equipment @ 10% 245000
Depreciation on Building@5% 130000
Depreciation on office equipment @ 20% 16000
Interest on total investment @ 12% 737938
Total 5535818

Total Sales (per annum)

By sale of 1300 cartons No.10 staple pin @ Rs. 4500/ carton 5850000

Profit (per annum)

  5850000- 5535818

= 314182

Net Profit Ratio

  Net profit × 100
  = 314182 × 100
  = 5.37

Rate of Return

  Net profit × 100
  Total Investment
  314182 × 100
  = 5.11

Break-even Point

Fixed Cost (per year)

(In Rs.)

Depreciation on machinery and equipment @ 10% 245000
Depreciation on Building@5% 130000
Depreciation on office equipment @ 20% 16000
Interest on total investment @ 12% 737938
40% of salary and wages 538752
40% of other contingent expenses (excluding insurance) 39000
Insurance 12000
Total 1718690

B.E.P Fixed Cost × 100
Fixed Cost + Profit
  = 1718690 x100
  = 1718690 +314182
  = 84.54

Addresses of Machinery Suppliers

  • M/s. Industrial Machine Corporation
    F-36, C, Sainik Market,
    Main Road, Ranchi - 834001.
  • M/s. OTO Corporation
    305, 5th Main Cross,
    TV Phase Peanya Indl. Area,
    Bangalore - 560058
  • Sohal Engg. Corporation
    61, Ganesh Chandra Avenue,

Raw Material Suppliers

Raw material available in the local markets

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com