§1What this business is
Galvanised steel wire is fed into paper clip making machines that form and bend each clip; clips are then counted and packed. The report uses four clip machines, two conveyors and an air compressor. Offices, schools and stationery wholesalers are the buyers.
Capacity: The report's assumption says 4,000 pieces a day, starting at 50% in year 1; this does not match its own sales figures, so confirm real machine output with the supplier.
§2Is it right for you?
Who it is for
Someone in the stationery trade with wholesale buyers.
Who it is not for
Someone without a plan to sell in large volumes.
Advantages
- Single raw material — steel wire
- Simple, automatic process
- Steady office and school demand
- Can add gem clips, U-clips and pins
Drawbacks
- Low price per piece; volume is everything
- Cheap imports and large brands
- Steel wire price swings
- Report's capacity figure is unclear
Skills you need
- Wire-forming machine setting
- Packing and counting
- Stationery wholesale network
- Wire buying
Why difficulty 2/5: Simple machines; the challenge is volume sales at a thin price.
§3Market
Who buys
- Offices and banks
- Schools and colleges
- Stationery shops
How it sells
- Stationery wholesalers
- Online marketplaces
- Government and institutional supply
Good to know
- The report says e-commerce has widened the reach of small paper-pin makers.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Paper clip making machine | 4 | ₹2,80,000 (₹70,000 each) |
| Conveyor | 2 | ₹3,40,000 (₹1,70,000 each) |
| Air compressor | 1 | ₹1,50,000 |
From: PMEGP sample project report — Paper Clip (prepared by Udyami/Samadhan)
- Galvanised steel wirethe only raw material named in the report
From: PMEGP sample project report — Paper Clip (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent, if your state requires it for this activity
- Legal Metrology packaged-commodity registration (for packed goods)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report was made for it), MUDRA for loans up to ₹20 lakh (the report's term loan is ₹8.28 lakh), CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: Sample report: plant & machinery ₹7.70 L + furniture ₹1.50 L + working capital ₹5.59 L = ₹14.79 L. Premises own or rented. Term loan ₹8.28 L, own ₹1.48 L, working-capital loan ₹5.03 L.
Working capital: Working capital ₹5.59 lakh (bank ₹5.03 lakh) for 10 days of stock and 14 days of credit.
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- HS heading from the ITC(HS) 2022 schedule; confirm the 8-digit line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Wire price rises
- Rust from poor galvanising
- Import competition
- Overestimated output
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working paper clip manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Paper Clip Manufacturing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.