Matchbox Manufacturing Project Report



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A matchbox is a box constructed of cardboard or thin wood that is used to hold matches. It generally has a coarse striking surface on one side for lighting the matches within. A safety match can only be lit by hitting it on the striking surface on the match box’s side. Sand, powdered glass, and a chemical called “red phosphorous” are used to create a “striking surface.”The shape of a simple matchbox is cuboids.

Matches are purchased in bulk. There’s the wooden variety, which comes inboxes. There are also paper matches, which are stapled into matchbooks in rows. Because matches are utilised in practically every home and industrial institution, there is always a significant demand for them. This indicates that the matchstick manufacturing industry has a lot of profit potential. 

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Matchsticks are a very useful tool for starting a fire. They’re used to light ovens, kerosene stoves, and cookers in the kitchen. Starting a fireplace, industrial burners, a campfire, or lighting candles are other uses. Plastic, wood, and cardboard strips are used to make matchsticks. Under controlled settings, matchsticks are used to create a fire. In many homes, they are used to start a fire for cooking. They are also used in industry to ignite fires when heat energy is required and burn waste materials.

Market Potential

India produces four million matchboxes each day, the cheapest in the world. Indian matchboxes account for one-third of all matchboxes used worldwide. Every year, the sector generates 90 million bundles, with each bundle containing 600 matchboxes and each box containing 40 to 50 sticks. Matchsticks are a fast-moving consumer commodity that necessitates branding to gain market share. Matchsticks are purchased in bulk. The business’s success is dependent on a strong channel network.

The production of wooden matches in India is divided into three sectors:

  • The large-scale mechanised sector;
  • Handcrafted small-scale sector and
  • The cottage industry sector; and the small-scale sector.

The technology has remained quite straightforward. Wooden matches account for 82 percent of total match output—handcrafted small-scale (67%) and cottage (15%) industries, respectively. These two non-automated the match industry is divided into many sectors based on its output size. The cottage industry in matchmaking is officially described as any Less than 75,000 cases are produced by a manual production facility box per year.

Matchsticks are in high demand, and billions of matchboxes are used every day. Matchsticks create fire, which is required to cook, light candles, and smoke cigarettes, among other things. On a modest scale, anyone can start a matchstick manufacturing business while adhering to strict safety regulations.

FMCG Market in India

FMCG products touch every element of our existence. People from all walks of life commonly use these things, and they account for a significant percentage of their income. Apart from that, this sector has a significant contribution to India’s economy. This industry has experienced a tremendous expansion in recent years, and it has even experienced growth throughout the recession.

India’s fourth-largest employer is the fast-moving consumer goods (FMCG) business, with Household and Personal Care accounting for half of all FMCG sales. The urban segment accounts for roughly 55% of the total income generated by the FMCG sector in India. Rural India’s market has developed at a higher rate in recent years than urban India’s. Semi-urban and rural areas rapidly expand, with FMCGs products accounting for 50% of overall rural spending.

From US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18, the FMCG industry has increased significantly. By 2020, the sector is predicted to increase at a compound annual growth rate (CAGR) of 27.86%, reaching US$ 103.7 billion. Increased awareness, better access, and changing lifestyles have been the primary development factors in the business. The extraordinary expansion of the FMCG industry in India, particularly in tier II and tier III towns, is mainly attributable to an improvement in the people’s standard of living and an increase in disposable money.

Machinery Requirement

Basic Machinery requirements are as follows:

  • Chain Saw
  • Log Debarker
  • Veneer Peeling Machine
  • Veneer Chopping Machine
  • Rotating Drum Dryer
  • Vat
  • Feed Hopper
  • Perforated Belt Conveyor
  • Open Chemical Tanks
  • Matchbox Making Machine (with Coating Unit)
  • Matchstick Filling Machine
  • Counting and Packaging Machine 

Raw Material

In the production of matches, it is a two-part procedure. The matchstick and the match head are two types of matches. Let’s take a look at each of the two aspects separately.

  • Matchstick: Wooden matchsticks are the most common type of matchstick. The wood must be robust enough to withstand the force of the strike. It must also be porous to absorb chemicals when being treated. Matchsticks are most commonly made from pine and aspen woods. Matchsticks are now made from wax and plastic as well.
  • Match Head: The match head is the matchstick’s head. This is where the chemicals are carried over to start a fire when struck with the matchbox’s side face. Sulphur, an oxidising agent such as potassium chlorate, powdered glass, binding agents, starch, and other chemicals, are commonly utilised.
  • Matchbox: Matchboxes are made of cardboard in most cases. The side surfaces are employed to make a statement. Red phosphorous, powdered glass and an adhesive are combined on the side surfaces.

Basic raw materials are as follows:

  1. Wood
  2. Cardboard
  3. Chemicals & other consumables (like Red phosphorous)
  4. Paper and Packing Material.

Process Of Manufacturing

The following is the manufacturing process:

  • Matchstick Production: A chain saw is used to cut lumber into appropriate lengths. Once the bark is pulled away, the log is peeled into veneer-like thin long shavings by the peeling machine. The veneer is next split and sliced by the chopping machine to the desired stick size. The sticks are then immersed in a dilute ammonium phosphate solution and dried. The matches are then thrown into a feed hopper, where they are lined up. They’re held upside down by a perforated belt while being dipped in three tanks. Before being boxed, the matches are dried for 50-60 minutes.
  • Matchbox Manufacturing: Matchboxes are made to hold match sticks in this step. The paper box producing machine cuts, folds, and glues printed sheets for outer boxes sent from printing facilities to produce matchbox containers and covers.
  • Filling: The automatic filling mechanism places the match sticks into the matchbox.
  • Finishing Process: In this step, the chemical coating machine coats the matchboxes with chemicals after the box filling machine has filled them with match sticks and placed them in trays.
  • Packaging: A counting and packaging machine counts and packs the matchboxes into larger unit packaging, then packaged in cardboard and dispatched for sale.

Obtain And Register All Required Licence

It is critical to register your company if you wish to run a legally acceptable matchbox manufacturing firm. The best legal company structure for your company will be determined by its size and resources. It is preferable to seek legal advice from a local attorney before deciding on the ideal business structure. The same is true when it comes to obtaining licences and permissions.

Matchbox Manufacturing Safety Measures

Matchbox production requires extreme caution due to the presence of dangerous chemicals. Due to the presence of combustible raw materials, poor quality control may result in an unintentional explosion.

The matchbox industry has progressed from a manual to a fully automated manufacturing process. The matchmaking industry is now regarded as a large-scale enterprise. Although industrialised countries such as the United States see slower growth as a result of superior alternatives, developing countries continue to have enormous growth potential.

Key Points Cover in Sample Project Report  

Project Report Table of Contents

Sr. No.Particulars
1Purpose Of The Document
2Project At A Glance
3Product Introduction
4Uses & Market Potential
5Machinery Details With Images
6Raw Material
7Manufacturing Process
8Project Infrastructure
9Land And Building
11Power And Fuel
12Bank Term Loan And Working Capital
14Licences And Registrations
15Implementation Schedule
16Financial Aspects
17Cash Flow Statement
18Projected Balance Sheet
19Projected Profitability Statement
20Computation Of Making Of Match Box
21Computation Of Working Capital Requirement
22Break Up Of Labour
23Break Up Of Salary
24Computation Of Depreciation
25Repayment Schedule Of Term Loan
26Calculation Of D.S.C.R
27Computation Of Sale
29Break Even Point Analysis
30Financial Indicators / Ratio
31Plant & Machinery List

Apart from this, all the information is being provided. To help in preparing project reports.



  • To increase earnings in the firm, one must have a project report and follow the project report’s instructions. The report should include detailed information on the capital expenditure, machinery, raw material requirements, and the sourcing location.
  • In the long run, a matchstick company requires a high rate of return on investment.
  • Raw materials should be of excellent quality, and the cost of raw materials should be as low as possible so that the profit on final products may be maximised.
  • Appropriate suppliers supply high-quality raw materials at a reasonable price, allowing you to profit your business.
  • Please make sure the entire labourers are skilled since they will bring the manufacturer profit in the long run.
  • Ascertain that all requirements are completed so that the manufacturer is not penalised and loses money. 


Develop a competitive strategy

Strategic planning is the first step in surviving or staying ahead of the competition. You must first identify your rival and then determine the competitor’s strengths and shortcomings before formulating a strategy based on the data obtained. Concentrate all of your offensive energy on your opponent’s flaws while avoiding and protecting against their advantages.

Focus on a niche

Find a specialised market and dedicate yourself to serving that niche to the best of your ability.
It’s up to you to identify such a niche and devote all of your marketing efforts to it. Concentrate your efforts rather than spreading them out, and don’t attempt to be everything to everyone; instead, be something to someone.

Make an effort to stand out

To outwit your competition, you must be one-of-a-kind. You must discover your strength, develop it, and share it with the rest of the world. So, if you want your company to be relevant in the industry, you must be distinctive.

Create a brand for your company

You can develop a strong brand image by prioritizing quality, attempting to meet your brand promise, and focusing on your overall brand image. The majority of today’s well-known companies were once tiny businesses. You’ll stay ahead of the competition if you continuously spend in creating a brand for your company.

Concentrate on the Customer

Most organizations are so preoccupied with keeping an eye on the competition that they overlook their most valuable asset: their customers. Your primary focus should be on better serving customers; your ultimate goal should be to provide the highest level of customer satisfaction.

Make an emotional connection with your consumers

Knowing your customer’s needs and touching them at the moment of need is part of connecting with them. You have nothing to fear from the competition if you can accomplish this.

Strive for excellence

You must demand quality and make it a standard in your company. You may set yourself apart from the competition by insisting on high quality at a reasonable price.

Concentrate on new ideas

To stay competitive in the market, a company’s overall strategy focuses on innovation. Being creative does not involve investing millions of dollars in research and development; it just entails being ready to experiment with new goods and processes to increase the value of your services.

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For whom are these formats useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who want to self study

In addition to those who want to prepare project reports themselves.

Sample Project Report Format

In our project report format, we cover technology details, its diagrams, flow chart etc. as and when required or deemed fit to include. Also, prepare in-depth financial calculations which is necessary for the Investor/bank.

You will get the  report data Matchbox Manufacturing Business in PDF or MS word. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.


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