The stationery market in India was valued at INR 90 billion in 2009 and is expected to grow at an annual rate of 30% until 2012. It comprises a wide range of products catering mainly to schools and offices. Approximately 85% of the market is unorganized. Major players in notebooks include Blue Bird, ITC and Navneet, while paper is dominated by JK Paper, BILT and TNPL. Writing instruments are led by Cello and Luxor. Trends include increasing education spending driving stationery demand, organized retailers promoting stationery product sales, consumers preferring new pens over refills, and a shift to higher quality items with foreign brand entries.

1. Stationery Market ‐
Stationery Market India
October 2009

2. Executive Summary
 Stationery market comprises of a mixed range of products mainly catering to schools and offices
 Stationery market in India is valued at INR 90 bn for the year 2009
Market
 The market is expected to grow at an annual rate of 30% till 2012
 Office stationery is fast growing with many players expanding their product line into this segment
Office stationery is fast growing with many players expanding their product line into this segment
 High propensity to spend on education and thereby stationery
 Shift in focus from inexpensive to quality products
Trends &
 Entry of foreign brands in the Indian market driving the organized segment
Characteristics
 Consumers opting for new pens instead of refills
 Organized book retailers are driving sales of stationery products
 Government regulations and taxes
 About 85% of the stationery market is unorganized in India
About 85% of the stationery market is unorganized in India
 The unorganized market is dominated by imports from China
Competition  Blue Bird, ITC and Navneet dominate the notebook market
 Cello and Luxor are the two major players in writing instruments market
 Over 70% of the paper market is dominated by JK Paper BILT and TNPL
Over 70% of the paper market is dominated by JK Paper, BILT and TNPL
Notebook Paper Writing Instruments
• Blue Bird • BILT • Cello
• ITC • JK Paper • Luxor
• Navneet • TNPL • Linc
STATIONERY MARKET – INDIA.PPT 2

3. •Market Overview
•Trends & Characteristics
Trends & Characteristics
•Competition
•Key Developments
•Key Developments
STATIONERY MARKET – INDIA.PPT 3

4. Stationery industry is an assorted group of businesses and is
Primarily associated with schools and offices
•Stationery industry includes a wide range of paper products, writing instruments, computer and daily
used stationery like staplers, erasers, binders, punch machine, children stationery and other related
items
Segmentation by Type Segmentation by Use
Stationery
St ti Stationery
St ti
Notebook and Computer and
Paper Daily Use School Stationery Office Stationery
Writing
Instruments
STATIONERY MARKET – INDIA.PPT 4

5. Indian stationery market is poised to grow at 30% annually
Market Overview Market Size & Growth
• The stationery market in India is valued at INR 90 bn
in 2009 INR bn
198
• The market is expected to grow at 30% annual rate 200 +30%
%
till 2012 152
150
• Stationery industry is dynamic in nature and creates 117
100 90
innovative products and ideas to capture consumer
preference
preference 50
• Office stationery is growing at a faster pace and
0
many players are expanding into this segment
2009 2010 2011 2012
Segment Share by Usage Market Share by Segments
School stationery 6% Notebook
Office stationery and Paper
Writing
44% 31% Instruments
56% Computer and
63% Daily Use
STATIONERY MARKET – INDIA.PPT 5

6. Growth in notebook industry is boosted by government policies
and initiatives on education and literacy in India Notebook &
Paper
Market Overview Notebook vs. Paper
• The Notebook and Paper segment is valued at INR 55
bn Paper
 Notebook : INR 40 bn 27%
 Paper : INR 15 bn
• The thrust on education by the Government of India
is the prime growth driver of the notebook industry
• Big corporates have entered this segment and are
Big corporates have entered this segment and are 73%
playing an important role Notebook
• Inspite of many corporates moving towards
paperless offices, the paper market is growing at an
annual rate of 6‐7% Organized vs. Unorganized – Notebook
• ITC is supplying its paper directly to corporates
including Tata Group, Wipro, IBM, HSBC and ICICI Organized
Prudential 23%
• Major players
 Notebook: Blue Bird, ITC, Navneet
 Paper: BILT, JK Paper, TNPL
76%
Unorganized
STATIONERY MARKET – INDIA.PPT 6

7. The writing instrument market in India is valued at INR 28 bn and
has strong potential for continued growth Writing
Instrument
Late 1970s 1980 1982 1984 1986 Late 1990s 2009
• Increased • Reynolds • New models • Writing
• Introduction • Linc entered
acceptance of • Luxor made an like fiber instruments
of fountain the market
ball point pen. entered the entry and tips, roller industry is
and ball
Market leader market became balls, gel worth INR
point pens
Wilson Jotter
Wilson Jotter popular pens etc.
pens etc. 28 bn
28 bn
Market Overview Segment Share – Writing Instruments
• Writing Instruments market is valued at INR 28 bn Others
and is growing strong in both rural and urban areas
Pencils 6%
• There is an increasing demand for branded products
from the growing middle class 15%
• Extensive sales and distribution network is increasing
penetration of branded products
• Major players
 Pens: Cello, Luxor, Lexi, Linc, Flair and GM Pens 79%
 Pencils: Hindustan Pencils Pens
STATIONERY MARKET – INDIA.PPT 7

8. •Market Overview
•Trends & Characteristics
Trends & Characteristics
•Competition
•Key Developments
•Key Developments
STATIONERY MARKET – INDIA.PPT 8

9. High propensity to spend on education and thereby stationery
Organized book retailers are driving sales of stationery products
Consumers opting for new pens instead of refills
Trends &
Characteristics
`
Shift in focus from inexpensive to quality products
Entry of foreign brands in the Indian market driving the organized segment
Government regulations and taxes
STATIONERY MARKET – INDIA.PPT 9

10. Large expenditures on education has led to a growing stationery
market
High propensity to spend on education and thereby stationery
• Education is the second highest expenditure segment among middle class households after food
Positive
and grocery, and stationery stands at sixth position externality of
• Also, the government’s spend on education laying emphasis on building more schools has growth in the
increased the demand for stationery in India education sector
• Increasing spend on education drives the growth in sales of stationery products
Distribution of Expenditure Among the Middle Class
0 4 8 12 16 20 24 28
Food & Grocery 24.5%
Education 8.9%
Entertainment 8.3%
Mobile Phones 7.7% Highest share of
High share of
Transportation 4.3% discretionary
di ti
Stationery 4.3% spend
Personal Care 4.2%
Communication 3.7%
Healthcare 3.2%
Footwear 3.1%
Toys & Gifts 3.0%
Apparels
A l 2.8%
2 8%
Loan Payment 2.3%
Cable & Internet 2.2%
Household Help 2.2%
Homecare 1.5%
Rent & Utilities 1.3%
Jewellery 1.3%
Vacation 0.7%
0 7%
Furnishing 0.6%
Others 10.0%
STATIONERY MARKET – INDIA.PPT 10

11. Stationery products are bundled with books by many organized
book retailers
Organized book retailers are driving sales of stationery products
• Organized book retailers are focussing on promoting stationery in their stores and are planning Book retailers
to get their private labels on them cashing‐in on the
• Non‐book categories such as stationery, toys and music are accounting for higher sales and also growing demand
for stationery
give them higher margins
Company Business Description
• It is a community engagement store in Kolkata from Spencers Retail of RPG group
Books and Beyond
• It offers a wide range of reading options, art and stationery related merchandise for homes, schools and offices
p p g g
• Crossword started its operations in 1992 and with 52 stores at present is India’s fastest growing bookstore
Crossword
• The sales of non‐book categories like pens, stationery, toys and music is grossing 40‐42% of total sales
• Landmark is the first large format book and stationery retailer in India. Commenced operations in 1987 with its first
Landmark store in Chennai and currently has 10 stores, ranging in size from 12,000 sq. ft. to 45,000 sq. ft.
• Retailing major Trent acquired Landmark in 2006
• Oxford is an old bookstore started in 1920 in Kolkata, it now has branches in Mumbai, Bangalore, Goa, New Delhi,
Oxford Chennai and Bhubaneswar
• It has a separate stationery section which caters to homes and offices
• Started in collaboration with Landmark in 1999, Starmark is a wholly owned subsidiary of Emami Group
Starmark
• It has currently three stores operating in Kolkata, has an extensive stationery section
h l h lk h
STATIONERY MARKET – INDIA.PPT 11

12. Stationery market is evolving dynamically primarily due to the
changing perception and growing demand from consumers
Shift in focus from inexpensive to quality products
• Increase in corporate activity in India has led to many international companies entering India.
Change in
They are constantly expanding operation thus requiring large stationery supplies mindset among
• Each office requires quality stationery supply like business organisers, desk calendars, letter the corporate to
quality products
openers, pen holders, staplers and many more
Entry of foreign brands in the Indian market driving the organized segment
• Indian stationery market will witness growth in the organized segment with international brands
entering at the premium end
• Faber‐Castell, a German stationery major entered India in 1998 and is now a leading player in Foreign brands
capitalizing on
the school stationery segment
y g the growth
the growth
• Maped, a major French stationery firm sells its products through its exclusive importer and prospect
distributor, Ayrton Agencies Pvt. Ltd., located in Mumbai
Consumers opting for new pens instead of refills
• Many new models are being developed constantly and are flooding the market
Shift in consumer
• The latest supply patterns in the writing instruments segment is the large distribution network perception to the
and exclusive retail outlets which allows instant access to products usage of new
• The increase in purchasing power has resulted in consumers opting for new pens instead of
The increase in purchasing power has resulted in consumers opting for new pens instead of pens
pens
refills
STATIONERY MARKET – INDIA.PPT 12

13. Stationery market is governed by regulations related to product
packaging, taxes and sale of customized stationery by schools
• According to the Packaged Commodity Act 1977, all the details of packaged article should be
mentioned on it
• Apart from MRP, the size of copy, number of pages, and name and address of manufacturer
Regulations on
Regulations on should be mentioned on the product
should be mentioned on the product
packing • In the case of overlooking these norms, the departments like Weight And Measurement can
initiate action under Weight and Measurement Enforcement Act 1985
• Recently, about eleven notebook manufacturers were caught by the department due to selling
p g g
of notebooks with less number of pages than actual figures mentioned on the cover
• The tax on paper, paper board and articles has been maintained at 4% while the duty is raised to
Changes in
g 8% on certain stationery products like folders, file covers and letter pads
8% on certain stationery products like folders file covers and letter pads
Taxation
• Notebooks and exercise books are exempted from additional tax duty
• The State Government of Maharashtra issued a resolution in 1994 and 2003, which forwards
Law Against that parents should not be compelled to buy books, stationery, uniforms etc. from the school
Customized
Stationery • About 80% of the schools in Mumbai violate this norm by insisting students to purchase
stationery and uniforms from them
STATIONERY MARKET – INDIA.PPT 13

14. •Market Overview
•Trends & Characteristics
Trends & Characteristics
•Competition
•Key Developments
•Key Developments
STATIONERY MARKET – INDIA.PPT 14

15. The market is highly competitive with a large unorganized
segment and increasing foreign players
Competition Organized vs. Unorganized Split
• Indian stationery market is facing stiff competition Organized
from international players and huge Chinese imports 15%
• About 70% of the paper market is dominated by JK
Paper, BILT and TNPL
• ITC brand “Paperkraft” is gaining share using unique
technologies to provide environmentally friendly
multi‐purpose paper
multi purpose paper
• International players include Reynolds, Faber‐Castell, 85%
Maped Unorganized
Market share – Writing Instruments Market Share – Notebook
Navneet
ITC 6%
Cello 11%
37%
Others 43%
55% Blue Bird
28%
Others
20%
Luxor
STATIONERY MARKET – INDIA.PPT 15

16. Profiles of Major Manufacturers – Notebook and Paper (1/2)
Company Business Description
• Located in Pune with 30 years of experience in publishing
Blue Bird
Bl Bi d • Presence in various segments including notebooks premium office and lifestyle stationery
Presence in various segments including notebooks, premium office and lifestyle stationery
• Products include notebooks, long books, drawing books, pencils, erasers, sharpeners etc.
• Blue Bird has a strong distribution network of over 600 dealers spread across 18 cities In
India, it also serves three other countries
• The company commissioned a new plant in Tumkur in Karnataka in 2009
The company commissioned a new plant in Tumkur in Karnataka in 2009
Financials: Annual revenue for FY ending March 2009 for Notebooks segment is INR 3 bn
Navneet • Established in 1957, it is founded by the Gala Family
• The stationery products business line began in 1993
• Products include notebooks, long books, drawing books, pencils, erasers, sharpeners etc.
• It has about 1000 distributors and has a reach of more than 75,000 retail outlets
Financials: Annual revenue for 2009 is INR 51.68 bn
ITC • ITC entered the stationery business in 2002
ITC entered the stationery business in 2002
• The two main stationery brands are Classmate and Paperkraft
• Classmate is targeted at students and Paperkraft at executives
• It has a strong distribution network of 750 for the division
• The company expects the segment to gross above INR 10 bn by 2012
The company expects the segment to gross above INR 10 bn by 2012
Financials: Annual revenue for 2007‐08 for the education and stationery unit is INR 1.8 bn
STATIONERY MARKET – INDIA.PPT 16

17. Profiles of Major Manufacturers – Notebook and Paper (2/2)
Company Business Description
• Ballarpur Industries Limited (BILT) started in 1945 and is a part of Avantha Group
BILT • Products offered include multi purpose paper notepads etc
Products offered include multi‐purpose paper, notepads etc.
• BILT farm forestry programme brought 32,000 hectares under plantation thereby providing
benefits to about 37,000 farmers
Financials: Annual revenue for the year ended June 2009 is INR 28.24 bn
• JK Paper Ltd, a leading paper manufacturer is a member company of JK organization
d l d f b f
JK Paper • The company operates from two plants, JK Paper Mills in Rayagada, Orissa and Central Pulp
Mills at Songadh, Gujarat
• Brands of JK Paper include JK Copier, JK Excel Bond, JK Savannah etc.
• It has a nationwide distribution network of 100 distributors and 2,500 dealers
h d d b k f d b d d l
• A new plant with a capacity of 60,000 tonnes per year is under implementation in Gujarat
• Tamil Nadu Newsprint and Papers Limited (TNPL) started in the year 1984
TNPL • Started with initial capacity of 90,000 tonnes per annum, increased it to 2,45,000 tonnes over
the years and plans on realizing 4,00,000 tonnes by July 2010
• Products include different types of paper and notebooks
Financials: Annual revenue for the FY 2008‐09 is INR 10.66 bn
STATIONERY MARKET – INDIA.PPT 17

18. Profiles of Major Manufacturers – School Stationery (1/1)
Company Business Description
• Started operations in 1931 in Mumbai with manufacturing ink products
Camlin
C li • It has a wide product portfolio including office products artists kraft hobby gifts writing
It has a wide product portfolio including office products, artists, kraft, hobby, gifts, writing
instruments and various ranges of products
• It conducts various colour competitions at the nation level, the All India Camel Colour Contest
(AICCC) is the most famous one, towards developing their brand
• It has a dealer network of 50 000 retail outlets
It has a dealer network of 50,000 retail outlets
Financials: Annual revenue for the FY 2007‐08 is INR 2.14 bn
• Started Indian operations in 1998 in Goa with production of erasers
Faber‐Castle • It has manufacturing units in Chennai for writing instruments launched in 2002 and Daman
for expanding the range and capacity for children’s products in 2008
for expanding the range and capacity for children’s products in 2008
• Product range include pens, pencils, erasers, sharpeners markers, crayons, colours etc.
• It has a strong network of over 500 distributors managed through its 9 branches across India
• A primary school stationery manufacturing company established in 1958
Hindustan Pencils • The company daily produce stands at 5.6 mn pencils, 1.2 mn sharpeners, 2.3 mn erasers, 0.16
mn scales, 0.30 mn pens from its 10 factories located in 5 cities across India
• Apsara and Nataraj are the two major brands of the company in India
• It has a distribution network of 31 main stockists, 2,500 distributors and 2,25,000 retail
outlets across Indian
STATIONERY MARKET – INDIA.PPT 18

19. Profiles of Major Manufacturers – Writing Instruments (1/2)
Company Business Description
• Started in 1995 in Mumbai as a part of the Cello Group
Cello Writing
Cello Writin • Product line includes ball pens gel pens gift sets markers hi lighters retractable and pencils
Product line includes ball pens, gel pens, gift sets, markers hi‐lighters, retractable and pencils
Instruments • It has a manufacturing capacity of 4.5 mn pens per day and a dedicated workforce of 5000
• Cello’s network includes 42 super‐stockists, 4,200 distributors and 900 field force that
supplies cello products to over 7,31,000 outlets across India
• It also exports to over 62 countries with annual export revenues of INR 480 mn
It also exports to over 62 countries with annual export revenues of INR 480 mn
• BIC Group acquired 40% stake in Cello Pens
Financials: Annual revenue for FY 2007‐08 INR 4.1 bn
• Lexi Pens is an international pen manufacturing firm started in 1997
Lexi Pens • Headquartered in Andheri, Mumbai, it employs 730 people and exports to 35 countries
• The Lexi product line includes plastic ball pens, gel pens, metal pens and refills
• Manufactures about 1 mn pens in a day from its two facilities in Silvasa and Daman
• Lexi is setting up a new 2,00,000 sq. ft. manufacturing plant to cater to the export market
• Started in 1967, Flair is the first company to introduce gel pens in India
Flair • The product line includes metal pens, ball point pens, gel ink pens, high lighters, permanent
markers, refills etc.
• Flair has a manufacturing capacity of 2.5 mn pieces per day and employs about 3,000 workers
Flair has a manufacturing capacity of 2.5 mn pieces per day and employs about 3,000 workers
and 125 supervisors
STATIONERY MARKET – INDIA.PPT 19

20. Profiles of Major Manufacturers – Writing Instruments (2/2)
Company Business Description
• Started manufacturing writing instruments in 1963
Luxor
L • It launched Parker pens in India in 1996
It launched Parker pens in India in 1996
• Luxor employs over 600 people in its 4 manufacturing facilities in New Delhi, and Mumbai
• The company has a sales distribution network of 850 distributors and 1,00,000 retail outlets
• Luxor has introduced many new technologies like Pigment Fluorescent Highlighters, Xylene
Free Markers, Ceramic Roller Pens, Needle Point Pens, OHP pens etc.
Free Markers Ceramic Roller Pens Needle Point Pens OHP pens etc
• Linc Pen and Plastics Ltd. is headquartered in Kolkata
Linc Pen • It has three large manufacturing units in Goa and West Bengal
• Products include ball pens, gel pens, direct fill pens, ball pen refills etc.
• It has a network of 2,282 distributors and 20 retail outlets called Office Linc and Just Linc
Financials: Annual revenue for FY 2008‐09 INR 1.48 bn
• GM pens started marketing Reynolds in India in the year 1986
GM Pens
GM Pens • Product range includes ball pens, gel pens, lead pencils, click pencils, sketch pens, ink pens,
Product range includes ball pens, gel pens, lead pencils, click pencils, sketch pens, ink pens,
highlighters, markers etc.
• It has a network of 30 main stockists, 1800 redistribution stockists and 3,00,000 retail outlets
which are managed by a team of 300 sales and marketing professionals
• They were the first to adopt a franchisee owned retail model, at present there are 15 outlets
in 6 cities and has a target to set up 35‐40 more such outlets in malls
STATIONERY MARKET – INDIA.PPT 20

21. •Market Overview
•Trends & Characteristics
Trends & Characteristics
•Competition
•Key Developments
•Key Developments
STATIONERY MARKET – INDIA.PPT 21

22. Key Developments
Date Development
Aug 2009 ITC’s education and stationery products division is planning to launch new products in the stationery
business and is targeting to reach INR 10 bn in the next 3 to 5 years.
Jul 2009
Jul 2009 Stationery major Camlin has recorded a net profit rise of 87.7% to INR 80 mn for the quarter ended 30 June
Stationery major Camlin has recorded a net profit rise of 87 7% to INR 80 mn for the quarter ended 30 June
2009 as compared to the corresponding quarter in the previous year.
Jun 2009 The Government of India raised the excise duty on certain stationery products like folders, letter pads and
file covers to 8%.
Mar 2009
Mar 2009 BIC Group, a French company completed acquisition of 40% stake in Cello Pens, India s leading writing
BIC Group a French company completed acquisition of 40% stake in Cello Pens India’s leading writing
instrument brand for INR 3.8 bn.
Feb 2009 Blue Bird commissioned its latest state‐of‐the‐art plant in Tumkur in Karnataka. The plant would cater to
markets in southern states and also to international markets.
Aug 2008
Aug 2008 Navneet plans to enter corporate stationery business segment. Navneet Publication (India) Ltd is an
Navneet plans to enter corporate stationery business segment. Navneet Publication (India) Ltd is an
Ahmedabad‐based leading manufacturer of syllabus and non‐syllabus based education materials.
STATIONERY MARKET – INDIA.PPT 22

23. Thank you for your time
For an updated report or any customized research requirements, please contact:
Gaurav Kumar
E‐Mail: gaurav.kumar@netscribes.com; sales@netscribes.com
Phone: +91 33 4064 6214; +91 983 030 9715
Netscribes’ Services:
RESEARCH & ANALYTICS
RESEARCH & ANALYTICS MARKET INTELLIGENCE
MARKET INTELLIGENCE CONTENT SOLUTIONS
CONTENT SOLUTIONS
Investment Research Market Monitoring & Competitive Social Media Marketing
Enterprise Market Research Intelligence Marcom Support Services
Patent Research Sales & Prospect Intelligence Content Management Services
Syndicated Market Research
S di t d M k t R h Listening & Media Monitoring
Li t i & M di M it i Book Packaging Services
B kP k i S i
Brand Surveillance
For further details, visit us at: www.netscribes.com
About Netscribes
Netscribes supports the organic and inorganic growth objectives of global corporations through a combination of Enterprise Market,
Investment & Patent Research, Market & Sales Intelligence, Social Media Monitoring & Management and Custom Publishing solution.
Disclaimer: This report is published for general information only. High standards have been used for preparing this market research
Disclaimer: This report is published for general information only High standards have been used for preparing this market research
report; however, Netscribes, Inc. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This
document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.
STATIONERY MARKET – INDIA.PPT 23