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Stationery Market - India - Samp

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					Stationery Market - India
October 2009
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 XX bn for the year 20--
   Market
                  The market is expected to grow at an annual rate of a% till 20- -
                  Office stationery is fast growing with many players expanding their product line into this segment



                                   LE
                  High propensity to spend on education and thereby stationery

  Trends &
Characteristics                   P
                  Shift in focus from inexpensive to quality products
                  Entry of foreign brands in the Indian market driving the organized segment


                                 M
                  Consumers opting for new pens instead of refills



                               SA
                  Organized book retailers are driving sales of stationery products
                  Government regulations and taxes
                  About b% of the stationery market is unorganized in India
                  The unorganized market is dominated by imports from Country A China
 Competition      Company 1, Company 2 and Company 3 dominate the notebook market
                  Over b% of the paper market is dominated by Company 4, Company 5 and Company 6
                  Company 7 Company 8 are the two major players in writing instruments market
                             Notebook                  Paper                Writing Instruments
                             • Company 1               • Company 4          • Company 7
                             • Company 2               • Company 5          • Company 8
                             • Company 3               • Company 6          • Company 9



                                           STATIONERY MARKET – INDIA.PPT                                          2
•Market Overview
•Trends & Characteristics
•Competition
•Key Developments




           STATIONERY MARKET – INDIA.PPT   3
Indian stationery market is poised to grow at a% annually

Market Overview                                                     Market Size & Growth
• The stationery market in India is valued at INR u bn
  in 20- -                                                              INR bn
                                                                                                                       x
• The market is expected to grow at a% annual rate till               200                          a%



                                         LE
  20--                                                                                                   w
                                                                      150
                                                                                             v


                                        P
• Stationery industry is dynamic in nature and creates
                                                                      100          u
  innovative products and ideas to capture consumer
  preference



                                     SAM
• Office stationery is growing at a faster pace and
  many players are expanding into this segment

Segment Share by Usage
                                                                       50

                                                                         0
                                                                                  2009
                                                                    Market Share by Segments
                                                                                            2010        2011         2012




                                      Segment A                                        f%                      Segment 1
                                      Segment B                                                                Segment 2
                                                                                                               Segment 3
      b%                                                                     e%
                          c%
                                                                                              d%




                                                STATIONERY MARKET – INDIA.PPT                                               4
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 XX
  bn                                                                            Segment 1
    Notebook : INR YY bn




                                         LE
                                                                                            a%
    Paper : INR ZZ bn




                                        P
• The thrust on education by the Government of India
  is the prime growth driver of the notebook industry

  playing an important role


                                     SAM
• Big corporates have entered this segment and are

• Inspite of many corporates moving towards
  paperless offices, the paper market is growing at an
                                                                                                  b%



                                                                    Organized vs. Unorganized – Notebook
                                                                                                        Segment 2


  annual rate of u-v%
• Company 1 is supplying its paper directly to
  corporates including Company P, Company Q and                                   Market 1
  Company R                                                                                  c%
• Major players
    Notebook: Company 1, Company 2 and Company 3
    Paper: Company 4, Company 5 and Company 6

                                                                                                  d%
                                                                                                       Market 2




                                                STATIONERY MARKET – INDIA.PPT                                               5
                  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                          6
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 a% of the paper market is dominated by



                                         LE
  Company 1, Company 2 and Company 3



                                        P
• Company 4 brand “T” is gaining share using unique
  technologies to provide environmentally friendly
  multi-purpose paper

  and Company 7

Market share – Writing Instruments   SAM
• International players include Company 5, Company 6
                                                                                 Unorganized

                                                                   Market Share – Notebook
                                                                                              85%




                                                                                        Company C
                                                                               Company B        6%
                                   Company D                                              11%
                             37%
  Others 43%

                                                                                                           55% Company A
                                                                                        28%
                                                                               Others

                      20%
                            Company E


                                               STATIONERY MARKET – INDIA.PPT                                               7
Profiles of Major Manufacturers – Notebook and Paper (1/2)

Company        Business Description
               • Located in U with 30 years of experience in publishing
   Company 1   • Presence in various segments including notebooks, premium office and lifestyle stationery



                              LE
               • Products include notebooks, long books, drawing books, pencils, erasers, sharpeners etc.



                             P
               • Company 1 has a strong distribution network of over V dealers spread across W cities In
                 India, it also serves three other countries



   Company 2
                            M
               • The company commissioned a new plant in X in Karnataka in 20--


                           A
               Financials: Annual revenue for FY ending March 20- - for Notebooks segment is INR Y bn


                          S
               • Established in 19--, it is founded by the A
               • The stationery products business line began in 19--
               • Products include notebooks, long books, drawing books, pencils, erasers, sharpeners etc.
               • It has about B distributors and has a reach of more than C retail outlets
               Financials: Annual revenue for 20-- is INR D bn
   Company 3   • Company 3 entered the stationery business in 20--
               • The two main stationery brands are P and Q
               • P is targeted at students and Q at executives
               • It has a strong distribution network of R for the division
               • The company expects the segment to gross above INR SS bn by 20--
               Financials: Annual revenue for 2007-08 for the education and stationery unit is INR T bn


                                      STATIONERY MARKET – INDIA.PPT                                          8