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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
