A Report On

Market Size Estimation

of

Writing Instruments in India

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TABLE OF CONTENTS

Topic Pg.No.

Growth of pen industry in India --------------------------------- 3

Expected expansion of the Indian pen market----------------- 4

Major Competitors------------------------------------------------ 6

Research Methodology------------------------------------------- 8

Questionnaire for Retailers-------------------------------------- 9

Questionnaire for Customers------------------------------------ 10

Bibliography------------------------------------------------------- 12

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Growth of pen industry in India (Introduction)

INDIAN MARKET OF PENS

Ball pens forms the biggest chunk of the pen market in India and accounts for 72percent of

the total pen market followed by gel pen at 28 percent. The brand leaders in this market are

Cello. Luxor.

Comment from ACNielsen (world's leading marketing information provider)

“Pen market previously suffered from lack of organized

information on the market size or market shares of various

players, since most players are not listed companies and

distribution was mostly limited to stationery stores,”

Pens market in India recorded a value growth of 82% Survey done by the India’s leading

market information providing company ‘AC Nielson’ on pen market in year 2006. They

come to know that ballpoint pen is still a market leader by acquiring a large portion of the

market. There is a ratio of 72% to 28 % for ballpoint to gel respectively. In urban areas about

10.9 lac. of stores are selling pen, in the selling year of 2005-06 itself recorded a growth of

23%.

The Pen market across the world is Rs 50,000 crore and in India market is only Rs 1500

crores and growing at the rate of 9 per cent. 60% sales come through organized sector and

balance from unorganized. And the luxury segment 95% sales come through grey market.

Most of the luxury writing instruments are picked by on travel abroad. Off this nearly 99% is

sale through stationery and kirana stores. The entire market is disorganized. And the grey

market plays a very crucial role in supplying hi-end, premium writing instruments. The

industry is just evolving and consolidating to supply genuine and quality pens to Indian

customers.

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In terms of quality of pens, India ranks amongst the best in the world, well ahead of even

China. But, its export market is abysmally low at Rs 200 crore, while China exports Rs 5,000

crore worth pens every year .

Indian manufacturers are only now beginning to focus on global markets. The luxury and hi

end pen market is only 1 per cent of the total market size of India i.e. 15 crore. The gold and

the sterling silver range branded Waterman 100 retail between Rs 2, 00, 00 to Rs 4, 00,000.

EXPECTED EXPANSION OF THE INDIAN PEN MARKET

Indian pen manufacturers see this segment as a potential one in the coming years. Many have

set up a separate division to handle this market segment, as the `free gift-on-everypurchase'

campaign uncorked by FMCG companies is acquiring a shrill note.

Mr. Ronnie Netto (Director of Today's Writing Products

Ltd (TWPL) said –

"We noticed this trend about two years ago and it has picked up since then. Last fiscal, our

revenue from this segment was over Rs 10 crore of our total turnover of Rs 80crore. And this

fiscal ,we expect it to almost touch the Rs20-crore mark .We have set up an exclusive division

to handle such orders, as they require personalized service. We estimate this market segment

to grow to Rs 500 crore in the coming years, now; Indian manufacturers are beginning to

reach out to the overseas market. After UK's Pound land tied up with TWPL to have Today's

brand of pens in its chain of stores, we expect to export pens worth $1 million to UK in the

current fiscal,"

Another area that is opening up for Indian pen manufacturers is the trend among overseas

stationary companies to outsource their pen requirements from India. In 2006, about 10.9 lac

stores across urban India take the product in stock at present which represents a distribution

growth of 23 percent within a year (April06 over July’05). The increased distribution has

brought about a phenomenal growth for the pen market of 82 percent in sales.

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The sales peaked in the months of February and March owing to exam season and touched

maximum in the last eleven months .There is a consistent month-on-month growth in the

writing instruments industry fuelled by competitive pricing and product innovation. Today,

one can buy a Gel pen for rupees two and can choose from a wide variety of pens - with easy

grip to water-proof ink .Although the writing instrument market is led by well known names

like Cello,GM (Reynolds), Jineshwar (Montex) etc. Smaller players such as Lexi, Agni and

Elkos for examples have also been able to maintain their share on a regional or select pocket

level.

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Major Competitors :

Some of the major competitors in the Writing Instrument

Industry are as follows:

1)Linc Pen :

Linc pen is India's Prime Manufacturer and Exporter of Ball Pens, Roller Ball Pens and Gel Pens

too

2) Rotomac Pens :

Rotomac Pens Pvt. Limited, belonging to a multi –million dollar turnover VIKRAM

KOTHARI ENTERPRISES, was

incorporated in the year 1992.

3) Montex pens :

Montex has been the first in India to introduce Transparent Ball Pens, Trendy Fountain Pens,

Precision Tips, Gel Ink Pens, Roller Ink Pens, Tank Pens,Rubber Grip Pens and Co-molded

Pens. Montex is recognized as a pioneer in the Indian pen industry with innovations to its

credit.

4) Cello :

Cello is a leading exporter, supplier and manufacturer of Ball pens, Gel pens and refills. The

company took its first step 35 years ago as a low profile enterprise that slowly and steadily

grew to be the indisputable leader in the plastic industry of India .

The makers of India’s favorite Cello pens, are a part of Rs.800 crore (us$ 182mn.) Cello

Group. Lauded as one of the world’s best and India’s largest pen manufacturer’s and well

known for its dynamism and spirit of innovation ,Cello ceaselessly endeavors to bring in the

newest and the best of technology to set new benchmarks in quality and innovates

constantly to blaze new trails in the market place Various pens under cello between Rs3-Rs15

are:

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Techno tip (Rs.8)

Max riter (Rs.9)

Cello spirit gel 0.5 (Rs.5)

Retractable power (Rs.15)

Jolly (Rs.3)

Flo gel (Rs.10)

Cello Pointec gel (Rs.15)

Cello Mac gel (Rs.10)

5) Reynolds :

G.M. Pens International Pvt. Ltd. is the exclusive licensee of Reynolds, France, in India and

the SAARC countries Headquartered in Chennai .G.M. Pens has pioneered thewriting

instruments revolution in the Indian market.

Commencing operations in 1986, G.M. Pens introduced to India, international quality writing

instruments, and marketed them under the brand name Reynolds. It was also the first

company to build a brand in a category that behaved more like a commodity till then .Over

the last 20 years, G.M. Pens has invested substantially in building a large manufacturing

base with facilities in Chennai and Pondicherry. A state of the art R&D facility, one of the

most sophisticated in the Reynolds family worldwide, has ensured that the latest in writing

technology is available to the Indian consumers.

G.M. Pens offers the widest range of writing instruments and accessories in the Indian

market. A variety of writing instruments including ball pens, gel pens, fountain pens,

mechanical pencils, markers, are marketed under the brand name Reynolds. A continuous

focus on consistent quality and a constant endeavor to provide quality products at affordable

prices have ensured that Reynolds has been the numero uno in the Indian writing instruments

market. A substantial investment has also been made in establishing the Reynolds brand

name through the mass media, especially through television and press ads, in an effort to

convert the category from a commodity to a brand dominated one. The company's products

are available in three hundred thousand retail outlets across India covered through a network

consisting of 1800 redistribution stockists and 27 main stockists. This is facilitated by a sales

and marketing team of over 300 professionals.

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RESEARCH METHODOLOGY

The relevant data i have selected from both Primary and Secondary sources.

(1) Primary Data

Personal Interview

Questionnaire.

(2) Secondary Data

Research Instrument :

For the collection of information a questionnaire was designed. It included many close ended

as well as few open ended questions.

Sample Design :

It has covered about 20 retailers and wholesalers and consumers each

Sampling Procedure:

The sampling procedure used was random, keeping in mind proper representations in all

areas.

Collection of Data :

For the study, both primary as well as secondary data was collected. Primary data was

collected by the

Questionnaire and personal Interview method.

Secondary data was collected through published materials, Newspapers, Journals,

Proceeding, Books, and Websites etc.

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Questionnaire for Retailers

1.Who are the frequent buyers of pens

a.Students b.Servicemen c.Businessmen d.Other Professionals

2. Maximun sales is for whichbrand of pens?

a. Luxor b.Reynolds c. Cello d.Rotomac e.Linc f.Others(please specify)………

3.When people buy pens what among the following options do they prefer?(Rank as per the priority)

a.Price .…….b.Quality………c.Refillable……….d.Schemes………e.Looks of the pen………

4.Maximum schemes are being offered by which brand of pens?

………………………………………………………………………………………

5. Sales of pens between is high during which period of time?

a.High during exams b.Stable throughout the year c.when new schemes are introduced.

6.How much of Sales happen with regard to the writing instruments

In Rs._____________

7. Highest Retailers margin in percentage is being provided by which brands?

a.Luxor(__) b.Reynolds(___) c.Cello(___) d.Others (pleaseSpecify)…………………

8.In what price range do you think that there is a gap that can be filled?

________________________________

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Questionnaire for customers

Name:…………………………………….

Sex: _ Female _ Male Date of birth: ………………………………

Occupation(Tick) : student/businessman/service

Qs1- How frequently you purchase a pen?

a.Once a week b.once in 15 days c.bulk purchase d.beg/borrow/steal

Qs2- Which pen strikes first in your mind when you think of buying a pen?

a.Luxor b.Reynolds c.Cello d.Rotomac e.Linc e.Any other___________

Qs3-Rank the remaining above brands of pens according to your preference?

1……………………..

2……………………..

3……………………..

4……………………..

5……………………..

Qs4-What motivates you to buy this pen?(Rank according to preference)

Price .…….Quality………Refillable……….Availability………Looks of the pen………

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Qs5-Do you use separate pens for signing and writing purpose?

a.Yes b.No

Qs6- If Yes then which pen do you use for signing purpose and for writing

purpose?

For signing purpose …………………………………

For writing purpose ………………………………….

Qs7-Are you conscious of status while purchasing a pen?

a.Yes b.No

Qs8-From where did you come to know about the pen you use?

a.Advertisement b.Colleagues c.Friends d.Retailers

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BIBLIOGRAPHY :

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