Summer Training Project Report

On
THE COMPARISON OF CONSUMER PREFERENCES OF
STATIONARY PRODUCTS OF NEELGAGAN PRIVATE LTD
WITH OTHER BRANDS
Submitted in partial fulfillment for the award of the degree of Bachelor of
Business Administration (2012-2015)

Under the guidance of:

MR. BISWARUP CHATTERGEE
Faculty, MAIMS

Submitted by:
BHUMIKA BANSAL
18114701712

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

AFFLIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI
PSP. AREA, PLOT NO. 1, SECTOR 22, ROHINI, DELHI-110086

STUDENT DECLARATION

This is to certify that I have completed the Project titled THE COMPARISON OF
CONSUMER PREFERENCES OF STATIONARY PRODUCTS OF NEELGAGAN
PRIVATE LTD WITH OTHER BRANDS under the guidance of MR. BISWARUP

CHATTERGEE. in partial fulfillment of the requirement for the award of Degree of Bachelor
of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is
an original piece of work & I have not submitted it earlier elsewhere.

Date:

Signature:

Place: Delhi

Name: BHUMIKA BANSAL

University Enrollment No.: 18114701712

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled THE COMPARISO N OF CONSUMER
PREFERENCES OF STATIONARY PRODUCTS OF NEELGAGAN PRIVATE LTD
WITH OTHER BRANDS is an academic work done by BHUMIKA BANSAL submitted

in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration at

Maharaja Agrasen Institute of Management Studies, Delhi, under my

guidance & direction.

To the best of my knowledge and belief the data & information presented by him in the project
has not been submitted earlier.

Signature

Name of the Faculty : MR. BISWARUP CHATTERGEE

Designation

: Faculty, MAIMS

ACKNOWLEDGEMENT

Gratitude is our most direct line to God and the angels. If we take the time, no matter how crazy
and troubled we feel, we can find something to be thankful for.

I would like to express my deepest sense of gratitude to MR. BISWARUP CHATTERGEE

(Faculty, MAIMS) for giving me this opportunity to do the project on THE
COMPARISON

OF

CONSUMER

PREFERENCES

OF

STATIONARY

PRODUCTS OF NEELGAGAN PRIVATE LTD WITH OTHER BRANDS . I

am also thankful for her guidance during my full project to share their valuable knowledge.

Name: BHUMIKA BANSAL

Enroll no.: 18114701712

EXECUTIVE SUMMARY
The project aims at understanding T HE CO MP ARI SO N OF C ON S UME R P RE FE RE N CE S O F
ST AT IO N AR Y P RO DU CT S OF N EE LG AG AN P RI V AT E LT D W IT H OT HE R B R AND S

Neelgagan Enterprises (P) Ltd and its effect on the consumer buying pattern. This organization is
more oriented towards providing its customers with quality product at a quality price.

Environmental protection factors prioritize every decision made by the company in its course of
operation which makes it a most demanded product by every class of the consumers. In pursuit
of its abiding commitment to create stakeholder value through service to society, the Company
continued to make progress during the quarter in its social and environmental initiatives

Neelgagan not only focuses its distribution in urban areas with the objective to earn maximum
revenue but being a responsible company it is working its heart out to delight the people in rural
places also to fulfill their requirement at a right time. This organization provide customers with
various products ranging from files, printing papers to plastic bags which are required as a
stationary item from children to the adults to companies.

As far as its competitors are concerned Neelgagan is still far from being the leader among its
counterparts Classmate and Navneet but now has engaged itself in forming strategies to reform
its whole process of decision making including purchase decision of raw material, manufacturing
process and advertising strategies to enhance the efficiency of the organization as a whole.
Today, NEELGAGAN ENTERPRISES (P) LTD continues to blend its core capabilities to
market a growing range of education and stationery products.

CONTENTS

STUDENT DECLARATION

CERTIFICATE FROM INSTITUTE GUIDE

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CHAPTER-1

INTRODUCTION

9-16

1.1

PURPOSE OF THE STUDY

17

1.2

RESEARCH OBJECTIVES OF
THE STUDY

18

1.3

RESEARCH METHODOLOGY
OF THE STUDY

19

1.3.1

DATA COLLECTION

21

CHAPTER-2

LITERATURE REVIEW

22-31

COMPANY PROFILE

32-58

NEELGAGAN AND ITS

COMPETITORS

59-77

FINDINGS AND
ANALYSIS

78-92

CHAPTER-6

RECOMMENDATION

93-95

CHAPTER-7

CONCLUSION

96-99

CHAPTER-8

LIMITATIONS

101

CHAPTER-3
CHAPTER-4

CHAPTER-5

BIBLIOGRAPHY

APPENDIX
EVALUATION ATTENDENCE SHEET

102

103-105

CHAPTER-1
INTRODUCTION

INTRODUCTION
The stationery market is mostly influenced by macroeconomic development, national income
and population growth. The word stationery incorporates each and every commodity like files,
folders, erasers, sharpeners, schoolbooks, notebooks etc. It does not limit its spectrum of action
but formulates developed innovations in industry. Stationery industry produces much more
influence as compare to any other specifications in the market. The whole stationery ratio in the
market depends upon the overall economical environment. The domestic as well as the
international market scenario mobilizes more and more rapport with other market happenings.
The stationery market also includes wide arena of products comprising paper products, writing
instruments, computer stationary, school stationary, office stationery etc.
All these varieties have undergone various changes in passage of time by the virtue of new
international and modern classifications. In the international arena the industry of stationery
provides more scope for development and trends. Very often the stationery industry ranks as one
of the evolutionary aspect of market that produces more and regular changes. As compare to
Indian market the international market scenario calls for more innovative trends. The
specifications in this regard may be wide which are affected by numerous market values. To look
in the international environment the stationery market has witnessed tremendous dynamic
changes. Especially the countries like China, U.K., U.S.A. etc, which are leading exporters for
stationery products, is the major subject of concern for Indian market. In the product varieties
like writing instruments, paper products, leather accessories these countries have lot more shares
in world market as compare to any other international participant. In the last decade the Indian
market has increase in the imported varieties in market. Especially in the electronic items from
South Asian countries like Japan, Malaysia, Korea, Singapore, we have produced big market
percentage.
These product varieties mainly includes calculators, computers, printer etc. The main reason
behind this may be difference in nature but they generate healthy and strong competitions in

10

Indian market. Cheap availability of raw material, low cost for human resources, increased and
modern technology participation etc can be looked as some of these reasons.
The stationery market includes product for office; home and educational use but exclude greeting
cards calendars andgift-wrap. The stationery market is affected by the health of the general
economy. In 2001, the difficulties for the industrial sector of the economy meant that some
customers had reduced stationery needs or had closed completely, with the level of bad debts
increasing. In the two-tier economy, consumer spending remained high, helping make the
personal stationery market relatively prosperous. Industry observers and now accepts that
increasing use of computers is boosting the demand for office papers rather than the reverse, as
was once expected. The eventual threat of the paperless office has been pushed further into the
future, with experts predicting further growth in cut paper. The generalized market, use of
computers, page printers, e-mail and electronic trading has had its effect on the stationery but
this has not been influential in reducing the overall demand for paper. Rather, the types of
products in demand have changed and some traditional stationery products are moving towards
obsolescence. Chinas pen and pencil-making industry is the worlds largest in terms of
production and exports.
The output of ballpoint pens and mechanical pencils ranks third globally. A large quantity of
ballpoints sold on the Chinese market is not brand names but tend to be low end products. This is
the main reason behind the large availability of Chinese products in Indian market. Because of
the restructuring of the world economy, labor-intensive industries such as pen making, garment
making and musical instrument making have gradually shifted from developed countries to
developing countries such as China. In the Indian context the stationery market is largely
influenced by the market for educational and office stationery products. In particular in the
category of school stationery the percentage of schoolbooks captures the bulk of market. The
national market for syllabus-based books is estimated at Rs10bn and has been growing at 20%pa.
Relatively other departments from stationery industry generate more or less equal percentage of
growth. As far as Indian situation is concern there are numerous factors that affects the overall

11

market ratio. The industry functions in accordance with the international trends and scenario.
The factors like production cost, facility, availability of raw material, govt. policies etc. affects
this industry a lot. The major part of this industry comes in unorganized sector hence the
development is affected. The varieties like files and folders, writing instruments still comes
under small-scale industries that limits the economical and investment growth of this industry.
Because of its cap of small-scale industry it lacks the some level of quality and it reduces the
chances for the exporting of these commodities to the countries like India, China, Singapore,
Malaysia etc.
This is an important factor that restricts the survival of these goods in the international arena. As
compare to international standard our commodities having lack of quality and R&D. And due to
government. shackles in terms of their policies, it reduces the growth of this industry in
particular and the chances for growth are restricted. This is the main reason why the international
market is flourishing with Chinese and Taiwanese trends and products. What they are producing
may be in one-month time that will take us to produce around six months because of these
variety of factors. With modern facilities and technologies every segment of market undergoes
large amount of changes in the passage of time. And to cope with those changes one has to need
new technology and knowledge updated in accordance with time. Lack of modern production
facilities, unorganized nature of functioning, marginal demands, government. policies and
international competition prompts to have delay in the development of this sector. All these
factors still prevents this industry to have good development in this country but to look in a
positive side the increasing demand for these products and new trends of modernization will
improve the status in coming period of time. The increasing awareness and need for presentation
will definitely provide an essential boost to the functioning of this industry. Once the big
international players will come into play in Indian market with positive and healthy outlook then
domestic players will definitely get some encouragement in this regard. The change of policies
and production facilities would also be helpful to change the whole scenario.

12

There has been a need to document through the use of writing instruments since the dawn of
mankind. Pens and Pencils continue to be the staples of everyday life and indispensable items for
everyday use. Writing Instruments continue to play integral part in the life of particularly every
Business, School, and household. The advent of computers and related technologies has yet to
make writing industry and Instruments Slow Paced and Obsolete. In fact, the writing Instruments
embraces the evolution of technology by incorporating it into new products and using it to
enhance business aspects and client services.
The size of the writing Instruments Industry in India is estimated at about Rs 1800 Crores of
which organized players account for 70% of the market share and the unorganized players for the
rest. The industry Grew by about 15% in 2004-05 and by 13.5% in 2005-06,largely driven by the
growth of organized sector, indicating that consumer are responding favourably to Quality and
Branding. It is expected that promotion, easy availability, and affordability, branded off make
will accelerate and help the organized sector eat into unorganized Presence.
India's Writing Instruments Industry is reserved for the small sector with a statutory limit on the
maximum Investment in Plant and Machinery at Rs 50 Crores. As a result critical pen component
like refills are manufactured in house, while all non critical components are outsourced.
Most Indian companies cater to the "Value for Money"(i.e. High Volume Low Value Strategy)
While International Players cater to Premiums segment operating through exclusive Distributors.
Globally writing Instruments Industry is estimated at Rs 50000 Crores (p.a). China controls
approximately 10% of the global markets while the Indian share had so far been Mini scale. But
given the superior quality perception that "Made In India" pens have over the Chinese, the
buying preference of major retailers has been shifting to Indian Products and Brands.
The following Information regarding the Writing Instruments Industry Has been obtained from
the Public Sources like: Business Line, Economic Times, Financial Express, some Companies
Catalog are Used along with Internet Support.

13

 CHANGING CONSUMER BEHAVIOUR

The Purchase of a single Pen used to be a considered decision until not too long ago. Today,
most consumers buy multiple pens in a single Purchase. Because the consumer would go out
specifically to buy a pen earlier, today most buy along with a number of other things as apart of
their monthly provisions. Earlier there was one pen to write, now interestingly even as
communication is getting increasing psychological, there is different pen, Ink, Size for different
Moods, Needs and Situations.
Gone are the days where pen were just considered as merely an item of writing, But now it a
Quasi Fashion Statement Something thats aligns with Your Personality, Of course Still the Pen
purchase Decision is considered As Low Involvement Decision.

GLOBAL WRITING INSTRUMENT INDUSTRY

Globally, Writing Instrument Industry is rising at a Healthy rate despite growing
computerization. The global Writing Instrument Industry is estimated at Rs 50000 Crores.(p.a)
where INDIA Markets grew by 5% last year (2005-06) and is expected to grow by the same
Proportionate at this time too. China controls approximately 10% of the global market, due to it
manufacturing Process. India is becoming most preferred manufacturing destination after china.
Indian Products Quality is among best in the world, Compared to china Mass Market Products.
Indian Market is Growing healthily at 15 to 20% and is Expected to Grow with same Rate for
upcoming 2 to 3 years (acc to CAGR)., where the organized sector now controls 70%+ market
share as compared to 54% up to 2000.

MARKET AND MARKET INFORMATION (IN DETAIL).

The worldwide Market's Size for Writing Industry is Rs 50000 crs (p.a) INDIA market
alone is $2.2 Billion Dollars (App 10000 Crores Rs).

Chinas exports of Pens are over Rs 5000 Crores (p.a).

14

India's Pens Exports are merely Rs 200 Crores (p.a).

The Annual Turnover of the Industry in India is now estimated at Rs 1800 Crores (p.a)
and is expected to Increase annual growth rate by 15-20% (p.a).

India is Viewed as Quality Supplier, where as China as Cheaper and Lower quality
Products.

Germany, Japan, Taiwan & Korea were hubs for the Writing Instrument Industry, But
due to cast factor manufactured have started shifting to China and India.

Previously Switzerland was the manufacturing centre for Ball point Tips, but now India is
emerging as a major Tip Manufacturer satisfying not only Domestic demand but Global
Demand Also.

REGULATORY REQUIREMNTS
In India as per current law, the manufacturing of writing instruments is reserved or falls under
the category of SSI (Small Scale Industry Sector). Thus there is ceiling on Investment in Plant
and Machinery Manufacturing Process (Max Rs 50 Crores), excluding Mould Making as it is
Highly Capital Intensive part of Manufacturing. Of course any EOU (Export Oriented Unit) does
not fall under this Purview of SSI.
Though competition drives the stationery market crazy for new products it has it's plus side too
as this way the consumer gets the best suitable product he wishes to buy in different price ranges
and gets to choose the best out of the platter displayed in front of him.
The Indian stationery industry is built on the manufacture and trade of 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 rather than greeting cards, calendars
or gift wrap. It is further divided into school stationery and office stationery. School stationery

15

over a period has gained it's own importance in the market. It consists of a wide range of
stationery used by teachers and student in the schools. It includes popular stationery products
like notebooks, erasers, pencils, rulers, sharpeners, writing boards, exam boards, graph books,
pencil boxes, geometry boxes, notebook covers, glue sticks, maps, children paper clips and
binders, pencil grippers, calculators and many more to add to the list. These are available in
different types, shapes, sizes and different price ranges in the market to suit every individual
requirement. A child going to the school requires all these stationery for daily use in school. It
could also be termed as the child's necessity as far as school is concern. It's industry captures a
huge consumption in India whose sales seems to be increasing day by day due to the increasing
government plans and policies of achieving total literacy in India. Previously their consumption
was restricted to urban areas but with the free education, facilities in Rural India their
consumption in the rural areas have increased tremendously. It's market today is flooded with
manufacturers and suppliers which is extremely fragmented. One essential indicator being the
absence of a national brand or a chain of branded retail stores, as is the norm internationally.
Here majority of the Industry's market hold is by the people manufacturing and supplying
notebooks and other paper products which includes diaries, school calendars, note pads, long
books, graph books etc to the schools and children.
Then the writing instrument industry seconds the market that includes products like different
types of pencils, pen, sketch pen, markers etc, plays the second major role in the school
stationery sector. Apart from that there are many other big and small companies selling other
necessary products like erasers, scales, calculators, pencil boxes, geometry cases, writing board,
art materials etc. Though there is no particular brand ruling the market alone, some big Indian
companies like Camlin Ltd., Hindustan Pencils Ltd., Sundaram Multi Pap Ltd., Pidilite Industries
Ltd., Kangaro Ltd., Navneet Publications (India) Ltd., Jineshwar Writing Instruments (Montex),
ADD Corporation Limited (Add Gel), etc have made their mark and have a strong hold on the
stationery market back at home. First these companies had to face the competition only from
cheap Chinese goods which were a threat to the Indian organized stationery sector, but with the
advent of international brands like Faber Castle, Kores, Maped etc in the Indian market, the
16

market has become highly competitive in both quality as well as price. Everyday this market is
on it's heels in creating new innovative products and ideas which would capture the notice and
preference of their customers. It seems that it is the only tool left to survive in this competitive
sector. Especially with the children targeted as their customer these stationery manufacturers
should be well updated with the on going market trends, they should be aware of what is the
latest happening in the children world, Which games or cartoon characters are the children
currently fond of? What is the latest development in the education field? All this information will
keep the manufacturers and suppliers at par with their customers likes and dislikes and
eventually this will help boost the brand and create a good demand for the product in the market.
It is seen that along with brand building techniques other factors like trade marketing &
strengthening the distribution channels also helps the company to grow.
Though competition drives the market crazy for new products it has it's plus side too as this way
the consumer gets the best suitable product he wishes to buy in different price ranges and gets to
choose the best out of the platter displayed in front of him. The manufacturer too gets benefited
by competition, he enjoys the healthy competition as it always keeps him alert on his job and
helps him produce the best possible output in the market which leads to better sales.Apart from
this many stationery industry manufacturers have also started manufacturing gift stationery
which the children could gift each other like autograph books, slam books, party invitations,
letter pads, gift-wraps, pop up books & mini books thus sufficing the needs of that market too.
School stationery industries have come up a big way by contributing in education awareness thus
participating in social programs hand in hand with the government. Some companies have also
adopted villages for providing full education to the rural children and some stationery
industrialist have started contributing some of the company's profit to the government for rural
development. A socially sound company who knows it's social role is bound to receive
popularity among others. By this practice in near future the industrialist of school stationery with
the government support will achieve a well educated and developed nation and in turn achieve
it's own development

17

1.1

PURPOSE OF STUDY

Firstly, Management of NEELGAGAN ENTERPRISES (P) LTD can know its strengths
and weaknesses so that management can capitalize on its strengths and overcome its
weaknesses.
Secondly management can know the companys position in the global market so that
company can improve its standings by satisfying consumers and respective dealers.
Thirdly, Management can achieve its objective of profit and wealth maximization
efficiently and effectively.
Fourthly, Management can know the problems so faced by consumers and dealers and
hence can solve them by laying down policies and procedures accordingly.
Lastly, by studying consumers buying behaviour and market strategies of competitors
management can grow and expand efficiently by working on them.

18

1.2

RESEARCH OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY:

To analyze the current market situation of the organization.
To analyze the different product line and the company strategy for selling stationary
product.
To analyze the customer view towards the buying pattern of the Stationary product.
To Analyze different promotional technique used by the organization to promote the
Stationary product.

19

1.3

RESEARCH METHODOLOGY

Methodology is the specification of the method for acquiring the information needed to structure
the study.

Universe
Universe for dealer survey was Ashok Vihar.
Universe for consumer survey was Ashok Vihar.

Sampling Size:

Sample size for consumer survey was 100 covering houses and markets from different areas

of Ashok Vihar.

Sampling Techniques:

For Consumers survey Convenient Sampling techniques was applied.

For Dealers survey Random Sampling technique was used.

20

1.3.1 COLLECTION OF DATA

Primary Sources:
Primary data is collected from:

Survey of Stationary product retailers in Ashok Vihar.

Survey of consumers to gauge their buying behavior

Secondary Sources:
Secondary sources are those which provide us with secondary data (collected by
someone other than user) .These sources are less accurate and more bias than
primary sources.
Secondary data is collected from:

Internet

Magazines

Journals

Newspaper

21

CHAPTER-2
LITERATURE REVIEW

22

LITERATURE REVIEW
The Worldwide Stationery Product Manufacturing Industry report, published annually, contains
timely and accurate industry statistics, forecasts and demographics. The report features 2009
current and 2010 forecast estimates on the size of the industry (sales, establishments,
employment) for the 47 largest world countries, including United Kingdom, France, Germany,
Italy, Spain, Russia, China, Japan, India, Australia, Canada, Mexico, Brazil, Argentina and South
Africa. The report also includes industry definition, 5-year historical trends on industry sales,
establishments and employment, a breakdown of establishments, sales and employment by
employee size of establishment (9 categories), and estimates on up to 10 sub-industries,
including die-cut paper, manila folders and index cards.

Industry Definition
This industry comprises establishments primarily engaged in converting paper or paperboard into
products used for writing, filing, art work, and similar applications.

Related Industries

Office Supplies Stores

Paper Manufacturing

Printing Industry

Sub-Industries

Die-cut paper and board

Cardboard cut-outs, panels, and foundations: die-cut

Cutouts, cardboard, die-cut: from purchased materials

Foundations, cardboard, die-cut: from purchased materials

23

Panels, cardboard, die-cut: made from purchased materials

Cards, folders, and mats: die-cut

Cards: die-cut and unprinted: made from purchased materials

Folders, filing, die-cut: made from purchased materials

Index cards, die-cut: made from purchased materials

Library cards, die-cut: from purchased materials

Manila folders

Photographic mats, mounts, and folders

The concept of latent demand is rather subtle. The term latent typically refers to something that
is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity
that a target population or market requires under different assumptions of price, quality, and
distribution, among other factors. Latent demand, therefore, is commonly defined by economists
as the industry earnings of a market when that market becomes accessible and attractive to serve
by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total
revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the
total revenues potentially extracted by firms. The market is defined at a given level in the
value chain. There can be latent demand at the retail level, at the wholesale level, the
manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain
being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming
all levels maintain minimum profitability).
The latent demand for converting paper rollstock or paperboard into die-cut paper or paperboard
office supplies is not actual or historic sales. Nor is latent demand future sales. In fact, latent
demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not
representative of relatively competitive levels). Inefficiencies arise from a number of factors,

24

including the lack of international openness, cultural barriers to consumption, regulations, and
cartel-like behavior on the part of firms.
For reasons discussed later, this report does not consider the notion of unit quantities, only
total latent revenues (i.e., a calculation of price times quantity is never made, though one is
implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures
incorporate inflationary trends) and not adjusted for future dynamics in exchange rates. If
inflation rates or exchange rates vary in a substantial way compared to recent experience,
actually sales can also exceed latent demand (when expressed in U.S. dollars, not adjusted for
inflation). On the other hand, latent demand can be typically higher than actual sales as there are
often distribution inefficiencies that reduce actual sales below the level of latent demand.

As mentioned in the introduction, this study is strategic in nature, taking an aggregate and longrun view, irrespective of the players or products involved. If fact, all the current products or
services on the market can cease to exist in their present form (i.e., at a brand-, R&D
specification, or corporate-image level) and all the players can be replaced by other firms (i.e.,
via exits, entries, mergers, bankruptcies, etc.), and there will still be an international latent
demand for converting paper rollstock or paperboard into die-cut paper or paperboard office
supplies at the aggregate level. Product and service offering details, and the actual identity of the
players involved, while important for certain issues, are relatively unimportant for estimates of
latentdemand.

In order to estimate the latent demand for converting paper rollstock or paperboard into die-cut
paper or paperboard office supplies on a worldwide basis, I used a multi-stage approach. Before
applying the approach, one needs a basic theory from which such estimates are created. In this
case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an
assumption governing the shape and type of aggregate latent demand functions. Latent demand
functions relate the income of a country, city, state, household, or individual to realized

25

consumption. Latent demand (often realized as consumption when an industry is efficient), at

any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market,
they must perceive a latent demand and be able to serve that demand at a minimal return. The
single most important variable determining consumption, assuming latent demand exists, is
income (or other financial resources at higher levels of the value chain). Other factors that can
pivot or shape demand curves include external or exogenous shocks (i.e., business cycles.

Ignoring, for the moment, exogenous shocks and variations in utility across countries, the
aggregate relation between income and consumption has been a central theme in economics. The
figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes
conjectured that as incomes rise, the average propensity to consume would fall. The average
propensity to consume is the level of consumption divided by the level of income, or the slope of
the line from the origin to the consumption function. He estimated this relationship empirically
and found it to be true in the short-run (mostly based on cross-sectional data). The higher the
income, the lower the average propensity to consume. This type of consumption function is
labeled 'A' in the figure below (note the rather flat slope of the curve). In the 1940s, another
macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated
that the marginal propensity to consume was rather constant (using time series data across
countries). This type of consumption function is show as 'B' in the figure below (note the higher
slope

and

zero-zero

intercept).

The

average

propensity to

consume

is

constant.

Is it declining or is it constant? A number of other economists, notably Franco Modigliani and

Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were
different using various assumptions on intertemporal budget constraints, savings, and wealth.
The shorter the time horizon, the more consumption can depend on wealth (earned in previous
years) and business cycles. In the long-run, however, the propensity to consume is more
constant. Similarly, in the long run, households, industries or countries with no income

26

eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about
how income and consumption are related and interesting, in this study a very particular school of
thought is adopted. In particular, we are considering the latent demand for converting paper
rollstock or paperboard into die-cut paper or paperboard office supplies across some 230
countries. The smallest have fewer than 10,000 inhabitants. I assume that all of these counties
fall along a 'long-run' aggregate consumption function. This long-run function applies despite
some of these countries having wealth, current income dominates the latent demand for
converting paper rollstock or paperboard into die-cut paper or paperboard office supplies. So,
latent demand in the long-run has a zero intercept. However, I allow firms to have different
propensities to consume (including being on consumption functions with differing slopes, which
can account for differences in industrial organization, and end-user preferences).
Given this overriding philosophy, I will now describe the methodology used to create the latent
demand estimates for converting paper rollstock or paperboard into die-cut paper or paperboard
office supplies. Since ICON Group has asked me to apply this methodology to a large number of
categories, the rather academic discussion below is general and can be applied to a wide variety
of categories, not just converting paper rollstock or paperboard into die-cut paper or paperboard.
Any study of latent demand across countries requires that some standard be established to define
efficiently served. Having implemented various alternatives and matched these with market
outcomes, I have found that the optimal approach is to assume that certain key countries are
more likely to be at or near efficiency than others. These countries are given greater weight than
others in the estimation of latent demand compared to other countries for which no known data
are available. Of the many alternatives, I have found the assumption that the worlds highest
aggregate income and highest income-per-capita markets reflect the best standards for
efficiency. High aggregate income alone is not sufficient (i.e., China has high aggregate
income, but low income per capita and can not assumed to be efficient). Aggregate income can
be operationalized in a number of ways, including gross domestic product (for industrial
categories), or total disposable income (for household categories; population times average

27

income per capita, or number of households times average household income per capita). Brunei,
Nauru, Kuwait, and Lichtenstein are examples of countries with high income per capita, but not
assumed to be efficient, given low aggregate level of income (or gross domestic product); these
countries have, however, high incomes per capita but may not benefit from the efficiencies
derived from economies of scale associated with large economies. Only countries with high
income per capita and large aggregate income are assumed efficient. This greatly restricts the
pool of countries to those in the OECD (Organization for Economic Cooperation and
Development), like the United States, or the United Kingdom (which were earlier than other
large OECD economies to liberalize their markets).
The selection of countries is further reduced by the fact that not all countries in the OECD report
industry revenues at the category level. Countries that typically have ample data at the aggregate
level that meet the efficiency criteria include the United States, the United Kingdom and in some
cases France and Germany.
Latent demand is therefore estimated using data collected for relatively efficient markets from
independent data sources (e.g. Euromonitor, Mintel, Thomson Financial Services, the U.S.
Industrial Outlook, the World Resources Institute, the Organization for Economic Cooperation
and Development, various agencies from the United Nations, industry trade associations, the
International Monetary Fund, and the World Bank). Depending on original data sources used,
thedefinition of converting paper rollstock or paperboard into die-cut paper or paperboard office
supplies is established. In the case of this report, the data were reported at the aggregate level,
with no further breakdown or definition. In other words, any potential product or service that
might be incorporated within converting paper rollstock or paperboard into die-cut paper or
paperboard office supplies falls under this category. Public sources rarely report data at the
disaggregated level in order to protect private information from individual firms that might
dominate a specific product-market. These sources will therefore aggregate across components
of a category and report only the aggregate to the public. While private data are certainly
available, this report only relies on public data at the aggregate level without reliance on the
28

summation of various category components. In other words, this report does not aggregate a
number of components to arrive at the whole. Rather, it starts with the whole, and estimates
the whole for all countries and the world at large (without needing to know the specific parts that
went into the whole in the first place).
Stationery is a general name given to papers and other office supplies such as envelopes,
notepads, pens, pencils, erasers, paper clips, staplesr, folders etc. The term stationery is
frequently used to refer more specifically to paper used for written correspondence, usually
decorated or personalized with matching envelopes.
Stationery products includes - writing instruments such as plastic ball pens, metal pens &pencils,
wooden pens, permanent and white board markers, highlighters; art material such as wax
crayons, hexagonal & plastic crayons, oil pastel, water color cakes & tubes, poster colors, paint
brushes, activity books, drawing books; staple pin, staplers & punches; paper products such as
hard case books, arabic/french ruling books, note pad, exercise book tracing pad, ruling pad,
refilling pad, sketch pad, drawing pad, copier paper/fluorescent paper, adding machine rolls,
composition books; adhesive - office paste, glue stick, wood glue, synthetic adhesives; banking
office automation products such as currency counting machine, currency banding machine,
counterfeit detector machine, cheque encoder, security digital electronic/swipe card safe.
Stationery products are very important because we cannot complete any work without them in
school, college or office.

Classification of Stationery
Stationery can be classified as business stationery, school stationery, office stationery etc. At
home also personalized stationery products like scissors, scale, paper etc are commonly used.

School Stationery Products include writing instruments like pens, pencils, book,
writing pad, eraser, sharpener and other curricular products for all types of schools and
colleges that are often used by students.
29

Desktop Stationery or Office Stationery comprises of a pen holder, multifunction electronic clock, calculator, calendar, letterhead, papers, stapler, folders, writing
pads, conference pads, gum pads, scribble pads, business cards, pens, files, note pads,
diaries, calendars, erasers, note books and many other office stationery products.

Business Stationery includes business cards, letterhead and envelopes which is

backbone of any business. Office stationeries are essential for business organizations
without which things can slow down or grind to a halt.Stationery products by different
manufacturers may not be unique, but they all provide a level of personal service
unparalleled by other competitors.

Available in corporate design, office stationery or business stationery products are suited for a
small home office and even a corporate office environment. Office stationery products can be
customized or designed as per individual requirements. Business stationery products are also
used as promotion tools and corporate gifting.
Stationery for artists is also offered in reasonable prices and these include paintbrush, plate, paint
bottle etc. Customized stationery products can also be designed to make the products personal or
gift them to someone. Stationery products are ideal for promoting products.
By extension the term stationery has been applied to decorative backgrounds that may be
attached to e-mail correspondence or to describe templates typically used by home users in
desktop publishing software to make, for example, party invitations.

Stationery Market
The stationery market is mostly influenced by macroeconomic development, national income
and population growth. The word stationery incorporates each and every commodity like
files,folders, erasers, sharpeners, schoolbooks, notebooks etc. It does not limit its spectrum of
action but formulates developed innovations in industry. Stationery industry produces much
more influence as compare to any other.
30

Specifications of Market
The whole stationery ratio in the market depends upon the overall economical environment. The
domestic as well as the international market scenario mobilizes more and more rapport with
other market happenings. The stationery market also includes wide arena of products comprising
paper products, writing instruments, computer stationary, school stationary, office stationery etc.
All these varieties have undergone various changes in passage of time by the virtue of new
international and modern.
In the international arena the industry of stationery provides more scope for development and
trends. Very often the stati
onery industry ranks as one of the evolutionary aspect of market that produces more and regular
changes. As compare to Indian market the international market scenario calls for more
innovative trends. The specifications in this regard may be wide which are affected by numerous
market values. To look in the international environment the stationery market has witnessed
tremendous dynamic changes. Especially the countries like China, U.K., U.S.A. etc, which are
leading exporters for stationery products, is the major subject of concern for Indian market. In
the product varieties like writing instruments, paper products, leather accessories these countries
have lot more shares in world market as compare to any other international participant. In the last
decade the Indian market has increase in the imported varieties in market. Especially in the
electronic items from South Asian countries like Japan, Malaysia, Korea, Singapore, we have
produced big market percentage. These product varieties mainly includes calculators, computers,
printer etc. The main reason behind this may be difference in nature but they generate healthy
and strong competitions in Indian market. Cheap availability of raw material, low cost for human
resources, increased and modern technology participation etc can be looked as some of these
reasons.

31

CHAPTER-3
COMPANY PROFILE

32

COMPANY PROFILE

NEELGAGAN ENTERPRISES (P) LTD One of the leading manufacturers of paper and plastic
stationary products in India, markets its range under the well known brand of NEELGAGAN
Established in 1951, NEELGAGAN is one of Indias oldest and most trusted brands with 5
decades of experience and are now synonymous with the mark of excellence.
Based in delhi and supported by a team of professionals and trained employees with a network of
around 2000 dealers and distributors spread across India, Nepal & Bhutan, they can execute large
or small orders within stipulated time adhering to highest level of our quality standards.
Their wide range of products offer total stationary solutions to corporate houses, educational
institutions and other individual customers. Their team of expert professionals constantly
endeavor to provide our customers with new innovations and user friendly products that makes a
perfect balance between quality, price and environment.
NEELGAGAN ENTERPRISES (P) LTD ranks among India's `10 Most Valuable (Company)
Brands', in a study conducted by Brand Finance and published by the Economic Times.
NEELGAGAN ENTERPRISES (P) LTD also ranks among Asia's 50 best performing companies
compiled by Business Week.
As one of India's most valuable and respected corporations, NEELGAGAN ENTERPRISES (P)
LTD is widely perceived to be dedicatedly nation-oriented. In his own words: "NEELGAGAN
ENTERPRISES (P) LTD believes that its aspiration to create enduring value for the nation
provides the motive force to sustain growing shareholder value. NEELGAGAN ENTERPRISES
(P) LTD practices this philosophy by not only driving each of its businesses towards
international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part." NEELGAGAN ENTERPRISES
(P) LTD's diversified status originates from its corporate strategy aimed at creating multiple
33

drivers of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management and acknowledged
service skills in hoteliering. Over time, the strategic forays into new businesses are expected to
garner a significant share of these emerging high-growth markets in India.
The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for NEELGAGAN ENTERPRISES
(P) LTD a huge rural distribution infrastructure, significantly enhancing the Company's
marketing reach.
NEELGAGAN ENTERPRISES (P) LTD's wholly owned Information Technology subsidiary,
NEELGAGAN ENTERPRISES (P) LTD Infotech India Ltd, provides IT services and solutions
to leading global customers. NEELGAGAN ENTERPRISES (P) LTD Infotech has carved a
niche for itself by addressing customer challenges through innovative IT solutions.
NEELGAGAN ENTERPRISES (P) LTD's production facilities and hotels have won numerous
national and international awards for quality, productivity, safety and environment management
systems. NEELGAGAN ENTERPRISES (P) LTD was the first company in India to voluntarily
seek a corporate governance rating.

Contribution to Sustainable Development

In pursuit of its abiding commitment to create stakeholder value through service to society, the
Company continued to make progress during the quarter in its social and environmental
initiatives.The Company deepened its social sector imprint by expanding to newer districts
during the period. Social development projects are currently being progressed in 50 districts
spread over the states of Andhra Pradesh, Bihar, Kerala, Karnataka, Maharashtra, Madhya
Pradesh, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

34

NEELGAGAN ENTERPRISES (P) LTD made its entry into the stationery business in the year
1951 with its premium range of notebooks, followed in the year 2003 with the more popular
range to augment its offering.
Today, NEELGAGAN ENTERPRISES (P) LTD continues to blend its core capabilities to
market a growing range of education and stationery products. These capabilities include,
a. Manufacturer of Indias first Ozone treated environment friendly Elemental Chlorine
Free (ECF) pulp, paper and paperboard.
b. Knowledge of image processing, printing & conversion garnered from its Packaging &
Printing Business.
c. Brand Building & Trade Marketing & Distribution strengths resident in its
STATIONARY PRODUCT Business.

NEELGAGAN ENTERPRISES (P) LTDs stationery Brands are marketed as NEELGAGAN

and Paperkraft, with NEELGAGAN addressing the needs of students and Paperkraft targeted
towards college students and executives

35

NEELGAGAN - Indias truly largest National brand, reaching 5,000 outlets across the
country, has over 300 variants in its range which comprises notebooks, long books, practical
books, drawing books, scrap books, reminder pads etc.
The NEELGAGAN range of children books targeting pre school learners, comprising categories
like Pre School Learner, Active Minds and Read Aloud Tales with features like Wipe n Use
again, Trace & Color and Puzzles ensure that a child's first lessons are truly enjoyable.

36

The NEELGAGAN Notebook range builds in regional preferences and caters to the requirements
of All India & State Education Boards. Every NEELGAGAN notebook carries NEELGAGAN
ENTERPRISES (P) LTD's Corporate Social Responsibility message on its back. For every four
NEELGAGAN Notebooks, NEELGAGAN ENTERPRISES (P) LTD contributes Re. 1 to its
rural development initiative that supports, among other projects, primary education in villages.

NEELGAGAN has successfully run the NEELGAGAN Young Author & Artist Contest
for5 years. The contest is a national level event going across 34 cities and getting participation
from 5000 schools.
The Paperkraft range consists of premium stationery with a wide variety for executives to choose
from. The assortment consists of notepads & multi subject notebooks in hard, soft covers &
multiple binding formats including spirals, wiros etc.

37

Paperkraft brand launched premium business paper an environment friendly multipurpose

paper for office and home use. The paper has been crafted by NEELGAGAN ENTERPRISES
(P) LTDs unit using a pioneering technology, called Ozone Treated Elemental Chlorine Free
technology. Paperkraft business paper is the whitest and brightest 75 & 70 GSM papers
manufactured in India and provides consumers an opportunity to Go Green.
Paperkraft has recently launched its range of whiteboard & permanent markers and textliners.
With super ink intensity, durable tips and longer cap-off periods, these products provide the
consumer with a superior writing experience on a variety of surfaces.
The inks used for all these products are certified as non-toxic and conform to the European EN
71 Standard and INDIA ASTM D-4236 standard.
All products are available in packs of single colours as well as in assorted packs containing all
colours of each category.
In recognition of its quality products & processes, the business has been awarded with ISO
9001:2000 by Messrs Det Norske Veritas.
NEELGAGAN ENTERPRISES (P) LTDs Paperboards and Specialty Papers Division is Indias
largest and most technologically advanced paper and paperboards business. NEELGAGAN
ENTERPRISES (P) LTD caters to a wide spectrum of packaging, graphic, communication,
writing, printing and specialty paper requirements through its four world-class mills in India.
Having pioneered many speciality applications like cigarette tissues, packaging boards, aseptic
cartons and gypsum liners, NEELGAGAN ENTERPRISES (P) LTDs Paperboards and

Specialty papers business enjoys market leadership in the value-added paperboards segment, and
also has a significant share of the Indian paperboards market. It is also the largest Indian exporter
of coated boards

38

39

NEELGAGAN ENTERPRISES (P) LTD takes great pride in servicing a large cross-section of
industry requirements from cigarette tissues to STATIONARY PRODUCT cartons, from
electrical insulation papers to gypsum board liners, from decorative laminate base to writing and
printing papers and much more. NEELGAGAN ENTERPRISES (P) LTD straddles the entire
spectrum of paperboards from 100% virgin, food-grade boards to 100 % recycled boards.
Some of NEELGAGAN ENTERPRISES (P) LTDs prominent paperboard brands are:
Each of the mills specializes in a range of products. Together, these units produce more than
500000 TPA of paper and paperboards that meet stringent quality requirements across the world.
40

All four manufacturing units are ISO 9001, ISO 14001 and OHSAS 18001 certified and meet
strict Environment, Health and Safety norms.
The unit in Bhadrachalam is Indias largest integrated pulping and paperboard manufacturing
unit. It boasts of equipment supplied by internationally renowned suppliers for pulping
processes, paper machines, web detection & inspection systems, and finishing & packing lines.
Currently the unit produces high-end virgin and recycled boards for packaging and graphic
applications, as well as fine printing papers. With the commissioning of a new wood free paper
machine in May 2008, NEELGAGAN ENTERPRISES (P) LTD has made its entry into the
writing, printing and copier papers segment.
The Kovai unit currently focuses entirely on recycled boards, servicing requirements for both
greyback and whiteback recycled boards.
The Tribeni unit specializes in fine papers and tissues and the product range from this unit
comprises opaque papers for fine printing like the Bible, dictionaries, cigarette tissues, medical
grade papers, anti-rust papers, electrical insulation papers, decor surface, printing and barrier
papers.
The Bollaram unit manufactures specialty boards such as cast coated papers and boards, poly
extrusion coated barrier boards and C2S art boards and brief cards. NEELGAGAN
ENTERPRISES (P) LTD has also commissioned a second poly-extrusion in February 2008 to
meet the growing requirements of barrier boards.
Customers are at the core of the business. This is reflected in the diverse range of products,
grades and value added services. There is a strong focus on partnering customers to co-create and
deliver superior solutions, enhancing their competitive advantage.

41

The Business' quality philosophy is reflected at every stage from the selection of clones used
for growing pulpwood to world-class manufacturing facilities to the finishing and packing lines.
It embraces the relevant skills and competencies of employees, managers and specialists as well.
A dedicated network of regional sales offices, an extensive dealer and agent network in India and
across the globe enables NEELGAGAN ENTERPRISES (P) LTDs Paperboards and Specialty

Papers business to reach out to customers in more than a 100 different locations. With the
division-wide implementation of Enterprise Resource Planning (ERP) by 2009, the business will
also offer customers an enriched experience through enhanced connectivity and web-access to
many of the services that are currently handled offline.
NEELGAGAN ENTERPRISES (P) LTDs commitment beyond the market finds a strong
expression in the Social and Farm forestry programmes spearheaded by the business. These
programmes help create millions of man hours of employment for the rural poor, besides being a
sustainable source of high-quality raw material for the business. NEELGAGAN ENTERPRISES
(P) LTDs Research and Development efforts in creating disease resistant, high yielding clones
help farmers realize greater yields in a shorter time from land that may be otherwise
unproductive. 87000 hectares of planted area stands testimony to NEELGAGAN
ENTERPRISES (P) LTDs commitment to sustainable forestry.
Supporting the cause of clean technology, NEELGAGAN ENTERPRISES (P) LTD is a frontrunner in introducing environment-friendly Elemental Chlorine Free (ECF) technology, and
more recently, Ozone bleaching in India. NEELGAGAN ENTERPRISES (P) LTDs focus on
being a carbon-positive, water-positive, zero-solid waste disposal organization leads it to
constantly develop ways of reducing, reusing and recycling.
NEELGAGAN ENTERPRISES (P) LTDs Paperboards and Specialty Papers business has also
been a first-mover in the field of collecting and recycling post-consumer waste from residential
42

localities, corporate and educational institutes. NEELGAGAN ENTERPRISES (P) LTD reaches
out directly to consumers with its Wealth Out of Waste (WOW) campaign, that has been
successfully implemented in select locations across central and southern India, and will soon be
reaching other locations across the country.

Mission
Delighting consumers with globally recognized stationery.

Quality Policy

43

Hindustan Pencils is committed to manufacture and market quality products of international

standards at competitive prices, in the stationery field. Constant effort will be made by the
company to meet international safety standards and to prevent degradation of the environment.

Environment Policy
Constant effort will be made by the company in improving processes and maximizing utilization
of inputs to prevent degradation of environment. All ingredients used by the company are nontoxic in nature. Wood being one of the main inputs for pencils, efforts are being made to develop
plantations to ensure renewal of this precious natural resource. Research & Development efforts
are also being made to NEELGAGAN ENTERPRISES (P) LTD over to eco-friendly water
based lacquers and PVC-free formulations.

44

RANGE OF PRODUCTS OFFERED

BY
NEELGAGAN ENTERPRISES (P) LTD.

DRAWING BOOKS

CODE : DB001
PRODUCT

PAGES

SIZE

PAPER USED

MINI PASTED

48

19.0 cm. x 22.0 cm.

CREAMWOVE

SMALL PASTED

56

22.0 cm. x 28.0 cm.

CREAMWOVE

KALAKAR PASTED

40

22.0 cm. x 27.0 cm

MAPLITHO

KALAKAR PASTED

40

21.5 cm. x 26.5 cm.

MAPLITHO

DRAWING EXERCISE BOOK

CODE : ZB001

45

PRODUCT

SIZE

MATERIAL USED

SPECIAL

27.0 cm. x 23.0 cm.

STRAW BOARD

No22

27.0 cm. x 23.0 cm.

No33

27.0 cm. x 23.0 cm.

DRAWING BOOK - FILE (ZOOLOGY BOTANY)

FOR 33 - FULL
REXINE PASTED
FOR 44 - FULL

24.5 cm. x 28.0 cm.

No44

REXINE (BLACK)
PASTED

CODE : ZB002
PRODUCT

SIZE

MATERIAL USED

AVAILABLE IN

DRAWING BOOK - FILE

(QUARTER SIZE)
No 66

37.0 cm. x 28.0 cm. STRAW BOARD

No77

37.0 cm. x 28.0 cm. STRAW BOARD

No.77-P.V.C.
PASTED
No.77-P.V.C.
PASTED

CODE : ZB003
PRODUCT

PAPER

SHEETS

SIZE

24

27.0 cm. x 22.0 cm. MAPLITHO PLAIN

USED

AVAILABLE IN

DRAWING EXERCISE
BOOK - ZOOLOGY,
BOTANY (LOOSE
SHEETS)
CHITTARKAR

46

25

KALAKAR QUARTER

33.0 cm. x 27.0 cm. MAPLITHO

RULED
GEOMETRY

CODE : ZB003
PRODUCT

SHEETS SIZE

PAPER USED

AVAILABLE IN

DRAWING EXERCISE
BOOK - ZOOLOGY,
BOTANY (LOOSE
SHEETS)
RULED1st

24

27.0 cm. x 22.0 cm. MAPLITHO

RULED

RULED(SUPER)

24

27.0 cm. x 22.0 cm. CREAMWOVE

RULED

KALAKAR

24

27.0 cm. x 22.0 cm. MAPLITHO

RULED
GEOMETRY

CODE : ZB004
PRODUCT

SHEETS SIZE

PAPER USED

AVAILABLE IN

DRAWING EXERCISE
BOOK - CARTRIDGE
SHEET(LOOSE

20

33.0 cm. x 27.0 cm. CARTRIDGE

PLAIN

SHEETS)

CODE : SL002
PRODUCT

PAGES

SIZE

PAPER USED

CS-01

36

22.5 cm. x 27.0 cm.

CARTRIDGE

CS-02

36, 100

27.0 cm. x 33.0 cm.

CARTRIDGE

SPIRAL PAD - CARTRIDGE

SHEETS

47

CODE : SL003
PRODUCT

PAGES

SIZE

PAPER USED

BLACK

32

26.5 cm. x 16.5 cm.

MAPLITHO (Pastel)

COLOURED

32

27.0 cm x 18.5 cm

MAPLITHO

PAGES

SIZE

PAPER USED

BLACK

32

25.0 cm. x 28.0 cm.

MAPLITHO (Pastel)

COLOURED

32

21.5 cm. x 26.5 cm.

MAPLITHO

PAGES

SIZE

PAPER USED

40

22.5 cm. x 27.5 cm.

MAPLITHO

SPIRAL PAD-PASTEL BOOK

CODE : SL004
PRODUCT
SPIRAL PAD - SKETCH BOOK

CODE : SL005
PRODUCT
SPIRAL PAD - ART BOOK
KALAKAR

48

 ENVELOPES

BAGS . ENVELOPES . STRING FOLDERS

CODE

PRODUCT

SIZE

MATERIAL USED

49

AVAILABLE
WITH

701

BAG (SMALL)

35.5 cm x 25.5 cm.

P.V.C ( SATIN)

WELCROVE

702

BAG (BIG)

40.5 cm x 30.5 cm.

P.V.C ( SATIN)

WELCROVE

703

BAG (SMALL)

35.5 cm x 25.5 cm.

704

BAG (BIG)

40.5 cm x 30.5 cm.

PEARL BAG

707

(SMALL)

35.5 cm x 25.5 cm.

P.V.C ( SATIN MILKY)

P.V.C ( SATIN MILKY)
PVC ( PEARL)

708

STRING FOLDER 33.0 cm x 25.0 cm.

POLY PROPYLENE

709

STRING FOLDER 36.0 cm x 26.0 cm.

POLY PROPYLENE

ENVELOPE(

801

803

WELCROVE
MIXED
COLOURS
MIXED
COLOURS

SATIN

WELCROVE

ENVELOPE (BIG) 30.5 cm x 40.5 cm.

SATIN

WELCROVE

ENVELOPE (

P.V.C ( SATIN -

SMALL)

25.5 cm x 35.5 cm.

ENVELOPE (BIG) 30.5 cm x 40.5 cm.

804

WELCROVE

25.5 cm x 35.5 cm.

SMALL)

802

WELCROVE

LUXURY BAGS

50

MILKY )
P.V.C ( SATIN MILKY )

WELCROVE

WELCROVE

EXECUTIVE CHAIN BAGS . LUXURY BAGS

CODE
713

714

715

721

722

723

PRODUCT

SIZE

EXECUTIVE CHAIN BAG (13"

BACK)
EXECUTIVE CHAIN BAG (14"
BACK)
EXECUTIVE CHAIN BAG (15"
BACK)
EXECUTIVE CHAIN BAG (15"
BACK)
EXECUTIVE CHAIN BAG (14"
BACK)
EXECUTIVE CHAIN BAG (13"
BACK)

33.0 cm. x 24.0 cm.

35.5 cm. x 25.0 cm.

38.0 cm. x 27.0 cm.

MATERIAL USED
P.V.C. + ARTIFICIAL
LEATHER
P.V.C. + ARTIFICIAL
LEATHER
P.V.C. + ARTIFICIAL
LEATHER

38.0 cm. x 27.0 cm.

TETRON

35.5 cm. x 25.0 cm.

TETRON

33.0 cm. x 24.0 cm.

TETRON

724

LUXURY BAG

42.0 cm. x 33.0 cm.

TETRON

726

LUXURY BAG

40.0 cm. x 30.0 cm.

TETRON

51

 FOUR FLAPPER FILES

QUOTATION FILE . HANGER FILE . ACTIVITY CASE BAG . EXPANDING FILE

CODE

PRODUCT

SIZE

209

QUOTATION FILE

A/4

210

HANGER FILE

F/S

211

213

ACTIVITY CASE
BAG
EXPANDING FILE

MATERIAL USED
POLY PROPYLENE ( with
binder clip)
POLY PROPYLENE

37.0 cm. x 25.0 cm.

38.5 cm. x 25.5 cm.

POLY PROPYLENE ( with lock

& handle)
P.P HANDLE & LOCK WITH
13 POCKET

FOUR FLAPPER FILES

CODE
302

303

PRODUCT
FOUR FLAPPER
FILE
FOUR FLAPPER
FILE

SIZE

MATERIAL USED

35.3 cm. x 24.8 cm.

LAMINA ( P.V.C)

35.3 cm. x 24.8 cm.

BOARD + LAMINA

52

 CASH MEMO

CODE : CM001
PRODUCT
CASH MEMO
No.11
No. 22

LEAVES

PAGES

SIZE

100+100

200

10.0 cm. x16.5

(PRINTED + PLAIN-

400

cm.

PAGES

SIZE

200

14.0 cm. x 22.0

400

cm.

PAPER USED

50+50
CREAMWOVE

INTERLEAVED )

CODE : BB001
PRODUCT

LEAVES

BILL BOOK

50+50

No.11

100+100

No. 22

(PRINTED + PLAIN -

53

PAPER USED

MAPLITHO

INTERLEAVED)

CODE : CB001
PRODUCT

LEAVES

PAGES

MATERIAL

SIZE

USED

ORDER
BOOK/CHALLAN 50 + 50 + 50
BOOK/BILL BOOK (PRINTED +PRINTED +

300

PLAIN - INTERLEAVED)

(ALL IN

14.0 cm. x 22.0

cm.

MAPLITHO

TRIPLICATE)

CODE : DC001
PRODUCT

LEAVES

PAGES

50 + 50 + 50

DELIVERY
CHALLAN BOOK

(PRINTED +PRINTED +

300

PLAIN - INTERLEAVED)

SIZE

PAPER USED

10.0 cm. x 17.0

cm

CREAMWOVE

CODE : VB001
PRODUCT

LEAVES

PAGES SIZE

PAPER USED AVAILABLE IN

BIG : 14.0 cm. x

VOUCHER
BOOK

80

160

22.0 cm.

BIG - with debit &

CREAMWOVE credit columns ;

SMALL : 10.5 cm. MAPLITHO

SMALL - with debit

x 19.0 cm.

column only

CODE : RB001
PRODUCT
RECEIPT BOOK

LEAVES

PAGES

50 + 50

200

(PRINTED + PLAIN 54

SIZE
11.0 cm. x 19.0
cm.

PAPER USED
MAPLITHO

INTERLEAVED)

CODE : RB002
PRODUCT
RENT RECEIPT
BOOK

LEAVES

PAGES

50

100

55

SIZE
11.0 cm. x 28.5
cm.

PAPER USED
MAPLITHO

IN BRIEF VARIOUS PRODUCTS MANUFACTURED BY

NEELGAGAN ENTERPRISES (P) LTD. ARE:

ACCOUNT BOOKS

BAGS

COMPUTER PAPER

CASH MEMO &

ORDER BOOK

ATTENDANCE CARD
& COPY

CONFERENCE FILES
& FOLDERS

COMPUTER LABELS

CHALLAN & BILL

BOOK

DRAWING BOOKS

EXERCISE BOOK(
SOFT COVER)

ENVELOPES

EXERCISE
BOOKS(PRACTICAl)

EXECUTIVE CHAIN
BAG

FILES - COBRA

FILES(RECORD, FLAT,
RONIO)

EXAMINATION
BOARDS &
PRESENTATION
FOLDERS
FILES 2

ADDING ROLLS

CHEQUE BOOK &

COVERS
HOLDERS
CASH MEMO
DUPLICATE &
TRIPLICATE
BOOK

DISPLAY FILES

EXERCISE
BOOKS(HARD BOND)

ESTIMATE PADS

FOUR FLAPPER FILES

FILES(HANGER,
BOARDS FOUR
FLAPPER)

56

FILES 1

FILES -VOUCHER

LOOSE LEAF SHEETS, INDEX,

BINDERS

LUXURY BAG

FOLDERS (L- SHAPE)

GRAPH SHEETS &

NAME SLIPS

LETTER HEAD PAPER

LEDGER & CASH

BOOK
(PLASTIC COVER)

NOTE BOOK &

VISITOR BOOK

NOTE SHEET PADS &

DAY BOOK

NOTEPAD
EXECUTIVE

QUOTATION,
HANGER,
EXPANDING FILES &
ACTIVITY
CASE BAG

REGISTERS

SHEET PROTECTORS
&
SHEET SEPERATORS

SIGNATURE, DAK
PADS & PASTE
FILES

STRING FOLDERS

STRIP FILES & TOP

PUNCH
HOLDERS

NOTEPADS OR SLIP
PADS

THERMAL SENSITIVE
FAX PAPER

VOUCHER FILES

TWO BOARD FILES

VISITING CARD
ALBUMS

57

SPIRAL PADS

TELEPHONE
INDEXES

VCD HOLDERS

VOUCHER & RECEIPT

BOOK

58

CHAPTER-4
NEELGAGAN & ITS
COMPETITORS

59

NEELGAGAN AND ITS COMPETITORS: COMPARISON

Navneet Publications India Limited, founded by the Gala Family, is in the business of
Educational and children Books Publishing, Scholastic paper stationery and non-paper stationery
products. Since 1959, Navneet has been a major force in the dissemination of knowledge.
NAVNEET is a dominant player in the field of publishing, with more than 5000 titles in English,
Hindi, Marathi, Gujarati and foreign languages.
In 1987, to further strengthen and consolidate the business of book publishing, NAVNEET
installed ultramodern printing press at Dantali, District Gandhinagar, Gujarat . By 1991,
sophisticated printing and binding machineries had been imported to complete the
modernisation-cum-expansion plans of the company.

60

Over the decades, Navneet has emerged as a leading Educational Products and Services company
in India. The company's products are sold under the 'Navneet', 'Vikas', 'Gala', FfUuNn', Boss'
and Navneet Nxt' brand names. It's portfolio of syllabus based Books includes high quality
supplementary books like Digests (Guides), Workbooks and 21 Question Sets, most of which are
published in four languages - English, Hindi, Marathi and Gujarati. The company has a dominant
market share in Gujarat and Maharashtra. Also with the new range of supplementary books
targeting the students from CBSE and ICSE boards, Navneet's educational products are now
made available across India
Navneet also produces various titles in the Children and General books category, which are not
based on syllabus, such as activity books for children, board books, story books, health related
books, cookery books, mehendi & embroidery books, etc.
In 1993, Navneet saw opportunity in the exports of Stationery products for which it now has
state-of-art manufacturing facilities in Vasai (near Mumbai) Daman and Silvassa (Union
Territories bordering Maharashrta and Gujarat). In the same year Navneet also launched its paper
stationery products for the domestic market. Products range includes tight bind note books, long
books, hard case bound books and drawing books.
The company enjoys leading position in premiere stationery markets in India, the Middle East,
parts of Africa, U.S.A. and Europe. With now more than 500 SKU's, Navneet is one of the
largest paper stationery brand in India.
In 2006, taking the success of the Paper Stationery products further, Navneet launched it first
range of non-paper stationery FfUuNn Pencils. The company has aggressive plans in this
segment.
Books

61

For over 4 decades, Navneet has been consistently producing high quality and dependable Indian
school curriculum books and mass-market children books that have helped millions of students
across India.
Navneet brings nearly 2000 person years of teaching experience to its content creation. Our
renowned authors and subject matter experts rigorously review manuscripts to ensure that
students get only the best.
Navneet today has published till date more than 4,500 titles in several Indian and International
languages.
Our curriculum books cater to the K-12 segment students of Maharashtra, Gujarat, CBSE and
ICSE Boards. Children books range from colouring books, activity books, storybooks,
interactive books, etc. Navneet also produces general interest books on subjects like Mehendi,
Health and Hygiene, Cookery, Rangoli, etc.

Alphabet

Children Book

Flying ABC

62

Greg's Grammar

ICSE model Test

Papers

More Fun Crayons

Rainbow ABC

Value Education

Navneet Stationery
Over the years, Navneet has established itself as India's best loved brand. And why not? It has
and it still offers digests and study material specially created for easier comprehension and lucid
explanation of the topic. Parents across India swear by the name and lay their trusts upon it.
Navneet's portfolio includes high quality paper stationery like note books, long books and
drawing books amongst several others

Recently ,Navneet has forayed into the non paper stationery market with an aim to launch
exciting products under the brand name- FUN. Pencils, Premium Erasers and Sharpeners have
already been launched with great fanfare. A color range and other stationery products will be out
soon.
63

Today, Navneet is the highest selling brand of paper stationery in the country, this is because of
its attention to quality which makes every notebook or long book very enjoyable to use. Take
any Navneet book and you can see the fine grade of paper used and also the accurate and precise
ruling. Be it the case bound or tight bind, long or regular size irrespective the no. of pages you
will just love using Navneet surely!

Choose from a whole wide range of non-paper stationery and see how the usual and routine
assignments turn into a fun filled activity. Pencils, Sharpeners, Erasers and color pencils have
already become popular amongst children of all ages. Wax crayons, poster colors, rulers and
other interesting products will out be soon. Make sure you have them all in your drawer, add that
dash of excitement to your work.
Navneet Publications (India) Ltd. have been consistently taking up genuine efforts to increase the
green cover and also to overcome the problem of shortage of raw materials by introducing new
eco friendly alternatives in its product portfolio which ensures no damage to the environment.
We all know that paper is made from wood pulp. However, Navneet uses an eco-friendly paper
which is made from bagasse i.e. Dry sugarcane pulp remained after extracting juice is chemically
treated to make paper and fuel. Navneet Publications (India) Ltd. has resorted to a unique, novel
project that will make significant contribution to protect trees by using eco-friendly paper to
manufacture Navneet's entire range of products.

64

Paving the way for an eco-friendly product -the basis of sustainable development and taking up
constant efforts towards environmental management, Navneet Publications (India) Ltd. has also
launched a complete range of premium stationery products under the brand name FfUuNn
across India. The range comprises of eco friendly and non-toxic pencils, erasers, sharpeners,
colour pencils, oil pastels, etc. and uses state-of-the-art technology based on international
standards. FfUuNn range products are something that cannot be dreamt of in conventional
stationery segment.
Serving the Indian teacher-student community, Navneet Publications (India) limited has been a
dominant player in the field of providing syllabus and non-syllabus based education material to
students since 1959.
You can make a big difference and save the beauty of the world by using Navneet eco-buddy
notebooks. Be a part of Navneet's commitment to save the trees and protect the environment.
Think about it, every time you buy an eco-buddy book that uses paper made up of bagasse, you
will make our planet a little greener and every time you save a tree, you save a part of the planet
Earth. It's up to you now, go ahead, and create a revolution. We hope you will like to use ecobuddy note books.

65

Hindustan Pencils Limited is the largest Primary School Stationery manufacturing company in
India. Established in 1958, we have mastered the art of making high quality stationery products.
With the latest machinery set up, today our state- of-the-art manufacturing units daily produce
5.6 million pencils, 1.2 million sharpeners, 2.3 million erasers, 0.16 million scales, 0.30 million
pens.
All our products conform to European CE EN-71 safety standards.

66

We have always believed in manufacturing products of high quality. To be able to control quality
better, we are backward integrated. Every little component like pencil lacquer, sharpener blades,
screws etc, that goes into the making to our products, is produced in-house
In India our brands Apsara and Nataraj have emerged as household names. In other words,
Hindustan Pencils Ltd. has come to personify quality at a competitive price.

Given that enduring reliability is the hallmark of our products, understandably, they are
manufactured using the most stringent quality controls backed by years of research and
development. Our 10 factories at 5 locations in India employ the latest in technology and the best
of raw materials to grant to our products the quality, so ingrained in our product development
philosophy. Besides developing the machines for manufacture indigenously, every component
that goes into the making of our products are produced in-house.
Our concern for the environment has led us to grow our own trees to satisfy our requirements for
wood, an essential ingredient in pencil manufacture. This practice in turn ensures an
uninterrupted supply of wood of consistent quality from our own plantations. All said and done,

67

the outcome of our manufacturing process are products that offer our customers excellent "value
for money".
Pencils Manufacture
The 'pencil', derived from the Latin word penicillum, seems humble enough to be hurriedly put
together in one's backyard. In this aspect, the simplicity of the pencil is truly misleading. The
common pencil uses about 40 different raw materials, the basic ones being wood, graphite and
clay. The indigenously grown wood brought specifically from the state of Jammu and Kashmir,
is first cut into slats that are as long as but only half the width of the pencil. The slats are then
subjected to wood staining and grooves are cut into the slats.

Next, the lead, which is a mixture of micronised graphite and ball clay, is dried and inserted into
these grooves. The leads are bonded, shaped and compressed to ensure that they are breakage
resistant and long lasting. Each of these slats with lead is then stuck together with another slat
without lead to complete the pencil. Once the pencil is created through this "sandwich" method,
they are then meticulously shaped, lacquered and printed as per requirement.
68

The process results in bonded lead pencils of high calibre, about 18 cms long that can draw a line
55 kms long and on an average write about 45,000 words. The pencils that write smooth and
dark are tipped at one end to indicate the end that has to be sharpened, ensuring maximum
utilization. Every stage of the process is executed with maximum controls and quality checks to
ensure that the product is truly world-class.

Our large manufacturing capacity at 5 locations across India is backed by an impressive

distribution network, which ensures that our products find their way to every household in India.
31 Depots/Main Stockists, 2,500 distributors, 2,25,000 retail outlets and a formidable field force
complete the supply chain. Our depots are spread across the length and breadth of the country
and are located at Ahmedabad, Ambala, Bangalore, Bhivandi, Chandigarh, Chennai, Cuttack,
Delhi, Dehradun, Goa, Guwahati, Ghaziabad, Hubli, Hyderabad, Indore, Jaipur, Jammu, Kochi,
Lucknow, Madurai, Nashik, Nagpur, Pabhat, Parwanoo, Patna, Pune, Ranchi, Raipur, Sewree,
Varanasi and Vijayawada.

69

G.M. Pens International Pvt. Ltd. is the exclusive licensee of Reynolds, France, in India.
Headquartered in Chennai, G.M. Pens has pioneered the writing 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, handy boards and children's colouring pens that cater to consumers from the age group
of six to sixty are marketed under the brand name Reynolds. A continuous focus on consistent
quality and a constant endeavour 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,

70

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 thoIndia nd 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.

G.M. Pens International Private Ltd, the licensee for Reynolds pens in India and SAARC
countries, is looking to expand its product range in the Indian stationery market shortly. The
company plans to invest Rs 50 crore in expanding its retail network. The company is looking at
branding manufactured products such as exercise books, computer stationery and a complete
range of school stationery including geometry boxes, pencil cases and school bags, said Mr I.
Mahendran, Director, G.M. Pens International. "We are in talks with small stationery
manufacturers to enter into an agreement to brand their product with our name and market it at
retail outlets," he said.
The company is also evaluating options to set up a manufacturing unit to cater to the stationery
market. "We might set up a unit in the next 12-18 months but have not earmarked an investment
yet," said Mr Mahendran.

71

About 28 new retail outlets are planned this year, four of which will be in Chennai. By 2009, the
company plans to have about 100 retail outlets across India, said Mr Mahendran. At present, the
company has nine retail outlets in India.

Labelling solutions:
G.M. Pens has also entered into the labelling solutions market with the launch of Dymo range of
office and home labelling solutions. Dymo is a Belgian brand that is part of the Newell
Rubbermaid Group that also owns brands like Reynolds, Parker and Papermate. Dymo products
include manual and electronic labelling devices that use heat sensitive paper and plastic tapes to
print labels. Priced between Rs 199 and Rs 9,000, these devices are targeted at sectors such as
pharmaceuticals, logistics and services, besides homes.
Dymo will be available at all retail stationery stores and supermarkets and distributed through the
company's 1,600-member strong distributor network. The company is setting up a separate sales
force for marketing Dymo. He may not be doing too much on the cricket field, but master blaster
Sachin Tendulkar will soon be going out to bat for Reynolds pens, made by the Rs175-crore GM
Pens International Pvt Ltd. On 15 May 2006, the company's promoters announced Sachin's
signing, as well as showcased the company's product portfolio, which has grown from a single
product to 150 shop keeping units (SKUs).

72

Stake sale?
Other developments are also in the air, including a possible stake sale to the US-based Sanford
Corporation, owner of the Reynolds brand and part of the $7-billion Newell Rubbermaid group.
The company is entering the pencils and stationery segment, expanding its the pen store chain
Writesite, and also looking at setting up ball point pen vending machines.

"We are open to the US company acquiring some stake in our company," says Managing director
K Mohamed Meeran, "and it may happen two or three years down the line." Is that a result of
pressure? Originally the French company Reynolds owned the brand, and it had licensed GM.

Pens to use it in South Asia. In 1999, Sanford acquired the global operations of Reynolds,
including its pen tip making unit near Chennai. The total global sales of Reynolds branded
products are now $250 million. Before the Reynolds takeover, Sanford's parent Newell
Rubbermaid had a 50-per cent stake in Luxor Writing Instruments Pvt Ltd, which manufactured
Parker, Waterman, PaperMate and Pilot pens in India. The Indian promoter bought out Newell
Rubbermaid's stake sometime in 2001, and secured the licence to make and sell the brands in
India. With two licencees in India, no presence of its own and a fast-growing market, did
Sanford exert pressure on the promoters of GM Pens to part with a stake? Since it supplies two
crucial items for the pens ink and the tip Sanford can start selling the Reynolds brand on
its own if it refuses to renew GM's licence on its expiry.
Responds Meeran, "Sanford is not exerting any pressure on us. It is nearly seven years since
Reynolds came under Sanford's fold, and the relationship has been smooth." Except for the
brands sold by Luxor, G M Pens which has a Rs5-crore equity imports and sells
Sanford's other products through Writesite, nearly 30 per cent of whose sales are from Sanford's
other products. Meeran feels India could be a base for export of components for writing
73

instruments, and this may have made Sanford relook its Indian strategy. "The Chinese pen
manufacturers can't make inroads into India because of our competitiveness," he says.

Brand blaster
But why sign the exorbitant Tendulkar when Reynolds is logging a 20 per cent growth? In the
Rs1,750-crore pen market, Reynolds is already the undisputed numero uno in brand recall and
sales. "We sell around 1.5 million pens a day. Our product price range starts at Rs5 and goes up
to Rs500," says Vishwadeep Kuila, vice president, sales and marketing.
Before 1986, when GM Pens pioneered branded ball pens, the trade ruled the market, pushing
products with the highest margins. Ball pens were then available for 50 paise and one rupee, and
not many were willing to pay Rs3 for Reynolds. But the brand gained because of its superior
quality, to become the generic brand in its category. With top-of-the-mind brand recall, does
Reynolds really need celebrity endorsement? Answers Kuila, "It is time to invest in branding as
the market is witnessing a margin-price war." The prices of low-end ballpoint pens (below Rs5)
are going down, thanks to competition between manufacturers and also between retailers.
Industry sources say that retailers demand up to 60-per cent margins, and sell the product below
maximum retail price (MRP). There's no war yet in the branded segment (above Rs5), where the
major players are Reynolds and Cello. The move to invest in branding is a preventive measure to
ensure that the price war does not extend to the branded segment. Besides, the bulk of sales are
from students, for whom Sachin is an icon. The company hopes to see increased sales at the
vending machines that are already installed in a few schools, once television commercials go on
air. Research shows that in other user segments, pen purchase is also on impulse, and a celebrity
endorsement helps.
Celebrity conundrum
Celebrity endorsement for pens is not new in India. Actor Amitabh Bachchan has endorsed
Parker, while actress Raveena Tandon has promoted Rotomac pens. But the competition has
74

mixed views about celebrity endorsements for pens. Anand Shetty, senior marketing manager,
Flair India, says, "The sales of Reynolds would go up. Already, it is the brand with top-of-mind
recall." But Amit Safi, vice president, sales and marketing, Add Corporation disagrees: "We
don't see value in celebrity endorsements for pens. Add is the best-known gel-pen, and branding
is important for pens now." Would the industry's ad spend go up because GM has signed Sachin?
It isn't clear, as one gets a yes and no answer to the question. However, GM does not expect
Sachin to create a drastic increase in its promotional spend. "We normally spend around 10 per
cent of turnover on promotion, and we don't expect it to go up substantially," says Meeran.

The industry's other product segments are:

1. Retractables, used by executives for their good looks and performance. Price range
Rs15 to Rs50. Major players Cello and Reynolds.
2. Gel range, made by Add Corporation and Reynolds.
3. The Parker range: Made by Luxor Writing Instruments.
4. Institutional sales.
5. The gift pens segment.
6. Speciality segment: Markers, highlighters, micro-tips, etc.
Kuila agrees that GM Pens is a small player in the institutional and gifts segment and has no
presence in the Parker-type range. "But in retractables, we have strong brands like Jetter and
Racer," he says. The speciality segment, says Kuila, is too small in India: "In the US, 1.5 million
markers are sold daily, which is the equivalent of our total pen sales," he points out.

75

To expand its product range, GM Pens has entered the lead pencils market. It also plans to get
into office stationary products like post-it slips. "We sell around six million pencils per month,
and the stationary products will be locally developed or imported from France," Kuila explains.
The first in the industry to have its own as well as franchisee-owned Writesite retail outlets, G M
Pens is expanding the network to 25 stores from the current seven. Everybody is waiting to see if
Sachin can help the company hit the competition for a six. The pens industry in India had passed
through various phases with the changing tastes and preferences of customers. Till the late
1970s, only two categories of pens existed in the Indian market - fountain and ball point pens.
During that time, people preferred writing through a pencil rather than a pen. Moreover, people
preferred fountain pens, as it was perceived to write better compared to the ball point pens.Apart
from domestic manufacturers, who manufactured fountain pens on a small scale and sold them at
cheaper rates, branded fountain pens manufactured by leading international players such as
Monte Blanc, Cartier and Parker were available in India through the grey market. However,
owing to their high prices, not many people could afford to buy them. Camlin Limited was
among the noted fountain pen makers in India during that time. By the late 1970s, fountain pens
started loosing their popularity as people found it cumbersome to refill the ink regularly.
The 1980s witnessed an increased acceptance of ball point pens and Wilson Jotter was
considered to be the market leader in this segment. The pens manufactured by Jotter were
popularly called Jotter pens. The market for ball point pens was also dominated by domestic
players in the unorganized market. With the increase in demand, existing players started
expanding their capacities while many new players began entering the market. In 1982, Deepak
Jain, managing director of Luxor Pen Company (Luxor) entered into an agreement with the Pilot
Corporation of Japan to officially launch Pilot pens in India. In 1984, Suraj Mal Jain5 started a
manufacturing unit for ball point pens and refills in Kolkata and named it as Linc Writing Aids
Private Limited. The company launched new varieties such as disposable pens into the market.

76

In 1986, the French pen company, Reynolds entered the Indian market through its subsidiary,
GM Pens International Limited by setting up a manufacturing plant at Chennai. It used the latest
technology to make pens and refills of better quality and offered them at an affordable price. The
Reynolds 045 pens became very popular among the regular pen users; especially among the
school and college students.
Until the late 1980s, not much importance was given to the promotion of pens and there were
very few recognized brands in the market. Companies did not consider it worthwhile to invest
large amounts of money on promotional activities. The focus was more on pricing and
distribution. Pens were manufactured in large volumes, and were priced competitively. By 1990,
90% of the market share in India was held by unorganized players. In the late 1990s, the pen
industry witnessed several developments. The varieties of pens available in the market increased
significantly. The new range of pens introduced included Fibre Tip Pens6, Gel Pens7, Roller
Pens8 and Marker Pens9. A marked change was also noticed in the attitude of people, and they
became increasingly brand conscious.

77

CHAPTER-5
FINDING & ANALYSIS

78

FINDING AND ANALYSIS

CUSTOMER SURVEY ANALYSIS
1. Gender:
Male

59

Female

41

Female
41%
Male
59%

As per our data suggested that 59% of the people who would involve in the survey are male and
41% of the customer who is using Stationary Product is Female which showing the complete
balance to achieving the objective of this project report.

79

2. How many members are in your family?

Number of family members

0%
10%

5%

1 to 2
10%

3 to 4
4 to 5

20%

6 to 7
55%

7 to 9
more than 10

The majority is covered by the family with the 3 to 4 persons i.e. contributed 55 % respondent
then with 20% respondent has 4 to 5 persons per family. This question clearly shows that how
much opportunity for Stationary Product has to sell there product or how much an marketing
manager try to do branding for Stationary Product to reach all level of house hold.

80

3. Occupation:

Occupation of the respondents

20%

serviceman

0%
40%

5%

Businessman
Student
Housewife

10%

Farmer

25%

Others

The respondents were mainly from the 40% serviceman category which consist person working
in the MNC or in PSU and 25% respondent are basically belongs from the businessman category
followed by large numbers of others with no participation from the farmers.

81

4. How much money do you spend on the stationary product (monthly)?

Purchasing Power
>500

42

500<1000

30

1000<1500

12

1500<2500

10

< 2500

Purchasing power is the most important role to play with in any STATIONARY PRODUCT
organization, as per the my project proposal suggested that 30% of the customer who are
purchasing the Stationary products are actually spending on this would be Rs 500 to Rs 1000
while more than 42% of the customer spending on the less than Rs 500 so clearly this data

82

demonstrated that Stationary Product has huge opportunity to tap these area fist with different
promotional mix.

5. What is the consumption rate for these products (monthly)?

Consumption Behaviour
Less than 2

75

Less than 4

14

Less than 6

10

More than 6

Less than 6 More than 6

1%
11%
Less than 4
14%

Less than 2
74%

Consumption Behaviour

83

After seeing the spending power of the consumer on Stationary product this question gives an
insight of the consumption behavior of the customer who involved in the survey.
As per our data suggested that 74% of the customer buying Stationary Product less than 2 per
month which is very large chunk, While only 14% of the customer using Stationary Product
which is showing the different consumption pattern of the customer towards the Stationary
Product Palmolive.
Finding of the Stationary Product would how to increase this less than 2 to more in terms of
consumption pattern for that company need to create such a awareness through sales promotion
so customer can buy more.

84

6. Which brand do you prefer most?

Preferred Brand
Classmate

72

Neelgagan

24

Navneet

85

Navneet
4%
Neelgagan
24%

classmate
72%

Preferred Brand
As per our discuss how the Stationary Product do the sales promotion, and as per our Hypothesis
Customers Stationary Product NEELGAGAN ENTERPRISES (P) LTD due to brand
dominance at retail outlets. Would define here because 72% of the customer out of 200 customer
who has been surveyed through the questionnaire basis said they will prefer to use Stationary
Product for the NEELGAGAN ENTERPRISES (P) LTD.

7. Why do you prefer this brand?

Preference Rating
Price

Quality

16

Brand Name

21

86

Easily Available

Scheme Offers

Packaging

Sales Promotion

35

Others

Preference Rating
Others
9%

Price
6%

Quality
16%

Sales Promotion
34%
Brand Name
21%

Packaging
4%

Scheme Offers Easily Available

5%
5%

As per our graph suggested that consumer buying Stationary Product because of the sales
promotion would very good for the Stationary Product , about 34% of the customer preferring
Stationary Product because of the sales promotion while 21% of the customer prefer Stationary
Product because of the brand Name while 16% of the people believe that quality is the biggest
parameter when they are purchasing the Stationary Product it has been proved our hypothesis
that I made Sales promotions are effective in giving Stationary NEELGAGAN ENTERPRISES
(P) LTD a competitive edge
87

8. Which promotional activities influence your decision to go for Stationary Product?

Promotional Offer
Discounts

33

88

Scratch Cards

Extra quantity

44

Free Gifts

12

Others (Plz specify)

00

Promotional Offer
Free Gifts
16%

Extra quantity
44%

Discounts
33%

Scratch Cards
7%

In the sales promotion of the Stationary Product, 44% of the people like the extra quantity offer
of the Stationary Product while the 33% of the customer like the Discount which they will get
during the time of purchasing of the Stationary Product product. One surprising result that came
to know that only 7% of the people liking the Scratch card offer while 16% of the people believe
that if they entitled to get free gifts like tooth brush etc they will happy to purchase Stationary
Product.

9. From where do you purchase these products?

89

Location of Purchase
Departmental store

33

Kirana Shop

59
3

Shopping Mall
Super Market

Shopping Mall Super Market

5%
3%
Departmental
store
33%
Kirana Shop
59%

Location of Purchase
As per this study I conducted this survey in the city of Bhubaneswar where do not has much
scope to get data from the Super market or not has various shopping mall like Delhi. As per our
data suggested that out of 100 sample size 59% of the people purchasing Stationary Product
product through the Kirana Shop which is the biggest means for the company to sell there
product , and also the biggest place for sales and brand promotion. While 33% of the people
purchasing the Stationary Product product through the Departmental store.

90

Recommendation for the Stationary Product to promote there sales through the Kirana store
because the maximum people purchasing through there only.
10. Which media influence your buying behaviour?
Media king Maker
Newspaper

17

Magazines

Hording

Bill board

Television

54

FM Radio

Cinema hall

Internet

91

FM Radio
4%

Cinema hall Internet

4%
5%
Newspaper
17%

Television
55%

Magazines
6%
Hording
4%

Bill board
5%

Media king Maker

Media is playing the biggest role for the communicating the brand preference to the company
while choosing the right channel to promote is also one of the major part of the operation now a
days for the STATIONARY PRODUCT company. As per our data suggested that 55% of the
people are influenced by the Television, which means the biggest communication channel for the
Stationary Product , while 17% of the people are influenced by the Newspaper i.e. second
bestmedium of the promotion while the one interested thing that comes to know that is Internet
almost 10% of the people suggested that there buying behavior also influenced through the
Internet advertisement.

92

CHAPTER-6
RECOMMENDATION

93

RECOMMENDATION
From childhood to the college days using of different stationery items fascinate us all. They are
available in form of pencils, compass boxes etc. And it has its own value and impression on
everybodys life. Whether they may be colorful water bottles or fancy school bags they play an
important role to fantasize children.
The invention of modern technology has brought some changes in the every segment of the
economy. But as far as this fantasy is concerned there is no change in tendency. Children still
loves to carry colorful bags and bottles for their schools. The basic tendency of children has
remained same. There may be changes in their
choice or interest but it is same, because of these items come in the category of necessary
commodities for the children, so the market nature will remain the same. As far as market
scenario is concern the most important factor of competition has emerged in the period of time.
Both at domestic as well as international level this industry has its own nature of battle.
Especially from the South East Asian nations particularly with China the Indian manufacturers
are facing tremendous competition. In the business sense they are losing shelf space for their
products as compare to these products in Indian market. It means that in compare to Indian
products the foreign products are getting more preference for the purpose of selling in Indian
markets and shops. In this classification the Chinese itemsare heading their way.
From the purchasers point of view this competition is happened to be healthy and fruitful. They
are getting quality of products from either side along with cheap price structure. It happens to be
a good sign as far as the purchasing capacity of the buyers is concerned. With the increasing
standard of living the people are more interested in buying quality stuff. And people are getting
more and more quality conscious. We can say that this is one of the important reasons for the
growth in market competition. According to Mr.Rajesh Shah, director of Interplast the
continuous product innovation is the only resort for Indian manufacturers to have their prolong
stability in market and to have healthy and protective competition with imported items.
The modern facility has removed prolong limitations and restrictions of these things. People are
becoming more and more aware about their budget, market and market competition. The market
94

value for various products is on its increase due to open market policy. But by the same time the
effects of competition has increased in same proportion. In the capacity of availability of raw
material there is no much of problems. The popular material used in this variety is plastic and
polypropylene as they are durable and comfortable. Along with the ample availability of these
materials allows having rich and regular use of these varieties. With the increasing buyers
demand for these products there is ongoing manufacturing of these products. With the invention
of modern technologies and innovations no doubt the production has increased, product cost will
decreased, but still the lack of investment has its own impact on this segment.
Publishing industry is also an important segment of Indian stationery industry. There is both
regional and national player in this industry. Nearly 700 players have their part in the functioning
of this humming segment. And as compare to other industries, the segment of school stationery
has its own place in society. Major of its commodities is considered as necessities that can have
the ratio of annual market.
The effects of competition have revealed the functioning limitations of these industries. So
especially the industry of stationery that comes in unorganized sector has emerged with its
economical as well as enterprise limitations. The cap of small-scale industry and reserved
category makes it more difficult for the functioning of this industry. School stationery is one of
its small but important segment. It includes wide variety of products like notebooks, compass,
sharpeners, erasers, lunch boxes, water bottles, pencils, syllabus books, chalks, ink etc. In this
particular situation the survival of the companies are now depending upon the consistent and
persistent product innovation. More and more new and innovative varieties will help them to
survive in this era of competition.

95

CHAPTER-7
CONCLUSION

96

CONCLUSION
Stationery industries have its own features and classifications with its different market segments.
Files and folders contribute to the major market share of stationery market. With the increasing
demand for presentation and sophistication in todays world, the importance of this variety has
increased a lot. From the last decade there has been improvement in demand for this product
especially in India. And in last five years stationery manufacturers for new varieties of different
products have taken the constant efforts with latest machineries in this regard, yet something is
missing to have good rapport in the International market. Generally the scenario of Indian market
mostly depends upon latest product trend in the market. With modern facilities and techniques
there is a wide demand for these products in Indian market. These products are coming with
wide acceptance in the industry, to cater the extensive demand from big corporate sector. And
these products are used in the progressive companies and enterprises, still there is a gap to
compete with International market players, which requires great effort to Indian entrepreneurs.
In the passage of time especially, the scenario of eastern markets have changed tremendously.
The countries like China, Malaysia, Singapore, Taiwan, Korea are coming out with modern
products and production facilities. Around a decade ago they started to enter Indian market with
full swing and it was a major set back for Indian producers. In the domestic frame there are
various factors that restricts the full-fledged development of this variety. Now most of the
manufacturers are using the popular variety of polypropylene to manufacture their large extent of
products. The salient features like lightweight; Eco-friendliness, sturdy and strong makes this
variety popular and useful. As compare to foreign countries the raw material available here is
still not matching to the international standards. Especially in comparison with the countries like
China, Taiwan, Singapore etc. Traditionally the segment of stationery in India is dominated by
the unorganized sector both at regional as well as national level. As differ to other countries the
tax structure in India is very high and is divided in various forms. The overall tax ratio goes up to
30% that includes 16% excise duty, 8-15.3% of sales tax and varied nature of octroi, in Mumbai,
Maharashtra it is 5.5%. Ideally it should not be more than 4%. According to Mr.Nemish Mehta,
97

director of Mehta Hwa Fuh Plastics, unless and until government rethinks on this tax structure
and handles the tax payments properly the desired development of this sector is impossible.
Further he adds the government should seriously think on bringing VAT in practices to avoid
any mall practices in tax payment and structure and it will definitely improve business situations
for the organized sector in particular. Small-scale production and low demand along with the
moderate development ratio affects the overall survival of the market. And with this speed the
expansion of the market is nearly impossible. Now we are coming to the biggest factor that
unable the development of this sector and i.e. the policies of the government.
This industry has been placed under small-scale industry and in reserved category with the
investment limit of Rs. 1 crore. Nearly 75% of the industry runners falls under the cap of
unorganized capacity, which largely affects the remaining 25% of, organized enterprises. Due to
this reason there is a lack of coordination in the working of this industry. In particular, this
segment the foreign companies hesitate to set foot to India, because according to them Indian
market is too small as compare to South East Asian market. As compare to other market this
market lacks the identification of brand name that can provide effective boost and popularity to
it. Low purchasing capacity and high tax components could be the main reasons behind it.
According to Mr. Manoj Lodhaya, CEO of Corporate Stationary, in todays market the value
added items are considered as marketing activity without considering their self-consumption
value. So in respect to that we are coming out with more institutional promotions providing more
stress on consumer exhibitions. In response regarding the role of foreign participation in India.
Further, he adds, International competitors cant compete on the price factor. According to them
the size of Indian market is too small as compare to international market and they are not in favor
of selling their products cheaper to attract the domestic customers. The manufacturers are
hesitating to invest large amount due to uncertain market and business scenario. Looking to the
overall annual turn over of this section it may be close to around Rs. 1000 crores. The market
size is not too small but still the desired development is absent. The market size does have a role
to play but the coordination among big players tends to create imbalance in situation.

98

On the contrary if we look at the last decade, the consumption level of these varieties have
increased but not the brand names. Besides, purchasing pattern in India is unplanned causing the
undeveloped and uncontrolled activities in this segment. As compare to paper files these PP files
and folders are costly, making it more expensive. But still the demand of this particular variety is
on its increase that in particular it has become the medium of media packaging. In the
consideration of modern technology particularly Internet, the big companies do not find any
substantial effect on this segment. But in relation to the industry like writing instrument the
government should think of some exemptions in the consideration of investment limits. When we
look at this scenario the industry of files and folders perform more supportive role to stationery
industry despite such limitations and drawbacks. But still with effective efforts from government
and manufacturers will change the whole circumstances of this industry and situation. Planned
marketing and advertising efforts and up gradation of market will improved. The situation not
only for the files and folders but will have its effect on entire stationery industry. Overall, as
increasing of demand for this kind of products in the market, the stationery manufacturers still,
will have to take more efforts to develop the product by latest technology and tools, but it
requires help from Government bodies to compete with the foreign manufacturers.

99

CHAPTER-8
LIMITATIONS

100

LIMITATIONS IN RESEARCH
Every study has its own limitations in terms of methodology and the resources available for its
conduct. This study has no expectation to it and has been carried under following limitation:
1. Some of the dealers as well as the customers were not forthcoming with information as they
thought it to be a waste of time. Some customers were not able to respond due to lack of
awareness.
2. A number of dealers were biased towards a particular brand which was giving them better
returns.
3. Some of the shop owners were not available so, contacted person was not able to present a
fair view.
4. Respondents lack of time to give information and their casual attitude was a big hindrance in
the study.
5. The dealers were biased by some recent experiences which they had with a particular
distributor regarding the service or distribution.
6. Respondents lack of time to give information and their casual attitude was a big hindrance in
the study.

101

BIBLOGRAPHY

BOOKS:

Johnson & Scholes, "Exploring Corporate Strategy", 5 th Edition, 2002,

Text and Cases. Prentice Hall of India,From Pg. No. 226 to 239
Kotler Philip, "Marketing Management", Prentice Hall of India,
2004.From Pg. No. 148 to 205
Wilson & Gilligan, "Strategic Marketing Management", Viva Books
Private Limited.From Pg No. 106 to 156

WEBSITES:
http://www.neelgagan.com/html/prod_click.html
http://www.neelgagan.com/html/home_click.html
http://www.navneet.com/corporate/ourbusiness/books.asp
http://www.hindustanpencils.com/hppl/intro.aspx
http://www.hindustanpencils.com/hppl/profile-international.aspx
http://www.itcportal.com/sets/education-stationery-products-frameset.html

102

APPENDIX
CUSTOMERS QUESTIONNAIRE
1.

Gender:
Male

2.

3.

How many members are in your family?

(a) Single

(b) 2 4

(c) 4 6

(d) More then 6

What is your Occupation?

(a) Salaried

(b) Self-employed

(c) Professional

(d) Business

(e) Student

(f) Retired

(g) Housewife
4.

Female

(h) Others

How much money do you spend on the stationary product (monthly)?

(a) Less then Rs 500 (b) 500 < 1000
(d) 1500 < 2500

5.

6.

(c) 1000 < 1500

(e) More than Rs 2500

What is the consumption rate for these products (monthly)?

(a) Less than 2

(b) Less than 4

(c) Less than 6

(d) More than 6

Which brand do you prefer most?

103

(a) NEELGAGAN
(b) Hindustan pencil
7.

Why do you prefer this brand?

(a) Price

8.

9.

10.

(c) Navneet

(b) Brand name

(d) Sales promotion

(e) Easily available

(g) Packaging

(h) Others

(c) Quality
(f) Schemes/offers

Which promotional activities influence your decision to go for Stationary Product?

(a) Discounts

(b) Scratch Cards

(d) Free Gifts

(e) Others (Plz specify)

From where do you purchase these products?

(a) Departmental store

(b) Kirana shop

(c) Shopping mall

(d) Super market

Which media influence your buying behaviour?

(a)

Print media

(b)

Electronic media

i) Newspaper

i) Television

ii) Magazines

ii) FM Radio

iii) Hording

iii) Cinema hall

iv) Bill board

iv) Internet

104

(c) Extra quantity

(THANK YOU FOR PARTICIPATING IN OUR SURVEY)

105

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT

STUDIES
ATTENDANCE FOR SUMMER TRAINING PROJECT
REPORT

Name of the student

: BHUMIKA BANSAL

Class

: 5B

Roll No.

: 18114701712

Name of the Supervisor

: MR. BISHWAROOP CHATERGEE

S.No.

Date

Time

Progress

Signature of Signature of

Report

the student

106

Supervisor

10

*Minimum (8out of 10) 80% attendance compulsory.

Coordinator

107