The company manufactures and distributes writing instruments including pens, stationery products and calculators. It is among the top three players in the overall writing instruments industry occupying a market share of approximately 9% and 7.1% in the export of writing and creative instruments industry. The company has seen faster growth in revenue as compared to the industry growth rate, i.e., while the industry grew at a CAGR of 5.5% between FY17-23, They grew at a CAGR 14%. Leveraging on manufacturing capabilities, it has diversified into manufacturing houseware products and steel bottles.
Company had the largest distributor/dealer network and wholesale/retailer network, comprising approximately 7,700 distributors/dealers and approximately 315,000 wholesalers/retailers. The company has 11 manufacturing plants located in Valsad, Gujarat; in Naigaon (near Mumbai), Maharashtra; in Daman, UT of Dadra and Nagar Haveli and Daman and Diu; and in Dehradun, Uttarakhand. The company’s ability to manufacture quality products with distribution and retail capabilities, it is able to partner with various international brands in the writing instruments industry.
Brands:
Product: The company offered 727 different products as of June 30, 2023.
Competitors:
Our principal competitors in the Indian writing and creative instruments industry include BIC Cello, Camlin, DOMS, Hindustan Pencils, Linc, Luxor and Reynolds, according to CRISIL. Our key competitors in the Indian homeware industry include Borosil Limited, Cello Household Products Private Limited, Hamilton Housewares Private Limited and Placero International Private Limited, according to CRISIL. Certain such competitors may have greater financial resources, technology, research and manufacturing capability and greater market penetration, and their brands may be more well-known than our brand in some segments.
The writing and creative instruments segment comprises of writing equipment such as pens, pencils, markers and highlighters; and art and hobby equipment such as crayons, sketch pens, colour pencils, brushes, and accessories such as erasers, sharpeners. Among the writing and creative instruments industry pens account for a major share.
Industry in India has experienced consistent growth between FY18-2020, driven by product innovation, design modifications, brand development by leading players, and high demand. The industry has witnessed a shift in its structure, with large, organized players gaining market share over unorganized, smaller players. Large, organized players have been able to grow faster than the industry average by diversifying their product portfolios and expanding distribution channels. However, in FY21 due to the Covid-19 pandemic there was closure of schools and institutions resulting in a subdued demand for products, leading to a 39% decline in FY21. As offices reopened and schools restarted, the industry started witnessing a pick-up in demand in FY22, with industry surpassing pre-pandemic levels, in Financial Years 2023.
Overall, the industry expanded at a CAGR of 38.3% between FY21-2023. Over FY18-23, the writing and creative instruments industry experienced price growth across various segments. However, the extent of price increases varied among these segments. Notably, pens demonstrated the highest growth in prices, closely followed by the art and hobby and marker segments.
Indian writing and creative instruments industry to grow at 7.7 – 8.4% CAGR over FY23 – 28. The rising focus on education, which is also reflected in the rising literacy rate for the country, coupled with the rising trend of parallel education in recent years, characterized by the emergence of coaching classes, training programs, etc. is expected to provide impetus to the industry. Apart from this, with the return to offices, demand from the office going population is also expected to contribute to the growth of the industry going forward.
The steel bottle industry in India is projected to grow at a CAGR of 14-16% between Financial Year 2023 and 2028.
Risk Analysis.
1. Aadhaar and PAN Card of the taxpayer and the company
2. Bank Statements of the taxpayer/company/firm
3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).
4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.
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8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.
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10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.
1. Aadhaar and PAN Card of the taxpayer and the company
2. Bank Statements of the taxpayer/company/firm
3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).
4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.
5. Investment and financial documents: If you have invested in shares, mutual funds, or fixed deposits, dividend statements, capital gains reports (if you have sold any assets), and interest certificates need to be attached.
6. Proof of other income: Other than your salary, if you have earned from different sources, such as from freelance work, rental income, or interest, you need to attach the documents, such as bonus receipts, interest certificates, rental agreements, and any freelance payment statements, to prove the same.
7. Deductions and tax-saving investments: To claim deductions under sections 80C - for investments in PPF, ELSS, etc., 80D - for insurance premiums, or 80G for the charitable donations, you need to attach the documents to prove the same.
8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.
9. TDS Certificates: If you have earned income from sources other than your salary, such as rent, interest, or professional fees, then your TDS might have TDS deducted. In this case, you need to attach the TDS certificates from those sources to show that tax has been deducted and deposited with the government.
10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.
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