Ballarpur Inds plans non-paper stationery foray

Ballarpur Industries is planning to enter non-paper stationery segments in the premium category. Writing instruments, desktop accessories, files and folders, computer consumables, glues, adhesives and tapes are some segments the paper major is looking at.

"The company's stationery range will be premium. We will launch our range of files and folders in a month, followed by other launches over the next few months," said Yogesh Agarwal, president-paper business.

The domestic market size of files and folders segment is Rs 220 crore annually.

The entry into non-paper stationery will allow the country's top paper manufacturer to spread its retail business. "This is a profitable venture and, thus, we plan to expand it further," said Agarwal.

The retail business' turnover is expected to touch Rs 44-45 crore in the current financial year ending June, and Rs 75-80 crore in the next financial year, he said.

"We also plan to launch pencils, pens, photo papers and consumer packs of most common stationery products," said Agarwal.

For all its new launches, Bilt intends to outsource products and focus on branding, distribution and packaging. "We plan to bring in products never seen in the Indian market and a new range of fashion stationery," said Agarwal.

As Bilt intends to import products, there is unlikely to be any upfront investment in the retail business. "We will invest about Rs 3-4 crore in advertising over 3 to 4 months," he said.

Domestic writing instruments annual market is estimated at Rs 1,215 crore, desktop accessories Rs 90 crore, glues, adhesives and tapes at Rs 260 crore and computer consumables at Rs 1,700 crore.

As per Bilt estimates, the company holds about 80 per cent market share in the premium business stationery (including its range of notebooks Matrix). In other paper segments, Bilt is the market leader "" in coated-wood free, it holds 38 per cent market share and in uncoated-high bright, wood free about 39 per cent.

In copier segment, the company holds 27 per cent market share, with JK Paper claiming to be the leader with 40 per cent market share.