GM Pens expands product basket

GM Pens International, the exclusive licensee for the Reynolds brand in India and the Saarc countries, is now looking at diversifying its product portfolio.

The company has just launched Dymo, a label-maker "� a product owned by Sanford Corporation, which owns the Reynolds brand "� in India.

The company has also started setting up retail outlets called WriteSite and has launched a private label of the same name, under which it has rolled out sticky notes, glues and tapes. At present, these products are available only through the exclusive outlets.

The company will look at introducing the products at other stationery stores as well over a period of time and bring out other product categories within stationery, said Vishwadeep Kuila, vice-president, sales and marketing, GM Pens International.

The Dymo range is available upwards of Rs 200 and goes up to about Rs 9,000. While the more basic products will be available through stationery outlets, the high-end ones will be sold directly to companies through the sales force.

Kuila said by the next year, Dymo is expected to contribute 10 per cent to the company's total turnover. The company closed 2005-06 with a turnover of Rs 175 crore and hopes to cross the Rs 200 crore mark this year.

With the writing instruments market becoming increasingly commoditised, Reynolds is now looking at managing channel partners more effectively, while tapping newer revenue options.

At present, the company is testing 150 vending machines in schools in Chennai. Kuila said the response has been encouraging and once certain problem areas are ironed out, the vending machines will be introduced in other cities as well.

"In addition to the convenience factor for students and teachers, the vending machines also work to establish the brand with consumers," said Kuila.

Similarly, WriteSite outlets showcase all the Reynolds brands as well as others, such as Berol, Rotring, Alpino and Colorific, from Sanford's international portfolio. Gifting is another area that the company is set to increase focus on.

After roping in Sachin Tendulkar as brand ambassador in May, Kuila said the company has seen a 15 per cent increase in top-of-mind brand recall, which is in line with the expectations of a 25 per cent increase after a year.