The Mumbai-based Today's Writing Products, one of the leading pen manufacturer, is doubling its production capacity to 4 million units per day from the existing 2 million units per day at an investment of Rs 37 crore. The plant is set to commence commercial production soon mainly to cater to export market.
Additionally, the company is also planning to resume its operational to utilise its 100 per cent capacity.
Because of huge spurt in raw material prices, the company had recently cut its production by 15 per cent mainly in low-end products priced below Rs 5 per unit. For the high-end products that priced above Rs 10 per unit, the company is planning to produce quality products with glossy look.
Talking about the production cut in low-end products, a company executive said, “The shortfall in the availability of low-end products may create demand which will help company to pass on the huge spurt in raw materials.” However, we managed successfully to pass on raw material price in high-end products, he added.
Meanwhile, the prices of polypropylene, one of the raw materials, jumped about 25-30 per cent to range between Rs 97 - 106 per kg while polystyrene is currently sold between Rs 91-92 per kg as against Rs 76 per kg six months ago. Prices of SAN (styrene, acrylio and nitryle) are currently hovering between Rs 116-117 per kg from Rs 85 per kg six months ago.
The unorganised segment however has been the worst hit, and are forced to close down operations creating a huge void in the pen market in India. The Rs 700 crore unorganised comprising thousands of small hand moulding producers has now fallen vacant to the organised players, like Todays Pens, in this writing instruments category of stationery.
The company has executed a strategy to counter this crisis. With the market in an unsure position of what will happen most of the trade have become overly cautious in their approach. Today's dropped their production of plastic pens to a mere Rs 17 crore out of a total turnover of almost Rs 48 crore.
