Business IdeasITC to launch new products in stationery biz
Diversified business conglomerate ITC Ltd is targeting a Rs 1,000-crore turnover from its stationery business in three to five years, led by new product launches targeting school children and institutions. It’s current revenue from this business stands at Rs 280 crore.
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ITC is also talking to corporates with its promise of green technology backing its paper. It is now providing the entire office stationery requirements of groups such as the Tatas, Wipro, IBM, HSBC and ICICI Prudential and is looking to step up such institutional sales.
Chand Das, chief executive of ITC’s education and stationery products, told Business Standard: “We are targeting a Rs 1,000-crore business in three to five years. We already have ‘Classmate’ brand of notebooks for children and ‘PaperKraft’ brand for professionals and offices. We intend to launch a new range of geometry boxes, pens and pencils, and other stationery products in order to reach our target. We would also double our distribution network in two years. Currently, we have 750 distributors who make our products available in over 70,000 outlets in India.”
“Classmate is mainly aimed at students and we have launched ballpoint and gel pens under this brand. Similarly, PaperKraft is targeted at executives and we are using that for markers and highlighters,” Das added.
ITC’s education and stationery business is one of the company’s fastest growing businesses, recording a compound annual growth rate (CAGR) of 80 per cent for five years since inception to reach Rs 280 crore now from Rs 20 crore five years ago. The company has a 12 per cent market share in the writing material segment, which is pegged at Rs 4,000 crore.