Printing & Stationery
As electronic communication gains traction, the printing and stationery industry has been at a distress stage because of decreasing market depth and poor cost efficiency. This is due to the presence of many small enterprises trying to exist in this matured market with a growing unorganized sector. This stationery industry can broadly be divided into the following sub-products:
Buy Industry Analysis
With very less major companies and hundreds of smaller unorganized companies catering to local demands, the industry has a market capitalization of INR 6,500 crore in the stock market. Marred with extremely low margins and losses, most companies are recording sub 5% operating margin and even negative OPM in some cases. Specialized machinery are also being used by bigger competitors as they see opportunities not in the matured market of India but in the export market in US, Central America and Africa.
Due to the highly scattered nature of the industry there is a huge unorganized part of the industry that makes it alarmingly tough for the organized sector to continue making profits without adequate supply chain and distribution networks. Many factors like lack of modern production facilities, the marginal demands, and international competition has resulted in the stagnation of this sector. However, the growing demand in the customers for products has led many companies to diversify into this segment like ITC with their brand of high quality notebooks – “Classmate”, resultant to this, smaller companies are finding it difficult to survive in the market and attain growth. Having matured over the time, the barriers to entry in this segment are not so significant but the non-viability has kept new investors and companies at bay.
Navneet Publications Ltd. being a prominent company in this industry with 20% market share has made efforts to boost exports and build on its revenue to give consistently good performance. With its advancement into e-learning – “eSense”, the companies looks forward to gain an edge into the upcoming market after having been successful both at its Stationery segment and its Publications segment with over 5,000 publications.
On the international front, the trends are positive, entry into the Indian market by brands like Faber Castel, Kores and Maped with more innovative products, the increasing demands of quality sensitive customers has emanated into higher quality of offerings by the companies. The entry of the specialized stationery retail chains and e-tailers building client base online, the demand for organized sector stationery has also considerably increased which has resulted into top-line volume growth over the past few years. With this growth strategy and the gamut of wide variety of products on offer, it has tempted renowned players to enter into the market.
Digitization is also one of the major problems being faced by the smaller companies as they do not have the technological skill set to diversify into the segment. However, major companies have diversified into the digitization segment with promotion given to this sector by the education department. New opportunities for publication of course material is also one of the segments that companies in this sector can utilize for growth.
India is witnessing a transformation with growing customer needs and demands which has built a market around cost efficiency and the principle of supplying quality products and economical costs. With sustained efforts to revitalize the industry, inclusion of the unorganized sector into the organized retail sector and growing interests from investors, the industry can grow to a valuation of INR 25,000 Crore by 2022 with high CAGR in particular segments like office stationery, school stationery and computer accessories.
What this report contains:
A detailed overview of the industry
Structure of the industry from both, domestic and international perspectives
Related industries that this industry has inter-dependencies with and their understanding
Detailed analysis of industry segments in terms of the value and depth of corresponding market
Analysis & insights about the elements and critical success factors of this industry using strategic models
A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020
Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants
Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models