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Stationery Industry:

The term “Stationery” traditionally represents a wide variety of materials like writing

instruments, paper, office supplies, notebooks and greeting cards, etc. The

contemporary definition of ‘stationery’ now relates more specifically to materials used for

formal or personal correspondence. The stationery industry is worth more than 11,000

crore, and comprises of a wide variety of products and categories. The stationery

industry is generally classified into school stationery writing instruments, office

stationery and paper products. Though the industry is dominated by local or

unorganized stationery players, a large number of organized players have entered the

industry.

Source: Survey

The industry is expected to grow annually 10%, and at CAGR of 12% ove

Market size of the various product categories:

Chapter – 2

Organization Profile







onery and paper products. Though the industry is dominated by local or


The industry is expected to grow annually 10%, and at CAGR of 12% ove

Market size of the various product categories:







onery and paper products. Though the industry is dominated by local or


The industry is expected to grow annually 10%, and at CAGR of 12% over next 5 years.

Source: Survey

Players in various categories:

Source: Survey

KouyokoCamiln:

The company is an Indian stationery company which is based out of Mumbai, India. The

company is engaged in the production of stationary products and of materials for art

Players in various categories:


the production of stationary products and of materials for art


the production of stationary products and of materials for art

materials. Started in 1931, The Company is a household name today. The company has

a wide variety of productsthat range from Fine Art products for artists materials, to

materials for hobby professionals and school students. It also manufactures & sells

various stationery products, office-related products, inks and instruments used for

writing.

CAIMLIN:

The organisation is more than 80 years old and has a rich lineage, history and a very

proud history. The operations of the organisation started way back in 1931 when it had

just started manufacturing of the Ink Powders and Tablets – under the brand name

“Horse Ink”. This led to creation of its flagship brand in the year 1946.With such a long

existence, the company eventually ventured into materials for art, stationery for school

students, materials for hobby, stationery products & corporate gifts for office. Though

started with a humble beginning, the brand is amongst the most renowned and trusted

brand not only in India, but also in many other countries. The brand has more than 3000

products and the reach is of more than over 50 million households.

The KOUYOKU Group:

The parent company is also more than a century old organisation in Japan. .. It was

founded inthe year 1905 in the city of Osaka, Japan. The organisation started as a

manufacturer of covers for books of Japanese accounting books (traditional), which

were known as a wacho. As of today, the company ismore than US$ 3 billion

conglomerate with presence in various South East Asian countries like Vietnam, China,

Hong king, Singapore & Malaysia. Other than that it has its global footprints in Europe &

Asia. The company’s flagship product offerings are stationery, supplies & furniture for

offices and notebooks. The company is a public limited company and is listed on the

Tokyo &Osaka stock exchanges. The company’s brand”K0KUY0” is a household name

in the furniture &office stationery products segment.

K0KYU0 CAMILN LIMITED:

In the year May 2011, the companies, K0KUY0 & CAIMLN came together to form -

'KOKYUO CAMILN LTD". The parent company, KUYOKO acquired a stake of more

than 50% from the promoters of the Indian Company CAIMNL.Thenew name of the

company emerged as KOKYU CAMILN LTD., a name that highlighted the new synergy

and strength.

The company began a new chapter as far as the stationery business in India was

concerned. There was a sharp future orientation and clear goal that aimed to utilize the

prevailing strengths of the two companies &the presence.Thecompany’s strong brand

equity in the Indian market & the reach to consumers was further supported by

introduction of new & innovative stationery products, world-class R&D infrastructure and

strong presence in the Asian countries.

STATIONERY INDUSTRY IN INDIA

The company manufactures & sells a wide variety of products such as Fine Art Range

of Colours, Colours for Hobby Professionals, Scholastic Range, Stationery products,

Stationery for Office and instruments for writing. The major consumer of the company’s

offerings are the school student segment.

India is a big market for art materials. The market can be divided on the basis of end

consumers or on the basis of products.The market when segmented by products can be

classifies into colours, mediums and the accessories. When the segmentation is on the

basis of users, we can classify it as the market for heavy / serious users which have the

top positions. This segment comprises of the professional artists and the products that

they prefer are of a high quality. The next sets of users are the hobby professionals.

This market has a broad base which includes customers of all age & gender. The last

but the most important segment is that of school goers. The school going segment of

consumers use a variedlist of the company’s range of colourproducts like oil pastels &

crayons. These products are available economically and are used by a huge population

of schools & students.

The Indian art material market has witnessed high growth in the last few years. The

recognition of Indian art & artists world-wide has led to the serious growth of the first

user segment – Professional Artists. This recognition of Indian artists internationally has

created an inspiration and encouragementamongst the artists to create work that is at

par with best work in the world. The government also has “Education” as top priority on

its agenda and in line with this; we have seen a fast growth in the number of pre-primary

and primary schools. With increased expenditure towards education, the number of new

schools opening every year has increased considerably. All this has led to an increase

in the school stationery segment. The board classification of the stationery market can

be done as Stationery – For Offices, Schools, Paper Products and Computer Stationery.

The Indian stationery market can be numbered at approximately 10,000 crores. Out of

this, the notebook market has a value of approximately Rs. 5000 crores. The high

growth of the Indian stationery market is above 10% annually. The stationery market in

India is highly fragmented and has a high number of unorganized players. It is also a

highly commodity driven market. The increase on expenditure on the educational sector

has led to an increase on the educational sector by the government. The current

company has been in existence since a long time, more than 80 years. The company

has established itself as household and a very well-known brand in India. It has a very

strong distribution network all throughout the country. The company manufactures and

sells more than over 2000 products and has a wide range from highly quality stationery

products like pencils, inks, mathematical sets and pencils as well as colour products like

the fine art range, hobby colours& school colours. It has a very high percentage

ofmarket shares in all of these products. The company has a plan to reach to more than

3 lac retail outlets pan India and reach an average 55 million household annually. This

has been possible due to a strong pan-India distribution network.The company is a

pioneer in artist as well as school colors as well as in the manufacturing of a wide

variety of new age products like highlighters and markers that are also used by many

industries as well as various educational institutes. The company is also a pioneer in the

manufacturing of glue sticks.

The two companies merged together in the year 2011 to form “KUYOKO CAIMLN”. The

objective was to expand the geographical reach to other countries. It was

alsoimperative toincreaseits strength in the stationery portfolio by introduction of new

and innovative products.

KOYUKOLtd.acquiredCaminl to accelerate the expansion of its business in the Indian

stationery market which is now a fast growing market for products like office supplies

&stationery, notebooks, organisers, etc thus capitalizing the company’s strong

distribution network that had a pan India reach. The strength of the company is in

products like school colours, artist colours, school stationery and technical instruments.

These products are also exported to many other countries. The company increasedthe

research &development of these products and have launched lot of new designs. The

strong & established brand name of the company is its key strength and it is well

supported withdistribution reach, pan-Indiato more than 3 lac retailers. The company is

a market leader in the product category of fine art colours, colours for school children,

and stationery products like mathematical sets and mechanical pencils. The parent

company is a market leader in the category of products related to office stationery . It

has strong strength in notebooks and office products &supplies. The parent company

brand, “K0KUY0” isalso a wellknown brand in office furniture segment. The product

development model followed by the company is one wherein the research, marketing &

distribution sections are all merged to maximize the customer value.

The synergies that exist between both the companies have resulted in various benefits.

The benefits include expansion of the product-portfolio, entry &expansion to new

geographic markets,a reduction in costs andfaster launches of new products developed

though joint design and R&D.

VISION

The vision of the company is “To be Honor of Asia in Stationery and Colour Industry.”

BELIEF

Employees: the company believes that the fundamental strength lies in employees

Customers &Suppliers: The Company believes that the income earning comes from the

long-term goodwill of the customers who use, sell and supply the company’s products

Communities: The Company believes that it is our responsibility to contribute to the

well-being of countries and communities where business is conducted

COMPANY’S CORPORATE PHOLOSOPHY

Customer First

The company is highly committed to respond to customers by delivering superior quality

products that meet the diverse demands of the customers across the globe.

Human Resource

The company promotes equal employment opportunities to encourage professional

excellence and strives to provide good working conditions.

Business Partners

The company strives for a long-lasting association with all the stakeholders to enhance

mutual co-operation and establish with them a bond of mutual trust.

Corporate Governance

The company believes in taking leadership and in nurturing a corporate culture and

implementing policies that promote ethical behavior.

Transparency

To company believes in maintaining transparency and to conduct the business

operations with utmost honesty and integrity.

Corporate Social Responsibility

The company believes in embracing and contributing to sustainable development of the

society and in making consistent efforts to preserve & maintain harmony with the

environment.

MANUFACTURING FACILTIES

The company has manufacturing facilities at 4 locations. All the factories are ISO

certified and have state-of-art production facilities.

Tarapur

The plant manufactures Oil Colours for Artists, Oil Colours for students, Water

Coloursfor students, Premium Poster Colours, Mediums, Drawing Inks, Photo Colours,

Fabric Colours, Oil Pastels, and Plastic Crayons & Hi Par Leads.

Jammu

The plant manufactures Scholastic Colour Products,

Tubes, Redimix, Student Poster Colour sets, Glass Colour& Assorted Sets, Sparkle

&Fabrica Glue

Vasai

The plant manufactures Markers, Highlighters, Correction Pens, Gel and Ball Pens, Gel

and Ball Pen refills, Stamp Pads&Mechanic

Taloja

The plant manufactures Adhesives, Krafty Glue, Inks& Fluid Dilutor

The company has employee strength of more than 1300 employees. Other than the

above 4 manufacturing facilities, the organisation is also building one of the largest

production facilities in Patalganga, Maharashtra. There are 6 branches and 39 C&Fs

associated with the organisation.

PRESENCE ACROSS VARIOUS CATEGORIES:

MILESTONES

The company is a pioneer in many of the products that they produce and sell

The plant manufactures Scholastic Colour Products, Water Colour, Water Colour



and Ball Pen refills, Stamp Pads&Mechanical Pencils

The plant manufactures Adhesives, Krafty Glue, Inks& Fluid Dilutor



ction facilities in Patalganga, Maharashtra. There are 6 branches and 39 C&Fs

associated with the organisation.

PRESENCE ACROSS VARIOUS CATEGORIES:


Water Colour, Water Colour





ction facilities in Patalganga, Maharashtra. There are 6 branches and 39 C&Fs


The company was the first in India to launch the hobby colours range. They introduced

the Colourproduct categories in India like fine art coloursand hobbycolours.

The company’s products are certified ‘No health label is required’ by The Art & Creative

Materials Institute Inc., (ACMI) Boston, USA

Most of our school products conform to EN 71-3 European Standard which means that

these products are Non- Toxic and safe for children to use

The product “ Krafty Glue” (White Glue) has been voted ‘product of the year’ by A.

CNeilson’s National Consumer Survey for 2009 under Adhesive Category

All the Factories are ISO certified

The company is the only Manufacturers of Hi Polymer Lead and Glue stick in India

The company’s Colour Contest has been mentioned in Guinness World Records for

being the largest art competition that attracted a total of more than 48.5 Lacs

participants from around 6600 schools across India

AWARDS & ACCOLADES

The company was selected as"Asia’s Most Promising Brand", by the World Consulting

and Research Corporation (WCRC).

ABBY award for Experiential App

The organisation had won 3 awards in the prestigious DMAI Awards 2014 in India for

the company website. The awards were

GOLD for Experiential App

SILVER for the “Best UI/UX” (User Interface & User Experience) Category

BRONZE for the “Best Responsive Site Category”

The company was also recognized in the Indian Digital Media Awards (IDMA) 2014 for

the website & Asian Effectiveness Award for the Experience App.

The organisation was also awarded with the DainikBhaskar INK Awards 2014.

The factories have also won several accolades year on year in the Quality Circle Forum

of India Annual Convention Programmes.

The company’s internal Newsletter, Newscafé won Special Jury Award in 2012 (out of

the 675 entries) for its creative conceptualization and visual appeal at the ICE Awards.

SOCIAL INITIATIVES

Camiln- “Kids Power”

Camlin Kids Power is an initiative taken by the company towards social awareness.

Through the initiative the medium of music, art and advanced learning techniques are

used to understand the various important social issues. The team involved in the project

approaches a new social issue every month and also conducts various activities and

ensures that it reaches across the country with the help of social media platforms.

“Swachh Bharat” Campaign

The campaign of Swachh Bharat campaign was conducted at the area of Dharavi in

Mumbai. The campaign had the objective of influencing thechildren and youth in the

area. It also had the objective of creating awareness about public health. It shared how

these young minds can contribute towards making India safer &cleaner. The activities

were conducted andpromoted on various social media platforms. There was also a

contest that helped in ensuring the spreading of the awareness across the country.

“Anti-Bullying Initiative”

Bullying is one of the major social problemfaced by numerous schools across the

country. The organisation via the “Anti-Bullying” initiative undertook various initiatives;

the project team also conducted workshops in schools in the capital city of New Delhi.

The awareness was created amongst the young kids in the city that taught children of

the preventive measures and solutions to handle bullying. The same was shared by way

of engagingthe children in fun & interactive workshops.

Recycle & Reuse

The company also conducted a workshop to educate children of the Angel Foundation

on “Recycling& Re-Use” that included fun and engaging activities and by use of the

company products. The kids participated with high enthusiasm.

World Environment Day

On the occasion of World Environment Day, the company carried out “tree

plantation”drives at all its production units and the surroundings.

Children’s Day Celebrations

The company carries out various activities across the country on the occasion of

children’s day. The company conducted activities with “making learn

theme. There were various activities like the puppet shows, television campaigns

&essay competitions.

GROWTH DRIVERS

Office Segment

The Indian economy is booming and more offices mean more consumption

There is an increase in the number of m

for professionalism

The service industry is the highest consumption sector & there is more inclination

towards convenience products

Proliferation of specialty industries like Auto, Textiles, Leather, Jewels, Logistics, ITetc

has also boosted the demand

School Segment

Government of India is highly focused on increasing literacy

The K to 12 education sector is growing very fast, and

schools create a new market for school stationery products

Growing experiential & project based learning system is a boost for hobby products &

colors


children’s day. The company conducted activities with “making learning fun” as the



There is an increase in the number of multinationals which has created a requirement


towards convenience products


has also boosted the demand

Government of India is highly focused on increasing literacy

The K to 12 education sector is growing very fast, and the emerging concept of pre

schools create a new market for school stationery products



ing fun” as the



ultinationals which has created a requirement



the emerging concept of pre-


Shift in individual buying pattern from traditional collective buying pattern

There is more disposable income and hence acceptance of premium products

There is a shift from commodity market to brand & a growing concern towards eco-

friendly products

Quality education is the 2nd top priority for parents &The number of premium schools is

increasing rapidly

School enrolment has reached to 93.4%

Artist Segment

The Art market growing exponentially

Indian art and artists works are fetching higher prices in auctions

There has been an inclusion of art as a mandatory curriculum

Art workshops have become a big & cost friendly source of acquiring art

Opening of more art schools and serious inclination towards art as a profession

Cross-exchange of art ideas across the borders

More art exhibitions

Engage. Expand. Execute

In an ever growing market with increasing competition, and the advent of more & more

new players every day as well as more joint ventures &collaborations, the company has

continued on its strategic & aggressive growth plans. Many new products were

launched, were revamped with respect to the branding, packaging, etc. The reachtothe

consumers was also widened using both the digital as well as platform.

The substantial improvements in the profit as well as income every year has been a

result of the company’s continuous efforts. The company now is ready to utilize its

Presently, the company stands poised toutilizeits unrivaledconnect with their

consumers, the strong brand name, a widely spread product portfolio and the strong

pan India distribution network that reaches every nook &corner in the country and it can

continue to accelerate its growth further by continuing toExpand. Engage &Execute.

The company is now highly focused on the execution of its “Plans, Projects & Progress”

since the recent past.The company has the manufacturing process as its core focus.

Production is critical for any organisation. The company has decided to expand its

production capabilities and is coming up with a new and fullyintegrated plant at

additional Patalganga. This decision by the company was aimed at progressing the

company’s overall manufacturing forteso that it can create tremendous advantages

stemming from the economies of size, scale & scope.

In every business, involvement of all the key stakeholders is extremely crucial to

sustaining the growth and performance of the company. In this organisation, it has been

a constant endeavor to engage continuously with its main stakeholders – the

shareholders, partners &employees.

The company has been working towards increasing it’s connecting with the key

stakeholders with anunremitting and committed effort to engage with the “Shareholders,

Partners, and Customers&Employees”.

The company has always taken various initiatives to maintain its position as the oldest

stationery brands in the country and to ensure that its brands are amongst the favorite

brands for today’s customers. They did this by engaging with the customers in the most

effective way.

The company re-branded itself as a brand which associated with learning & fun. &it’s

philosophy of making learning fun for the children. “Let’s have fun” is the spirit of the

company’s brand. The brand as a whole including the product, the communication, the

packaging, and the promotional activities to engage with consumers were designed with

this essence &spirit.

The Company’s Flagship activity – Camel Art Contest, now known as AICCC was

madestronger with participation from more than 7 million children. The contest was on

an international level and used digital media effectively.Children from countries like Sri

Lanka, Nepal, Singapore, Bangladesh & USA enthusiastically participated in the same.

The company re-branded itself as a brand to establish that school and workplaces can

be more fun withthe company products.

With astrong &elaborate network of pan India distributors, the company ensures that its

products are available all over the country. The company has continued its engagement

with all its distributors through various dealer meets and has ensured to keep this key

distribution channel engaged. The Vendor Base Diversification was also an important

initiative taken up by the company.

THREATS &OPPORTUNITIES

The company is building one of the largest production facilities in Patalganga,

Maharashtra. The company is revamping its distribution network as well as sales to

increase its direct reach to the consumers in next few years. The company is highly

focused on emerging as a strong player in the country > the reach will include all the

cities & towns segmented as Tier I, II & III. These cities and towns are emerging as high

&fast growth markets. The company is also strengthening the sales team which will be

crucial in reaching and expanding retail presence.

The company’s product range is that of more than 3000 SKUs. The product portfolio

addresses the needs of a variety of customer segments like Professional Artists, School

Students, and Hobby Professionals & Office Professionals. The range includes a

widespread range of products like writing instruments, colours, inks, fine art, office

stationery, school colour& stationery and hobby art materials. Product promotion is

extremely crucial for strengthening the sales of company’s products and schools are the

main customers for these kinds of promotions. The company has a flagship promotional

event known as the “Camel Art Contest”, now All India Camel Colour Contest (AICCC).

The SAT or the School Activation Team has been created to meet this need in the

organisation.

The company has also made huge investments in Research & Development as well as

Quality. It is now aligning itself with the philosophy of high customer centricity with

production of worldclass products The company is aiming to reach a top line of 1000

crores, and in line with that it is planning to expand its reach in India as well as abroad

and also more market-share in key category productsWith the overall growth in the

Indian economy & a high focus on education, there are various opportunities for the

stationery industry. The industry has been pressurized with increasing input costs since

the recent years. The increase in input has been primarily on raw materials for

production, financing costs as well as marketing costs. Due to increase in competition,

in particular from imports, the increased cost cannot be added in the price & passed to

consumers. Also, given the nature of the stationery industry, continuous introduction of

new & innovative products is imperative. That is a challenge faced by the organisation

too. It has to continuously introduce new & innovative products to meet the increasing

demand.

WAY AHEAD

The organisation is on a fast track growth and is working at not only continuously

expanding its product range but also the distribution network, geographical reach & the

markets. Matching the pace of the ever growing stationery market, the organisation is

also expanding its portfolio and its reach to national as well as international markets.

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