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School Notebooks Market ,India Notebook Market, India Longbook Market,

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• The market is expected to witness a rise in the volume of premium office as well as school and college notebooks as companies widen the offering of their premium brands to realize the high margin in this segment. – PowerPoint PPT presentation

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Title: School Notebooks Market ,India Notebook Market, India Longbook Market,


1
India Exercise Notebook Market Report 2020
Ken Research
2
  • How the India Exercise Notebook Market Is
    Positioned?
  • The market for exercise notebooks in India has
    been traditionally dominated by the unorganized
    segment. From the endpoint of marginal retailers
    to independent sellers, all have been dependent
    on imports from China. However, the market has
    developed to achieve a substantial valuation
    which was not there until 2000. The evolvement of
    organized brands such as ITC Classmate, Navneet
    and others have added premium to the market,
    discerned by the fact that the prices of exercise
    notebooks have grown 5-6 folds and even more than
    that in some cases in the last decade. The
    exercise notebook market in India has been
    expanding at a decent pace in the wake of growing
    economy, high literacy levels, burgeoning
    middle-class and enhanced scale of initiatives in
    the education sector. There has been a marked
    shift in the preference from cheap local brands
    to quality products. Aesthetically and
    functionally improved notebooks

3
  • Which come with innovative 3D covers, had
    witnessed increasing demand in the recent years.
    The market size in terms of consumer expenditure
    on exercise notebook was evaluated at INR
    billion during FY2015 with the organized segment
    contributing for of the market revenue. Heavy
    capital investments in setting up manufacturing
    facilities and expansion of retail outlets are a
    clear indication for the future prospects of
    exercise notebooks in India in the coming years.
    Notably, Shachihata Inc. invested USD 5 million
    in its Chennai plant in 2014. Kokuyo Group has
    already been there since 2011 after purchasing a
    majority stake in Camlin which is a well known
    stationery brand in India. The demand in the
    domestic market is huge in itself whereas rapid
    improvement of the industrial infrastructure and
    strengthening of the manufacturing capabilities
    has boosted the export prospect as well.

4
  • Which Segments have Driven Changes in Exercise
    Notebook Market?
  • The usage of recycled paper is more prevalent in
    India currently accounting for around of the
    overall paper required in manufacturing exercise
    notebooks. The primary reason behind this has
    been low cost of production and heightened
    governmental push towards integrating
    pro-environment manufacturing processes. Retail
    sales accounted for the largest chunk ( ) of
    the revenue generation through exercise notebook
    sales in India during FY2015. The sheer number
    of retailers being far more than the number of
    schools or colleges translates into higher sales
    ratio in favor of retailers. ITC had
    approximately of its sales coming through
    retailers whereas the figure was for Navneet.
    By type of usage, notebooks (including long
    books) accounted for the highest revenue and
    volume sales amongst all the product types
    envisaging of the market sales volume in
    FY2015. While of the sales came from the
    54-56 gsm categories, 65 gsm variants accounted
    for of the sales. Practical notebooks and
    drawing books were the next highest selling items
    envisaging revenues worth INR billion and INR
    billion respectively in FY2015. 60 gsm

5
  • Practical notebooks chalked out a share of in
    the practical notebooks category in FY2015 while
    gsm was the highest seller for drawing books
    constituting for of the sales volume in the
    same year. A5 accounted for of the overall
    notebooks sold while A4 had countered a share of
    . 41-100 page notebooks accounted for of the
    overall sales volume in the notebook and long
    book category during FY2015. 60 page notebooks
    are one of the most popular items being consumed
    in the Indian market under this category. The
    price-sensitive aspect coupled with optimal
    usability of the exercise books has been
    supporting the sales of this variant. Flexible
    covered notebooks accounted for the majority of
    the sales in the overall market. Flexible covered
    notebooks are marginally cheaper and also
    light-weighted and easier to carry. High usage of
    writing exercise notebooks as compared to drawing
    notebooks indirectly leads to greater demand of
    white paper exercise notebooks which accounted
    for of the overall volume sales in the market
    in FY2015. Tier-II cities ( ) and urban
    geographies ( ) accounted for the highest
    revenue generation for the market in FY2015.
    Tier-II cities contributed for INR billion in
    FY2015.

6
  • Which all Factors have Appreciated the Market
    Prospect
  • There has been higher emphasis on increasing
    primary literacy levels and improving enrollments
    in primary, secondary higher education to
    sustain economic growth. In 2015, youth literacy
    rates were posted at 90.2 which indicates a
    positive outlook for the exercise notebook
    market. 58.3 of the population in India is aged
    below 30 years which indicates a larger chunk of
    population is either in school or some sort of
    educational or research institute, which
    indicates a promising growth for exercise
    notebook market. Both the central as well as
    state governments in India have been equally
    vocal about the educational upliftment in the
    country. Free and compulsory education for every
    child belonging to the age group of 6-14 years
    and launch of Rashtriya Madhyamik Shiksha Abhiyan
    to universalize secondary education has been a
    strong stimulant for the growth of exercise
    notebook market in the country. The average
    middle class has been allocating an aggregate of
    13.2 of its annual expenditure on education and
    stationery which is a strong reflection of the
    educational aspiration that this group possesses.
    Moreover, rising replacement rate of notebooks
    has also provided stimulus to the market growth.
    There has been a steady rise in the number of
    organized retail chain stores like Starmark,
    Crossword and Oxford Bookstore across the country
    which has been instrumental in augmenting the
    demand for branded notebook for exercise
    notebooks especially in the organized segment.
    Consumers bundle up stationery items alongside
    purchase of books.

7
  • WhAT are the Major Challenges Hindering the
    Market Growth
  • India has been reported to have the second
    highest number of online course enrollments with
    more than 155,000 students from the country. The
    rise in usage of tablets, smart classes and
    prevalence of notebooks has been proved
    detrimental to the growth of exercise notebooks.
    The business for exercise notebook is highly
    seasonal with majority of the demand emerging in
    peak season vis-à-vis average monthly sales. This
    trend of high seasonality discerns multiple
    pressures on supply chain which resulted into
    substantial amount of working capital being tied
    up in inventory. Highly fragmented industry due
    to presence of numerous organized and unorganized
    notebook manufacturers has insisted manufacturers
    to offer sales incentive to retailers by offering
    credit sales. This credit sale period usually
    accounts for 90 days. Though a company has to buy
    paper in cash, notebooks have to be sold on
    credit, which involves huge amount of working
    capital requirement. Competition from
    international manufacturers is a major challenge
    for the exercise notebook market. Chinese
    manufacturers, with their massive production
    capacity, liberal export policy and simple
    taxation regimes pose an inherent advantage over
    local players. Furthermore, providing branded
    quality products at competitive prices is poised
    as the biggest challenge for the organized sector

8
  • What is the Trade Scenario for Exercise Notebooks
    in India
  • The import market for exercise notebook in India
    has grown at a decent rate over the period
    FY2010-2015. In fact, there was a steep rise of
    during the period FY2015 which saw the import
    value reach INR million. The import size was
    INR million in FY2014 and INR million back in
    FY2010. China and USA were observed as the major
    import destinations for the registers, account
    /note /order /receipt books and other similar
    article categories during FY2015. In the other
    category that includes import of exercise books,
    Malaysia and China claimed the major share with
    Malaysia accounting for the lions share of
    and respectively in FY2014 and FY2015 among
    the top 5 countries. China stood as one of the
    major importing nations for exercise notebook in
    India. It is easy to source goods like packaging
    materials, chemicals and machineries that are
    required to manufacture notebooks in China.
    Additionally, easy availability of cheap labour
    has resulted into the lowering of the overhead
    costs by as high as 40 to 50. Large scale of
    production advantage is the primary reason for
    importing from USA. German imports are preferred
    on account of better paper availability in the
    country.

9
  • The export market for exercise notebooks in India
    was pegged at INR billion in FY2015 showcasing
    an exemplary CAGR of over the period
    FY2010-2015. Besides, a healthy domestic market,
    the export demand has been quite promising which
    has resulted in a large number of local and
    national players aligning their businesses to
    suit the foreign demand. In the export category
    of registers, account /note /order /receipt books
    and other similar article, The US and UK have
    been the major destination in FY2014 as well as
    FY2015. US accounted for an export value of
    worth INR billion in FY2015. Manufacturers
    readily customize their portfolio and laying out
    additional SKUs to cater to this growing market.
    Suppressed pricing is a major factor that has
    stimulated the demand for Indian stationery
    items. USA and UK are the two prominent export
    destinations for the market. These two countries
    offer high value realization on notebook sales.
    Also, wide availability of modern retail trade
    and better distribution network in these
    developed countries encourages export sales.

10
  • Is it worth setting up an Exercise Notebook
    Business?
  • The installed capacity of the unit proposed is
    note books of standard 192 pages note books and
    92 page notebooks. The daily production will be
    note books. It has been estimated that the fixed
    cost incurred on plant machinery as well as
    furniture and fixtures will be around INR It
    requires INR as the monthly raw material cost
    for a notebook manufacturing plant at an annual
    level. The manufacturer has to incur monthly cost
    of INR towards employee compensation and
    remuneration. Considering rent as a working
    capital for 3 months, wages and salary for 2
    months and raw material for 4 months the
    manufacturer requires INR million as working
    capital. The total finance requirement has been
    recorded at INR million. Out of this, 80
    contribution will be made by promoter, while 20
    finance has to be borrowed from bank at an
    interest of 12 p.a. for 5 years.92 pages and 192
    pages notebook are the most selling notebooks in
    India. The selling price is assumed at INR per
    note book, which is the selling price to dealer.
    The profitability analysis portrays that exercise
    notebook manufacturing plant will report INR
    million as annual profit. Return on Investment on
    notebook manufacturing plant will be , with a
    breakeven level of .

11
  • How Is The Exercise Notebook Market Valued In The
    Future?
  • Private schools are set to emerge as the major
    formal education providers in India. Owing to
    high spending capabilities of households seeking
    admissions for their children in private schools,
    the market will have a significant push in the
    near future. Sturdy population growth among
    children and adolescents and wider access to
    education is expected to stimulate the market in
    the short run. The market is expected to witness
    a rise in the volume of premium office as well as
    school and college notebooks as companies widen
    the offering of their premium brands to realize
    the high margin in this segment.
    Pro-environmental initiatives by the Government
    will propel the usage of more recycled papers in
    exercise notebook production. The market is also
    tempting for foreign brands that will look
    forward to grab a share of the unorganized pie.
    It is projected that the market will reach volume
    sales of billion envisage revenues worth INR
    billion by FY2020. The average exercise notebook
    price would reach INR by the same period.

12
  • What have been the Government Regulations and
    Pricing Structure in the Market?
  • The Bureau of Indian Standards (BIS) has specific
    guidelines pertaining to production of exercise
    notebooks to be used in educational institutes.
    There are strict stipulations with respect to
    notebook size, page denominations, binding, and
    ruling, quality of paper and cover that the
    manufacturer needs to abide by for its products
    to be used in institutes.
  • Specifications for Exercise Books for Schools-
  • Size The size shall be mm (C5). It may be
    obtained from mm (RC l Standard) getting
    pages or from mm (RC2 Standard) getting pages
    per sheet respectively.
  • Denominations Must be composed of 32, 48, 64,
    80, 96, 112 and 128 pages excluding the covers.
  • Binding Exercise books of pages need to have
    one stitch and and paged books shall have two
    stitches on the spine of each exercise book. The
    size of stitch (staple) need to be to mm in
    length.

13
  • Ruling The ruling is done in accordance to the
    agreement between the purchaser and the supplier.
    If required, the copy rule shall be done in blue
    color and the top and side margin shall be in red
    color. For copy rule, the distance between
    horizontal lines needs to be 9 mm and for margin,
    whether it is on the top or on the side, the
    distance from the end shall be mm. There shall
    be 21 blue lines on each page.
  • Cover Colored cover paper of minimum g/m2
    substance shall be used.
  • Apart from specific BIS regulations for the
    exercise notebook specifications, there are other
    general regulations pertaining to industrial,
    environmental, labour and intellectual property
    laws which the manufacturers need to abide by in
    order to operate in the market. The pricing
    structure for exercise notebooks is essentially
    based upon the target group of customers that the
    brand is supposed to address. For instance, most
    of the companys portfolio can be segmented into
    3 broad offerings- a general brand catering to
    the mass customer having a mid-level price, one
    premium offering targeted at the relatively elite
    demography and a third category of products
    addressed to the economically weaker section. The
    prices are set according to this segregation
    wherein the cheapest brand of the company are
    marked lesser than the mass category. On the
    other hand, premium offerings carry a higher
    price of more than the mass products.

14
  • With respect to pricing differential, all the
    major companies like ITC, Camlin and Sundaram
    have almost competitive pricing and there is a
    difference of not more than INR on similar
    range of products. For instance, a soft bound,
    unruled cm, page Classmate notebook costs INR
    while a notebook with similar specification
    from Kokuyo Camlin cost INR .
  • Again, an sized notebook, page soft bound
    notebooks from Camlin which costs INR whereas
    Brijlaxmi charges INR for a product with
    similar specification.
  • However, Navneet has a slightly deflated pricing
    compared to brands like ITC and Camlin. This is
    because of the affordable product image of the
    brand category.
  • How is the Competition Structured in India
    Exercise Notebook Market?
  • The market for exercise notebooks in India is
    highly fragmented with a dominating unorganized
    segment and only a handful of players having a
    regional or national presence. Domination of
    low-cost Chinese and local brands has catapulted
    several firms into constraining their supplies
    over a limited territory.

15
  • However, the gradual consumer shift towards brand
    acceptance and proliferation of online retail has
    encouraged notebook manufacturers to explore and
    probably convert the unorganized demand in their
    favor. As far as the competitive landscape is
    concerned, ITC, with its collaborative links with
    SMEs coupled with a strong product portfolio is
    currently the unanimous leader in the market. ITC
    had a market share in FY2015 followed by
    Navneet that churned out a share in the
    organized manufacturers revenues from exercise
    notebooks in India. Brijlaxmi Paper had the third
    highest share of owing to its phenomenal
    growth in FY2015 because of its heavily
    expanding retail network including modern trade
    channels.
  • Company Profile of Major Players in the Market
  • The company profiles have extensive coverage of
    the key business indicators of the major
    companies in the market. The parameters include
    detailed company overview, the business USP,
    business strategies implemented by the firms,
    developments and future plans. Other quantitative
    performance indicators like production capacity,
    distribution network, SKUs, split of
    Retail/Institutional sales, sales by major
    regions, turnover, margins are also mentioned in
    company profiles. Key financial ratios like
    PBIDTM, PBITM, PBDTM, ROCE, RONW and CPM has also
    been mentioned. Company genesis and other key
    factor have also been showcased in the company
    profile section.

16
  • Source https//www.kenresearch.com/consumer-produ
    cts-and-retail/home-and-office-furnishings/india-e
    xercise-notebook-market-report/41121-95.html
  •  Contact Ken ResearchAnkur
    Gupta, Head Marketing CommunicationsAnkur_at_kenre
    search.com91-9015378249

17
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