Competitors

1-cello
2-reynolds
3-mont blanc
4-camlin
5-parker

About the company

Writing has always been and will continue to be a pleasure for many and we at
Montex strive for enhancing this pleasure. Since writing intruments are in a constant
state of evolution, we make it a point continue innovation and precision in every
single instrument we create. Quality polices, stringent standards, professional
outlook and international class are our strong points that make us the lead ing
manufacturer in writing intruments in India, and abroad as well. It gives me great
pride and pleasure to present to you an insight into the Montex range of writing
instruments.
Montex has been the first in India to introduce Transparent Ball Pens, Trendy Fountain Pens,
Precision Tips, Gel Ink Pens, Roller Ink Pens, Tank Pens, Rubber Grip Pens and Co-molded Pens.
Montex is recognized as a pioneer in the Indian pen industry with innovations to its credit.
Montex is not only the most popular brand in India, but also recognized world over.

Its products reach out to over 35 countries in the world, covering almost all the continents
 About the market
Stationery has historically meant a wide gamut of materials: paper and office supplies, writing
implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top,
and not only premium products, entered the market while high priced ones are being sold in
small, unassuming way-side stores. One thinks of any global brand and it is here. These include
designer and status symbol pens, be it Parker, Cross, Mont Blanc or Cartier

The market for writing pens is estimated at 1600 to 2400 million pieces a year. By value,
the total market for writing instruments is estimated at Rs 22 billion and is growing at around 8
to 9% annually. The informal sector's contribution to the market is placed at over Rs 6.6 billion
or 30% of the total market by value and 65% by quantum. While by numbers the low-end market
accounts for 90%, the premium and top-end segment accounts for less than a percent. The
balance is accounted for by the moderately priced mid-priced products.

The global market in writing instruments is estimated at about USD 38 billion, of which
global pen market accounts for nearly USD 30 bn. The Indian market size is relatively small. In
terms of quality of pens, India ranks amongst the best in the world, well ahead of even China.
However, India's export market is abysmally low at Rs 2 billion, while China exports Rs 50 billion
worth of pens every year. Corporate gift segment in India is valued over a billion, growing at 15%.

The Indian market consists of around 15 large scales, 100 midsize and 900 small scale
manufacturing units. These units have a combined production capacity of over 10 million pieces
a day.

About 80% of the revenues of the pen industry in India come from pens with a price range
of upto Rs 15. A small percentage of pens are priced in the range of Rs 100 to Rs 300 and miniscule
of the market is contributed by the super-premium segment in which the price tag goes to as high
as Rs 100,000 or more. While the market for lower price range (up to Rs 15) is growing at a rate
of 7 to 8% annually, the market for pens above that range is growing at 8 to 10%. The rate of
growth of high priced writing instruments is much higher - basically because of a small base.
There is, nevertheless, in the recent period, a price up gradation in evidence at the low-end. As
the market is developing in the new ambience, the products are getting upgraded.

The market is segmented broadly into products required by (a) young students (many of
whom depend only on pencils and ball point pens), (b) frequent users (in offices, commercial and
public establishments), (c) occasional users (like housewives and literate manual workers).
While India's literacy rate is low, all literates do not use ball or fountain pens, if at all, only
occasionally. Obviously, the per person usage is limited mainly to (a) and (b) segments. The usage
norms differ from function to function; even as it does from one person to another and certainly
from one segment to another.

The students account for 55 to 60% of the off-take followed by executives at 20-25% and
other multilevel users accounting for 15 to 20% of the market.

The existing scenario gives an indication that the market in being dominated by the ball
point pens, which accounts for 70% of the total demand for pens in India, followed by gel pens
(20%), fountain pens (4%). The rest accounts for only 6% of the market. A majority of users, 85%,
use blue ink, while black, red and other color inks are used by about 15%.

The major players in India include Cello, Reynolds, Addgel Pens, Parker, Today's Writing
Products, Montex, Stic Pens, Linc Pens & Plastics, and Flair Pen.
 3 Industry Overview

There has been a need to document through the use of writing instruments since the
dawn of mankind. Pens and Pencils continue to be the staples of everyday life and
indispensable items for everyday use. Writing Instruments continue to play integral part
in the life of particularly every Business, School, and household. Pen as a product is close
to people of all walks of life at different age and of different gender and the association of
it is a lifelong one. For some with a good quality pen at finger tips actually elevates their
confidence level and makes them feel good.
The advent of computers and related technologies has yet to make writing industry and
Instruments Slow Paced and Obsolete. In fact, the writing Instruments embraces the evolution of
technology by incorporating it into new products and using it to enhance business aspects and
client services.

The size of the writing Instruments Industry in India is estimated at about Rs 2200 Crores of
which organized players account for 65% of the market share and the unorganized players for
the rest. The industry grew by about 13.5% in 2005-06 and 9-10% in 2009-2010, largely driven
by the growth of organized sector, indicating that consumer are responding favorably to Quality
and Branding. It is expected that promotion, easy availability, and affordability, branded off make
will accelerate and help the organized sector eat into unorganized Presence.

India's Writing Instruments Industry is reserved for the small sector with a statutory limit on the
maximum Investment in Plant and Machinery at Rs 50 Crores. As a result critical pen component
like refills are manufactured in house, while all non critical components are outsourced.

Most Indian companies cater to the "Value for Money"(i.e. High Volume Low Value Strategy)
While International Players cater to Premiums segment operating through exclusive Distributors.
Globally writing Instruments Industry is estimated at Rs 65000 Crores (p.a). China controls
approximately 10% of the global markets while the Indian share had so far been mini scale. But
given the superior quality perception that "Made in India" pens have over the Chinese, the buying
preference of major retailers has been shifting to Indian Products and brands.
 The worldwide Market's Size for Writing Industry is Rs 65000 crs (p.a) USA market alone is
$3 Billion Dollars.
 China’s exports of Pens are over Rs 6000 Crores (p.a).
 India's Pens Exports are merely Rs 200 Crores (p.a).
 The Annual Turnover of the Industry in India is now estimated at Rs 1800 Crores (p.a) and is
expected to Increase annual growth rate by 1-15% (p.a).
 India is Viewed as Quality Supplier, where as China as Cheaper and Lower quality Products.
 Germany, Japan, Taiwan & Korea were hubs for the Writing Instrument Industry, But due to
cast factor manufactured have started shifting to China and India.
 Previously Switzerland was the manufacturing centre for Ball point Tips, but now India is
emerging as a major Tip Manufacturer satisfying not only Domestic demand but Global
Demand also.