The Hindu Business Line : Luxor shelves plans for packaged water foray

Said Mr D.K. Jain, Chairman & President, LWIL, "We have decided to go slow on the packaged water business plans for now. It is a tough market to operate in."

Early last year, the writing instruments major had planned to foray in the ionised water segment under its Luxor brand. LWIL had, at that time, indicated that it was tying up with an international player for its water business, and that research had been initiated for the same. The packaged water business was to be floated under LWIL's wholly-owned foods subsidiary company, Hazel Foods Pvt Ltd.

LWIL had set up Hazel Foods Pvt Ltd in 2001 for the purpose of foraying into packaged food business, with products such as dry fruits, spices and even convenience foods. According to Mr Jain, plans for venturing into the packaged foods segment are currently being worked out.

Meanwhile, the company today announced that it was repositioning its flagship Parker pens brand, to be supported by a new ad campaign created by Lowe & Partners. LWIL recently renewed Parker's contract with Amitabh Bachchan

According to Mr Jain, the Parker brand now accounts for 40 per cent of LWIL's Rs 150-crore turnover. "We hope to make Parker into a Rs 100-crore brand by 2005. We plans to achieve this by strengthening our distribution network and through our communication exercise," Mr Jain said.

Ms Pooja Jain, Director, LWIL, said that the company had upped its ad budget to Rs 10 crore for the current year - a 30 per cent hike over the previous year. Ms Jain said that the company planned to bring in another two writing instrument brands in due course. LWIL's existing brand portfolio includes Luxor, Pilot, Parker, Papermate and Waterman.

The writing instruments industry is estimated at Rs 1,500 crore, and the organised sector accounts for 70 per cent of this.