The Hindu Business Line : TNPL scouts for partner to set up stationery products unit

TAMIL Nadu Newsprint and Papers Ltd (TNPL) is looking for a partner to set up a high quality stationery products manufacturing facility to cater mainly to export markets.

The project is expected to cost about Rs 75 crore with equal portions of equity and debt. The partner will have a 25 per cent equity and manage the project on a day-to-day basis, according to by TNPL, which has called for bids from those interested in forming such a joint venture.

Sources in the know said that the move is aimed at taking advantage of the growth in the demand for branded stationery products. Margins and prices are under pressure in the bulk products while in branded products the margins are better and the growth is sustained.

For instance, the market for branded copier paper is going up by 15 per cent, annually. Some of the products that the company is looking at are notebooks, diaries and computer stationery.

TNPL has a presence in branded products such as notebooks and copier paper. It has a 15 per cent market share in copier paper and sells about 1,800 tonnes of TNPL copier a month. But its presence is low key in notebooks, which it sells through franchisees in Mumbai and Chennai, they said.

Most leading branded stationery products manufacturers buy paper from TNPL to convert to note books, diaries, computer stationery or other products. Therefore, it hopes to take advantage of this strength to earn some brand equity for itself.

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