The Hindu Business Line : Luxor forays into retail segment

Future plans Company is in the process of launching a kid's educational and learning stationery brand. It garners around Rs 75 crore from exports to over 110 countries, including the US, the UK and Australia.

New Delhi , Dec. 14

With the retail industry on the fast track, Luxor Writing Instruments Pvt Ltd (LWIPL), the flagship entity of the Luxor Group, has also joined the bandwagon through its outlets branded Luxor Signature.

"We recently opened the first outlet of our maiden retail venture, Luxor Signature, in Delhi NCR, and plan to open 100 outlets across several formats by 2011, with an investment of around Rs 90 crore," said Ms Pooja Jain, Executive Director, Luxor Group.

"Though Parker, Pilot, Paper Mate, Waterman and Luxor are known as individual brands in the domestic market today, the idea behind the retail venture is to make consumers aware that all the brands are part of Luxor." Though it has currently planned company-owned outlets, it does not rule out the option of the franchisee route.

Exclusives

Though Luxor Signature outlets will retail all products from the Luxor stable, Ms Jain points out that the USP of the venture is that 30 per cent of the products on offer would be exclusive to these stores. "We have Parker Celebration gift packs, Pilot speciality products such as calligraphy pens and the retractable fountain pens, available only here," Ms Jain said.

Increased focus

The company has also increased its focus on the stationery segment with the launch of Luxor staplers, notebooks and glues. It is also in the process of launching a kid's educational and learning stationery brand that will include colour pens, educational games and activity kits, Planet Happy, within Rs 200-300. Ms Jain hopes to make Planet Happy a Rs 50-crore brand in the next two years.

Marketing spends

On marketing spends, Ms Jain said that though the company ideally spends about Rs 10 crore annually on advertising, expenditures for 2007-08 would be around Rs 15 crore because of its new retail venture.

LWIPL currently garners around Rs 75 crore from exports to over 110 countries, including the US, the UK and Australia. It targets around Rs 200 crore from exports in the next three years.

While the turnover of the group, which also has a presence in real estate, food and the hospitality sector, is about Rs 1,000 crore, about Rs 300 crore is garnered from the writing instruments and stationery business.

LWIPL targets a turnover of Rs 500 crore in the next two years, with almost 30 per cent coming from its retail outlets.

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