The Hindu Business Line : Luxor scripts new expansion strategy

New Delhi, April 1 The Luxor group is bullish on the market for writing instruments in India. Backed by a strong brand equity and pan-India presence, the company is expanding its retail presence and has earmarked Rs 100 crore for it.

Besides tying up with Reliance Time Out stores to set up ‘World of Luxor’ outlets, the company is also actively scouting for acquisitions in Africa and West Asia to expand its footprint.

“Currently, we have 15 Luxor Signature stores. We will be adding another 85 stores and have earmarked Rs 100 crore for the retail expansion,” Mr D.K. Jain, Chairman, Luxor Group, told Business Line.

While Luxor Signature will be the larger retail format, the World of Luxor will work on the shop-in-shop model. Besides writing instruments, it will also have stationery items.

“We hope to break even after 35 stores,” Mr Jain said adding the company is also evaluating the possibility of a franchise model.

The Rs 1,000-crore company, with interests in real estate, hospitality and financial investments said its new 1.2 lakh sq ft facility at Haridwar will be operational later this year. The facility is being set up with an investment of Rs 50 crore and will have a capacity to produce 1.5 million pens a day. “We are also looking to bring a new range from this facility,” Mr Jain said.

Luxor Group has tie-ups with global leaders such as Waterman, Parker and Papermate, in the writing instruments industry, which helps them, bring in modern technology and brands to India. Amitabh Bachchan is its brand ambassador.

The writing instruments category of Luxor has two major entities — Luxor Writing Instruments (LWIPL) and Luxor International. LWIPL has been making writing instruments in the country for over three decades with over 220 million pens produced every year. Luxor, Pilot and Parker are some of its leading brands with over 20 per cent market share in the writing instruments business.

On exports, Mr Jain said the company exports to over 75 countries around the world including USA, Canada, Europe, West Asia , Australia.

“We are looking at both joint ventures and acquisitions in Africa and West Asia ,” he said.

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