The Hindu Business Line : ITC plans product portfolio expansion, diversifying into writing instruments

Hyderabad, March 15 The greetings, gifts and stationery business of ITC Ltd, is set to significantly expand its product portfolio and is diversifying into writing instruments and offering customised solutions to corporate houses.

“This business arm of the company contributes about Rs 180 crore in revenues and we are aiming to achieve a Rs 1,000-crore revenue within three years,” Mr Chand Das, Chief Executive of this division, said. “The company business is growing by over 100 per cent per annum and with the addition of new products, including office and later writing instruments, (of) our own brand, these targets are quite within reach,” he said.

“The stationery for corporate business constitutes a big chunk of overall market. With the commissioning of a new unit within the Bhadrachalam plant in Andhra Pradesh, we would be able to a make major entry into this segment,” he told Business Line.

“We are applying the FMCG business model for stationery items in education and other school products. With the roll out of the new product line, the company brings a powerful brand to the table and a choice for customers,” he said.

Market scope

It is estimated that the market for school and education sector is about Rs 5,000 crore, providing scope to expand the addressable market. Already large global chains such as Staples and OfficeOne have made entry and this market is poised for further segmentation, he said.

The focus is to evolve as a multi-product company where paper is the back-end, allowing flexibility to offer a wide range of products designed to meet specific requirements, including customisation.

The company’s Classmate brand alone contributes about Rs 150 crore.

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