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The local partner plans to increase its stake in Faber Castell India, a joint venture company. Currently, Mr Anup Rana, Managing Director, Faber Castell India, has a 10 per cent stake while the balance is held by the Germany-based family run business of Faber Castell.
Speaking to Business Line , Mr Anup Rana, Managing Director, Faber Castell India, said, “A decision has been taken to steadily increase my personal stake in the company from 10 per cent to 15 per cent and finally there would be an option of taking it up to 26 per cent.'' The Rs 100-crore Faber Castell started operations in India in 1998, prior to which it had a distribution alliance with another stationery major Camlin.
Notebooks segment
Marking an investment of Rs 45 crore, Faber Castell intends setting up four new factories. It also intends entering the notebooks segment where others such as Navneet and more recently ITC have made inroads with their brands. “Notebooks have synergy with our existing business and we will enter the segment in a step by step manner. We are studying the notebook market, as it remains highly unorganised,” said Mr Rana.
Besides, Faber Castell is also planning to set up standalone stores once it has brought in the entire range of writing instruments in the country. “Currently, distribution is our biggest challenge and we might look at setting up retail outlets in the tier 2 and 3 cities once we have the complete range. These would be under the name of House of Faber Castell,'' added Mr Rana. Currently, Faber Castell services nearly 55,000 outlets and would like to take it up to two lakh outlets in the next four years.
Luxury pen
From being a premium brand in India with its range of playing and learning instruments, office stationery, art and graphic and drawing pencils, Faber Castell would now be entering the luxury pen segment with a price range from Rs 10,000 to Rs 3 lakh. These would comprise a range of mechanical pencils, ball pens and fountain pens. However with the recent Budget slapping a new set of excise duties, the stationery major might just feel the pinch and be forced to increase its prices even further.
As Mr Rana says, “Stationery did not attract excise duties but now it is part of the 130 products which will come under the net of excise duties. We are still studying the implications of the Budget but might have to increase the prices of our stationery products in the future.''
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