Humble pencil is humbling technology
Four family owned small businesses control the Indian pencil market
“Pencil makers are confident — the idea of penless and paperless schools and offices is wishful thinking and is not likely to happen anytime soon.”, writes Lijee Philip. Sales of the top three pencil brands in India are rising. Primary schools encourage to use wooden pencils. It helps in building motor skills.
Doms Industries, Hindustan Pencils, Kokuyo Camlin and Maharashtra Pencils are India’s top three pencil manufacturers. Hindustan Pencils controls 45% of the market share. Its famous brands are Apsara and Natraj. Its turnover was INR 844cr. Doms controls 35% of the market share. Its turnover was INR 437cr. Kokuyo Camlin’s turnover was INR 600cr. It is a subsidiary of Japanese brand Kokuyo. Maharashtra Pencils is original equipment manufacturer (OEM) for Luxor, Cello, Todays and Navneet Publication.
New players haven’t entered the market due to low margins (from .15% to 6%) and complicated production process. Only Hindustan Pencils and Doms have been profitable. Camlin turned profitable recently. Manufacturing units such as Lion and Moonlight have shut down.
