Chennai , Dec. 27

The Rs 4,500-crore market for pens, pencils and notebooks has grown at about 30 per cent in the last three years and the growth is likely to sustain for the next five, according to a press release from the Confederation of Indian Industry.

Domestic companies expanding, entry of international premium products and imports from China for the mass market are all happening to cater to this growth, according to the release.

Participants at Kidex 2006, an exhibition of products for children organised by the CII last week, said that an expanding range of writing instruments, increased purchasing power, consumers preferring to buy new pens rather than going for refills are driving the demand. The market for writing instruments is estimated at Rs 1,500 crore, notebooks Rs 3,000 crore and pencils about Rs 200 crore.

More and more companies are entering the branded segments of writing instruments and notebooks to exploit the demand.

Quoting Mr Lalit K.R. Sharda, Assistant Product Manager, Luxor Writing Instruments Private Ltd, the release said that Luxor Junior for economical market of colouring, sketch pens and markers is registering a multi-fold growth and the company will soon be introducing gift sets of colouring books.

Luxor is also launching Planet Happy, an international brand for a wide range of learning, writing and colouring products. Planet Happy products will cater to the premium segment and will be officially launched in February 2007.

Luxor is a licensee for world's leading writing instrument brands such as Parker of UK, Pilot of Japan and Waterman of France. Luxor's writing instruments business is growing at 50 per cent and the company aims to increase its turnover in the next year to Rs 125 crore from Rs 75 crore this year. Mr A.K. Shetty, Zonal Business Manager, Consumer Products Division, Camlin Ltd, said the company, which has over 1,300 products in stationery and colouring products segment, is planning to introduce new product launches, according to the release.

Hindustan Pencils Ltd, the brand owners of Natraj and Aspara range of pencils, is producing pencils in 14 varieties and it has over 150 products including pencil sharpeners and erasers.