Market leader stationery stock is in focus following its strategic partnership with Maped, a leading European brand. This collaboration is expected to enhance the company’s market presence and drive growth, tapping into new opportunities in the stationery sector.
Share Price Variation
During Friday’s trading session, Flair Writing Industries Ltd’s share price opened at Rs.325.95 per share, slightly lower than its previous close of Rs.328.15. The shares have since declined and are currently trading at Rs.325.00 each. Despite this, the stock has posted a notable 27 percent return over the past month.
What happened
Flair, a leading brand in the writing instruments industry, has entered into a strategic partnership with Maped, a well-established European stationery brand. This collaboration aims to leverage the strengths of both companies to capitalize on the growth potential in the rapidly expanding Indian market while enhancing brand identity.
The partnership is expected to foster innovation, expand market reach, and contribute to growth in the region. It is anticipated to unlock new opportunities for success, benefiting employees, consumers, customers, and business partners.
Product Portfolio
Flair Writing Industries Ltd offers a comprehensive portfolio that spans various price points to meet diverse customer needs. The brand has a strong presence in the mid-premium and premium segments, with investments in brands like “Hauser” and “Pierre Cardin” for distinct market positioning. In FY24, two-thirds of new pen launches targeted the mid-premium and premium segments.
Management Guidance
The management continues to project a CAGR growth of 11 -12 percent, with expectations of stronger performance in the second half of FY ’25. They remain confident in achieving targeted margins of 19 to 20 percent through enhanced operational efficiencies and reduced raw material costs.
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Expansion Plans
The company will maintain its focus on launching new products in the Steel Bottles and Creative segments. Additionally, there is potential for inorganic growth through ongoing acquisition discussions in the stationery sector.
Financial Performance
In its recent financial updates, Flair Writing Industries Ltd reported revenue from operations of Rs.242 crore for Q2 FY25, falling slightly by 1 percent from Rs.244 crore in Q2 FY24. Moreover, net profits also declined to Rs.32 crore, down from Rs.33 crore, representing a 3 percent decrease over the same period.
Company Profile
Flair Writing Industries Ltd is one of the biggest pen brands and a top 3 player in the writing instrument industry. The company holds a higher share of premium products in the pen segment compared to the industry average. It is also the largest pen exporter, with a presence in 95 countries.
Written by – Siddesh S Raskar
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