Nirmal D. Menon

Silvassa , Jan. 19

PEN maker Today's Writing Products Ltd plans to diversify into new businesses such as office stationery by the first quarter of financial year 2005, besides becoming an original equipment manufacturer (OEM) to international writing brands.

The brand extensions will include office stationery products such as staplers, punches, artist pens, permanent markers, highlighters, files and folders. The company plans to produce its own highlighters and marker pens; however, all the office stationery will be outsourced.

"We are currently in talks with suppliers to gauge their capacity to fulfil our orders and match up to our distribution needs," Mr Ronald Netto, Director, Today's Writing Products Ltd, told Business Line at its plant at Silvassa.

The company has reported a sales turnover of Rs 82 crore for the year ended March 2004.

Like in case of papers, the company will be outsourcing notebooks from regional players across the country, as transportation costs of paper products is higher, Mr Netto added. The company has already launched Today's pencils in a few States.

The company is also writing a new chapter with its OEM initiative since established brands in the US and Europe have begun to feel the pinch from low-cost Chinese basic stick pens.

"With volumes being assured through these companies, it provides a risk-free investment in this export-oriented units project. Therefore, the OEM initiative is an integral and critical part of the overall business strategy," Mr Netto said.

The company recently executed `trial' orders as an OEM for Mondial Pens in Italy and help set up Avanti Pens in the Philippines.

The fund mobilisation for this particular initiative has started, and agreements with leading writing instruments brands in Europe and US should fructify by first quarter of 2005.

Today's had earlier tied up with Poundland, Europe's leading single piece retailers.

Interestingly, these pens will be branded `Today's by Poundland' as it is for the first time that the retailer has allowed a pen manufacturer to retain its logo.

The company is also eyeing the cross-promotional market through institutional sales as a major growth driver. FMCG companies in particular found Today's products to be ideal for cross-promotional marketing tactics.

Being a company with the widest range of pens in the country they were the ideal source of promotion pens, claimed Mr Netto.

Large corporates such as Hindustan Lever, Colgate Palmolive, Phillips, Warner Lambert and scores of others, including pharma companies have all been their customers and cumulatively contributed over Rs 6 crore of business in 2003-04.

The company expects around Rs 8 crore from this division this fiscal.

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