The Indian market for paper stationery products is approximately Rs.3000 crores. Today the demand for paper in India is rising by nearly 7 percent every year. By 2010 it is said to reach 8 million tons. Paper and paper related products are tremendously gaining demand in the market. Out of which paper stationery market over the years has gained immense popularity in the school and office segment throughout the world. It is a mass market that includes back to school and office stationery. Paper stationery under it's arms comprises a vast collection of products like exercise books, note books, stitch, glued & tape pads, refill pads, flap over pads, subject books, plastic cover books, composition books, filler papers, scratch pads, memo books, memo sheets, legal pads and spiral bound items, paper cube etc to name a few. The huge greeting card market, which is till now gaining huge demand, is also a part of this segment. Paper stationery sector also supplies gifting products like autograph books, slam books, bookmarks and party invites thus expanding their customer list to the enormous gifting industry.
The rapid growths in the Indian paper stationery products in the local demands are said to close at 15%- 20% gains every year. Indian Paper Stationery Industry, which is a part of the huge and scattered Indian stationery Industry, has been going through tremendous transition in recent years. Despite fierce competition from neighboring markets, it's scattered nature and the constantly changing trends, the paper stationery industry makers continue to strive with unfailing efforts but the fruitful results are yet to be seen as far as exports are concerned. It's export market is seasonal and best time for exports of these goods is from April - June.
Major importing countries for Indian paper stationery are U.S.A., Australia, Canada, major African countries and Middle East where Indian designs and style are more acceptable. To meet customer's requirements like size of the product, design of the cover, quality of the paper, etc, the Indian industry undertakes extreme precaution. The past two years has proven India's capability in manufacturing high quality products. But still as far as the world market is concerned they are far behind. The most exported products seen today are the value-added products, which are immensely accepted in world market. Composition books are also in great demand in the USA market. Also diaries are in demand but mostly in European countries and in some part of UAE but not in USA as USA are fonder of planners over there.

Changes & Quality Criteria a dilemma for Indian market

Challenged by the constant change in world trends and increased competition especially among neighboring countries such as China, Indonesia, Brazil and many other countries who are known to supply much better quality products at much lesser rates than India, the Indian paper stationery industry today faces tremendous competition pressure. The quality of Indian paper is not up to the mark and is even costly than others.

Experts also add that the despite of their efforts to grow better than what they were before Indian market in paper stationery is also set to witness increased competition from global players at the premium end, and at the low end segments from Chinese imports.

Converters by nature

Indian paper stationery Industry suppliers are basically converters by nature i.e. they buy paper and then convert it into other paper stationery products. They have to buy paper from the paper mills in India. Since globalization, the Indian paper stationery industry is growing at a phenomenal rate internationally but then it has to face global competition as the rate at which the paper stationery manufacturers have to buy paper in India is approximately 25% more than the International price. Though the Indian government in order to boost education reduced the excise in paper to 4% unfortunately many paper mill manufacturers and suppliers did not pass on this benefit to the converters and thus there was no favorable price changes done by the converters.

There is scope of very thin profit margin or sometimes, negligible margins due to which even big holders cannot survive in the market and new players restrict themselves to enter the market. They prefer the local market to the exports. But the paper stationery manufacturers and exporters are now revising on their prices to improve their imports. Last year in 2006 they have even requested the government to reduce the import duty due to the increase in paper prices so they can survive in the international market. Though this would help a little, but one cannot expect big changes in the market structure due to this. But if long term agreements with major suppliers are worked out one can ensure competitive rates. Even strong brands enable the company to pass on cost escalations. Though our industry is working very hard to survive in the world market, it still needs to cope with several bottlenecks to compete in the global scenario, especially with internal market competition, global threats and technological advancements. Also market demands and supply trends play an important role. There is a big gap between the demand & supply which serves as major block in progress for Indian paper stationery suppliers.
Only dawn of hope for Indian paper stationery market
India has one stand in the international paper stationery market and that is their ability to supply small quantities, which best suits, the requirement of the major importing countries like America and Africa. But India still needs a lot of proper research and development that will be the winning key for the Indian paper stationery market's stability in the overseas market. New themes and design will also allow them to put their foot forward in the global world. But India first has a major need for good infrastructure facilities and factories equipped with modern machinery. This is where the government should step in. To support developing exports to the overseas market or to improve our export position the government should help our paper stationery manufacturers by helping them buy good machinery and infrastructures. If the basic foundation is strong the rest will be easy to achieve. Many export development programs should also be carried out by government for paper stationery suppliers in order to enhance the exports. The programs should comprise of training in export marketing and market entry, market information, trade fair participation and business to business activities. Depending on the specific needs of manufacturers and suppliers, government should even give them full support and knowledge in the field of product and production improvement, quality control etc as innovation and creativity are our strongest pillars. Indian made products should be able to maintain a fine reputation for guaranteed quality, first-rate after sales service, strong adaptive capacity and prompt delivery, thus securing an excellent relationship with overseas customers based on a foundation of trust.
Hopefully with these supportive activities, good quality use and our ability to produce and supply in small quantities, the paper stationery segment will grow much better in future leaving least a strong demand for it's goods in the International emporium.