School Notebooks Market ,India Notebook Market, India Longbook Market,

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India Exercise Notebook Market Report 2020
Ken Research
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• How the India Exercise Notebook Market Is
  Positioned?
• The market for exercise notebooks in India has
  been traditionally dominated by the unorganized
  segment. From the endpoint of marginal retailers
  to independent sellers, all have been dependent
  on imports from China. However, the market has
  developed to achieve a substantial valuation
  which was not there until 2000. The evolvement of
  organized brands such as ITC Classmate, Navneet
  and others have added premium to the market,
  discerned by the fact that the prices of exercise
  notebooks have grown 5-6 folds and even more than
  that in some cases in the last decade. The
  exercise notebook market in India has been
  expanding at a decent pace in the wake of growing
  economy, high literacy levels, burgeoning
  middle-class and enhanced scale of initiatives in
  the education sector. There has been a marked
  shift in the preference from cheap local brands
  to quality products. Aesthetically and
  functionally improved notebooks

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• Which come with innovative 3D covers, had
  witnessed increasing demand in the recent years.
  The market size in terms of consumer expenditure
  on exercise notebook was evaluated at INR
  billion during FY2015 with the organized segment
  contributing for of the market revenue. Heavy
  capital investments in setting up manufacturing
  facilities and expansion of retail outlets are a
  clear indication for the future prospects of
  exercise notebooks in India in the coming years.
  Notably, Shachihata Inc. invested USD 5 million
  in its Chennai plant in 2014. Kokuyo Group has
  already been there since 2011 after purchasing a
  majority stake in Camlin which is a well known
  stationery brand in India. The demand in the
  domestic market is huge in itself whereas rapid
  improvement of the industrial infrastructure and
  strengthening of the manufacturing capabilities
  has boosted the export prospect as well.

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• Which Segments have Driven Changes in Exercise
  Notebook Market?
• The usage of recycled paper is more prevalent in
  India currently accounting for around of the
  overall paper required in manufacturing exercise
  notebooks. The primary reason behind this has
  been low cost of production and heightened
  governmental push towards integrating
  pro-environment manufacturing processes. Retail
  sales accounted for the largest chunk ( ) of
  the revenue generation through exercise notebook
  sales in India during FY2015. The sheer number
  of retailers being far more than the number of
  schools or colleges translates into higher sales
  ratio in favor of retailers. ITC had
  approximately of its sales coming through
  retailers whereas the figure was for Navneet.
  By type of usage, notebooks (including long
  books) accounted for the highest revenue and
  volume sales amongst all the product types
  envisaging of the market sales volume in
  FY2015. While of the sales came from the
  54-56 gsm categories, 65 gsm variants accounted
  for of the sales. Practical notebooks and
  drawing books were the next highest selling items
  envisaging revenues worth INR billion and INR
  billion respectively in FY2015. 60 gsm

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• Practical notebooks chalked out a share of in
  the practical notebooks category in FY2015 while
  gsm was the highest seller for drawing books
  constituting for of the sales volume in the
  same year. A5 accounted for of the overall
  notebooks sold while A4 had countered a share of
  . 41-100 page notebooks accounted for of the
  overall sales volume in the notebook and long
  book category during FY2015. 60 page notebooks
  are one of the most popular items being consumed
  in the Indian market under this category. The
  price-sensitive aspect coupled with optimal
  usability of the exercise books has been
  supporting the sales of this variant. Flexible
  covered notebooks accounted for the majority of
  the sales in the overall market. Flexible covered
  notebooks are marginally cheaper and also
  light-weighted and easier to carry. High usage of
  writing exercise notebooks as compared to drawing
  notebooks indirectly leads to greater demand of
  white paper exercise notebooks which accounted
  for of the overall volume sales in the market
  in FY2015. Tier-II cities ( ) and urban
  geographies ( ) accounted for the highest
  revenue generation for the market in FY2015.
  Tier-II cities contributed for INR billion in
  FY2015.

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• Which all Factors have Appreciated the Market
  Prospect
• There has been higher emphasis on increasing
  primary literacy levels and improving enrollments
  in primary, secondary higher education to
  sustain economic growth. In 2015, youth literacy
  rates were posted at 90.2 which indicates a
  positive outlook for the exercise notebook
  market. 58.3 of the population in India is aged
  below 30 years which indicates a larger chunk of
  population is either in school or some sort of
  educational or research institute, which
  indicates a promising growth for exercise
  notebook market. Both the central as well as
  state governments in India have been equally
  vocal about the educational upliftment in the
  country. Free and compulsory education for every
  child belonging to the age group of 6-14 years
  and launch of Rashtriya Madhyamik Shiksha Abhiyan
  to universalize secondary education has been a
  strong stimulant for the growth of exercise
  notebook market in the country. The average
  middle class has been allocating an aggregate of
  13.2 of its annual expenditure on education and
  stationery which is a strong reflection of the
  educational aspiration that this group possesses.
  Moreover, rising replacement rate of notebooks
  has also provided stimulus to the market growth.
  There has been a steady rise in the number of
  organized retail chain stores like Starmark,
  Crossword and Oxford Bookstore across the country
  which has been instrumental in augmenting the
  demand for branded notebook for exercise
  notebooks especially in the organized segment.
  Consumers bundle up stationery items alongside
  purchase of books.

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• WhAT are the Major Challenges Hindering the
  Market Growth
• India has been reported to have the second
  highest number of online course enrollments with
  more than 155,000 students from the country. The
  rise in usage of tablets, smart classes and
  prevalence of notebooks has been proved
  detrimental to the growth of exercise notebooks.
  The business for exercise notebook is highly
  seasonal with majority of the demand emerging in
  peak season vis-à-vis average monthly sales. This
  trend of high seasonality discerns multiple
  pressures on supply chain which resulted into
  substantial amount of working capital being tied
  up in inventory. Highly fragmented industry due
  to presence of numerous organized and unorganized
  notebook manufacturers has insisted manufacturers
  to offer sales incentive to retailers by offering
  credit sales. This credit sale period usually
  accounts for 90 days. Though a company has to buy
  paper in cash, notebooks have to be sold on
  credit, which involves huge amount of working
  capital requirement. Competition from
  international manufacturers is a major challenge
  for the exercise notebook market. Chinese
  manufacturers, with their massive production
  capacity, liberal export policy and simple
  taxation regimes pose an inherent advantage over
  local players. Furthermore, providing branded
  quality products at competitive prices is poised
  as the biggest challenge for the organized sector

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• What is the Trade Scenario for Exercise Notebooks
  in India
• The import market for exercise notebook in India
  has grown at a decent rate over the period
  FY2010-2015. In fact, there was a steep rise of
  during the period FY2015 which saw the import
  value reach INR million. The import size was
  INR million in FY2014 and INR million back in
  FY2010. China and USA were observed as the major
  import destinations for the registers, account
  /note /order /receipt books and other similar
  article categories during FY2015. In the other
  category that includes import of exercise books,
  Malaysia and China claimed the major share with
  Malaysia accounting for the lions share of
  and respectively in FY2014 and FY2015 among
  the top 5 countries. China stood as one of the
  major importing nations for exercise notebook in
  India. It is easy to source goods like packaging
  materials, chemicals and machineries that are
  required to manufacture notebooks in China.
  Additionally, easy availability of cheap labour
  has resulted into the lowering of the overhead
  costs by as high as 40 to 50. Large scale of
  production advantage is the primary reason for
  importing from USA. German imports are preferred
  on account of better paper availability in the
  country.

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• The export market for exercise notebooks in India
  was pegged at INR billion in FY2015 showcasing
  an exemplary CAGR of over the period
  FY2010-2015. Besides, a healthy domestic market,
  the export demand has been quite promising which
  has resulted in a large number of local and
  national players aligning their businesses to
  suit the foreign demand. In the export category
  of registers, account /note /order /receipt books
  and other similar article, The US and UK have
  been the major destination in FY2014 as well as
  FY2015. US accounted for an export value of
  worth INR billion in FY2015. Manufacturers
  readily customize their portfolio and laying out
  additional SKUs to cater to this growing market.
  Suppressed pricing is a major factor that has
  stimulated the demand for Indian stationery
  items. USA and UK are the two prominent export
  destinations for the market. These two countries
  offer high value realization on notebook sales.
  Also, wide availability of modern retail trade
  and better distribution network in these
  developed countries encourages export sales.

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• Is it worth setting up an Exercise Notebook
  Business?
• The installed capacity of the unit proposed is
  note books of standard 192 pages note books and
  92 page notebooks. The daily production will be
  note books. It has been estimated that the fixed
  cost incurred on plant machinery as well as
  furniture and fixtures will be around INR It
  requires INR as the monthly raw material cost
  for a notebook manufacturing plant at an annual
  level. The manufacturer has to incur monthly cost
  of INR towards employee compensation and
  remuneration. Considering rent as a working
  capital for 3 months, wages and salary for 2
  months and raw material for 4 months the
  manufacturer requires INR million as working
  capital. The total finance requirement has been
  recorded at INR million. Out of this, 80
  contribution will be made by promoter, while 20
  finance has to be borrowed from bank at an
  interest of 12 p.a. for 5 years.92 pages and 192
  pages notebook are the most selling notebooks in
  India. The selling price is assumed at INR per
  note book, which is the selling price to dealer.
  The profitability analysis portrays that exercise
  notebook manufacturing plant will report INR
  million as annual profit. Return on Investment on
  notebook manufacturing plant will be , with a
  breakeven level of .

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• How Is The Exercise Notebook Market Valued In The
  Future?
• Private schools are set to emerge as the major
  formal education providers in India. Owing to
  high spending capabilities of households seeking
  admissions for their children in private schools,
  the market will have a significant push in the
  near future. Sturdy population growth among
  children and adolescents and wider access to
  education is expected to stimulate the market in
  the short run. The market is expected to witness
  a rise in the volume of premium office as well as
  school and college notebooks as companies widen
  the offering of their premium brands to realize
  the high margin in this segment.
  Pro-environmental initiatives by the Government
  will propel the usage of more recycled papers in
  exercise notebook production. The market is also
  tempting for foreign brands that will look
  forward to grab a share of the unorganized pie.
  It is projected that the market will reach volume
  sales of billion envisage revenues worth INR
  billion by FY2020. The average exercise notebook
  price would reach INR by the same period.

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• What have been the Government Regulations and
  Pricing Structure in the Market?
• The Bureau of Indian Standards (BIS) has specific
  guidelines pertaining to production of exercise
  notebooks to be used in educational institutes.
  There are strict stipulations with respect to
  notebook size, page denominations, binding, and
  ruling, quality of paper and cover that the
  manufacturer needs to abide by for its products
  to be used in institutes.
• Specifications for Exercise Books for Schools-
• Size The size shall be mm (C5). It may be
  obtained from mm (RC l Standard) getting
  pages or from mm (RC2 Standard) getting pages
  per sheet respectively.
• Denominations Must be composed of 32, 48, 64,
  80, 96, 112 and 128 pages excluding the covers.
• Binding Exercise books of pages need to have
  one stitch and and paged books shall have two
  stitches on the spine of each exercise book. The
  size of stitch (staple) need to be to mm in
  length.

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• Ruling The ruling is done in accordance to the
  agreement between the purchaser and the supplier.
  If required, the copy rule shall be done in blue
  color and the top and side margin shall be in red
  color. For copy rule, the distance between
  horizontal lines needs to be 9 mm and for margin,
  whether it is on the top or on the side, the
  distance from the end shall be mm. There shall
  be 21 blue lines on each page.
• Cover Colored cover paper of minimum g/m2
  substance shall be used.
• Apart from specific BIS regulations for the
  exercise notebook specifications, there are other
  general regulations pertaining to industrial,
  environmental, labour and intellectual property
  laws which the manufacturers need to abide by in
  order to operate in the market. The pricing
  structure for exercise notebooks is essentially
  based upon the target group of customers that the
  brand is supposed to address. For instance, most
  of the companys portfolio can be segmented into
  3 broad offerings- a general brand catering to
  the mass customer having a mid-level price, one
  premium offering targeted at the relatively elite
  demography and a third category of products
  addressed to the economically weaker section. The
  prices are set according to this segregation
  wherein the cheapest brand of the company are
  marked lesser than the mass category. On the
  other hand, premium offerings carry a higher
  price of more than the mass products.

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• With respect to pricing differential, all the
  major companies like ITC, Camlin and Sundaram
  have almost competitive pricing and there is a
  difference of not more than INR on similar
  range of products. For instance, a soft bound,
  unruled cm, page Classmate notebook costs INR
  while a notebook with similar specification
  from Kokuyo Camlin cost INR .
• Again, an sized notebook, page soft bound
  notebooks from Camlin which costs INR whereas
  Brijlaxmi charges INR for a product with
  similar specification.
• However, Navneet has a slightly deflated pricing
  compared to brands like ITC and Camlin. This is
  because of the affordable product image of the
  brand category.
• How is the Competition Structured in India
  Exercise Notebook Market?
• The market for exercise notebooks in India is
  highly fragmented with a dominating unorganized
  segment and only a handful of players having a
  regional or national presence. Domination of
  low-cost Chinese and local brands has catapulted
  several firms into constraining their supplies
  over a limited territory.

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• However, the gradual consumer shift towards brand
  acceptance and proliferation of online retail has
  encouraged notebook manufacturers to explore and
  probably convert the unorganized demand in their
  favor. As far as the competitive landscape is
  concerned, ITC, with its collaborative links with
  SMEs coupled with a strong product portfolio is
  currently the unanimous leader in the market. ITC
  had a market share in FY2015 followed by
  Navneet that churned out a share in the
  organized manufacturers revenues from exercise
  notebooks in India. Brijlaxmi Paper had the third
  highest share of owing to its phenomenal
  growth in FY2015 because of its heavily
  expanding retail network including modern trade
  channels.
• Company Profile of Major Players in the Market
• The company profiles have extensive coverage of
  the key business indicators of the major
  companies in the market. The parameters include
  detailed company overview, the business USP,
  business strategies implemented by the firms,
  developments and future plans. Other quantitative
  performance indicators like production capacity,
  distribution network, SKUs, split of
  Retail/Institutional sales, sales by major
  regions, turnover, margins are also mentioned in
  company profiles. Key financial ratios like
  PBIDTM, PBITM, PBDTM, ROCE, RONW and CPM has also
  been mentioned. Company genesis and other key
  factor have also been showcased in the company
  profile section.

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• Source https//www.kenresearch.com/consumer-produ
  cts-and-retail/home-and-office-furnishings/india-e
  xercise-notebook-market-report/41121-95.html
•  Contact Ken ResearchAnkur
  Gupta, Head Marketing CommunicationsAnkur_at_kenre
  search.com91-9015378249

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