Pen-maker Luxor writes new script

Aims 40% growth with investments in technology, hospitality, retail and SEZ

Luxor Group, the country’s pioneer in the niche segment of writing instruments, will soon diversify from its core business into sectors ranging from latest technologies, real estate and hospitality to retail. It plans to issue an initial public offering in the next three years and will invest Rs 50 crore in a manufacturing plant in Noida - exclusively meant for Parker pens.

D K Jain, CEO of Luxor Group, says: “We are taking the Luxor brand to another level after making a mark in the writing instruments industry. In the past few years, we have invested in different sectors and are on the lookout for newer avenues like optic fibre, real estate, retailing, hospitality and ‘nano’ technology. We aim to achieve a turnover of Rs 800-1,000 crore by the next year with these investments.”

Luxor started its operations in 1963 with fountain pens of lower value. It now manufactures and sells under many popular and niche brands like Parker, Pilot, Waterman and Luxor. It also exports to over 110 countries and is growing at the rate of 15 per cent annually. Exports contribute about 30 per cent of its turnover.

Jain says: “Highest quality of technology goes into the making of our writing instruments. About 93 per cent is local technology while only 7 per cent is imported. We aim to grow by 40 per cent next year based on these investments in newer avenues, new products and huge export orders.”

The company also manufactures optic fibres under Aksh Optic Fibres and has 20,000 connections. Luxor is one of the largest shareholders and investors in this category and is partnering with a company listed on the Bombay Stock Exchange. This apart, Luxor is partnering in the special economic zones’ sector in ITeS (IT-enabled services) in 64-acre area in Gurgaon under the name of Luxor Cyber City Pvt Ltd. It would invest about Rs 50 crore in a Noida factory for manufacturing Parker pens and its accessories like refills and ink. The factory, which will occupy a one-acre area, is slated to be completed by July next year. This factory would be the company’s seventh manufacturing plant in India after the units in Noida, Haryana, Uttar Pradesh, Gurgaon, Haridwar, Delhi and Mumbai.

Jain says: “We have 50 per cent shareholding in Qutab Hotel, New Delhi, for the last five years. We are now focusing on investing in the emerging field of ‘nano’ technology whose details would be announced soon.”

In retail, Luxor operates through two formats of stores- Signature and Luxor Express. The company has one Signature store in Spice Mall, exclusively meant for Luxor brands, and many exclusive shop-in-shop sections under the name Luxor Express across all major outlets of Reliance TimeOut, Staples and Crossword stores. Jain adds: “We plan to launch 20 such flagship stores every year for five years.”

“Writing instruments will remain the heart of my business. We would continue to launch new products under Luxor and Parker brands depending on the demands of the consumers. We hope to achieve a turnover of about Rs 400 crore next year from our writing instruments business,” says Jain.

Luxor would spend about 7-10 per cent of its total turnover on marketing and advertising for the next year.

The present writing instruments industry stands at Rs 3,500 crore.

Luxor has about 12 per cent share in the total market. Depending on the market share, Cello is the leader, followed by Luxor, Reynolds, Flair, Stic and Link, in the same order. In the niche category, Luxor is the market leader in terms of brand name.

It has also grown to achieve a position among the top three writing instruments manufacturing companies in India.