Kolkata, Jan 30 (PTI) With exports on the rise, writing instruments maker Win Pens is planning for a capacity expansion and scouting for land to set up a Rs 50-crore greenfield plant, a senior company official said on Monday.
The Covid pandemic had turned out to be a blessing in disguise for the Rs 10,000-crore writing instrument industry as “overseas buyers increased volumes” from India, helping the sector register a 40 per cent year-on-year growth, he said.
"We have three manufacturing units near Kolkata with a capacity of seven crore pens per month. As there is a sharp growth both in domestic and export markets, we have to expand our capacity by at least 40 per cent to cater to the rising demand and are scouting for land close to Kolkata," Win Pens chairman Naresh Jalan told PTI.
The company was also in discussion for an initial public offer to raise capital for markets to fuel rapid growth, he said.
"Since Covid, pen exports from India are growing at 40 per cent due to two factors - Chinese slowdown and greater dependence on Indian products due to quality," he said.
Exports contribute about 25 per cent of the industry topline and some countries in Africa and Gulf, are “seeking only Make-in-India products”, Jalan said, adding that the domestic market is also expanding at a healthy rate of 20 per cent.
Win Pens is expecting a revenue of Rs 250 crore this fiscal, up from Rs 150 crore registered in the 2021-22 financial year.
Jalan, who is also the president of Calcutta Pen Manufacturers & Dealers Association, wondered “how the writing instrument can attract 18 per cent GST, a basic item of education”.
He hoped that the government in the upcoming budget should emphasise on reducing the tax burden on individuals.
"Lower taxation will lead to higher purchasing capacity that will fuel economic growth in the post-pandemic situation," he said.
The official also sought a flexible approach to new provident fund deduction rules for workers.
"The government should take a relook into a 12 per cent deduction from PF which will be now on the gross. This will be a burden for employees in the low-income bracket," Jalan added. PTI BSM BDC BDC