The company says that it has commissioned its wooden pencil manufacturing facility to meet the demand
Flair Writing Industries is looking to strengthen its presence in the pencil segments on the back of increased investments. The company said that the segment, valued at around Rs 1,650 crore in the financial year 2023, is projected to grow at a compound annual growth rate (CAGR) of 14 per cent, nearly doubling to Rs 3,300 crore by FY28.
The company emphasised in an exchange filing that pencils account for approximately 12 per cent. Wooden pencils dominate this category, contributing close to 90 per cent of the total market, highlighting their continued relevance and widespread consumer preference of the overall writing instruments market in India.
“Against this backdrop, the company’s strong performance in the mechanical pencil segment reflects its capability to build a differentiated niche and capture evolving consumer demand. Furthermore, the commissioning of its wooden pencil manufacturing facility marks a strategic progression, enabling the company to meaningfully participate in the largest and most established portion of the pencil market,” the company highlighted in the exchange filing.
The company added that it remains confident of achieving its growth guidance for the current financial year. Earlier, the company achieved its growth guidance of 15 per cent for FY26 by reporting an overall revenue of Rs 1,250.1 crore, a growth of 15.8 per cent on a year-on-year (YoY) basis. The company added that pencil category is turning out to be a high-growth category for, along with kids category.
“Pencil is going to grow further for next two, three years. Also, we will be adding new categories in terms of the colouring range of geo boxes strengthen our position there as well. When we talk about the pencil, it is all the pencils I am talking about, which is the mechanical pencil, the wooden pencil facility, which we just added in Surat and as well as the two 2mm mechanical pencil, which we recently introduced,” Mohit Rathod, Whole Time Director, Flair Writing Industries, said during the earnings call.
During the last financial year, the company also incurred a capital expenditure (capex) of Rs 20 crore for the Flomaxe facility in Surat, mainly invested in the new building and plant and machinery, The company said that it has already emerged as a revenue-accretive driver for the creatives segment
