Luxor Writing Instruments Private Limited - Marketing Pens in India

Introduction Contd...

The company planned to sell imported 'Waterman' pens for the next couple of years and then start indigenous production for these pens. The price of these pens ranged between Rs.3,500 to Rs.50,000 and was made available in nine sub-brands.

LWIPL planned to sell these pens to corporate customers. Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman of LWIPL said, "Because of its price and brand name, Waterman will certainly have an edge over other premium brands in India."⁴

It had entered into several tie-ups with multinational pen companies that helped in leveraging its current position in the industry.

The fact that LWIPL was a debt-free company was another significant achievement.

However, with the rising competition and negligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain future.

Analysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business in 2001-02, might lead to a loss in market share in its core business...