Navneet- A Story from Press to Retail


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Navneet is a Mumbai based Text Book Suppliment publisher. Established itself as a leading Stationary Retail Supplier

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Navneet- A Story from Press to Retail

  1. 1. Navneet - A story from Press to Retail <ul><li>Retail Management Presentation by </li></ul><ul><li>Bhumit Mistry </li></ul><ul><li>Kinjal Shah </li></ul><ul><li>Lokesh Oza </li></ul><ul><li>Manven Dubey </li></ul>
  2. 2. The Beginning <ul><li>Navneet Publication was founded by Gala Brothers in 1959. Mr. Sunil Gala, Executive Director, Finance </li></ul><ul><li>Navneet has emerged as a leading Educational Products and Services company in India. </li></ul><ul><li>The company's products are sold under the 'Navneet', 'Vikas', 'Gala', ‘FfUuNn', ‘Boss' and ‘Navneet Nxt' brand names. </li></ul><ul><li>Family owned business 12 members in the top affairs. </li></ul>
  3. 3. Business Segments <ul><li>Navneet is in the business of </li></ul><ul><ul><ul><ul><li>Educational and children Books Publishing, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Scholastic Paper Stationery and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Non-Paper stationery products. </li></ul></ul></ul></ul><ul><li>The company has a dominant market share in Gujarat and Maharashtra . </li></ul><ul><li>In 1993, Navneet saw opportunity in the exports of Stationery products. </li></ul><ul><li>The company exports 500 SKU’s to the Middle East, U.S.A. </li></ul>
  5. 5. Retail Network <ul><li>Brand portfolio with touchpoints at </li></ul><ul><ul><li>75,000 retail outlets for its various products, </li></ul></ul><ul><ul><li>1,50,000 schools for direct marketing covering almost 20mn students. </li></ul></ul><ul><ul><li>No distributors in 1995 to 1,200 Distributors in 2011 </li></ul></ul><ul><ul><li>Exports its stationery products worldwide to retail majors like Walmart, Tesco & Target. </li></ul></ul><ul><ul><li>Branding and marketing effort cost minimal for export. </li></ul></ul><ul><li>Nearest Competitor ITC : Classmate Brand in stationary </li></ul><ul><ul><ul><ul><li>Publishing : Blue Bird, Repro India, Macmillan </li></ul></ul></ul></ul><ul><li>Appointed SamSika Marketing as advisor in 1995 </li></ul>
  6. 6. Books for all Schoolmates <ul><li>Navneet brings nearly 2000 person years of teaching experience to its content creation. </li></ul><ul><li>Curriculum books cater to the K-12 segment students of Maharashtra, Gujarat, CBSE and ICSE Boards. Children books range from colouring books, activity books, storybooks, interactive books, etc. </li></ul>
  7. 7. Stationary - Wide Range <ul><li>In 1993, Navneet became amongst India 's first Branded Paper Stationery manufacturer. </li></ul><ul><li>With over 1000 distributors and marketing team, Navneet reached to more 75,000 retail outlets and over a million students across India , via direct and indirect efforts. </li></ul>
  8. 8. Initiative to use Technology <ul><li>Navneet has ventured </li></ul><ul><li>with eSense vertical . </li></ul><ul><li>It would standardize </li></ul><ul><li>teaching and will help </li></ul><ul><li>in Learning Better. </li></ul><ul><li>Navneet has prepared syllabus based relevant content called as “Class Room Teaching Module”, in English and regional medium of instruction, which can be used in the classroom. </li></ul><ul><li>Navneet is also working towards student centric. </li></ul>
  9. 9. FundoO - the Creative Business <ul><li>FundoO is the Creative Business Unit of Navneet to market its exclusive range of innovative learning products in India catering the segment of kids between 3 to 10 years. Up till now these products are only being supplied in the international markets. </li></ul><ul><li>The first franchised retail outlet of FundoO has been inaugurated in Ahmedabad on 15th Aug 2009 at Iscon Mega Mall. </li></ul><ul><li>These franchise stores, will be </li></ul><ul><li>managed all across by lady </li></ul><ul><li>entrepreneurs with a 360 degree </li></ul><ul><li>support from Navneet. </li></ul>
  10. 10. FundoO Books
  11. 11. Book Publishing Industry Market
  12. 12. Value Chain of Indian Book Publishing Industry
  13. 13. Value Split in the Value chain
  14. 14. Type of advantage sought <ul><li>Stationery business has risk of raw material costs fluctuations. Publishing business’s beyond supplementary school reading requires content differentiation. </li></ul>
  15. 15. Comparison of Navneet’s businesses
  16. 16. Overview of school education system in India
  17. 17. Revenue mix of Publication Segment (Curriculum based) <ul><li>Content-based segment contributes almost 53% to Navneet’s top-line, of which, 91% is curriculum-based publications and 9% non-curriculum based publications. In 2007 publication business share was 65% in top line. </li></ul><ul><li>Navneet’s curriculum-based </li></ul><ul><li>publications are : </li></ul><ul><li>Supplementary educational aids </li></ul><ul><li>such as Guides, & workbooks, </li></ul><ul><li>21 question sets for students </li></ul><ul><li>of Maharashtra & Gujarat </li></ul><ul><li>State Board. </li></ul>
  18. 18. Sound Financial Growth <ul><li>Navneet is the dominant player in the organized sector, with close to 60% market share in the states of Maharashtra and Gujarat. </li></ul>
  19. 19. Comparison with Peers <ul><li>Navneet is much ahead of its peers in both Stationary and Publishing Business. </li></ul><ul><li>ITC which sales under brand name of Classmate has share less half . </li></ul><ul><li>Amongst the Publishers Blue bird in 2010 was 20% behind Navneet. </li></ul>
  20. 20. Competition in Stationary Market <ul><li>There is not a single major player who does business in the segments of stationary Some dominate the notebook while some dominate writing equipments. </li></ul><ul><li>Following are the market leaders in their respective segments: </li></ul>
  21. 21. Market Size
  22. 23. Stationary Market Size Estimation
  23. 24. Products <ul><li>ITC made its entry to the education and stationery business with its Paperkraft brand in the premium segment in 2002; </li></ul><ul><li>Expanded into the popular segment with its Classmate brand in 2003. </li></ul><ul><li>By 2007, Classmate became the largest Notebook brand in the country. </li></ul>
  24. 25. Products <ul><li>Classmate manufactures notebooks, pens, pencils, mechanical pencils and Geometry Boxes. </li></ul><ul><li>Notebooks : Classmate Notebook brand has a product range of more than 300 variants is custom made to take care of varying needs in notebooks, long books, practical books, drawing books & reminder pads segments. ITC focused on the design elements of notebooks: each Classmate notebook has a theme on the cover and related information inside. The Classmate Notebook range builds in regional preferences and caters to the requirements of All India & State Education Boards. </li></ul><ul><li>Pens : ITC forayed into the pen industry with the launch of Classmate pens across markets offering the consumer stylish and attractive designs. </li></ul><ul><li>Pencils : Classmate HB Jet Black Pencils mark the entry of Classmate into the pencils category. </li></ul><ul><li>Mechanical Pencils : Classmate Mechanical Pencils are pencils intended for sharp, precise writing and drawing, specially used for precise drawings in subjects like math’s and engineering. </li></ul><ul><li>Math Instruments : Classmate Invento & Classmate Victor are part of the range of Geometry Boxes. &quot;Invento&quot; is positioned as a more premium product carrying interesting trivia and other useful information about the subject, &quot;Victor&quot; provides tinted plastic instruments that make it easier for beginners </li></ul>
  25. 26. Drivers of Growth of Stationary <ul><li>. </li></ul>
  26. 27. Sales to grow at CAGR of 10% over FY10-FY12 <ul><li>Navneet’s net sales have grown at a 17% CAGR of the past three years (FY07-FY10). </li></ul><ul><li>The Company is well-positioned to encash the growth as it enjoys higher brand equity. </li></ul>
  27. 28. EBITDA margins expected to grow to 23.7% <ul><li>Navneet has been improving its margins & projects to grow EBIDTA from20.1% in FY10 to 23.7% in FY12. </li></ul><ul><li>This is mainly due continuous improvement in its operational efficiencies through product innovation and due restructuring in stationery segment </li></ul>
  28. 29. Thanks