vasa retail and overseas ltd share price Management discussions


The global stationery products market size to be valued at USD 128.5 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% during the forecast period. Growing literacy rates across the globe and an increasing number of youth inclining towards higher education are among the prominent factors for market growth. Furthermore, the rapid increase in the number of start-ups is propelling market growth. According to a report by NASSCOM, more than 1200 startups came into existence in 2018. Thus, increasing employment in these sectors is impacting market growth significantly. Government initiatives have led to an increase in the number of schools and colleges in rural as well as urban areas, which is directly impacting market growth.

The global education industry is anticipated to witness significant growth in the near future, thus fueling the market growth in the forecast period. Increasing brand awareness and disposable income among the consumers are driving the market for luxury pens, which, in turn, is providing an upthrust to the global industry in the forecast period.

India Stationery Market has registered substantial growth in the past few years owing to the growing urban population, changing lifestyle, and increasing demand for stationery products in the private and public sector among with growing government initiatives in improving education system such as Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA). Moreover, the rising brand awareness, increasing adult literacy rate, and the growing number of start-ups would further boost the demand for the stationery market in India.

According to 6wresearch, the India Stationery Market size is expected to grow during 2020-2026. In India, the Stationery Market is projected to register a decline in economic growth during the first quarter of 2020 due to the coronavirus pandemic which has a worse impact on worldwide business. However, during the second half of 2020-2026, the Stationery Market in India is anticipated to recover with healthy growth in the economy. In application, the education segment is leading major revenue in the stationery market share in India on account of growing educational structure, providing quality education, promoting equality in education, increasing employment in the education sector, and surging number of educational institutes in the country.

Company Profile and Performance of Stationery Industry during 2022-23

Our Company primarily deals in all kinds of (a) stationery products viz. artistic materials, hobby colors, scholastic colors, scholastic stationery, office products, drawing instruments, writing instruments, office stationery, adhesives, notebooks, office supplies and writing instruments, books, pens, pencils, erasers, files, copier paper, bags and bottles; (b) procuring paper pulp and supplying the same to paper mills and (c) procuring bag fabric and supplying it to the other bag manufacturers and also using the same for manufacturing our products (school and office bags). These stationery products are essentially used by school going children and offices as a part of their stationary requirements. On the other hand, paper pulp is the key raw material for the manufacturing of wide variety of paper. We can further classify our range of stationary products into (i) school and education products; (ii) fine art and hobby products; and (iii) office products.

We sell our products in the overseas markets as well in countries like Saudi Arabia, Kuwait, Qatar, Bahrain, UAE, Oman, and Mauritius, Africa, Kenya, Tanzania to cater to the demands of overseas market, we participate in various exhibitions, personal interaction and meeting with the customers, mass mailing, circulation of catalogues by way of social media, etc. to market our products.

Domestic Sales during F.Y 2022-23 –

For the period ended March, 2023, the Company doesnot have any business, however directors are focusing on the new business plans.

Export –

For the period ended March, 2023, Company doesnt have any export income.


The India school stationery supplies market is expected to continue its moderate growth during the forecast period (2021-2026). Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic.

The Indian stationery industry is expected to hold great growth potential as the school and college going Population of the nation is on a rise. Nearly 22-24 crore students studying in schools and colleges, require notebooks and other stationery materials. Further, the office going population is also one of the biggest contributors to the sector. With the rise in the economic prosperity of the nation, more and more jobs are expected to be created in the days ahead, thus in turn would increase the demand of the office stationery and would contribute significantly in the growth of the sector.

The Indian stationery industry is highly scattered and is largely dominated by the unorganized sector and the situation is quite alarming for the organized players industry. Factors like lack of modern production facilities, unorganized nature of functioning, marginal demands, government policies and international competition are largely contributing to the slow growth of the organized stationery industry in India.

However, the industry is now showing signs of organized growth, as a result of tremendous increase in the demand for the stationery products in India. This demand can be attributed to the entry of a large number of international brands in India. The Indian stationery industry is largely shared by the educational and office stationery products. Particularly in the school stationery category, the percentage of schoolbooks captures the bulk of the market. The national market for syllabus-based books is estimated at Rs.10 billion and is growing at 20 per cent per annum. Relatively, other departments from the stationery industry generate more or less equal percentage of growth.

Increasing number of schools and offices improved standard of living as well as shift in focus from inexpensive to premium quality products on account of rapidly growing economy are some of the crucial Factors which would drive the demand for stationery products in India over the next few years.

The Company also introduced products in categories like Pens and Notebooks to strengthen its market presence


Opportunity - We believe that the following are our primary competitive strengths:

According to Trends, Drive, and a lot of Challenges according to the market conditions due to rising in the E-commerce business in the stationary sector. It creates a new opportunity for the key player in the market for the growth of the business and it will help the business grow to the online sale of the stationery product on the online platform. According to the ASSOCHAM, India is leading countries such as Russia and Brazil in the million users of the internet user searching for the online stationery product. Online shopping of books and novels generates great revenue for the Indian market of stationery. The e-commerce business expands and creates revenue for million. Online shopping such as books and novels major share getting from online shopping. The government sector expenditures the educational sector so that the literacy rates will increase its direct impact on the stationery items or products its generated the revenue while enrolment of the new students in the educational sector.

Pandemic (COVID -19),
Bann on Paper Import
Trade relationships with China under strain

There is a lot of competition in the stationery market basically the local player is unorganized there selling low-quality products at a low rate to the customers.

Business cyclicality risk: The Companys primary business segment includes products which have a higher acceptance in schools and colleges. Thus a major chunk of the revenue generated is exposed to the cyclicality risk as demand for the products peak during the beginning of a new school season while demand remains flat for the rest of the year. Thus any set back on the part of the Company during the peak period could seriously dent the companys profit.

Mitigation: The Company diligently tracks the school session timings across various parts of the country and accordingly launches new products, plans production and re-stocks the distribution channel and the retailers. Thus the company not only ensures adequate supply of its product during the peak period but also ensures that its product is within the hands reach. Further the Company has also enhanced its presence in the office stationery segment over the years, which have a round the year steady demand, thus reducing its dependence on only one segment.

Raw material risk: Non-timely availability of raw materials may impact the production and which in turn may have an impact on the sales and profitability of the Company. At the same time high cost of raw materials may also impact the bottom-line.

Lack of awareness - Due to lack of desire and unawareness about the products, the consumer is used to buying whatever is available at the local stationery shops.

Competent local players - Indian local players hold the major share in the stationery market, which is a challenge for Indian organized players.

Price variations - Local players, without any proper billing, sell products at cheap prices, whereas, organized players have to go through proper billing and taxation, which creates a gap between the prices of the two sectors.

Low cost products- The stationery products are low cost products and the advertising spending is very low in this industry; it is difficult to attract the customers to buy a particular product.


Indian economy is expected to grow better this year. With lower inflation, lower bank interest rates and expected normal monsoon, outlook for automotive industry appears to be satisfactory. Although, global economy continues to struggle, opportunities for business are significant considering current low market penetration. With focused customer service, the outlook for the Company appears satisfactory.

With the objective of delivering profitable growth, the companies expect to leverage on the favorable demand environment and pursue market share improvements. Further, the Company continues to expand the international business with its existing customer base.


The Company has laid down well-structured procedures for monitoring the risk management plan and implementing the risk mitigation measures. The risks are broadly classified into strategic risks, operational risks, financial risks and statutory compliance risks. These risks are rated based on factors such as past year experience, probability of occurrence, probability of non-detection and its impact on business. The top management reviews the strategic risks, the risks with high probability and high impact every quarter and presents its report along with risk mitigation plan to the Board of Directors on half-yearly basis. The strategic risks are taken into consideration in the annual planning process with their mitigation plan. Other risks are covered as part of internal audit process and presented to the Audit Committee every quarter. The business processes risks and the related controls are subjected to internal audit and reviewed on a quarterly basis. The risk ratings are revalidated with the top management as part of the internal audit process every quarter. The overall re-assessment of risks at company level is carried out.


Your Company is continuing its focus on improvements to the quality systems at all levels through Total Employee Involvement with a view to provide higher customer satisfaction. Your company continues to closely monitor and focus on various cost reduction and cost control initiatives to achieve planned targets during the year.


The Company has adequate systems of internal control meant to ensure proper accounting controls, monitoring cost- cutting measures, efficiency of operation and protecting assets from their unauthorized use. The Internal Audit department of the Company reviews control measures in the management of risks and opportunities and ensures adherence to operating guidelines and compliance with regard to regulatory and legal requirements.

The Companys budgetary control system aims to ensure adequate control on the expenditure. The management reviews the actual performance with reference to the predetermined norms and standard on monthly basis. The Company has to work hard to maintain its market share without compromising on the quality of its products.


Financial highlights with respect to operational performance:

(Rs. In Lakhs except EPS)
Particular As on 31st March, 2023 As on 31st March, 2022
Total Income 0 513.82
Profit / (Loss) Before Tax (1,253.21) (952.43)
Profit/ (Loss) After Tax (1,253.45) (951.39)
EPS (20.92) (15.88)


Human Resource base is the greatest asset of the Company. Shortages and challenges of retaining skilled manpower have to be addressed to on a continual basis. The Company provides necessary training to all its employees and equips them to manage critical business processes to face the challenge of competitive Global market.


Statement in this Management Discussion and Analysis report, describing the Companys objectives projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include global and Indian demand-supply conditions, cyclical demand and pricing in the Companys principal markets raw material cost and availability, changes in the Government regulations tax regimes, economic development within India and the countries within which the Company conducts business and other factors such as litigation and industrial relations.