Vasa Retail and Overseas Ltd Management Discussions.


Conventionally, stationery stands for a wide gamut of materials like paper, office supplies, writing implements, greeting cards, etc. However, as per the contemporary definition of the term, ‘stationery more specifically relates to materials used for formal or personal correspondence. The Indian stationery industry is worth Rs 4,000 crore, comprising of a wide variety of products and categories. It can roughly be classified into paper products, writing instruments, computer stationery, school stationery, and office stationery. Though the Indian stationery industry is dominated by local stationery players, a large number of organized players are now entering the industry.

According to 6Wresearch, India Stationery Market revenues are projected to grow at a CAGR of 10.5% during 2018-24.

Company Profile and Performance of Stationery Industry during 2018-19

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.

In addition to the above business activities, our Company also acts as a supplier of copier paper under the brand "Trion" to certain paper dealers in the Middle East. However, we do not own the brand "Trion" under which we sell our copier paper.

Our domestic markets are driven by marketing, selling, and distributing our stationary products and bags essentially under the brand "University of Oxford" and through a network of approximately seven (07) distributors catering to more than 500 stores by way of modern retail outlets, shop in shop, traditional retail outlets, MBO‘s and e-commerce platform in India. We also sell our products in the overseas markets in countries like Saudi Arabia, Kuwait, Qatar, Bahrain, UAE, Oman, and Mauritius. 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 and other Sales during F.Y 2018-19

For the period ended March, 2019 and fiscal 2018 our total domestic and other sales revenues were Rs. 1525.45 lakhs;


VASA RETAIL AND OVERSEAS LTD now has tie up with Spencers Retail Limited a well known chain retail stores. Spencers started in India from 2008 by opening its largest store in the Eastern Indian Metropolis of Kolkata. There are overall 144 Stores in India spread across many cities.

VASA RETAIL AND OVERSEAS LTD pioneer in bringing international license Brands in India has also made its presence at CROSSWORD - a chain of retail stores at Pune/Bangalore/Jaipur/Gurgaon.


For the period ended March, 2019 and fiscal 2018 our total revenues were Rs. 3,899.60 lakhs; Rs. 2338.42 lakhs; which is increased by 182% after considering that the company was operational for half year in the fiscal 2017 respectively and our Profit and Loss after Tax was Rs. 153.08 lakhs; and (Rs. 56.01 lakhs year 2017-18).


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 Rs10 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:

1. Development of new products for both domestic and overseas markets.

Our Company is continuously looking out for improvements in our regular products and developing new products for the domestic and overseas markets. We have introduced various new products in the past and we are now in the process of introducing new products like sticky notes and clay series. These products will further enhance our Company‘s product portfolio to be offered to our customers.

2. Explore the existing and future distribution networks for furthering our brand VASTA.

In addition to marketing and selling products under the "University of Oxford" brand, our Company also intends to promote and market products under its in-house brand "VASTA". Our Company intends to utilize the existing channels for sourcing products and distribution networks for the "VASTA" brand products so as to create a market for products under the in-house brand as well. Growth of our "VASTA" brand products market shall provide an alternative range of products to the existing range of products sold under the "University of Oxford" brand to the customer.

3. Expansion by way of multi-distribution and retail channels.

We shall explore modern technology to access new opportunities in the market to sell our products to the ultimate customer, including direct sales to the customer through the internet. Both B2B and B2C platforms shall be considered for access over the internet through our website and other well-known aggregator portals to market and sell our products to retail customers. We shall soon be installing a payment gateway on our website and sales have been increasing through this medium of direct selling to our buyers and customers. We shall also expand our existing distributor network in the domestic and overseas markets, especially for our brand VASTA. Various new formats, including the shop-in-shop will be further expanded to reach more customers, especially in the Tier 2 and Tier 3 cities of the country.

4. Leverage the "University of Oxford" brand and expand in various export markets.

We intend to expand our export markets by greater penetration in cities and areas of the 26 countries where we are permitted to market and sell the "University of Oxford" branded products. In addition to marketing and selling our products under the brand "University of Oxford", we intend to give impetus to marketing and selling of our in-house brand "VASTA" in the various geographies including the twenty six (26) countries we are selling our products under the brand "University of Oxford". We believe that our brands command respect and credibility and intend to leverage the goodwill of our brand to enhance relationships with our existing customers, seek new customers as well as introduce new and innovative products to help us grow our operations and increase our market share. We intend to leverage the existing distribution platform and implement effective marketing strategies to deepen our reach in domestic markets.


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.


During the year under review the Company revenue generate in below major products;

Paper Related Products Rs. 15.54/-
Stationery Rs. 22.86/-


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, 2019
Total Revenue 3,899.60
EBITDA 333.80
Profit Before Tax 203.38
Profit After Tax 153.08
EPS 2.55


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. As on 31st March, 2019 the Company had total 32 (previous year 23) permanent employees.


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.