Shalin Gandhi, Founder of Submarine Pens Pvt Ltd

16 Mar 2023 , 12:23 PM

The Global Corporate Gifting market is anticipated to rise at a considerable rate in the next 5 years, what is the company doing to seize this opportunity?

By 2024, India is anticipated to be one of the largest contributors to the estimated $475 billion worldwide gifting market. The country’s gifting market is anticipated to grow to USD 84 billion by 2024 from USD 65 million, with corporate gifts having a significant share of the market and accounting for more than 80% of all gifting items.

Our Writing Instruments have enormous potential, so we are working to continuously improve our production capacity; putting in maximum effort in order to maximize potential; developing new models on a regular basis since businesses demands creative products. We create a fresh development strategy at least six months in advance. We also expand the sales and back office teams to meet the ever-growing needs of corporate.

What are the key driving factors for the growth of the Corporate Gifting Market?

Writing Instruments are primarily driven by the pharmaceutical sector.

Events and exhibitions are held all the time in different parts of the world. Pen is the first choice to fulfil their requirements in this regard. It serves as a visiting card to remind people of the brand.

A pen is included in the welcome kits that new businesses provide to new employees.

For the gifting market, we are providing modern online retail websites and businesses in the e-commerce sector like Vista Print, IGP, Print Land, Print Stop, etc.

Between the key product segments, which ones will drive future growth?

The key product segments include executive pens, fancy designer pens, multi-function pens, promotional pens, metal pens, pen and dairy combo sets, etc.

We are creating NASA Pens & Stationery, including scented pens with flavors like coffee. Future growth will be driven by inventive, personalized, and customized pens. Combination sets with original concepts will succeed in the future. People will soon desire pens not only for writing purposes but also for their originality and packaging.

Help us understand the company’s growth strategy.

We excel in the corporate gifting industry. Just 10–15% of our overall revenues come from retail, whereas 80–85% comes from corporate. In terms of retail, the Northern part of the country is quite strong, while we are performing better than rest in the South. We also intend to expand our retail footprint across India in the future. To boost our retail presence, we will be expanding our retail team.

What is your plan on expansion of stores? Between physical and online distribution channels, how will the overall distribution network pan out?

We don’t need a store of our own. We intend expand to the A+ Shops and gifting stationery stores all over India. At present, we hardly contribute to 10% to 15% of the market in India. We need a significant amount of manpower to build our retail network in India. On this front, we have a two-year plan to enter most of India’s chain stores for retail in order to enhance sales.

Our company has a presence online thanks to agents who work for websites like Vista print, IGP, Print Land, Print stop, etc. where you can find products under the Submarine brand and where they also promote the brand.

Your company has recently launched coffee pens, please provide details about it.

The brand-new Coffee Pen from Submarine Pens is a COFFEE TREAT (literally!) for customers who want to express themselves powerfully.

This unique collection, which is available in five contemporary styles, exudes the passion, grace, and exceptional quality that make it possible to relate to the experience of being at a café. Customers may smell the aroma of the coffee beans while they write using Submarine’s new Coffee Pen.

There are several modes in the Coffee Pen line, including Americano, Cappuccino, Mocha, Espresso, Latte, and Macchiato. The Submarine coffee pen series will soon be available for purchase at Archies Gallery, top A+ Shops, and online retail.

Please provide a snapshot of the financial sales figures of the company.

This year, submarine pens is expected to bring in a Rs 29 crore revenue, up from Rs 20 crore last year. Next year, we want to earn more than Rs 40 crore.

What will be the prominent margin drivers for the company?

Promotional products are effective revenue generators in the corporate sector.

Despite our best efforts, we are still just breaking even from the retail sector due to the hefty overhead costs. Our main margin driver is the corporate gifting sector.

Are you looking to raise funds?

We want Submarine to become well-known and a pioneer in the gifting sector. Whenever someone wants to give someone a pen, submarine pens need to be the first thing that comes to mind. Our aim is to provide the most innovative selection of designer pens at the most competitive prices. We want to make a Limited Company. Our Vision is to have a Rs 100 crore Turnover. Regarding Private Equity funds, since we want to reach Rs 100 crore sales within 4 years, we will be looking for private equity in our company to grow our business.