DOMS overview
They have a strong global as well as domestic position in the stationery markets. They have a diversified product portfolio and have became a one stop company for any stationary materials. They have also constantly aligned themself with the evolving customer needs. Doing this has not only allowed them to introduce differentiated products into the market but they have also been able to adopt more competitive pricing compares to their competition. Their intensive focus on R&D has also allowed them to make new products with better design and better functionality. They have a strong global multi channel distribution network which has allowed them to ensure seamless delivery of their products. By continuously enhancing this they have gained a competitive edge over their customers. Looking forward they want to expand their manufacturing capabilities, capitalise on inorganic growth, expand their product line and strengthen their distribution and market reach. They have 7 product categories and 250 plus new products launched. They serve 50 plus countries. Their scholastic stationary and art materials provide up to 66 percent of their annual revenues. India is one of the mot attractive consumption destination, providing companies with a lot of growth potential. They continue to make investments in capacity enhancements, enter new product categories like ballpoint pens, scholastic adhesives and fine art, as well as introduce new products in all existing categories. They continue to accelerate their growth trajectory in the domestic market through focused distribution network expansion. They are also always upgrading their products. They also have the widest product range compared to all their competitors. They are also acquiring companies to make sure that they can expand their manufacturing capabilities and their products. They recently also entered the ball point pens and school adhesives. They also acquired a majority stake in SKIDO which is a school bag company and by this they can participate in the back to school sale. They have a margin of 10.4 percent. They do most of their manufacturing of materials and products in house to reduce dependancy on a third party. They have more then 4300 distributors and more then 122500 retail touch points. They mainly sell their products to super stockists. They also cater to large format retail stores and e commerce platforms. They also continue investing into IT infrastructure to help with planning, performance monitoring and real time information which will help them increase profitability. They also are marketing their product on YouTube and other media platforms such as insta. The global economy is ready to maintain sow growth rates while inflations continues its downward momentum. The global economy is going to avoid recession or major instability but as a result the growth will be slowed. Despite the slowdown in the global economy Indias economy seems to be doing way better. For the stationery and printing sector stationery accounts for 60 percent of the market value. With printing accounting for the rest. The sector is one of the fastest growing with a growth rate of 13 CAGR for the next 3 years.. It also caters to more than 300 million student. The industry is also seeing a big shift with children making decisions instead of adults which will lead manufactures to make the designs more suitable to children. With more and more opportunities available in this market the competition in this market is also increasing. Some trends which are shaping the Indian stationary and materials industry are premiumisation, focus on aesthetics and functionality, niche products and many more trends. Summary. DOMS is a leading company in the stationary and art sector. They mainly get their revenue from school supplies. They have a very strong global presence and domestic presence. They mainly sell their products to super stockists. They also started going into ball points and school adhesives. They also have acquired companies to grow into the sector. Personal thoughts. I think it is a very stable company as they provide school basics and what they provide is important to education. They are also one of the biggest players in the sector which means they have a lot of growth opportunities. I think a risk that is there is technology and how it is being more used in school. But I think because of the financial situation people definitely won’t move away from pens and pencils as it is just like tradition and a necessity and.a universal thing. Art supplies will also always be used as it is going to be very hard to replicate that level of detail in tech. Overall I think what they provide is just something which everyone needs and uses. It is also a very cheap thing to buy so everyone can afford it. This combined with their strong distribution reach should help them grow a lot.