Incorporated in 2006, DOMS Industries Limited is a stationery and art product company primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand, DOMS. As of March 31, 2023, the company has marked its presence in over 40 countries. The company held 29% and 30% market share, respectively, in Fiscal 2023 for its core products for pencils and mathematical instrument boxes.
The company offers well-designed and high-quality stationery and art materials to consumers, which are classified into seven categories: (i) scholastic stationery; (ii) scholastic art materials; (iii) paper stationery; (iv) kits and combos; (v) office supplies; (vi) hobby and craft; and (vii) fine art products.
The company has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia.
As of March 31, 2023, the company has a strong, global multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East.
Strengths And Risks + Market Leadership Position: DOMS is the second largest player in India’s branded ‘stationery and art’ products market, with a market share of 12%, by value, as of Fiscal 2023. Their core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in Fiscal 2023 respectively.
+ Strong Brands: DOMS offers a diverse range of products with leadership positions in their product categories in India. The brands are well known and popular and enjoy high recall value. This helps the company leverage pricing strategy. Among core peers, DOMS is the only company to have achieved a higher revenue in FY 2022 post Covid year, after FY 2020, indicating strong recovery.
+ Largest Manufacturing Facility: DOMS operates 10 manufacturing facilities across Umbergaon with an annual installed capacity of 4,734.93 million units as on March 2023. The Umbergaon facility is one of the largest stationery manufacturing facilities in India.
+ Wide Range of Products: DOMS has a wide and differentiated product category, which includes over 3,800 SKUs spread across (i) scholastic stationery; (ii) scholastic art material; (iii) paper stationery; (iv) kits and combos; (v) office supplies; (vi) hobby and craft; and (vii) fine art products. As per the Technopak Report, they have the
widest breadth of product categories amongst our peers in India and are amongst the few ‘stationery and art material’ products manufacturing and marketing companies globally with such product breadth.
+ Strategic partnership with F.I.L.A: FILA, their Corporate Promoter, is an Italy based leading global enterprise devoted to the research, design, manufacture and sale of tools for creative expression. The collaboration with FILA has helped us expand their international footprint in Asia Pacific, Europe, and Middle Eastern markets with the distribution of products. It also allows them to augment R&D capabilities and remain updated with emerging global trends and technology
- Product Concentration Risk: DOMS is dependent on their key products (in particular ‘wooden pencils’) for a significant portion (31.66% in FY '23) of Gross Product Sales. Any decline in the sale of these key products due to
including increased competition, pricing pressures, or fluctuations in the demand may adversely affect the business.
- Litigation: There is an outstanding civil litigation against DOMS by one of their listed peers Kokuyo Camlin Limited for an alleged infringement and/or passing off of certain designs. Any adverse decision in this proceeding could impact their reputation.
- Dependence on FILA: DOMS has entered into a strategic partnership with the FILA Group and are dependent on them for their exports and to increase the reach of their products worldwide. Almost more than 59% of their total export sales come through the partnership. Any deterioration in the relationship with the FILA Group can impact revenues.
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