Bic Buys Into India, Some Financial Numbers

[amk]

Leafing through the French finance magazine we get, I've just found a recommendation for Bic shares.

 

One of the reasons for the recommendation? Bic's acquisition (nearly a year ago, so it's not news) of a further stake in Indian pen maker Cello for 74m euros, giving it control of the business. That, the French paper argued, should give Bic growth over the medium term.

 

That's expensive given that Cello's sales were only EUR 70m (2012-13 figures) though apparently it has a 30% operating margin plus 5-10% annual growth.

 

For French speakers, the entire saga, including the original purchase of 40% in 2009, disagreements with the other major shareholder, a journey through the law courts, is summed up by Le Figaro.

 

Bic apparently has already managed to get 10% of the entire pen market in Brazil. I wonder what it will achieve in India?

[mehandiratta]

This is news to me....

Bic was not that much prsesent in India in local markets....

 

It was largely dominated by Cello, Montex, Reynolds, Luxor, and Linc....

Though most of them catering for Office Stationary market and all of them had variety of the ball tip pens, Roller Balls and Gel Pens...

 

Cello was a big thing during my school days... they had lot of gel pens... and they used to write well also and also reasonably priced...

 

Before they bought the Cello .. 100% , they had 75% share in Cello and were already making profit and probably that is the reason they took over the Cello completely... And India being ome of the fastest growing market for stationary goods...

[amk]

Yes, I think Bic is focusing on growth in emerging markets so India plays a big part in the strategy; apparently the company has also invested a lot in Brazil.

 

Interested in your perspective on the gel pens - as a user I've found there is a huge difference between the best and the worst just as there is with ball pens. In some ways I hate the Bic stick - far too thin to hold comfortably - but the original Bics work very well indeed, don't blot or smudge or emit vile gouts of indelibly staining nastiness. Will be interesting to see how things turn out and whether Cello starts putting new stuff on the market.

[sciumbasci]

Reynolds license expired, the're now called Rorito or something. BiC might just have seen the opportunity to seize former Reynolds market share?