How Nataraj and Apsara Pencils Built an Empire: The ₹1200 Crore Story

Most Indian students grew up using Nataraj and Apsara pencils. These iconic brands are a part of our childhood memories. But few know the amazing journey behind Hindustan Pencils, the company that created them. Three friends started this company facing laughter and doubt. People asked, “Can you really become a millionaire making pencils?” This simple pencil company is now an empire worth over ₹1200 crore. This is the story of how B.J. Sangvi and his friends overcame every obstacle to build Hindustan Pencils into India’s top stationery brand.

India’s Pencil Problem After Independence

India gained independence in 1947. By the 1950s, millions of children dreamed of studying. Yet, most of them lacked good pencils. Richer students could buy expensive foreign pencils. Brands like A.W. Faber-Castell, Mitsubishi Pencil, and Staedtler from England, Germany, or Japan ruled the market. These imported pencils were high quality.

However, ordinary middle-class families could not afford these costly foreign pencils. The few local pencils available were of poor quality. They broke easily and smudged, leaving hands dirty. In fact, India did not make good quality pencils at all. Many children had to write with reed pens and ink. Owning a wooden pencil made a student feel very important among friends.

B.J. Sangvi’s Early Life and Vision

B.J. Sangvi, known as Babubhai, experienced these conditions firsthand. He was a bright student but financial problems blocked his path. He finished high school but could not afford further studies. His dream of becoming an engineer remained unfulfilled.

As he grew older, Babubhai saw the struggles of poor children. They did not even have a basic pencil. He decided he would solve this problem for good. By this time, some Indian companies, like Camlin, had started making pencils. Still, their quality did not match foreign brands. They were not as smooth or strong.

The biggest issue was people’s perception. In those days, “Made in India” often meant low quality. People did not trust Indian products. Everyone wanted foreign brands.

A Turning Point for Indian Industry

By the late 1950s, a major change began in India. The government started promoting local industries. This was to reduce the country’s reliance on foreign imports. This policy shift was a turning point for the Indian pencil industry.

It was at this time that B.J. Sangvi teamed up with two close friends, Ramnath Mehra and Mansukhani. They decided to make pencils themselves.

Building the Foundation: Overcoming Tough Challenges

Making pencils was not an easy task. In that era, only a few foreign companies had the technology to make pencils. These three friends had courage but lacked the technical know-how.

Learning from the Best

To gain knowledge, the three friends traveled to Germany. There, they learned the secrets of pencil manufacturing. They studied how the best quality pencils were made. They learned about the raw materials used and how the machines worked.

However, simply learning foreign techniques was not enough. The biggest challenge was finding raw materials. A great pencil needs two main materials.

The Quest for Raw Materials

  • High-Quality Wood: The wood needed to be light, strong, durable, and easy to sharpen. Cedar wood was ideal, but it mostly came from foreign countries. Importing it was very expensive.
  • Graphite Core (Lead): The lead had to be just right, not too soft or too hard. It should not wear down quickly when writing. It also shouldn’t be so hard that it needed heavy pressure on paper. Making the perfect graphite core required a precise mix of carbon and clay.

The problem was that India had neither the quality wood nor pure graphite needed for pencils. Local pencil companies had to import both. This made their production costs very high. Most people did not dare to enter this business.

But B.J. Sangvi and his friends were determined. They believed that if India did not have the resources, they would find their own way.

Finding Local Solutions

Arranging the right wood was the first big challenge. Imported cedar wood from America was too expensive. So, the three friends decided to find a better alternative within India. They spent months traveling through forests in different states. They constantly tested wood samples. They faced many failures but never gave up.

Finally, they found a wood source that was as strong and durable as imported cedar wood. This wood was Poplar wood, also known as Chinar wood. It was light and easy to sharpen, making it perfect for pencils.

Developing the graphite core was still a challenge. To solve this, they worked with local manufacturers and researchers. They created a new formula. After months of hard work, they produced a graphite that was smooth and durable. Now, they had both the wood and the graphite.

Crafting Machines from Scratch

Another major hurdle was machinery. They did not have enough money to import new machines from abroad. So, they decided to have machinery built in India. They worked with local engineers and carpenters. They visited different workshops and studied how foreign machines worked.

They experimented day and night. They collected small parts from various places. In the end, they built a machine that could make high-quality pencils at the lowest possible cost. This machine was built using “jugaad” or makeshift technology. It was very slow and often broke down.

B.J. Sangvi faced immense stress from money problems, continuous hard work, and constant machine issues. It affected his mental health, making it hard to sleep without medication. But he knew giving up meant losing everything.

After many adjustments and upgrades, the machines started making pencils faster. This success led to the founding of Hindustan Pencils Limited in 1958.

The Birth of Nataraj: A Pencil for Every Indian

In 1958, Hindustan Pencils launched the Nataraj 621 HB pencil. This pencil was as good as imported brands. It was also more durable, especially for Indian weather conditions.

The company knew it had to make products affordable for the Indian market. They sold their pencils at a very low price. However, customers were still hesitant to buy them. The perception that “Made in India” meant poor quality persisted. Shopkeepers also avoided stocking Indian goods, fearing they wouldn’t sell.

Hindustan Pencils faced its biggest challenge: earning people’s trust.

A New Marketing Approach

B.J. Sangvi and his friends believed that once people tried their pencil, they would recognize its quality. They focused on strengthening their distribution network. Instead of big stores, they targeted small stationery shops. They convinced shopkeepers to sell their pencils. But this strategy did not yield much success. Shopkeepers were already selling imported brands and doubted a new Indian pencil would last.

So, they devised a new plan: reaching students directly. They started distributing free samples of Nataraj pencils in schools and colleges.

Winning Hearts with Quality

As soon as students tried Nataraj pencils, they noticed the difference.

  • The graphite was smooth and dark, making writing bold and clear.
  • The lead was stronger than imported pencils.
  • The eraser that came with the Nataraj 621 HB pencil was dust-free. This was a big advantage because other erasers at the time left a lot of mess.

Thanks to these features, Nataraj pencils quickly gained popularity. Not just students, but office workers also began using them for projects and documents. By the 1970s, the Nataraj 621 HB became India’s best-selling pencil. Hindustan Pencils Limited had established a strong presence in the Indian market.

The Rise of Apsara and Global Expansion

By the 1970s, Hindustan Pencils faced a new challenge. The company realized there was a need for a higher quality pencil. This pencil would be for professional artists, designers, and architects. It needed to be smoother, darker, and more comfortable to grip than Nataraj.

Introducing Apsara

To meet this demand, Hindustan Pencils Limited launched the Apsara brand in 1970.

  • Apsara pencils had darker and smoother lead.
  • Their special formula made them perfect for sketching and artwork.

Apsara slowly found its place among professional artists and designers.

Around this time, Hindustan Pencils also decided to export its products outside India. In just a few years, Nataraj and Apsara pencils were being sold in:

  • Asia
  • The Middle East
  • Africa
  • Europe

An Indian brand was now making its mark on the global stage.

Facing New Competition: The 1991 Economic Reforms

In 1991, the Indian government began economic liberalization. This allowed foreign companies to set up factories in India. This move had a big impact on the Indian stationery market. Many large international brands entered India. The market that Hindustan Pencils once dominated now saw increased foreign competition. The company feared these foreign brands might overtake them.

However, they saw this challenge as an opportunity. They developed a bold strategy: innovate beyond just pencils. They focused on meeting Indian customers’ needs across the stationery industry.

Diversification and Innovation

Hindustan Pencils launched several new products and improvements:

  • Dust-free erasers: These left no mess after erasing.
  • Upgraded sharpeners: They sharpened pencils more precisely, preventing lead breakage.
  • New writing tools: They introduced ball pens, gel pens, color pencils, and crayons.

Hindustan Pencils was no longer just a pencil brand. It had become a major name in stationery.

Iconic Advertising Campaigns

In the 1990s, Hindustan Pencils used television and print media to strengthen its brand. TV ads had a strong impact on people. Children and parents watched TV together. The company launched memorable ad campaigns:

  • The “Winning Race” ad for Nataraj: This ad showed a pencil race where other brands’ leads broke, but Nataraj finished first. The slogan “Natraj pencil chalati hi jaye” (Nataraj pencil keeps going) became very popular.
  • “Extra Dark, Extra Strong” for Apsara: This campaign showed students using Apsara pencils as drumsticks. It highlighted the pencil’s strength.

These advertisements made Nataraj and Apsara household names.

Staying Ahead in the 2000s

By the 2000s, competition intensified even more. Not only foreign brands, but Indian brands like Camlin and DOMS were also growing stronger. Hindustan Pencils faced a new challenge. Making good pencils was no longer enough. They needed to explain why their products were the best.

Targeting Parents and Students

The company changed its marketing strategy. Previously, students were their main target. Now, they also aimed at parents. Especially parents who wanted good, affordable stationery for their children.

They also launched the Apsara Exam Pencil for students taking exams. This pencil had smooth, dark graphite. It made writing clean and easy to read.

The advertising campaign for the Apsara Exam Pencil was a stroke of genius. The ads claimed that using an Apsara Exam Pencil would make a student’s handwriting so clear that teachers would give five extra marks. This campaign became incredibly popular and significantly boosted sales.

A Social Issue and Resolution

In 2013, Hindustan Pencils faced a controversy in Bengaluru. A law student, Chirayu Jain, complained about the Nataraj crayon set. Jain pointed out that the “skin color” crayon was very light, matching a fair skin tone. His own skin tone was darker, and the color did not match. He argued that this promoted color discrimination, implying fair skin was ideal.

The anti-discrimination group “Brown and Proud” turned this into a bigger campaign. Hashtags like #NotMySkinColor trended on social media. People were encouraged to proudly accept their real skin tones. As the campaign grew, Hindustan Pencils took action. They changed the name of the “skin color” crayon to “peach color”. People responded positively to this change, and the controversy ended.

Hindustan Pencils Today

Today, Hindustan Pencils holds about 65% of India’s branded stationery market. The company states it produces:

  • 8 million pencils daily
  • 1.5 million sharpeners
  • 2.5 million erasers
  • 1 million pens

From a simple pencil company, Hindustan Pencils became India’s largest stationery brand. This journey was not easy. But through excellent ad campaigns and continuous innovation, they made it happen.

Conclusion

Whether in schools, offices, or on artists’ tables, Hindustan Pencils has made its mark everywhere. When a child buys their first pencil today, Nataraj and Apsara are often the first names that come to mind. These brands are more than just products. They are a cherished part of every Indian’s memories. They show how an Indian company can beat global giants and capture the hearts of millions without flashy marketing or celebrity endorsements.

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