EcoFriendly pencils made out of newspapers is not a new idea. There are companies in India and Internationally that have products such as EcoFriendly pencils. The strategy by most EcoFriendly pencils is to carve a niche for itself and position the product as a novelty. Our strategy is different. The novelty of our product is no doubt the recycled pencils but if we do not price it at point between a novelty and a commodity we would not be able to capture a decent market share. Today, people globally are getting more environmentally conscious and are moving towards buying Eco-products as a necessity-based commodity and not a novelty.
Velim eco-friendly pencils is not trying to compete with normal pencils in the market. My team believes that if we are priced competitively enough to cater to the growing awareness of people for eco-friendly products, then the price would be suitable to our customers, even though it is marginally higher than a normal pencil. In time we want people to drive the demand for eco-friendly pencils that will then allow us to offer prices competitive enough with normal pencils.