Flair Writing Industries Limited has announced the commencement of wooden pencil manufacturing operations at its step-down subsidiary Flomaxe Stationery Private Limited in Surat. This development marks a significant expansion in the company's creative product portfolio and represents a strategic move to strengthen its position in the stationery market.

Manufacturing Operations Launch

The company has successfully initiated wooden pencil production at its Flomaxe Stationery facility located in Surat. The new production line will have an estimated annual capacity of 84 million pieces, positioning the company to deliver high-quality wooden pencils at different price points while bolstering its presence in the stationery segment.

Comprehensive Product Range Strategy

Within this facility, the company will also focus on manufacturing complementary products such as a range of erasers and sharpeners. These products, combined with existing SKUs in polymer pencils and mechanical pencils, will create a comprehensive basket of products to address the pencil and allied stationery segment. This expansion enhances the company's backward integration with the fast-growing creatives segment as part of its long-stated strategy.

Management Commentary

Commenting on the development, Mr. Vimalchand Rathod, the Managing Director, said the company is excited to commence wooden pencil manufacturing at Flomaxe Stationery Private Limited in Surat, marking an important step in strengthening their creative segment portfolio. He noted that this expansion will serve one of the biggest product categories in the overall stationery segment and will be a key pillar in their plan to rapidly scale the creative segment, which grew by 72.00% year on year in 9M FY26.

Strategic Market Positioning

The launch of wooden pencil manufacturing represents a strategic initiative to penetrate further into the largest segment of the stationery industry. This expansion aligns with Flair Writing Industries' objective to strengthen its stationery business operations and diversify its product portfolio. The company's enhanced manufacturing strength, combined with its commitment to breakthrough product innovation, positions it to advance confidently and expand its presence across the evolving stationery landscape.

Flair Writing Industries Limited has received a modified order from the Appellate Authority under Section 73 of the CGST Act, 2017, providing significant relief in tax proceedings for FY 2020-21. The company disclosed this development through a regulatory filing dated February 06, 2026, pursuant to Regulation 30 of SEBI listing regulations.

Previous Tax Relief for FY 2017-18

The company had earlier received complete relief for FY 2017-18, where proceedings under Section 74 of the CGST Act were entirely dropped by the Office of the Additional Commissioner of CGST & C. Ex., Mumbai East Commissionerate. This had eliminated a total liability of Rs. 29,30,542/-, comprising IGST demand of Rs. 14,65,271/- and an equivalent penalty.

Latest Appellate Order for FY 2020-21

The recent development pertains to a separate case for FY 2020-21, where the company had initially received an Order-in-Original dated January 30, 2025. The original order had disallowed Input Tax Credit (ITC) aggregating to Rs. 49,32,741/- and imposed a penalty of Rs. 4,93,274/-.

Following the company's reply and submissions before the appropriate authority, the Appellate Authority has modified the original order, providing substantial relief to the company.

Authority Details and Timeline

The modified order was received from the Office of the Additional Commissioner of CGST & C. Ex., Mumbai East Commissionerate on February 05, 2026. The appellate proceedings were conducted under Section 73 of the CGST Act, 2017, which deals with determination of tax not paid or short paid or erroneously refunded.

Company's Response and Future Course

The company has indicated that it will file an appeal challenging the modified order based on strong merits by submitting its reply and submissions before the relevant authorities. This suggests that Flair Writing Industries believes it has grounds to contest even the reduced liability.

The company has stated that there is no material impact on its financials, operations, or other activities due to this development. The impact will be limited to the extent of final tax liability as may be determined, along with any applicable interest and penalty.

Business Impact Assessment

With the substantial reduction in tax liability from Rs. 54.26 lakh to Rs. 7.36 lakh, representing an 86.45% decrease, the company has achieved significant financial relief. This positive development, combined with the complete relief received for FY 2017-18, demonstrates the company's effective approach to handling tax disputes and its commitment to maintaining compliance while protecting shareholder interests.