Chalti Hi Jaye: The Natraj Pencil Story

In 1958, three friends from Mumbai made a decision that would change how generations of Indians would learn to write. B.J. Sanghvi (affectionately called Babubhai), Ramnath Mehra, and Mansookani didn't just want to start a pencil company—they wanted to master the craft first. So they traveled to Germany, a nation renowned for precision engineering and manufacturing prowess. This wasn't a sightseeing trip. It was a pilgrimage to learn the art and science of pencil making. When they returned armed with knowledge and unwavering enthusiasm, they established Hindustan Pencils Pvt. Ltd. in Bombay. Their first product, the Nataraj pencil, became more than a writing instrument—it became India's childhood companion. Today, sixty-seven years later, Hindustan Pencils produces over 8.5 million pencils daily, controls over 70% of India's pencil market, exports to 50+ countries across five continents, and has made "Nataraj" synonymous with "pencil" itself. This is the story of how three friends with shared passion wrote India's stationery success story.

The Pre-Independence Context: When India Couldn't Make Its Own Pencils

Before India's Independence, the domestic pencil manufacturing industry struggled mightily to compete with imports. In the years leading to World War II, around 6.5 lakhs worth of pencils were imported annually from the United Kingdom, Germany, and Japan. Indian students wrote with British pencils, German leads, Japanese wood—everything except Indian-made instruments.

During World War II, imports fluctuated and eventually dropped to just 2.3 lakhs by 1944-45, providing an unexpected boost to India's indigenous pencil market. This wartime disruption led to the emergence of several small pencil manufacturers in cities like Calcutta, Bombay, and Madras (now Kolkata, Mumbai, and Chennai).

However, when the war ended, the market was once again flooded with imported pencils. Local manufacturers sought protection and government assistance to survive. While imports decreased following government intervention, allowing the domestic industry to gradually develop, a persistent problem remained: public complaints about the quality and price of locally made pencils compared to their imported counterparts.

Indian pencils broke easily. The lead was inconsistent. The wood splintered. Parents wanted quality. Children deserved better. But nobody had mastered the craft of making truly excellent pencils at affordable prices—until three friends decided they would learn how.

The Journey to Germany: When Passion Meets Purpose (1958)

The year was 1958. B.J. Sanghvi, Ramnath Mehra, and Mansookani shared a peculiar passion—they were fascinated by pencils. Not just as products to sell, but as instruments of education, creativity, and progress. They understood that every child's education began with a pencil. Every artist's vision started with graphite on paper. Every examination, every letter, every sketch—pencils were fundamental to learning and expression.

But passion alone wouldn't build a business. They needed expertise. So they made a bold decision: travel to Germany, the world's leader in precision manufacturing and pencil production. This trip wasn't merely about observing factories—it was a deep dive into every aspect of pencil making.

In Germany, the trio immersed themselves completely. They studied wood selection—which varieties provided the perfect balance of softness for sharpening and strength for durability. They learned graphite formulation—how mixing clay with graphite in precise ratios created different hardness grades. They mastered production techniques—extrusion, cutting, finishing, and quality control. They observed German engineering precision, noting how consistency in every step resulted in superior products.

When they returned to India, they carried more than technical knowledge. They brought a vision: to craft sturdy, reliable, and affordable pencils that would resonate with the Indian masses.

The Birth: Hindustan Pencils and the Nataraj Legacy (1958)

Upon returning to Bombay, the three friends established Hindustan Pencils Pvt. Ltd. in 1958. Their initial focus was clear: create pencils that combined German quality with Indian affordability. They didn't want to make luxury items for the elite—they wanted every Indian child to hold a quality pencil.

The Nataraj pencil, their flagship product, was born that same year. The name itself was brilliant—"Nataraj" refers to Lord Shiva in his cosmic dance form, the divine artist and destroyer of ignorance. By naming their pencil Nataraj, the founders connected their product to Indian cultural and spiritual heritage. A pencil wasn't just a tool—it was an instrument to destroy ignorance through education.

The design was simple yet distinctive: red and black, instantly recognizable. The quality was noticeably superior to other Indian pencils. The lead wrote smoothly without breaking. The wood sharpened cleanly. The price remained accessible. Parents appreciated the durability. Teachers noticed fewer interruptions from broken pencils. Students loved how easily the pencils wrote.

Word spread. From Mumbai, Nataraj's reputation traveled to other cities, then towns, then villages. The distinctive red and black design became a symbol of quality and dependability.

The Quality Philosophy: Why Nataraj "Chalti Hi Jaye"

The success of Nataraj can be attributed to several foundational principles the founders established from day one. Firstly, the brand consistently prioritized quality above all else. Nataraj pencils became known for three critical attributes: smooth writing that required minimal pressure, break-resistant leads that survived the rough handling of children's schoolbags, and long-lasting performance that meant fewer pencil purchases throughout the academic year.

This focus on durability made them a practical choice for students facing demanding academic workloads. Parents appreciated not having to constantly replace broken or worn-out pencils. Teachers loved fewer classroom disruptions from students needing new pencils.

Secondly, Hindustan Pencils understood the importance of accessibility. The company ensured Nataraj pencils were widely available across India—from large city stores to small village shops. This widespread distribution network cemented Nataraj's position as a household name. Every stationery shop stocked Nataraj. Every school supply list mentioned it. Every parent trusted it.

The company's tagline "Chalti Hi Jaye" (Keeps Going) perfectly captured this dual promise—pencils that kept writing without breaking, and a brand that kept evolving across generations without losing its essence.

The Apsara Addition: A Dual Brand Strategy (1970)

In 1970—twelve years after launching Nataraj—Hindustan Pencils introduced a second brand: Apsara. Initially designed as a drawing pencil for artists, Apsara soon expanded to writing applications as well.

This dual brand strategy was brilliant. Nataraj represented long-lasting quality at an affordable price point—the people's pencil. Apsara offered higher-priced options, including professional-grade and specialized drawing pencils—the premium choice. This strategy effectively catered to diverse consumer needs while positioning both brands strategically against competitors.

Nataraj became a symbol of resilience and affordability—the pencil every child could own. Apsara represented premium quality—the pencil serious students and artists preferred. Both brands came from the same factory, maintained the same quality standards, but served different market segments.

The strategy worked spectacularly. Rather than competing with each other, the two brands complemented each other, together dominating the Indian pencil market.

The Manufacturing Scale: From Hundreds to Millions Daily

The growth trajectory of Hindustan Pencils demonstrates what happens when quality meets demand. Today, Hindustan Pencils has become India's largest pencil manufacturer by an enormous margin. The company produces over 8.5 million pencils every single day—that's approximately 3.1 billion pencils annually.

But pencils aren't the only product. The manufacturing scale extends to complementary stationery items: 1.7 million sharpeners daily, 2.7 million erasers daily, 0.3 million scales (rulers) daily, and 1 million pens daily. This diversified production ensures the company meets all basic stationery needs under trusted brand names.

The company's product range now includes pencils in various grades, erasers, sharpeners, scales, art materials, ballpoint pens, colored pencils, and more. The popularity of these products extends beyond schools to homes and offices—Nataraj and Apsara delight customers of all ages.

The Market Dominance: 60-75% and Growing

Hindustan Pencils' market position is extraordinary. The company controls more than 60 to 75 percent of India's branded stationery market (sources vary slightly on exact percentage, but consensus places it above 60% and potentially as high as 75%). In the pencil segment specifically, the dominance is even more pronounced—over 70% market share.

This level of market control is rare in any category. It demonstrates decades of consistent quality, effective distribution, emotional connection with consumers, and successful defense against both domestic and international competitors.

What's remarkable is that this dominance has been maintained for over six decades. While brands come and go, while markets shift and technologies change, Nataraj and Apsara have remained constants—trusted, reliable, ever-present.

The Emotional Connection: Nostalgia and Trust

Beyond functionality, Nataraj pencils became deeply intertwined with nostalgia. For multiple generations of Indians, the sight of a Nataraj pencil evokes powerful memories: first day of school nervousness, friendship notes passed during class, examination hall concentration, homework struggles at the dining table, art class creativity, and the simple joy of sharp, fresh pencils in a new pencil box.

This emotional connection transformed the brand from a mere product into a cherished part of Indian childhood. Parents who used Nataraj pencils in the 1970s bought them for their children in the 2000s, who now buy them for their children in the 2020s. Three generations, one pencil.

The "Chalti Hi Jaye" campaign perfectly captured this sentiment, reminding consumers of the enduring nature of Nataraj pencils and their role in shaping personal histories. The tagline worked on multiple levels—pencils that keep writing, brands that keep serving, memories that keep flowing.

The Leadership Transition: Babubhai's Legacy

As time passed, Babubhai Sanghvi—the "Babu" of Babubhai—emerged as the leader among the three founding friends. He became the CEO of Hindustan Pencils. Under his leadership, the company reached new heights, expanded production capacity, diversified product lines, and strengthened distribution networks.

Babubhai's leadership philosophy remained rooted in the original vision: quality products at accessible prices. He introduced many new products while maintaining unwavering commitment to the core pencil business. His hands-on approach and deep understanding of Indian consumer needs guided the company through competitive threats and market changes.

The Global Footprint: 50+ Countries Across 5 Continents

Founded over half a century ago in 1958, Nataraj established trusted presence globally, now exporting to over 50 countries across five continents. This international expansion validated what the three friends learned in Germany—good pencils have no borders.

Indian students studying abroad find Nataraj in international stores. Expatriate communities seek out the familiar red and black pencils. International schools in various countries stock Nataraj alongside global brands. The pencils that started as an Indian alternative to imports became Indian exports competing globally.

The Resilience: Adapting While Staying True

While the world of stationery has evolved dramatically—with digital tools, global brands, changing educational systems, and new technologies—Nataraj has successfully maintained relevance. The brand adapted to changing consumer preferences while staying true to core values of quality and affordability.

When competitors offered fancy designs, Nataraj maintained its classic look while introducing limited editions for special occasions. When international brands entered India with premium pricing, Nataraj held its ground with superior value. When digital tools threatened to reduce pencil usage, Nataraj expanded into art supplies and specialized products for different uses.

The company continued innovating, offering a range of pencils and other stationery products designed to meet evolving needs—from basic writing pencils to professional drawing sets, from kindergarten-friendly grips to examination-grade precision instruments.

Why Nataraj Endures: The Timeless Formula

Founder's Commitment to Excellence: The three friends' journey to Germany demonstrated seriousness of purpose—they didn't just want to make pencils; they wanted to make the best pencils possible.

Quality Without Compromise: Sixty-seven years later, Nataraj pencils maintain the same commitment to smooth writing, break-resistant leads, and long-lasting performance.

Emotional Intelligence: Understanding that pencils aren't just tools but companions in education, creativity, and growth created deeper consumer bonds.

Consistent Design: The red and black pencil design remained largely unchanged across decades—building instant recognition across generations.

Accessibility: Ensuring availability from metropolitan stores to remote village shops made Nataraj universally accessible.

Dual Brand Strategy: Nataraj and Apsara together captured economy and premium segments without cannibalizing each other.

Manufacturing Scale: Daily production of 8.5 million pencils enabled cost efficiencies that maintained affordability despite inflation.

Multi-Generational Trust: Parents trusted what they used as children—and that trust transferred to their children and grandchildren.

The Legacy: 67 Years of Writing India's Story

From three friends returning from Germany with newfound knowledge in 1958 to India's largest stationery manufacturer producing 8.5 million pencils daily in 2025, Hindustan Pencils' journey embodies entrepreneurial vision, commitment to quality, and deep understanding of Indian needs.

Every Indian schoolchild who reached into their pencil box and pulled out a Nataraj pencil participated in this story. Every exam written, every homework completed, every drawing sketched, every note passed—Nataraj was there, writing India's collective story one graphite stroke at a time.

The pencil brand became so synonymous with its category that Indians simply say "Nataraj" when asking for any pencil—the ultimate brand success. Like "Xerox" for photocopying or "Colgate" for toothpaste, "Nataraj" became the generic term.

What started with three friends' passion and a trip to Germany became an institution that defined Indian childhood for three generations. The friends who wanted to make quality pencils affordable for every Indian child succeeded beyond imagination—creating not just products, but memories, not just a business, but a legacy.

Because some stories are written in ink, but the best ones are written in pencil—especially when that pencil is Nataraj, the one that Chalti Hi Jaye.