The Malvern, Worcestershire-based company deals predominantly with the trade, supplying specialist packaging and envelopes that machines are unable to handle.
Pendragon only introduced envelopes three years ago, but it has seen year-on-year growth in that time, with a 10% increase in envelope turnover this year. The company started out with three envelope finishers, but recently took on its sixth.
However, Pendragon paper guru George Silverman believes that many printers are "missing a trick" because they only look at what can be done on machines rather than letting customers use their imagination to come up with truly bespoke envelopes, that can be sold for a premium.
He said: "We are building a reputation, we are being recommended by a lot more people these days. But I do think printers are missing a trick, they are only looking at what is already there, not letting customers come up with their own ideas.
"With anything bespoke it is about confidence, its about being given that opportunity to show what you can do. You gain a lot more with bespoke work, there is a lot more added value in it.
"It is about knowing your clients. Okay, if you send out 1,000 mail shots you don't want every one in a bespoke envelope. But maybe there are 100 that you know will be opened by the managing director, not his PA, you can target them with something special."
Pendragon moved into envelopes after the closure of John Dickinson's envelope manufacturing plant in Ledbury.
Three John Dickinson employees moved to Pendragon to set up the envelope division, while all six existing members of the envelope team are former John Dickinson staff.
Pendragon began producing bespoke boxes 20-years ago and still produces much of its box work by hand as well.