Linc Pen & Plastics works out expansion plan

Linc Pen & Plastics Ltd has chalked out an expansion plan that would help the company enhance its turn over to Rs 100 crore in 2004-05. The country's fifth largest pen maker posted a sales turnover of Rs 62 crore last year.

Addressing a press conference, managing director Deepak Jalan said the growth in turnover would follow setting up a new manufacturing unit in Goa. The company has three capacities at Delhi, Kolkata and Goa.

Linc Pen, which has a marketing arrangement with the $ 500 million Mitsubishi Pencil Co., has today introduced new product, Uniball Fusion, that uses colourless fluid like water. Linc so far introduced nearly 15 products of the Japanese firm to India.

Replying to a query, Jalan said there was possibility of Linc manufacturing Uniball pens in India. However, he was reluctant to give any definite time frame of such manufacturing arrangement.

He said the company had a 6 per cent share of the Rs 1,500 crore organised pen market and was on the growth path. The first half financial numbers, he said, were better than the industry growth rate of 15 per cent. Linc Pen posted a sales of Rs 40 crore in the first half as against the last year's Rs 62 crore. It has a capacity of 5 lakh pens a day.

It's export earnings has been growing as well. Last year, the company earned Rs 10 crore from exports which was expected to grow by 20-25 per cent this year.

Linc is one of the Indian companies making their presence felt in the US market which has so far been dominated by the Chinese producers. Three companies- Linc, Luxor and Kores- sell over 10 crore pens at Wal-Mart, the world's largest retail chain, in the US.

The Indian pens are sold at "very competitive prices" to Wal-Mart. Industry sources said Linc pens were sold to rupee one a piece. A pack of 10 is available at Wal-Mart for 57 cents, which means one Linc pen costs nearly Rs 2.

Indian producers are in the process of expanding their export base. Linc, for instance, was believed to have been in talks with other retail chain majors in the US.

The domestic market is dominated by Cello. Then comes Raynold's, Luxor and Add Gel.