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Badal Sanyal

Kolkata , March 25

LINC Pen & Plastics Ltd (LPPL), the city-based writing instruments manufacturer, plans to double its sales from the existing 300 million pieces to 600 million pieces. Of the current sales, ball pen contributes 250 million pieces and 50 million pieces are gel pens. Around 150 million pieces of ball pen are being outsourced from various small units.

The company is confident of attaining a topline growth of over 45 per cent, with total sales of about Rs 120 crore for the fiscal ending March, 2005 as against 35 per cent growth and a sales turnover of about Rs 83 crore in the last fiscal.

Ithas set a Rs 300-crore sales target for 2006-07 by producing more low-cost gel pens for the student community.

Being one of the eight top writing instruments manufacturers in the country, LPPL has plans to become at least the No 2 in the next three years by creating additional production facilities and expanding its marketing network in the country and abroad.

The company's Managing Director, Mr Deepak Jalan, told Business Line that this was the most opportune time for the domestic writing instruments industry to grow, thanks to the Centre's illiteracy eradication programme. Moreover, many major retail chains in the developed countries were expressing an interest in outsourcing writing instruments from India instead of from China because Indian products were found to be of better quality.

Mr Jalan said his company was already exporting about 15 per cent of its total production, mostly to the US and the UK. The company plans to export at least 25 per cent of its production within three years. The company has already established its presence in more than 30 countries, while overseas buyers include names such as Wal-Mart, Steadtler, Liquimark and Poundland.

According to him, the size of the domestic writing instruments market at present is about Rs 1,800 crore. Instruments worth about Rs 1,400 crore were being produced by units in the organised sector and the balance Rs 400 crore was contributed by unorganised small units.

The industry was chalking up on an average an 18 per cent growth rate. LPPL had decided to continue its present marketing strategies to improve its market share so as to cater to the requirement of changing consumer preferences. This would be done through adopting innovative design and new technology. The production of low-cost gel pen would be raised to meet the growing demand of the student community Incidentally, the company is outsourcing many of its technology-intensive products such as roller pens, markers, highlighters, gumstic and correction pen from Japan, Taiwan and Korea. The remaining products are either made directly by the company or by vendors under the company's supervision.

LPPL was incorporated as a limited company in 1994 with a paid-up capital of Rs 6 crore. The capital has since expanded to Rs 8 crore. It has four factories, two each in Kolkata and Goa.

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