How Linc Pen rewrote its business as schools, colleges remained shut

With schools and colleges remaining closed for most part of the year, Linc Pen & Plastics — the country’s third largest writing instrument maker after Cello and Flair — had a challenge on hand. It decided to use the opportunity to ramp-up distribution, while focussing on office supplies and e-commerce.

Schools and colleges are Linc’s largest target group, accounting for 70 per cent of its sales in normal times.

According to Deepak Jalan, Managing Director, Linc Pen & Plastics Ltd, the post-pandemic Unlocking saw its teams reach out to newer markets, especially in tier-2 and 3 cities, while consolidating presence in the South and West India markets.

Also read: Linc Pen expects FY21 sales to be at 70-80% levels of last fiscal

The push was for premium pens, priced at ₹10 and upwards, under the Pentonic brand, one of its flagships in recent times.

By October-end this year, the company managed to add 50,000 new outlets (point of sales) in addition to the existing 60,000 (that it had till March-end). The plan is to increase its retail outlet count to 2,50,000, by mid next year.

“The post pandemic Unlocking saw us concentrate on increasing distribution reach and adding 50,000 new retail outlets till October. So, between July and October, we practically doubled our reach. Schools and colleges remain closed and the sales team had to work out a way to beat the slowdown,” Jalan told BusinessLine .

Also read: Linc Pen ropes in consultant to expand market share

Sales recovery

In the September quarter, sales witnessed better recoveries. They are now at about 70 per cent of pre-Covid levels, with office supplies accounting for 50 per cent of the turnover. In the June quarter, sales were at 50 per cent of pre-Covid levels.

“With ramped up distribution, sales recoveries improved. Had schools and colleges reopened as planned, recoveries would have been in the range of 80-85 per cent,” Jalan said.

A shift from ₹3 use-and-throw pens to branded ones of ₹10 is being witnessed, primarily because branded pens are more easily available and unorganised rivals continue to face supply chain disruptions.

De-risking option

E-commerce sales have also doubled for the company. As a de-risking option, Linc is also marketing office stationery products (calculators, desk organisers etc), under the ‘Deli’ brand. It contributes around 5 per cent of the turnover.

Adjacencies like sanitisers have also been launched recently. Previous attempts include launching a sterilising pen (touch-free device for surfaces like ATMs and lift buttons).

According to Jalan, the company expects turnover for FY21 to be in the range of 60-70 per cent of FY20. Its three manufacturing facilities — two in Bengal and one in Gujarat — are operating at 70 per cent capacity.

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