With Over 1 Billion Units Annual Capacity, Linc Ltd Plans Strategic Expansion To Meet Rising Pen Demand

Linc Ltd, a nearly five-decade-old Kolkata-based company, is a household name in India’s writing instrument market, known for producing one of the country’s top three brands. Formerly Linc Pen & Plastics Ltd, the company is now charting bold moves to expand its footprint into new geographies and price segments.

In a conversation with Bizz Buzz, Deepak Jalan, Managing Director of Linc Ltd, delves into the dynamics of the Rs 5,000 crore Indian writing instrument industry, where Linc commands an 8 per cent market share nationally and 20 per cent in eastern India. Jalan discusses innovation-driven strategies, the relevance of pens in a digital era, plans for premium offerings, capacity expansion, and export ambitions, as Linc continues to outpace industry growth with a robust 10-12 per cent annual rate

What is the current overall market size of the writing instrument industry in India, and what are the shares of organised and unorganised sectors in that market?

The writing instrument industry in India is valued at approximately Rs 5,000 crore. The organized sector contributes about 60 per cent of this market, while the unorganized sector accounts for the remaining 40 per cent. The growth of branded products in recent years has slightly increased the share of the organized sector as consumers increasingly prioritize quality and reliability.

At what rate is the industry growing? And what would be Linc Ltd’s growth rate?

The industry is growing at a steady rate of 5-7 per cent annually, driven by factors such as increasing literacy rates, growth in the student population, and a higher demand for quality products. Linc Ltd has been consistently outpacing the industry average, achieving a growth rate of around 10-12 per cent, thanks to our focus on innovation, distribution expansion, and strong brand equity.

What is Linc’s current market share—nationally and in eastern India, in particular?

Nationally, Linc holds a market share of approximately 8 per cent. In eastern India, where the brand has a strong legacy and distribution network, our market share is significantly higher, standing at around 20 per cent.

Does the digitization spree pose any serious challenge to the writing instrument industry? Do we need pens anymore?

While digitization has undoubtedly influenced how we communicate and work, pens remain an indispensable tool. The physical act of writing fosters better memory retention and creativity, making pens irreplaceable. Moreover, the resurgence of journaling and note-taking as personal habits further reinforces the demand for writing instruments.

What is your current capacity? Do you have any plans to ramp it up by way of putting up new plants?

Currently, our manufacturing facilities have a combined capacity of over 1 billion units annually. With increasing demand, we are evaluating plans to expand our capacity by upgrading existing facilities and exploring new manufacturing units in strategic locations to enhance efficiency and output.

At one point in time, you had forayed into retailing by putting up your own signature outlets like Just Linc and Linc Office. What is the current status? Do you still nurture the same ambition?

The standalone retail concept was an interesting experiment for us, but we chose to focus more on our core strengths—product innovation and distribution. While we no longer operate those outlets, the lessons from that experience have enriched our understanding of consumer preferences, which we now leverage in our distribution strategies.

Do you still deal with Mitsubishi Uni-ball, from the stable of Mitsubishi Pencil? If so, how much of your topline comes from that brand?

Yes, we continue to have a strong partnership with Mitsubishi Pencil for Uni-ball. This premium brand contributes approximately 14 per cent of our topline, and its consistent performance reinforces our commitment to offering high-quality products to discerning consumers.

Do you have any plans to bring in any premium range from your own stable?

Yes, we are constantly innovating and exploring opportunities in the premium segment under our own brands. For example, our Pentonic range has already carved a niche in this category, and we are working on expanding this line-up with more products that cater to professionals and discerning consumers.

Have you taken any move/initiative to make up for whatever de-growth the writing instrument industry has been experiencing?

Our strategy to counter the slowdown in the industry includes focusing on product differentiation, expanding our footprint in tier-2 and tier-3 cities, and leveraging digital marketing to engage younger consumers. Additionally, we are exploring adjacent categories like stationery products to diversify our portfolio.

What about exports? Do you export your products? Which are the countries? What is the contribution of exports to your overall kitty? Are you looking at any new geographies?

Exports are a significant part of our business, contributing approximately 18-20 per cent to our revenue. We export to over 50 countries, with strong markets in the Middle East, Africa, and Southeast Asia. We are actively exploring opportunities in Europe and North America to further expand our global footprint.

What about fountain pens? Can they stage a comeback by some means?

Fountain pens cater to a niche audience, but their appeal as a premium and elegant writing instrument remains strong. We see a steady demand for them among collectors, professionals, and enthusiasts. While they may not reclaim their past market dominance, fountain pens can continue to thrive as a symbol of sophistication.

What is the key challenge to stay competitive in the market?

The key challenge is balancing affordability with quality, especially in a market that has a significant unorganized segment. Additionally, keeping up with changing consumer preferences and ensuring widespread availability through an efficient distribution network are critical to staying ahead.

In the past, you had laid thrust on innovation and came up with new and innovative products. What are you doing now?

Innovation remains at the heart of everything we do. Recently, we introduced the Linc Q pen, which has been well-received for its smooth writing and ergonomic design. We are also investing in research to develop eco-friendly products, aligning with global sustainability trends.