Linc Pen


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Office Linc:
a one stop window for your complete writing solution.

Location:
Saltlake, Kolkata

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You are here : // Corporate / MD's Desk

From MD’s Desk

Company’s performance in 2006-07.
As mentioned in our Annual Report, Linc Pen has recorded a top line growth of a meagre 7.3% to reach a sales turnover of Rs.145.78 crores as at 31st March 2007. The growth in the year 2006-07 was much lower in comparison to growth rate achieved in the past. The overall performance in the year under review was less than satisfactory. The immediate targets are - acceleration of both topline and bottomline growth rate with the help of products in higher price segment and better penetration in Western and Southern markets in the country.

Product Mix

During 2006-07, the Company focused on improving its product mix for both pens and refills. This helped the company to improve average realisation per pen from Rs.2.25 to Rs.2.60 and that of refills from Rs.0.82 to Rs.1.16, a growth of 15.6% and 41.5% respectively. The overall volumes were however lower on account of this exercise.

Exports :

In Exports, Linc Pens has registered a growth of 30.4% over last year. The exports turnover rose to Rs.26.64 crores in 2006-07 from Rs.20.42 Crores in 2005-06. The buying trends of the global market have changed and shorter lead times are expected for which necessary additional infrastructure is being created. Wal-Mart, USA with whom we have a 5 year working relationship, has started buying our products under LINC BRAND. The packaging of our products have played an important factor in making some of our products ranked as the top sellers in these retail chain stores. The company has entered into a working agreement with SANFORD (PAPERMATE BRAND) - big writing instrument manufacturer from USA and has already started selling 8-10 SKU's in the US market. North America continues to be our top market

Linc also holds a strong position in SAARC countries - Myanmar , Bangladesh , Nepal and underdeveloped and developing markets like Egypt, Tanzania, Brazil, Argentina, Turkey etc.

Innovation, Service & Quality has been the key factors to our success in the keeping up with the changing trends in International Market.

The growth trend in Exports continue in the current year too, and during first 5 months of 2007-08 Linc Pen achieved a export turnover of Rs.19.51 Crores as against Rs.13.22 Crores in the corresponding period of last year, a growth of 47.6%.

Brand Building :

During the year 2006-07, advertising spend was Rs.6.91 crores as compared to Rs.5.43 crores in the previous year. This helped Linc Pen to improve its brand saliency and making Linc a top of the mind brand, though squeezing the bottomline to some extent.

Current Year 2007-8

The Company performance during first quarter of 2007-08 has been little better with a topline of Rs.39.82 Crores (LY Q1 34.16 crores), a growth of about 16.6% over the same period in the last year. The Export turnover was 12.26 crores ( LYQ1 9.84 crores ), registering a growth of 24.6% over the corresponding period in the previous year. The Net Profit at Rs.1.52 Crores were 2.5 times higher as compared to corresponding quarter in the previous year (LY Q1 0.61 Crores). During first 5 months of 2007-08, Linc Pen achieved a sales turnover of Rs.70.13 Crores as against Rs.58.99 Crore in the corresponding period of last year, a growth of 18.9%. As indicated we are widening the reach of The SPELLINC - a spelling competition, organised by Linc Pen year on year. Last year the participation was from more than 125 schools of Kolkata and all the Districts of West Bengal. Further similar competition was held at 56 Schools in Bangalore . This year we are planning to extend it to some other cities also.

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