Pen maker Linc aims to grow at 15-20 pc CAGR for 5 years

Kolkata, Aug 23 (PTI) Despite increasing digitalisation, writing instruments maker Linc Ltd is aiming to achieve a 15-20 per cent compound annual growth rate (CAGR) for five years, a top company official said on Saturday.

The Kolkata-based company has around Rs 550 crore of revenue at present, with core operating profitability EBITDA (earnings before interest, taxes, depreciation and amortisation) at 11 per cent, he said.

"We plan to grow at 15 per cent to 20 per cent CAGR for four to five years. The operating profitability is 11 per cent with revenue at Rs 550 crore. There is room to increase the EBITDA," Linc Ltd Managing Director Deepak Jalan said.

The pen maker has three JVs with companies in Japan, Turkey and Korea, and has a majority stake in an entity in Kenya, he said.

The growth of the writing instruments industry in India is between five and six per cent, and increasing digitalisation has stunted the progress to some extent, Jalan said.

Globally, the size of the industry is USD 20 billion, while the same is Rs 10,000 crore in India, with the presence of organised and unorganised players.

"The industry in India is fragmented", he said.

Stating that the industry is not too capital-intensive, Jalan said the company has been making capital expenditure of around Rs 20 crore per year.

The money is spent towards capacity expansion and modernisation, he said.

Linc has two manufacturing units in West Bengal and Gujarat.

Jalan said the company is in the process of setting up another unit in a joint venture in Gujarat, and the operations will commence from October this year.

He also said another unit is being set up in West Bengal near its existing facility in South 24 Parganas district.

Linc exports its products to 50 countries in the world, with the African market being served by its acquired company in Kenya.

The export revenue is Rs 100 crore, Jalan said.

The company manufactures ball and gel pens, markers, sketch pens and crayons. Fountain pen volumes have become insignificant in India, he added. PTI DC BDC