Kolkata-based Linc Pen and Plastics Ltd plans to write a new chapter by adding related items such as notebooks to its product basket, sometime next fiscal. The company also plans to widen its distribution and retail footprint, especially in south and west Indian markets, to shore up margins.
According to Tanmay Chattopadhyay, General Manager- Marketing, the company has already begun work to study the impacts of product diversification. A final report is likely to be presented to the Board of Directors around April this year.
“The foray in notebooks will definitely be sometime next fiscal. Currently, studies are on and a report will be submitted to the Board for its approval,” Chattopadhyay told
Linc had earlier entered the notebook category through its brand ‘Copycat’, but had withdrawn from the segment sometime in the mid-90s.
According to Chattopadhyay, the company is likely to enter into contracts for third party manufacturing of its notebooks.
The company, meanwhile, aims to shore up its retail presence in south and west Indian markets. The move is likely to help the company improve its margins.
On a year-on-year basis, operating profit margins dropped to 4.25 per cent for 2011-12 from 6.43 per cent in 2010-11. Net profit margins too dropped to 1.06 per cent (3.31 per cent).
The company is eyeing greater penetration in Gujarat and Maharashtra through increased distributor network and points of sales.
The idea would be to push through its mid-segment brand – Uniball, priced between Rs 30 and Rs 250.
In the southern markets of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh, Linc would look to push through its specially designed fountain pens (priced at Rs 40) and high-end Cruiser brand of pens (Rs 1,500 upwards).
“The idea here would be to tap the gifting segment and high-end pen market,” Chattopadhyay said.
Despite being the third largest pen manufacturer, after Cello and Reynolds in the country’s Rs 4,520-crore writing instrument market, Linc’s predominant market includes east and north India.
New Ad campaign
Linc has also readied a new advertisement campaign, at an estimated cost of Rs 4 crore, to be aired from January 11. The campaign aims at garnering a higher market share in south and west.
The 6-week long ad campaign, prepared by Ogilvy & Mather, will be released in Tamil, Telugu, Kannada and Hindi.
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