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Japanese writing instrument maker Mitsubishi Pencil Co Ltd is looking to set up a manufacturing unit in the country. The company is already in talks with its local partner Linc Pens in this regard.
In March this year, the Japanese-major picked up 13.5 per cent equity in Linc through issue of fresh capital on a preferential basis at an investment of Rs 20 crore. Mitsubishi also has the scope to increase its stake in Linc to up to 49 per cent.
According to Deepak Jalan, Managing Director, Linc Pens and Plastics Ltd, Mitsubishi will use Linc’s manufacturing facilities until the time they firm up manufacturing plans in the country.
Kolkata-headquartered Linc Pens have two manufacturing facilities in West Bengal and an annual turnover of over Rs 275 crore.
“Initially, our facilities will be used for local manufacturing of Mitsubishi pens. Discussions on setting up a manufacturing facility have begun and things are likely to be firmed up in another six to 12 months’ time,” Jalan said.
Local manufacturing will enable Mitsubishi to offer lower cost products in the market, said Eiichiro Suhara, President, Mitsubishi Pencil.
Mitsubishi’s pens that are branded under the “uni” name are imported from Japan. They are marketed in India by Linc since 1992. Pens are priced upwards Rs 30.
“We will focus on value addition rather than going in for the mass market offerings only. There is a space for value added products,” Suhara said.
abhishek.l@thehindu.co.in
shobha.roy@thehindu.co.in
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