 "Linc Pen & Plastics plans to set up new manufacturing facility")
Kolkata-based Linc Pen & Plastics Ltd, one of India's leading manufacturers of ball pens, gel pens and other stationery products, is contemplating to set up a new facility for expanding its manufacturing capacity to meet the growing demand for its products.
Currently, Linc Pen is facing constraints with respect to the production infrastructure. There is an urgent requirement to increase capacity to improve upon delivery lead time and also to be equipped and geared-up for the strong growth expectation from certain markets.
“Since further scaling-up is not feasible at its existing two manufacturing units - located in Serakole (West Bengal) and Falta (West Bengal), the company is contemplating a unit at a new location,” said Deepak Jalan, managing director, Linc Pen & Plastics Ltd, while addressing the shareholders during the annual general meeting on September 3, 2015.
The cumulative production capacity of Linc Pen stands at 2 million pieces per day (including outsourcing) and the company aims to increase the capacity by about 25 percent. “We are also planning capacity addition from 2 million units per day to 2.5 million units per day by the end of Q3 of FY16,” added Jalan.
Linc Pen is also planning to undertake an equipment overhaul at the Serakole plant, replacing few legacy machines with state-of-the-art alternatives, thereby improving the operational efficiency of the plant.
Meanwhile, Linc Pen registered revenues of Rs 79.19 crores in Q1 of FY16, up 8.5 percent compared to same period last year, and PAT of Rs 3.74 crores a growth of 13.6 percent. "We hope to build up on this trend in remaining 3 quarters of current year and should be able to achieve a minimum revenue of Rs 350 crores for FY16," said Deepak Jalan.
Currently, Linc Pen is facing constraints with respect to the production infrastructure. There is an urgent requirement to increase capacity to improve upon delivery lead time and also to be equipped and geared-up for the strong growth expectation from certain markets.
“Since further scaling-up is not feasible at its existing two manufacturing units - located in Serakole (West Bengal) and Falta (West Bengal), the company is contemplating a unit at a new location,” said Deepak Jalan, managing director, Linc Pen & Plastics Ltd, while addressing the shareholders during the annual general meeting on September 3, 2015.
The cumulative production capacity of Linc Pen stands at 2 million pieces per day (including outsourcing) and the company aims to increase the capacity by about 25 percent. “We are also planning capacity addition from 2 million units per day to 2.5 million units per day by the end of Q3 of FY16,” added Jalan.
Linc Pen is also planning to undertake an equipment overhaul at the Serakole plant, replacing few legacy machines with state-of-the-art alternatives, thereby improving the operational efficiency of the plant.
Meanwhile, Linc Pen registered revenues of Rs 79.19 crores in Q1 of FY16, up 8.5 percent compared to same period last year, and PAT of Rs 3.74 crores a growth of 13.6 percent. "We hope to build up on this trend in remaining 3 quarters of current year and should be able to achieve a minimum revenue of Rs 350 crores for FY16," said Deepak Jalan.
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