Deepak Jalan, Managing Director, Linc Pen & Plastics took over the reins of his family business

of writing instruments in 1985 when the Linc brand was worth only Rs 5 crore. Today, Linc is one of the top 3 players in the organized writing instrument industry, which is pegged at about Rs.1600 crore and commands a market share of about 10% in the organized writing instrument space. Founded by its Chairman S.M. Jalan in the mid-1970s, Linc has since established itself as one of the market leaders in the Writing Instrument Industry of India. When Deepak joined the business in the midst of great challenges as the industry was small and utterly unrecognized. Initially hesitant to join the business, Deepak envisioned a great future for the industry in India and went about with his passion carrying an urge to get the industry and the sector recognized. His aggressive approach and relentless efforts bore fruits. His endeavours led to both the growth of Linc Pen and the Pen Industry as a whole. The Trigger Point The first trigger point of our turnaround was the partnership with Japan's Mitsubishi Pencil Co in 1992. This was an exclusive marketing tie up for the Indian Market. This was followed by a successful IPO in 1995 when the turnover was just Rs 20 crore, recalls Deepak quite nostalgically. Linc Pen has clocked a turnover of Rs.225 crores in 2009-10 and should be closing around Rs.250 crores in 2010-2011. Linc Pen boasts of an excellent distribution network across the length and breadth of the country with a presence in every state and over 2282 stockists. It has a capacity to manufacture 2 million pens per day and state of the art manufacturing facility in West Bengal in Serakole & Falta SEZ. Linc Pen also exports to markets such as USA, UK, South East Asia, Bangladesh, Nepal & Middle East. Linc's real growth took place in the last decade when they decided to go national. The company aspires to become Rs.500 crores enterprisre by 2012. Linc Pen's rapid growth and success is the result of its visibility in more than 50 countries which include markets like the Middle East, Southeast Asia and Africa. Linc Pen also supplies to global retail chains such as Wal Mart, Asda and Tesco for their private label business. Their proud Brand Ambassador is non other than the Bollywood King Shah Rukh Khan and they have also roped in Bollywood diva, beauty queen Katrina Kaif as the brand ambassador for the uni-ball brand.

SME WORLD in conversation with Deepak Jalan What is state of the Indian Pen industry at present? What market share Linc enjoys in its segment?

The writing instrument industry in India is highly fragmented. The total market is valued at about Rs.2000 crores and 75% of this lies in the organized sector. Linc Pen has an estimated market share of 10% of the overall organized sector. Going by the current figures, Linc Pen would be the second largest player all India and the market leader in the Eastern Zone. Lot of imported consumer products have replaced Indian products. Has pen industry been affected? Imported consumer products has not had a very significant impact on the Writing Instrument Industry, especially in the mass (<Rs.10) and the mass premium segment(Rs.10-20), as because the category is sort of an essential commodity and hence exhibits a consistent and inelastic demand pattern. Indian pens are quite cost-effective. How can quality be maintained as a sustainable activity? Cost-effectiveness doesn't mean any compromise in quality. Indian pens are both cost-effective and of good quality. What are the growth prospects of the pen industry in India? With the literacy rate increasing, we expect the growth rate of the industry to be 8-10% every year. How do you devise the strategies to target different classes very high and very low with diverse demands. Does Linc offer products for both and what is the ratio? Linc has a variety of products ranging mainly from Rs.5 to Rs. 30 to cater to the mass segment. In order to cater to the medium class, Linc provides its customers with the Uni-ball range, priced between Rs.30 and Rs.200. Uni-ball is a Japanese brand, for which Linc is the sole distributor in India. And to cater to the higher class, Linc has tied up with LAMY, a German brand, which has products ranging from Rs. 500 and above. The need for clean environment is being increasingly felt everywhere. What is scope of employing green technology in Pen industry in India? We have already taken a green initiative called Refill More where we encourage consumers to reuse a pen with a refill and not throw the pen. Since refills contain lesser amount of plastic than pens, it will reduce the use of plastic in the environment. To know more about us one can join the 'I am Refill group on facebook. What is the uniqueness in your sales network? We work with some of the best distributors and dealers of the trade and over the years have established a strong relationship with them. Our products have taken a place in their own way which has helped our brand stand out distinctly among the rest. Further more, we have introduced a privilege membership for select dealers whereby they can avail of certain privileges and benefits throughout the year. What the initial challenges you faced in the initial years when you took up the reigns of Linc Pen? The main challenges were

lack of availability of good quality raw-materials and tools within the country. The industry largely depended upon overseas sources for such requirements. Dearth of quality manpower in the sales field, which was a deterrent in expanding the network swiftly. Lead-time in capacity expansion was minimum 5-6 months.