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Linc Pen and Plastics Ltd.

BSE: 531241 | NSE: LINCPEN |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE802B01019 | SECTOR: Miscellaneous

BSE Live

Jul 14, 16:00
170.75 -5.35 (-3.04%)
Volume
AVERAGE VOLUME
5-Day
948
10-Day
1,303
30-Day
526
278
  • Prev. Close

    176.10

  • Open Price

    180.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 14, 15:40
170.50 -5.15 (-2.93%)
Volume
AVERAGE VOLUME
5-Day
8,918
10-Day
10,947
30-Day
6,226
5,376
  • Prev. Close

    175.65

  • Open Price

    172.10

  • Bid Price (Qty.)

    170.50 (2)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2012 2002

Chairman's Speech

Dear Shareholder''s On the highlights of the Company''s performance The Company reported the following highlights during the year under review: Registered a 22% growth in exports from Rs.55 to Rs. 67 crore and penetrated six countries, increasing the Company''s presence to more than 40 countries; exports accounted for 25% of the Company''s revenues in 2011-12 compared with 22% in the previous year The Company earlier exported pens to retail giants without its brand name. This proportion has declined to a negligible 7% today, strengthening its brand Linc visibility globally Entered into a capital alliance with Japan''s Mitsubishi Pencil Company Ltd by which Mitsubishi will subscribe to 20 lac equity shares of the Company at Rs. 100 each, comprising 13.53% of the Company''s capital on a preferential allotment basis. The intent of this deal is to substantially increase the proportion of the Uni-ball brand in Linc''s sales revenue from 15% - Launched a premium range of products - ''Cruiser'' at a price range of Rs. 1100-11000, positioning it in the premium category of the Company''s product portfolio with correspondingly high margins - Invested Rs. 12.80 crore in branding and advertisement by associating with Shahrukh Khan, Katrina Kaif and four IPL teams, resulting in enhanced brand visibility - Invested Rs. 4 crore to purchase equipment, moulds and automisation - Bagged a large order worth Rs. 11.5 crore from Wipro Ltd to supply 4.5 crore pieces of pens, the largest corporate order in the Company''s existence On the challenges faced by the Company Some of the challenges encountered by the Company during the year under review comprised the following: Raw material costs increase owing to an increase in the cost of crude products and polymers while it became increasingly difficult to pass on the cost increase to our consumers The government increased the excise duty (without CENVAT) from 1% to 2%, impacting our operating profits The higher cost of debt doubled our interest outflow, impacting our bottomline On the measures taken to counter these challenges The Company responded to these challenges through the following initiatives: Strengthened process efficiencies, sizes, designs and product weight leading to optimum raw material utilisation to safeguard against rising costs Stronger focus on exports by penetrating new geographies - Strengthened sales and distribution in southern and western India where we possess a low market share Increased the proportion of value- added products by climbing the value chain; launching new products in the semi-premium and premium segments - Enhanced quality and strengthened the brand to engage in a price war wherever necessary Accelerated product development, leading to the introduction of 11 new products On strengthening the Company''s competitive position The Company chalked out the following measures to accelerate growth in the coming years: Widen its international presence by spreading the brand globally Increase the volumes of product lines to drive revenue growth - Enhance the product mix of value- added products in the portfolio to strengthen margins Add capacity to improve production volumes Invest in promotional activities to enhance brand exposure - Develop and launch new and innovative products