Kolkata-based Linc Pen & Plastics has signed a ‘Business and capital alliance agreement' with Mitsubishi Pencil Co. of Japan to issue two million equity shares of Rs.10 each at Rs.100 per share, amounting to a 35 per cent stake on the expanded capital of Rs.14.8 crore.
The Rs.250-crore Linc Pen has a distribution arrangement with Mitsubishi Pencil for its Uni / Uni-ball brand since 1992. The main objective of the ‘capital alliance' is to improve Mitsubishi Pencil's market share and the Uni / Uni-ball brand growth in India by employing Linc Pen's sales / marketing and production capabilities and Mitsubishi Pencil's product development, and writing instrument technology prowess, according to company sources.
The new development is seen as a joint move to strengthen the relationship between the two companies, which could serve to open new avenues of commercial growth for both parties.
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The Uni / Uni-ball brand from Mitsubishi Pencil contributes nearly 15 per cent to Linc's domestic turnover and it is expected that the said capital tie-up will substantially increase the contribution of the Uni / Uni-ball brand to Linc's total sales revenue.
Linc Pen, listed on the Bombay Stock Exchange and the Calcutta Stock Exchange, is a manufacturer and exporter of quality writing instruments.
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Mitsubishi Pencil, owner of the Uni-ball brand, is the biggest player in the U.K. rollerball pen market. Established in Tokyo in 1887, Mitsubishi Pencil's uni brand derives its name from the word unique. The company has subsidiaries and distributors world-wide.