Linc Pen to set up Rs 25-cr plant in Gujarat

Writing instruments maker Linc Pen and Plastics plans to set up a manufacturing facility in Gujarat with an investment of Rs 25 crore.

"We are planning to set up a factory in Gujarat. We hope to make it functional from next financial year. Our capacity will also increase by 20 percent with that," Linc Pen managing director Deepak Jalan told PTI.

The company has a factory in Kolkata and a plant near Kolkata in the special economic zone of Falta, which can produce close to 10-12 crore pens per month.

As to investment in Gujarat, Jalan said, "It will be around Rs 25 crore.

"We are starting the construction now and it is on Gujarat-Maharashtra border."

Asked about the funding, Jalan said, "It will be funded through internal accruals as well as the funds we will receive from Mitsubishi Pencils."

The Kolkata-based firm recently sold 13.5 percent equity stake to Japan-based Mitsubishi Pencil for Rs 20 crore.

"It is basically a strategic tie-up for both companies. By default, it became a stake sale. This tie-up could open more avenues for co-operation like manufacturing here."

Its shares are up 1.98 per cent at 10.12 am on the Bombay Stock Exchange. BSE Sensex, however, was down 0.02 per cent.