Linc Ltd. Announces Joint Venture Agreement for Manufacturing Writing Instruments in Turkey

Key takeaways from the Join Venture Agreement of Linc and SILKA

• Linc Limited and Silka Kirtasiye have established a joint venture to manufacture and market writing instruments in Turkiye and nearby countries.
• Both Linc and Silka will hold equal or 50% shareholdings in the joint venture, and the parties will provide a signed initial capital of USD 1 million.
• Linc will have the authority to designate the Chairman of the Board, and SILKA will have the authority to appoint the Managing Director. Any major business decisions will require consent and approval from both parties.

As per a stock exchange filing, the initial capital for the joint venture is set at USD 1 million, with both Linc Limited and SILKA holding equal shares, each with a 50% stake. Both companies will also have the right to appoint two directors each to the joint venture company. The Chairman of the Board will be chosen by Linc, and the Managing Director will be appointed by SILKA, with mutual consent required for other major business decisions pertaining to the joint venture. Lastly, Linc Limited will be permitted to appoint financial auditors to the joint venture company. 

The agreement clarifies that neither Linc Limited nor SILKA are related to the promoters or promoter groups of each other, and the transaction does not fall under related party transactions. The equity shares of the joint venture will be issued at par value to both companies. Moreover, there are no potential conflicts of interest arising from this partnership. 

This joint venture is expected to strengthen the market presence of both Linc and SILKA by leveraging local manufacturing capabilities and expanding distribution networks in the region.

About Linc Limited:

Incorporated in 1976, LINC Ltd is the largest and oldest manufacturer of writing instruments in India. The company produces a diverse range of writing products, including ball pens, gel pens, roller pens, retractable ball pens, dark pencils, and various stationery items. With decades of experience in the industry, LINC Ltd. is committed to delivering high-quality writing solutions to meet the needs of consumers.

Key Takeaways from the Award Win

• Powermech has been awarded a ₹865 crore contract for the operation and maintenance (O&M) of a 3X660 MW supercritical thermal power plant.
• The project was awarded by Talwandi Sabo Power Limited, a subsidiary of Vedanta Limited.
• The contract, valued at ₹865 crore, will span over five years, starting from November 1, 2024.

Power Mech, a prominent player in the power sector, has secured a substantial order worth ₹865 crores. The contract involves the Operation and Maintenance (O&M) of a 3X660 MW supercritical thermal power plant located at Banawala village, Mansa District, Punjab. The project was awarded by Talwandi Sabo Power Limited, a subsidiary of Vedanta Limited.

The agreement is to be executed over the next five years starting from November 1, 2024, as per a stock exchange filing. As a domestic entity, Talwandi Sabo Power Limited has entrusted Power Mech with this critical role, reflecting the company’s reputation for excellence in the Indian power industry.

About Power Mech Projects Limited

Founded in 1999, Power Mech Projects Limited is an engineering and construction firm offering comprehensive services in the erection, testing, and commissioning (ETC) of boilers, turbines, generators, and balance of plant (BOP). The company also handles civil works and operations and maintenance (O&M). Power Mech is involved in executing ultra-mega power projects as well as supercritical and subcritical thermal power projects.

About Vedanta Limited

Vedanta Ltd. is a diversified natural resources conglomerate involved in the exploration, extraction, and processing of minerals and oil & gas. The company is engaged in the production and sale of zinc, lead, silver, copper, aluminium, iron ore, and oil & gas, with operations spanning across India, South Africa, Namibia, Ireland, Liberia, and the UAE. Additionally, Vedanta operates in commercial power generation, steel manufacturing, and port operations in India, while also manufacturing glass substrates in South Korea and Taiwan.

Key takeaways from the Order Win

• Avantel received a purchase order worth Rs. 3.45 crore from Bharat Electronics Limited.
• The order is for the supply of Satcom equipment and is to be manufactured domestically.
• The contract is expected to be executed by July 2025.

As per a stock exchange filing, the order involves the supply of Satcom equipment, which will be manufactured domestically. The contract has been awarded by a domestic entity, Bharat Electronics Limited, and the order is expected to be completed by July 2025. The total size of the order stands at Rs. 3.45 crore.

About Avantel Limited

Avantel Limited specialises in designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems, and network management software applications, primarily serving clients in the aerospace and defence sectors.

About Bharat Electronics Limited

Founded in 1954, Bharat Electronics Ltd. specialises in manufacturing and supplying electronic equipment and systems for the defence sector, with a smaller presence in the civilian market.

Key Takeaways from the Joint Venture of Linc and Mitsubishi 

• The joint venture formed between Linc Limited and Mitsubishi Pencil Company, Japan, seeks to leverage the advanced technology in Japan to improve product quality and innovation in writing instruments. 
• The venture will operate with Mitsubishi holding a 51% stake and Linc a 49% stake, with both looking to expand their international reach. 
• The joint venture plans to produce high-quality, affordable writing instruments locally in India, utilising state-of-the-art technology and exploring local sourcing of raw materials to reduce costs.

According to a stock exchange filing, Mitsubishi Pencil Company will be contributing advanced Japanese technology through the joint venture, leading to better product quality and innovation. 

Linc Limited has distributed Mitsubishi's ‘Uni’; and 'Uniball' pens for over 30 years and will leverage its experience in sales and distribution to solidify Linc’s strong market presence throughout India. Moreover, the joint venture will allow Linc Limited to become an export base to international customers already serviced by Mitsubishi and Linc. Mitsubishi Pencil Company will hold a 51% interest and Linc Limited a 49% stake in this joint venture. Linc Limited recorded an overall revenue of over Rs. 500 crores in FY 2024. 

The joint venture, utilising and leveraging Mitsubishi's cutting-edge technology, will produce writing instruments with excellent quality, smoothness, and style. The products will be manufactured locally so that they remain cost-effective within the Indian market. The joint venture will explore sourcing some raw materials locally. thus bringing down costs of production while meeting world-class standards. 

This joint venture aims to introduce advanced Japanese technology to the Indian market, enhancing the production of high-quality yet affordable writing instruments tailored specifically for Indian consumers. 

Commenting on the joint venture, Mr. Deepak Jalan, Managing Director of Linc Limited, said- “We are excited to strengthen our long-term partnership with Mitsubishi Pencil Company, with whom we have shared over 30 years of exclusive collaboration. This joint venture allows us to offer advanced Japanese technology at more affordable price points, creating a unique synergy between innovation and market expertise. We are confident that this partnership will set a new benchmark in the Indian writing instruments industry and open up new avenues in global markets as well.” 

About LINC Limited:

Incorporated in 1976, LINC Ltd is the largest and oldest manufacturer of writing instruments in India. The company specialises in producing a diverse range of writing products, including ball pens, gel pens, roller pens, retractable ball pens, dark pencils, and various stationery items. With decades of experience in the industry, LINC Ltd. is committed to delivering high-quality writing solutions to meet the needs of consumers.

About Mitsibushi Pencil Company Limited

Mitsibushi Pencil Company Limited traces its roots back to 1887, when it was established as Masaki Pencil Manufacturing Company in the Naito area of Tokyo's Shinjuku Ward by Niroku Masaki. Inspired by his first encounter with a pencil at the 1878 Paris World Fair, Mr. Masaki dedicated himself to extensive research and eventually created Japan's first pencil.

In 1901, after overcoming numerous challenges, he successfully convinced the Ministry of Communications to purchase pencils he designed specifically for government use. To commemorate this achievement, Mr. Masaki registered a trademark that featured the Mitsubishi "three diamond" mark, which was inspired by the "three fish scales" of his family crest. This mark was registered in 1903, a decade before the Mitsubishi industrial conglomerate's trademark.

Today, the Mitsubishi mark remains a symbol of the tradition and pride established by the company’s founder, continuing to represent quality and innovation in writing instruments.