LINC LIMITED — Call Transcript 2024

Oct 5, 2024

==> picture [76 x 26] intentionally omitted <==

5[th] October, 2024

	The Listing Department, The Calcutta Stock Exchange Ltd. 7, Lyons Range, Kolkata – 700001 Scrip Code- 022035	The Manager Department of Corporate Services, BSE Limited P. J. Towers, Dalal Street, Mumbai - 400001 Scrip Code- 531241	The Manager, Listing Department, National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400051 Symbol- LINC

Dear Sir / Madam,

Sub: Post Group Conference Call - Submission of Transcript

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), we are enclosing herewith the transcript of the Group Conference Call held on Tuesday, 1[st] October, 2024 which is simultaneously being uploaded on the website of the Company.

This is for your information and records.

Thanking You,

Yours faithfully, For LINC LIMITED

DIPANK Digitally signed by DIPANKAR DE AR DE Date: 2024.10.05 10:54:25 +05'30' DIPANKAR DE

Company Secretary

Linc Limited (Formerly known as Linc Pen & Plastics Ltd.) A: Aurora Water Front, 18[th] Floor, GN 34/1, Sector-V, Salt Lake Kolkata- 700091, India. T: -91 33-6826 2100 W: www.linclimited.com, CIN: L36991WB1994PLC065583, E: linc@linclimited.com

Equirus Securities Private Limited:

Sir. Can we start?

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

Yes. We can start.

Equirus Securities Private Limited:

Yeah. So, Good afternoon everyone and welcome to the Investor call of Linc Limited. Posted by Equirus securities to discuss the recent joint venture formations of Linc Limited with Mitsubishi Pencil. From the management we have Mr. Deepak Jalan - Managing Director, Mr. N K Dujari - Director Finance and CFO, Mr. Sanjeev Sancheti from Uirtus Advisors. Now I'll hand over the call to Mr. Deepak for the opening remarks and post which we can begin with the question and answer, over to you Deepak Sir.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, Thank you. Good afternoon everyone and welcome to the Linc Limited conference call regarding our strategic joint venture with Mitsubishi Pencil Company Limited of Japan. We appreciate your participation today. We are excited to announce a strategic joint venture with Mitsubishi Pencil Company Japan, a global leader in the writing instruments industries with an annual turnover exceeding 500 million dollars. This partnership enhances our thirtyyear exclusive collaboration with Mitsubishi, combining their advanced Japanese technology with our market expertise to bring innovative and affordable products to Indian consumers. For over three decades, we have exclusively distributed Mitsubishi's popular Uni and UniBall products in India. This new joint venture solidifies our relationship and enables us to take the next leap forward by combining Mitsubishi's renowned precision engineering with Linc’s extensive distribution network. Currently, UniBall products are priced above Rupees 50 and above. With our best selling product at Rupees 80. So, the largest selling product is at Rupees 80. The 60 to 120 Rupees price segment in India is valued at approximately 500 Crores with UniBall having a market share of about 15 percent. With the formation of this joint venture, we are positioned to introduce UniBall products in the Rupee 20 to Rupees 50 price range, a segment where the brand is currently not present. This price category is also worth more than 500 Crore rupees and is expanding rapidly. The joint venture will focus on local manufacturing, helping to reduce production costs while maintaining global standards of quality. The JV will serve as a platform for exports as well. I will now hand over the call to Mr. N K Dujari - Director Finance and CFO, Linc Limited, who will provide deeper insights into our joint venture. Thank you.

Mr. N. K. Dujari - Director Finance & CFO, Linc Limited:

Thank you Mr. Jalan. Good Afternoon everyone. I appreciate your attendance today. This joint venture represents a significant commitment with the capital investment of 20 Crores in which Mitsubishi will hold 51% stake and Linc will retain 49%. The board will consist of three members with two directors from Mitsubishi and one from Linc. The headquarters will be located in Gujarat, India with setting of operations set to begin in January 2025 and business activity projected from July 2025. The initial focus will be on production of Pens. They have raising more companies' accessible expertise to deliver top tier products. Currently, Mitsubishi pencil company is holding 13.45% stake in the Linc Limited, in our company. Thank you.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

We can now hand it over for the Q&A. Q&A’s team, Can you please open the Q&A session?

Equirus Securities Private Limited:

Yeah, thank you. Participants, If you have any question, you can use the raise hand feature after which I will unmute your line and then you can go ahead with the question. So while asking the question please introduce yourself. Sir, we'll wait for a moment for the question queue.

Equirus Securities Private Limited:

Sir, we have a question from Ms. Grishma Shah . Ma’am your line is unmuted. Please introduce yourself and your company name before asking the question. Please go ahead.

Ms. Grishma Shah – Participant:

Good afternoon Sir, I am Grishma Shah from Envision Capital. Thanks for taking my question. I was late by two minutes, so if you could highlight what product segments will, you know, the UniBall range of or the Mitsubishi range of products will be introduced, and what is the kind of growth rate that segment is, going to, currently experiencing.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, Grishma. Yeah, Thank you for your question. So we intend to produce a range of ball pens, and roller pens under this JV and these will be totally different products than what we are currently distributing and marketing in India. So this would be a new range in a new price segment. So currently UniBall's largest selling products are in the Rupees 80 and 100 price point, whereas the products which we intend to produce in the JV would be in the range of Rupees 20 to 50. So, this is a totally new segment for Uniball brand and so this price segment if we talk about 20 to 50 price points would be about 500 Crore market size. Which is rapidly expanding. So, UniBall is totally absent in this price segment and so we intend to have, you know, anything between say 10 to 15% market share to begin with in this price segment.

Ms. Grishma Shah – Participant:

And maybe sometime next year, the second quarter is when these numbers will start flowing in an our PNL.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, Grishma yeah, so we intend to start manufacturing from July 2025. So yes, you know by the second quarter things will start happening.

Ms. Grishma Shah – Participant:

Okay and it's a 20 Crore investment is what I heard correctly.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah. Also, the initial investment year is 20 Crores which can increase as the things progress. So, this is our initial target.

Ms. Grishma Shah – Participant:

So, the initial investment is in plants and machinery?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, you know the factory is a lease property. So, there is an investment in the land and construction and so the entire investment would be made mostly in the molds and assembly machines, mostly in these.

Ms. Grishma Shah – Participant:

Okay. And I mean, So the similar 20 Crore investment will be done by the Japanese partner?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Total is 20 Crores for the JV. So, you can imply 50 - 50.

Ms. Grishma Shah – Participant:

Around 10 Crores.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah

Ms. Grishma Shah – Participant:

Okay and then the working capital investments will be separate?

Mr. N. K. Dujari - Director Finance & CFO, Linc Limited:

Working capital will be mostly bank funded and the working capital requirement should not be too high.

Ms. Grishma Shah – Participant:

Correct.

Mr. N. K. Dujari - Director Finance & CFO, Linc Limited:

Because most of the product will be sold to Linc Limited.

Ms. Grishma Shah – Participant:

Okay. And are the margins better in these price points or they would be at the company level?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, basically you know the current margins which we enjoy in Mitsubishi products. Linc Limited will have similar margins and even the JV will also have similar margins.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

So, Grishma, just to explain to you the structure. It is the manufacturing JV. It will earn the manufacturing profit which would be similar to what Linc’s manufacturing has. Plus, presently there is a certain margin which Linc enjoys in selling Mitsubishi. So, all the production for the domestic market will be sold to Linc Limited and Linc Limited will then again have a similar kind of earning in Linc itself. So, there are two sessions Manufacturing margin will remain in JV maybe we will get 49 percent share of that. Yes, the marketing revenue will come in completely 100 percent into Linc.

Ms. Grishma Shah – Participant:

But see on consolidation something will get netted off right?

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

No, no, no, no. So Consolidation for a JV will happen, not line by line. So what will happen is that the profits, the share of profit of the JV.

Ms. Grishma Shah – Participant:

Yes

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

We come in the lane. So, let's say

Mr. N. K. Dujari - Director Finance & CFO, Linc Limited:

We come as a line item.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

As a line item, single line item.

Ms. Grishma Shah – Participant:

Okay.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

Plus, whatever is sold. By Linc obviously it is already coming in the revenue, the new products will also come into that.

Ms. Grishma Shah – Participant:

Okay and currently does it cannibalize our current portfolio under the Linc brand, or we don't have this price segment at all?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, we are currently not so present in this price segment. Even though we have launched a few products in this price segment but, you know, so you know, both the, you know, Linc and UniBall brands in this price segment will you know grow simultaneously and will coexist. That's the plan.

Ms. Grishma Shah – Participant:

Okay. Okay, fine. Thank you so much.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Thank you.

Equirus Securities Private Limited :

We have a next question from Shubhankar Ojha. So you can unmute the self, introduce yourself and go ahead with the question. Your line has been unmuted.

Mr. Shubhankar Ojha – Participant:

Hey hi. So, I had a basically similar question with respect to this 20 to 50 Rupees price range product. I think where, see, we have Pentonic two products. I think in that particular range 20 rupees and we are coming out with 40 rupees also. So are we not going to? I mean, can they coexist? That's the first question. And secondly, are we not basically enough favoring UniBall in place of our own brand.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, you know Mr. Ojha. Of course, your question is a little pertinent. But you know our industry you know, operates you know, like in terms of range and choice for the consumer. So, you know with, you know. So, we'll have a bigger portfolio in this price segment. So, the chances of our products whether it is UniBall or Linc Pentonic. You know we will have more opportunity. You know, get to be picked up by the consumer. So, we will be able to offer a larger bouquet in this price segment.

Mr. Shubhankar Ojha – Participant:

Okay all right great and secondly so with respect to the exports. I think that is where we have not been doing so good over the last few years. If I may say so, is there any change that is going to happen with the introduction of this new JV?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, this is the best part of this joint venture you know because Mitsubishi is not present in this price segment worldwide. So, with the Indian manufacturing they'll be able to offer products to the international market at this price point which is, you know, the most exciting part of this joint venture.

Mr. Shubhankar Ojha – Participant:

Great, great. I think that is what I was looking for because I think that probably is going to push some exports which has not been so vibrant for us for the last few years. I think.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So even for exports of Linc and Pentonic we are doing a lot of saving work and you'll be able to see the benefits in future. So of course you know in international markets it takes a little longer time and uhh but you'll definitely see benefits of what we are currently seeding.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

And also Shubhankar with this Mitsubishi brand at the price point which we are now going to produce, the opportunity globally is actually limitless.

Mr. Shubhankar Ojha – Participant:

Correct. No. I got that, thank you so much and best of Luck Sir. Thank you.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Thank you Shubhankar.

Equirus Securities Private Limited:

Participants, If you have any questions, you can use the Raise hand feature. So, we have a question from Jatinder Agarwal. Sir, you can unmute yourself. Please introduce yourself and go ahead with the question.

Mr. Jatinder Agarwal – Participant:

Hello Sir.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Hi.

Mr. Jatinder Agarwal – Participant:

I sent you the questions yesterday but, and I missed the first ten minutes, so I'm so sorry.

Mr. Deepak Jalan - Managing Director, Linc Limited:

No Problem.

Mr. Jatinder Agarwal – Participant:

So I'll just take each of those questions again. Is that okay?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Okay. Alright. So you'd like to ask the question and uhh.

Mr. Jatinder Agarwal – Participant:

Sir, how big is this market for pens which is in the price range of 60 to 120 orders, Sir?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, Mr. Agarwal. I just clarified that you know currently we are in the 60 to 120 price segment with Mitsubishi products or Uniball products.

Mr. Jatinder Agarwal – Participant:

Right.

Mr. Deepak Jalan - Managing Director, Linc Limited:

And this market size is expected to be around 500 Crore rupees.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

And we have about 15 percent market share in this price segment with Mitsubishi products.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Now the best part is that 20 to 50 Rupees price segment where UniBall is currently not present and Linc and Pentonic have just started their, you know, building in this price segment and this 20 to 50 price segment is also around 500 Crores but growing rapidly so you know, people. Consumers shifting from 10 rupees to 20 rupees and above.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

This is a very interesting price segment where we would be launching these UniBall products which will be produced under this deal.

Mr. Jatinder Agarwal – Participant:

Okay. And Sir, what is the estimated capital investment for this JV?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So initially Mr. Agarwal, initial investment is estimated at around 20 Crores and then you know, we will increase it as the things's progress, so that's equal

Mr. Jatinder Agarwal – Participant:

Sir, 20 crores is from your side?

Mr. Deepak Jalan - Managing Director, Linc Limited:

No, that's the total JV investment.

Mr. Jatinder Agarwal – Participant:

Okay. And so, this is basically for land and machinery, everything is it?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Actually we are starting with a least you know, property.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

It is near Ahmedabad in a Japanese Industrial Park.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So there is no investment in you know land and building.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

And so the entire investment would be in the molds and machineries.

Mr. Jatinder Agarwal – Participant:

Okay. And so what should be the asset on that you think this business will achieve?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So we estimated that it would be anything between eight to ten times minimum. Because,

Mr. Jatinder Agarwal – Participant:

So this can potentially do about 200 Crores sales, Is it?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, with this investment? Yes,

Mr. Jatinder Agarwal – Participant:

Okay. And any idea because, so one is that you're already currently selling Mitsubishi products, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right.

Mr. Jatinder Agarwal – Participant:

So, this 200 will include what you're already existing? Uhh.

Mr. Deepak Jalan - Managing Director, Linc Limited:

No, no, no. So this,

Mr. Jatinder Agarwal – Participant:

Then?

Mr. Deepak Jalan - Managing Director, Linc Limited:

These are totally new products which we are designing and developing for the Indian market.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Here, for that price point. So that's

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

As I mentioned that the 80 Rupee is our largest selling price point. So those,

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Products we will continue to import from Japan.

Mr. Jatinder Agarwal – Participant:

Okay, basically so they are not sharing the molds or whatever for their existing designs?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, no, yes.

Mr. Jatinder Agarwal – Participant:

Okay. Okay

Mr. Deepak Jalan - Managing Director, Linc Limited:

Not at this point of time it may be in the future, but not at this point of time.

Mr. Jatinder Agarwal – Participant:

Got it. Okay, And. So basically, if obviously, like if I use the logic right? That if you make it in India, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right.

Mr. Jatinder Agarwal – Participant:

Theoretically that cost should be lower than what you import the same pen for, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Absolutely.

Mr. Jatinder Agarwal – Participant:

So let's assume I will give you a very hypothetical example. The pen that sells for let's say, 80 rupees.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yes.

Mr. Jatinder Agarwal – Participant:

Right? And the manufacturing cost is let's say, 40.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right.

Mr. Jatinder Agarwal – Participant:

It comes to India at 60 and then whatever is the markup and whatever is there in the system? So if theoretically UniBall is to make this pen in Japan for let's say 40 Rupees, what will be the same cost that you make the pen in India for?

Mr. Deepak Jalan - Managing Director, Linc Limited:

So Mr. Agarwal, I'll make it very simple. A pen which we import currently from Japan and which we sell at 80 Rupees MRP.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

If we make a similar product in India which we will be making, of course we will be able to offer, at 50 Rupees MRP.

Mr. Jatinder Agarwal – Participant:

So, exactly is what my question was, right? So the imports will get substituted by this product range that will come into the market.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Not really, there may be a little bit of you know, cannibalization, but these are totally new products, you know which will not actually affect our existing way.

Mr. Jatinder Agarwal – Participant:

And by, when do you expect these operations to start in terms of actual sales?

Mr. Deepak Jalan - Managing Director, Linc Limited:

We expect the operation to start from July 25.

Mr. Jatinder Agarwal – Participant:

And so this JV will also export, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yes. So that's, I mentioned to the, you know earlier.

Mr. Jatinder Agarwal – Participant:

One of the questions, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

That is the best part of it, that Mitsubishi does not have any product in this price segment.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, products which is produced in India will open up a totally new price segment for them here you know.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

In the international market. So I think this is the best part of this, you know, JV.

Mr. Jatinder Agarwal – Participant:

So the existing selling agreement that will continue, right? So the JV will produce they will add up their margin. They will sell it to Linc and then Linc will go and sell it in the market at least for India.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Absolutely, absolutely.

Mr. Jatinder Agarwal – Participant:

And, for overseas, the JV will directly send it to Mitsubishi and then they will do the marketing?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Perfect. Yeah.

Mr. Jatinder Agarwal – Participant:

So you don't tend to benefit in terms of trying to understand or trying to leverage their marketing platforms. That will not happen for Linc as such or will it happen?

Mr. Deepak Jalan - Managing Director, Linc Limited:

For exports?

Mr. Jatinder Agarwal – Participant:

Uhh No. One is for exports.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Okay.

Mr. Jatinder Agarwal – Participant:

So one is that you will export directly the Mitsubishi branded product, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right.

Mr. Jatinder Agarwal – Participant:

But you also today export the Pentonic brand, right?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right, yes.

Mr. Jatinder Agarwal – Participant:

But today your distribution network is built on your own strength?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yes, definitely.

Mr. Jatinder Agarwal – Participant:

Right. So will this JV enable you to leverage Mitsubishi’s distribution strength and also push your Pentonic pens into that same dealers channel is what I'm asking.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So basically, overseas market we're talking about right?

Mr. Jatinder Agarwal – Participant:

Yes.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So actually you know that is not likely to happen, Why? Because the JV itself will be producing products under the UniBall brand.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

At a similar price point. So,

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Try to leverage their network for you know uhh.

Mr. Jatinder Agarwal – Participant:

Pentonic.

Mr. Deepak Jalan - Managing Director, Linc Limited:

The products which are produced in India.

Mr. Jatinder Agarwal – Participant:

Okay.

Equirus Securities Private Limited:

Sir, May I request to get back to that question queue. Because you know

Mr. Jatinder Agarwal – Participant:

I have just two more questions.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, yeah

Mr. Jatinder Agarwal – Participant:

Okay. Sorry.

Mr. Jatinder Agarwal – Participant:

And this JV will only make pens or because UniBall also has other stationary like markers and felt pens.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So initially our plan is to produce a range of ball pen, gel pen and a roller pen.

Mr. Jatinder Agarwal – Participant:

Okay

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, these we would be really starting with these three products.

Mr. Jatinder Agarwal – Participant:

Okay

Mr. Deepak Jalan - Managing Director, Linc Limited:

And then, you know, gradually once we progress maybe we can expand the ring.

Mr. Jatinder Agarwal – Participant:

Okay. And my last question is very basic other than Japan where Mitsubishi makes pens. Is there any other country where they have such an arrangement in terms of a JV or.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So they are manufacturing in China and Vietnam.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

They are 100 percent you know manufacturing.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, They are like some specific products, not the, you know.

Mr. Jatinder Agarwal – Participant:

Okay.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Like not the popular range, but some specific products.

Mr. Jatinder Agarwal – Participant:

So they don't have any JV or like the joint arrangement with anyone as such anywhere else?

Mr. Deepak Jalan - Managing Director, Linc Limited:

No

Mr. Jatinder Agarwal – Participant:

Perfect, that is good enough Sir. Thank you, thanks a lot.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Thank you Mr Agarwal.

Equirus Securities Private Limited:

Sir we have a question from Pragati Karche. Ma’am your line has been unmuted. You can introduce yourself and go ahead with the question.

Ms. Pragati Karche – Participant:

Yeah, yeah, thanks. So, Mr. Jalan just wanted to understand. You know, when you kind of worked out the contours of this agreement for the JV with Mitsubishi, you would have internally mapped out the opportunity size especially on the export size, export side, right? So, I just wanted to understand, you know, what kind of opportunity do you see in the exports market?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, so probably I already explained this because Mitsubishi, they do not have. See we will be launching products in the price range of 20 to 50 rupees in the Indian Market under.

Ms. Pragati Karche – Participant:

Yeah

Mr. Deepak Jalan - Managing Director, Linc Limited:

So, at this price segment Mitsubishi is not present in this price segment globally because all, most of their products are above 50 Rupees, you know in the above 50 Rupees price point. So I think this is some great opportunity for Mitsubishi and for this joint venture to offer products at in this price segment to the international market.

Ms. Pragati Karche – Participant:

Yeah. I appreciate that, Sir. What I'm trying to understand is that have you kind of come up with a number that? Okay, this is the opportunity size. And secondly, what I would like to understand is what are the markets that you will be primarily targeting? You know, to begin with. I mean, will there be a larger focus? Let's say on LATAM or Africa, what is it likely to be in through the Mitsubishi marketing channel?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, so we are still working on those, you know detailed working, but definitely we would like to start from the Southeast Asian market.

Ms. Pragati Karche – Participant:

Hmm..mm

Mr. Deepak Jalan - Managing Director, Linc Limited:

You know. So it's a large market for them. And

Ms. Pragati Karche – Participant:

Right

Mr. Deepak Jalan - Managing Director, Linc Limited:

Since they don't have a product in this price segment, you know we could immediately start off in this part of the world.

Ms. Pragati Karche – Participant:

Sure. And in terms of the R&D efforts you know that are ongoing and you've been trying to. You came up with Pentonic and you've been kind of continuing your efforts before this JV to cover the price points beyond 20. I mean, you've already launched a few products, but that was your endeavor. Now,

Mr. Deepak Jalan - Managing Director, Linc Limited:

Right.

Ms. Pragati Karche – Participant:

What happens to, I mean how seriously will the R&D efforts kind of happen in Linc, I think that's the concern in, you know, our mind. So if you could just talk about that and also who will be manning this JV from our side, will you be making any hires or you know in terms of management bandwidth? How are you going to address this?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Certainly. So first question, which is quite, you know, obvious that there could be, you know, anxiety or the possibility of you know cannibalizing products of Linc and UniBall. But as I also mentioned earlier that you know, first of all this 20 to 50 Rupees price segment is growing more rapidly. It is expanding because consumers are, you know, upgrading themselves from 10 Rupees to 20 Rupees and above, so that's a big opportunity. So from 20 to 50 Rupees the price point is going to expand quite rapidly and typically the consumers in this category, they look for a choice. So, if you go to a stationary shop you will find 100 products at the counter of the retail shop. So, if we have a large bouquet of products, combine you know Linc, Pentonic and UniBall. I think we will have a better, I mean a better possibility of our product being picked up by the consumer. So that's the opportunity we are looking at at the price. Even though the price segment may be the same, but the products would be quite different. So yeah.

Ms. Pragati Karche – Participant:

Right.

Mr. Deepak Jalan - Managing Director, Linc Limited:

We need to offer a bouquet of products.

Ms. Pragati Karche – Participant:

Right and in terms of any hires required for this.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Uhh, Actually not really at this point of time because there would be a Japanese representative who will be based in the Ahmedabad factory and our current team will be initially handling but certainly there would be some hires not at a very high level but at the factory level there will be some hires.

Ms. Pragati Karche – Participant:

Okay

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, that would be under a JV data basis.

Ms. Pragati Karche – Participant:

Sure. Thank you, thank you Mr. Jalan.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Thank you Pragati.

Equirus Securities Private Limited:

Thank you participants. We'll take that as a last question for the day. So on behalf of Equirus Securities, we would like to thank management for giving us this opportunity to host the call and thank you participants for joining in. Any closing remarks from your end, Sir.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

Yeah. Question, if you want. If there are too many questions in the queue. We don't mind extending by ten minutes.

Mr. Deepak Jalan - Managing Director, Linc Limited:

Yeah, okay.

Equirus Securities Private Limited:

No, Sir. I think the question queue has been answered. Yeah.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

Okay, alright yeah.

Equirus Securities Private Limited:

Yeah. Okay Sir, Any closing remarks from your end?

Mr. Deepak Jalan - Managing Director, Linc Limited:

Closing remark is only just that we've been talking of this joint venture for more than ten years and so finally it happened, and we believe that the opportunities and the possibilities are endless with this joint venture, you know, both for the domestic market as well as the export market. So, we are quite excited about it.

Equirus Securities Private Limited:

Thank you. Thank you, sir, thank you everyone.

Mr. Sanjeev Sancheti – Founder, Uirtus Advisors LLP:

Okay

Equirus Securities Private Limited:

You may now disconnect the call.