Linc Limited
Climate Impact & Sustainability Data (2017-18, 2023-24)
Reporting Period: 2017-18
Environmental Metrics
ESG Focus Areas
- Sustainability
- Responsible Corporate Citizenship
- Workplace Safety
- Employee Well-being
- Ethical Business Practices
Environmental Achievements
- Reduced outsourcing percentage over the past five years from 75% to 45%
- Commissioned a state-of-the-art integrated facility in Umbergaon
Social Achievements
- Grew from 10 workers to 1,000+ and from one country to 40+ over the years (including contract workers)
- Spent ₹39.80 lakhs in FY2017-18 on CSR initiatives in the fields of education, healthcare and sport
- Undertook periodic learning and development initiatives for the benefit of employees
- Laid a keen emphasis on health and safety
Governance Achievements
- Complied with the requirements of Corporate Governance in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Established a Whistle Blower Mechanism
- Put in place a Policy against Sexual Harassment of Women at Workplace
Climate Goals & Targets
Medium-term Goals:
- Leverage the full value of Umbergaon plant
- Increase output and value-addition
- Boost value-added product in-sourcing
- Moderate costs and bolster qualitative consistency
- Develop power brands to enhance product differentiation
- Strengthen the proportion of high value products with enhanced visibility
Short-term Goals:
- Increase proportion of revenues from pens priced ≥₹10
- Enhanced margins
- Increase output of the successful Pentonic brand
- Improved profitability
- Escalate brand spending
Environmental Challenges
- Impact of GST implementation on domestic business
- Import restrictions in major export markets (Middle East and Africa)
- Increase in polymer prices following an increase in crude prices
- Imposition of tariff barriers by Egypt and Turkey on exported writing instruments
- US sanctions against Iran and military conflicts in Yemen affecting exports
- Reluctance among distributors and dealers to keep high levels of inventory
- Evolving consumer needs
Mitigation Strategies
- Commissioning of the Umbergaon facility in Gujarat
- Launching new products to enhance presence in the value-added segment
- Strengthened data aggregation and mining for informed decisions
- Assisted trade partners with GST compliance
- Moderated transit delays following the commissioning of the Umbergaon facility
- Leveraged logistical efficiencies following GST implementation
- Expanded the value-added range of products
- Concentrated on launching products with relatively lower raw material costs and higher margins
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023-24
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced plastic waste by replacing Pentonic’s individual plastic wrapper packaging with paper boxes.
- Moderated dust emissions and prevented effluents from contaminating external water bodies.
Social Achievements
- Promoted workforce diversity, employing approximately 1,600 women.
- Supported a small but significant specially abled workforce, offering them comprehensive training.
Governance Achievements
- Created a strong Board, comprising professionals and industrialists of standing.
- Established a Whistle Blower Mechanism.
Climate Goals & Targets
Medium-term Goals:
- Expect Pentonic to exceed 50% of total revenue in the next 2-3 years
Short-term Goals:
- Increase the number of Pentonic products from four to seven during the current financial year
Environmental Challenges
- Supply chain disruptions due to raw material volatility
- Increased competition in the stationery market
- Consumer shifts towards online shopping
- Geopolitical tensions disrupting operations and leading to business downturns
- Economic challenges such as high freight rates, currency devaluation and forex shortages affecting international shipments and exports
Mitigation Strategies
- Increased digital marketing and e-commerce investments
- Optimized logistics to improve delivery efficiency
- Launched 10 new products to meet evolving consumer needs
- Expanded into new export markets
- Focused on advanced planning and shorter lead times for high-demand products
- Explored alternate shipping routes and emphasized higher-value products
- Introduced new products and tailored packaging for specific markets
- Reduced non-moving inventory and adopted a made-to-order approach
- Implemented targeted marketing campaigns and adjusted pricing strategies
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Pentonic