Conclusion of Rights Issue and Acquisition of Land
for New Factory by KOKUYO Camlin Limited

OSAKA, Japan, October 11, 2013 - KOKUYO Camlin Limited, an Indian subsidiary of KOKUYO S&T Co. Ltd., has recently finished raising a total of approximately one billion rupees (about 1,600 million Japanese yen) from a rights issue (allocation of new shares) of 31,283,831 shares (the number of outstanding shares before allocation: 69,018,975) at the unit issue price of 33 rupees per share. KOKUYO S&T Co., Ltd., was allocated 31,134,900 shares of the rights issue by which its equity ratio was raised from previous 50.47% to 65.77%. Simultaneously, KOKUYO Camlin Limited agreed with MIDC (Maharashtra Industrial Development Corporation of India) to purchase the land of 14 acres (approximately 56,000 m2) in the Patalganga Industrial Complex, located about 75 km southwest of Mumbai, from MIDC. This will be the second largest among the factories in the KOKUYO Group’s stationery business.

In the KOKUYO Group, KOKUYO S&T Co., Ltd. entered into the Indian stationery market by acquiring a majority of shares of Camlin Limited, a large long-established stationery company of India in October 2011. With this acquisition, KOKUYO S&T gained the management structure comprising sales/logistics networks that cover the entirety of India, production bases of five factories and ink technology, brand power that has been developed in the history of more than 80 years, and upgraded manpower, institutions, and IT systems. The new company has pushed forward the modernization of management as KOKUYO Camlin Limited (headquartered in Maharashtra State and listed in Indian NSE/BSE) for these two years since the acquisition. On the other hand, it has carried out a study of investments for future growth by reviewing the production system aiming at improving production capacity and lowering cost and introducing an ordering system that optimizes inventories in order not to lose growth opportunities in India that are expected to rapidly expand on a middle-term basis. (As one of its means, the company has recently purchased local notebook manufacturer Riddhi Enterprises for the purpose of expanding the notebook business.)

While increasing business efficiency by proceeding with the restructuring and concentrating of factories scattered in Maharashtra State in reference to the existing merchandise of KOKUYO Camlin Limited (markers, forming/assembling of writing tools, spare lead for mechanical pencils, glues, etc.) to the new factory, KOKUYO Camlin Limited will improve the supply power from a substantial reinforcement of production capacity, aim at cost reduction by an increase in the in-house production ratio, and upgrade value-added power for development and quality. By which, the Group company aims to secure surplus strength for future growth, improve competitiveness in the Indian domestic market where competition is intensifying, and develop the export business for Asia, the Middle East, and Africa. The new factory is expected to start full-fledged operation in early 2016 because the estimate is that more than two years are required for development of land, construction of buildings, and the introduction of facilities. Also, it will be an environmentally friendly factory that utilizes solar heat, rainwater, etc.


Results of Rights Issue (allocation of new shares)

  • Number of outstanding shares before offering: 69,018,975
  • Number of shares offered: 33,319,506
  • Unit price of a share issued: 33 Indian rupees
  • Offering period: August 12 to 27, 2013
  • Number of shareholders who effectively subscribed: 283
  • Number of shares that were effectively subscribed: 31,898,246 (This figure exceeded 90% of the number of shares offered. Therefore, the rights issue became effective.)
  • Number of shares issued: 31,283,831
  • Date of issue: September 2, 2013
  • Aggregate amount of increase in capital: 1,032 million Indian rupees
  • Lead investment bank: Kotak Mahindra Bank
  • Number of outstanding shares after increase in capital: 100,302,806
  • Purposes of usages of increased capital described in the prospectus:
Purpose Amount
(million rupees)
(million yen)*
Acquisition of land for a factory 156.41 250
Civil engineering/construction 583.36 933
Machinery and equipment 138.53 222
Other purposes 203.77 326
Administrative expenses for increase in capital 17.47 28
Total 1,099.54 1,759

* Calculated at the exchange rate of 1.6 JPY to 1 INR (Indian Rupee).

  • Number of shares allocated and the equity ratios after increase in capital
  No. of shares before offering Equity before offering Number of shares allocated Number of shares after increase in capital Equity after offering
KOKUYO S&T 34,836,220 50.47% 31,134,900 65,971,120 65.77%
Founding family 9,240,884 13.39% 0 9,240,884 9.21%
Other shareholders 24,941,871 36.14% 148,931 25,090.802 25.02%
Total 69,018,975 100.00% 31,283,831 100,302,806 100.00%

Outline of KOKUYO Camlin Limited (as of now)

  1. (1)Head office: Mumbai, Maharashtra State
  2. (2)Shareholders: KOKUYO S&T Limited (65.77%), Dandekar Family (Founding family) (9.21%), and other general shareholders (25.02%)
  3. (3)Representative: Dilip Dandekar (Chairman)
  4. (4)Directors (12 in total): Dilip Dandekar (Chairman), Takuya Morikawa (Senior Vice-Chairman) (President and CEO, KOKUYO S&T), Shriram Dandekar (Vice-Chairman), Nobuchika Doi (representative employee in India and Senior Corporate Officer of KOKUYO S&T), Takeo Iguchi (representative employee in India and Corporate Officer of KOKUYO S&T), Hirofumi Iwatsu (department manager, KOKUYO S&T), R.C. Bhargava (outside director; Chairman, Maruti Suzuki India Limited), Deven Arora (outside director; outside director, Hisamaro Garugu), Noriyuki Watanabe (outside director), R. Sriram (outside director), Shishir B. Desai (outside director)
  5. (5)CEO: Ayyadurai Srikanth
  6. (6)Establishment: Camlin Limited was established in 1931. Its trade name was changed to KOKUYO Camlin Limited in October 2011.
  7. (7)Capital: 100.30 million rupees (as of September 2, 2013, when the issue was complete)
  8. (8)Employees: Approximately 2,400 (1,200 regular employees included)
  9. (9)Net sales: 4,384 million rupees (Approximately 6,500 million yen. Sales were comprised of stationery goods in general and overall art materials.)
  10. (10)Factories: 5 factories
  11. (11)Depots for delivery: 29 depots in all the states
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