Ricoh bullish about printer business
Ricoh has ambitious product and channel expansion plans for its A4 laser printers and A3 multi function printers (MFPs) and copiers.
Of the targeted revenue of ` 1,000 crore in 2014, the company is expecting the A3 MFP business to contribute ` 400 crore and A4 laser printers to bring in ` 50 crore. Of the balance, ` 450 crore will come from IT services and ` 100 crore from its production printer business.
The company recently expanded its A3 MFP portfolio by adding color MFPs with 18 PPM speed. It is also planning to expand its base of 500 dealers for A3 MFPs.
Said Manoj Kumar, Senior Vice President and CFO, Ricoh India, “Beyond enterprises, A3 MFPs are being adopted by mid-market customers and small businesses. The demand is also increasing for color MFPs which form part of the fleet of printers. We are seeing MFP penetration in tier-2 and -3 cities as well, hence we will expand our base of partners focused on these cities.”
As per IDC, in 2013 the company had 21 percent market share in the A3 MFP space in India. However, the larger push will be for A4 printers, where Ricoh has plans to expand its portfolio and add more partners in 2014.
“Within just two years of our entry into A4 laser printers, we have achieved an installed base of two lakh units in India amounting to a market share of 5 percent in 2013,” Kumar stated.
Ricoh expects to grow its A4 printer business by more than 50 percent in 2014. “We will grow faster than the market, and grab market share from existing A4 laser printer players in 2014,”
“We are seeing MFP penetration in tier-2 and -3 cities, hence we will expand our base of partners focused on these cities” MANOJ KUMAR Senior VP & CFO Ricoh India
Ricoh plans to expand its focus beyond the top 16 cities by adding 500 partners to its base of 2,000 resellers, and 80 SIs and VARs. The company will also strengthen its base of consumables partners; it is looking for 400 partners and expects consumables to contribute ` 10 crore to its revenue in 2014.
Informed Kumar, “Many of our installed laser printers have completed one year of operations and will soon go in for replacing or refilling toners, hence we are developing a new channel for consumables which will be a mix of IT resellers and stationery suppliers.”
Ricoh recently launched an e-store where customers can identify the nearest dealer to supply consumables.
The company also entered the projector space with the launch of three models of portable, ultra short-throw projectors. The USP of these projectors is that they can be carried along and can be placed on the floor or desk adjoining the screen.
Said Kumar, “We look at projectors as a significant business. We have sold 1,500 projectors till now and plan to sell 5,500 in the next fiscal.”