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

added Ku­mar.

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.”

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