Market Research Report : Printer Market in India 2012

Printer Market – India

March 2012

Executive Summary

Market

Go-to-Market

Strategy

� Go-to-Market strategy is the result of an in-depth analysis of the market wherein the key strategies best suited for

the Indian market has been identified as:

� aa

� bb

� Indian printer market is currently witnessing a steady growth rate, wherein the demand for printers such as inkjet,

dot matrix and laser printers are experiencing a significant demand specially amongst SMBs

� Printer shipment in India is expected to reach around xx mn units in 2015 as compared to yy mn units in 2011

� Prime reasons driving the market includes the presence of active industry verticals and the growth in content

creation in India

� The SMB sector is the single largest demand generator for printers in India

� Go-to-Market strategy is the result of an in-depth analysis of the market wherein the key strategies best suited for

the Indian market has been identified as:

� aa

� bb

2PRINTER MARKET - INDIA.PPT

Trends

Competition

Printer Vendors

Hewlett-Packard India Canon India

Epson India Samsung India

� Trends identified in the market so far comprises of the following:

� Growing interest in ….

� yy

� zz

� aa

•Introduction

•Market Overview

� Vendor Opportunity – Top 40 Cities

•Import and Export Overview

•Go - to - Market Strategy

•Factors Influencing Growth in Market


•Factors Influencing Growth in Market

•Trends

•Competition

•Distributors in India

•Recent Product Launches

•Strategic Recommendations

•Appendix

SAMPLE Introduction – Printers in India

Printer Market Scope

Inkjet Printer Dot Matrix Printer Laser Printer

•Inkjets printers are

generally the most wide •Also known as the impact

•Primarily works by


Note: The list is indicative

generally the most wide

spread type of printer

available

•Basically, it follows a

method of spraying ink

droplets onto the

printing paper

•Available as low budget

consumer printers as well

as high end industrial

printers

•Also known as the impact

matrix printer, which

comprises of a print head

that moves an ink soaked

ribbon over the paper to

create a print

•Mainly finds usage in

mass printing areas such

as ticketing, ATMs, cash

registers and point of

sales terminals

•Primarily works by

implementing xerographic

printing process which in

turn produces high quality

printing

•In a general laser printer,

there are a set of typical

seven set of procedures

• The massive PC base coupled with the declining hardware prices is primarily providing a splendid growth opportunity

for the overall printer market in India

� Rapid increase in content creation and ongoing demand for enterprise mobility further fuel growth in the market by a large extent

� Presence of active industry verticals such as the manufacturing, media and entertainment, retail and the government sector also

happen to be crucial drivers for the market

� SMBs (Small and Medium Businesses) plays a pivotal role in the revenue generation for the printer market in India

• As of now, the market is flooded with a majority of foreign vendors, who have managed to establish a commendable

competitive position in the market

• The Government of India has also played its part for the market wherein it has diminished excise duty to 5% from the

initial 10% and has also eliminated the regime of additional custom duty

The printer market in India will primarily gain the maximum

growth through the SMB market space

Printer Market Overview – India (1/x)


initial 10% and has also eliminated the regime of additional custom duty

• The overall printer shipment in India stood at around xx mn units in 2011 and is anticipated to leap forward to reach

about yy mn units by 2015

Source: X

Indian Printer Market – Unit Shipments

Units mn

a

b

0

xx

2015e2014e2013e2012e20112010

SMB Printer Market – Unit Shipments

Units mn

a

b

c

0

yy

2015e2014e2013e2012e20112010

SAMPLE Indian Printer Market – Competitive Breakdown (2011)

Printer Market – Vendor Share

5%8%

9%

24%56%

EEDDCCBBAA

22%

37%

42%

CCBBAA

Dot Matrix Market – Vendor Share


Source: X

Inkjet Market – Vendor Share

5%11%

24%61%

DDCCBBAA

4%14%

25% 58%

DDCCBBAA

Laser Market – Vendor Share

SAMPLE Purchase Decision Making Matrix - SMBs

Role in Decision MakingA

B

C

D


Source: X

E

F

G

H

•xxx

SAMPLE Top 40 Cities Vendor Opportunity (2011) – Printers (1/x)

Sl No. City Prominent VerticalsNo. of

SMBs

Printer

Shipments

1 City 1 Manufacturing, BFSI, Professional Services, Retail xx Xx

2 City 2 Manufacturing, BFSI, Construction, Real Estate, Healthcare, Retail Xx Xx

3 City 3 IT/ITES, Manufacturing, BFSI, Real Estate, Retail Xx Xx

4 City 4 Real Estate, Retail, Manufacturing, BFSI, IT/ITES Xx Xx

5 City 5 Manufacturing, BFSI, Real Estate, Retail, Healthcare Xx Xx

6 City 6 IT/ITES, Manufacturing, Real Estate, Healthcare Xx Xx

7 City 7 Manufacturing, BFSI, Retail xx Xx

8


Source: X

9

10

11

12

13

15

16

17

18

19

20

Top 40 Cities Vendor Opportunity (2011) - Commentary

• The top 10 cities comprised of about xx mn SMBs in 2011

• Cumulatively, these top 10 cities accounted for about xx mn units of overall printer shipments

• Major industry verticals boosting the printer market within these top 10 cities can be enlisted as below:

� Xx

� Yy

� zz

Top 10 cities – Printer Market Overview


Source: IT Journals; Netscribes Analysis *Figures for Navi Mumbai comprises of Vasi as well

Regional Distribution SMB Population – Top 40 Cities

30%

4%8%

41%

18%

Region 4

Region 1

Region 2

Region 5

Region 3

Regional Printer Shipment – Top 40 Cities

23%

2%

9%33%

33%

Region 4

Region 1

Region 2

Region 5

Region 3

SAMPLE Import and Export (1/X)

Definition: 84716022 (HS Codes Classification of Dot matrix printer)

Total Import & ExportINR mn

A

B

C

D

E

0

2007-082006-07

Import

Export


2007-082006-07

Source: X Note: Figures mentioned comprise of the latest available data

Definition: 84716027 (HS Codes Classification of Ink jet printer)

Total Import & ExportINR mn

A

B

C

D

E

0

2007-082006-07

Export

Import

SAMPLE Go-to-Market strategy for printer vendors - India

Focus on xx Invest on yy

An ideal go – to – market strategy for both a new vendor as well as an existing vendor would be to XXX


Go - to – Market Strategy

• xxx • yy

Source: X

SAMPLE Cloud Printing – Basic Framework

User mobile phone

User desktop / laptop

User PDA / Tablet PC

Cloud Network


Source: X

Cloud Print Service provider• Users opting for cloud printing services,

primarily send their print request remotely

• Cloud service provider then retrieves the url

containing the data from the cloud network

• Print request is executed by the service

provider in lines with the choice of users� Users select various characteristics of the

process such as the choice of printer and quality

amongst others

• Cloud service provider than compresses the

data file and sends it to the printer via Wi-Fi

or Bluetooth to the printers

Major Public Companies - Summary

10,000

15,000

20,000

25,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR mn

SAMPLE


Source: X

-5,000

0

5,000

10,000

0 4,000 8,000 12,000 16,000 20,000 24,000 28,000

Total income

yyxx

SAMPLE

SAMPLE Public: Foreign Company – xxx Ltd. (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock ExchangeIndia Head Office

New Delhi


Source: X

Key People

Products and Services

Stock Exchange

Category Products/Services

Name Designation

India Head Office


Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR xx mn in FY 2011, as

Net Profit/LossTotal Income

0

50

100

150

200

Profit

INR mn

Revenue

INR mn

a

b

c

0

2011201020092008

Particulars y-o-y change

(2011-10)2011 2010 2009 2008

Profitability Ratios

Operating Margin -2.44 8.66% 11.10% 11.58% 14.70%

Net Margin -1.15 5.50% 6.64% 5.14% 7.41%

Profit Before Tax Margin -2.18 8.53% 10.71% 8.03% 12.46%

Return on Equity -2.51 12.44% 14.96% 12.80% 19.13%

Return on Capital Employed -5.38 19.60% 24.98% 28.83% 37.97%

Return on Working Capital -3.26 14.28% 17.54% 14.88% 23.47%

Return on Assets -1.62 6.45% 8.07% 6.94% 11.23%

Return on Fixed Assets -10.84 130.12% 140.96% 141.40% 179.79%

Cost Ratios

Operating costs (% of Sales) 2.44 91.35% 88.90% 88.42% 85.29%


• The company incurred a net profit of INR xx mn in FY 2011, as

compared to net profit of INR xx mn in FY 2010

• The company reported total income of INR yy mn in FY 2011, as

compared to INR yy mn in FY 2010

• The company earned an operating margin of 8.66 per cent in FY

2011, a decrease of 2.44 percentage points over FY 2010

• The company reported debt to equity ratio of 0.93 in FY 2011, a

decrease of 8.99 per cent over FY 2010

Key Financial Performance Indicators

Indicators Value (16/03/2012)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Improved DeclineSource: X


Administration costs (% of

Sales)0.89 29.21% 28.32% 22.62% 29.56%

Interest costs (% of Sales) -0.19 0.06% 0.24% 0.21% 0.73%

Liquidity Ratios

Current Ratio -3.13% 1.94 2.00 2.02 2.16

Cash Ratio -39.57% 0.30 0.49 0.26 0.61

Leverage Ratios

Debt to Equity Ratio 8.99% 0.93 0.85 0.84 0.70

Debt to Capital Ratio 0.00 0.00 0.00 0.00 0.00

Interest Coverage Ratio 232.12% 151.75 45.69 55.42 20.16

Efficiency Ratios

Fixed Asset Turnover 11.58% 23.67 21.22 27.52 24.25

Asset Turnover -3.42% 1.17 1.22 1.35 1.52

Current Asset Turnover -4.74% 1.26 1.32 1.46 1.70

Working Capital Turnover -1.56% 2.60 2.64 2.90 3.17

Capital Employed Turnover 0.58% 2.26 2.25 2.49 2.58


Key Business Segments Key Geographic Segments

45% 49% 47% 45%

0%

50%

100%

52%

2009

51%

2008

1%

55%

2011

0%

54%

2010

1% 0%

50%

100%

2011

Indiaddccbbaa

The company has been

operating in India since

20--


Source: X

Key Information

Description Details

Overview

Most Recent Auditor

SAMPLE SWOT Analysis – xxx Ltd.

• xxx

Strength

• xxx

Weakness


Source: X

SWOT

• xxx

Opportunity

• xxx

Threat

SAMPLE

-50,000,000,000

0

50,000,000,000

100,000,000,000

150,000,000,000

Net Profit/Loss

Major Private Companies - Summary

Size of the Bubble represents Total Assets in INR mn


Source: X

-200,000,000,000

-150,000,000,000

-100,000,000,000

-50,000,000,000

-20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Total Income

ffee ggddccbbaa

SAMPLE Private: Foreign Company – yyy Ltd.

(1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website


Delhi

Head Office


Key People

Products and Services


Category Products/Services

Name Designation

Source: X

Head Office


(2/3)Financial Snapshot Key Ratios

Particulars y-o-y change

(2010-09)2010 2009 2008 2007

Profitability Ratios

Operating Margin -1.16 3.30% 4.46% -2.21% 5.44%

Net Margin -0.57 2.72% 3.29% -2.79% 3.67%

Profit Before Tax Margin -1.16 3.30% 4.46% -2.21% 5.44%

Return on Equity 0.37 18.84% 18.47% -75.98% 76.24%

Return on Capital Employed 1.54 -29.14% -30.68% 4.98% -17.89%

Return on Working Capital 1.45 22.45% 21.00%2808.12

%57.77%

Return on Assets 0.40 18.80% 18.40% -75.76% 47.95%

Return on Fixed Assets 86.68 235.39% 148.71% -88.34% 319.86%

Cost Ratios


Net Profit/LossTotal Income

INR mn

aa

bb

cc

-dd

INR mn

aa

bb

cc

0

2010200920082007


Financial Summary

• The company incurred a net profit of INR aa mn in FY 2010, as

compared to net profit of INR bb mn in FY 2009

• The company reported total income of INR cc mn in FY 2010,

as compared to INR dd mn in FY 2009

• The company earned an operating margin of 3.30 per cent in

FY 2010, a decrease of 1.16 percentage points over FY 2009

• The company reported debt to equity ratio of 0.0022 in FY

2010, an increase of 36.42 per cent over FY 2009


Administration costs (% of

Sales)0.00 0.00% 0.00% 0.00% 0.00%

Interest costs (% of Sales) 0.00 0.00% 0.00% 0.00% 0.00%

Liquidity Ratios

Current Ratio -0.90% 1.47 1.48 1.00 1.17

Cash Ratio -22.98% 0.36 0.47 0.20 0.17

Leverage Ratios

Debt to Equity Ratio -36.42% 0.00 0.00 0.00 0.00

Debt to Capital Ratio -36.34% 0.00 0.00 0.00 0.00

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Efficiency Ratios

Fixed Asset Turnover 91.34% 86.49 45.20 31.62 87.13

Asset Turnover 23.49% 6.91 5.59 27.12 13.06

Current Asset Turnover 26.80% 2.64 2.08 2.08 2.25

Working Capital Turnover 29.21% 8.25 6.38 -1005.01 15.74

Capital Employed Turnover 23.34% 6.92 5.61 27.19 20.77

Improved DeclineSource: X


(3/3)

Business Highlights

Description News

Overview• The company primarily operates as the subsidiary of ...

• It mainly engages itself in the manufacturing of ….


Extended Product List • Product 1, product 2 …

Source: X

SAMPLE SWOT Analysis – Canon India Pvt. Ltd.

• yyy

Strength

• yyy

Weakness


Source: X

SWOT

• yyy

Opportunity

• yyy

Threat

SAMPLE Major IT Peripheral Distributors (1/x)

abc

Headquarters

No. of Branch Offices

Website:

Phone No.

Fax

Key Contact

xyz

Headquarters

No. of Branch Offices

Website:

Phone No.

Fax

Key Contact


• xxx

Key Contact

Business Highlights

• yyy

Key Contact

Business Highlights

Source: X

SAMPLE Strategic Recommendations (1/x)

xyz

x y


• xxx • yyy

Source: X

Thank you for the attentionThe Printer Market report is a part of Research on India’s Information Technology Series. For more detailed information or customized research requirements please contact:

Kalyan BangaPhone: +91 33 4064 6215

E-Mail: [email protected]


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