*NEWS*INDIA:A BOOMING CARTRIDGE BUSINESS

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*NEWS*INDIA:A BOOMING CARTRIDGE BUSINESS

 user 2008-01-02 at 2:24:00 pm Views: 81
  • #19267

    Booming Cartridge Business Invites Struggle
    The
    cartridge refilling and remanufacturing (CRR) industry is set for a
    revolution with the entry of global players, investment by Indian
    players in quality manufacturing, and also due to increase in customer
    awareness.In India, the CRR industry has failed to make a major dent so
    far due to the lack of quality standards and an organized industry. The
    Indian after-market cartridge segment is estimated to be around Rs
    2,400 crore, and growing at 35 percent, of which nearly 35 percent is
    contributed by non-OEM supplies. Regrettably, a large chunk of this
    market is made up of counterfeits and low-quality refills. Quality CRR
    players have managed to capture only 5 percent of the overall
    market.I.C.Bansali, Purnima Enterprises, Bangalore comments, “We are
    getting good business from cartridge remanufacturing as this field has
    lucrative prospects. Also, it is cost saving and environment friendly.
    Earlier, there was 50-60% growth in this business. I must add, our main
    competitor is HP. And because of these big vendors we are feeling
    uncomfortable with this business.”The most unfortunate part of the
    Indian CRR industry is that it is not organized. The industry has been
    dominated by fly-by-night operators using spurious inks and spares
    which has created a bad reputation for the entire industry.To address
    this issue, serious players have now formed an industry association
    called ICRRA (Indian Cartridge Remanufactures and Recyclers
    Association) with a three-point agenda—to provide respectability and
    legitimacy to the business, lobby with the government and other
    influential industry bodies to promote the industry, and infuse quality
    standards to make it world-class. The entire emphasis of the
    association is on ensuring the adoption of the best-quality standards.

    Comments
    Pankaj Nebhwani, Director, Evershine Digitech Pvt. Ltd., “This
    association is helping us a lot. Because of all big vendors entering in
    to the market we people are facing lots of problems such as prices are
    increasing, margins are going down. For our convenience ICRRA is doing
    their job as good as they can. They have set particular prices for
    buyers as well as sellers.”Even the government sector, one of the
    highest consumers of printing supplies, is turning receptive to the use
    of recycled cartridges. Many government departments use CRR but they
    are not sourced through the official channel. The government should
    make it mandatory for all its offices to allow the remanufactured
    products category in their tenders; this will further encourage the
    industry and provide a level-playing field.With the general opinion in
    favour of the CRR industry, it is all set for a boom. However, much
    will depend on how soon the industry can organize itself, build scale
    and create strong brands. All parameters suggest that by 2010 we will
    see the industry takes off in a big way.Do you see an end to the
    struggle aroused in the cartridge business?