JM Dassani

The estimated size of the the cartridge industry in India is approximately Rs
1,000 crore and is growing rapidly at almost 50 percent every year. The size of
the cartridge market globally is $7.2 billion. In India, there are around 30,000
re-manufacturers and re-fillers across the country, employing some 60,000 to
70,000 people. Most of these players are functioning in the unorganized market.

In the last two years more than 200 stores have been opened by organized
players like Cartridge World. ABBEE, Faxon and others are also expanding
rapidly. This segment provides quality products at affordable prices to
end-users.

JM Dassani Chairman

Although the slowdown at present is playing havoc in most industries, for our
segment, the present scenario is actually an excellent opportunity. There is no
doubt it is a big opportunity for re-manufacturers considering the sluggish
economic environment and recession hitting hard every sector of industry except
FMCG and pharmaceutical. Since cartridges are consumable items, therefore
cost-cutting on this product is the need of the hour for corporates. There are a
lot of banks, insurance companies and corporate who are spending crores of
rupees on consumables. They are now cutting down cost in this area. Therefore,
it is the right time for re-manufacturers to make an earnest effort by
highlighting their product profiles, cost advantages and the environment factor.

For re-manufacturers, one of the biggest hurdles is the competition from
Original Equipment Manufactures (OEM). OEMs have huge finances available at
their disposal from making huge profits from the sales of consumables like
inkjet and laser cartridges. Therefore, they spend on advertisements stating
that one should not use re-manufactured/recycled products because of poor
quality, etc. They say that re-manufactured products can damage the printer, and
that the warranty is void if you use re-manufactured product and failure rate of
re-manufactured product is higher than OEMs.

This malicious propaganda by HP has been contradicted by Pradeep Jotwani,
Senior VP-Supplies, Imaging and Printing Group, HP, who clearly states that it
is the prerogative of customers whether he buys HP or compatible
(re-manufactured) cartridge. He also said that HP does not give in writing that
warranty of printer is void in case anybody uses re-manufactured product.

Re-manufacturing industry by and large is unorganized. Except for a handful
of re-manufacturers, who are quality conscious, the rest are re-filler who do
not have the required technology, testing equipment and plant to refill
cartridges. So we need to get organized and educate them about the technology as
well as bring awareness in the customers about the use of quality product from
re-manufacturers.

Our primary role is to create awareness about the benefits of re-manufactured
cartridges, as they are environment friendly, cheaper, save energy and at the
same time provide employment to many people. We also impart technical training
to unemployed youth for re-manufacturing of cartridges, printer repairing, etc.
We also intend to establish an institute for the same, which can provide courses
so that trained, technically qualified manpower is available to
re-manufacturers. We are also investing in R&D to certify the quality of product
and raw material.