Ricoh strengthens its channel business

The distribution business of Ricoh India, is on an expansion spree, with the company further elaborating its laser single function and MFPs printer business with the launch of six model of SP 200 series equipped with Genuine Refill Program.

Looking at the initial success of laser printers, which the company started one year before, is also now entering into Inkjet printer business. The new printer models of Laser Printers and A4 MFPs are SP 200, SP 200N, SP 200SU, SP 202SN, SP 203SF and SP 203SFN

Manoj Kumar, senior VP and CFO, Ricoh India, said, "We entered into laser MFPs business with channel and distribution with SP100, in last one year, we have sold 70,000 laser printer and this business is of worth Rs 25 crore. The response has been encouraging, which has what encouraged us to launch next model of Laser printer in the series. Now, we have plan to launch Inkjet printer, presently, Inkjet printer is at nascent stage in India and we are at the testing stage. It is too early to announce our concrete plans for inkjet printers."

The new line of printers are level above the existing S 100 printers. The company is targeting to sell one lakh printers by end of this year. The company's core philosophy behind its printers business is to bring value to the customers in a most cost effective manner. To offer cost advantage, Ricoh offers refill toner pouch at a price point of Rs 650 that gives 2000 prints, which means 33 paise would be the cost of printing.

The channel business of Ricoh, which is just an one year old business unit, is headed by Kiran Pai, COO, Laser Printer business, who says, "The channel journey for Ricoh has been very interesting, Currently, our 70% of our laser printer business driven by our indirect channel and 30% by direct. This year we are doubling the last year numbers. We kick started our channel business with 100 partners and today we have 1,600 partners in 60 cities, largely in major metros. Our plan is to add another 1,400 channel partners and reach out to 200 cities in a phased manners. Also, we did well in government and large tender products last year, we supplied to UID and CCNT deals."

Ricoh printers range starts from Rs 6,000 to 18,000. It claims to have 8% market share in laser printers.The key USP of Ricoh printer is its Genuine Refill toner program.Ricoh claims to be the first brand company, who started endorsing refill toner to counter counterfeited toner.

"We sell both genuine and refill toner, one can use refill toner pouches up to three times, and replace it with genuine cartridges, the price of original cartridge is Rs 3300, if a kanjoos customer wants to uses a one cartridges and three refill bring the cost to printing to 40 paisa, it gives 70% reduction in overall printing. The refill toner has both the version English and Hindi, to cater to tier 2 cities," Pai added.

In terms of existing distribution, Ricoh has two national distributors: Cyberstar and Global Infonet. Apart from that, it has Ricoh printer partner program, for its premium printer partner and printer partner. The current contribution of channel business is 4-5% in the overall turnover of Rs 620 crore revenues. It is expecting topline revenues of Rs. 1,000 crore during the current fiscal year,

Moving forward, Ricoh is coming out with its own eStore for online business in next two months, targeting selling of consumables and printers for tech savvy users. Additionally, it will open, 4 Ricoh brand stores, in major metros,in this year. It will also be conducting 100 cities channel meet-/*Sammelan, */in next three months to educate its channel partners in tier 2 cities.