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Gestetner plans new products; expects 20% rise in turnover

Our Bureau

KOLKATA, July 1

GESTETNER (India) Ltd is hoping to increase its turnover and profitability by around 20 per cent during the current year by selling a right mix of traditional duplicators and high-end digital products.

The company also plans to soon introduce a total solution for the telecom companies for printing of monthly bills, and has already initiated dialogues with a number of companies. The technology would be outsourced from the parent company in the UK.

Mr K. Swetharanyan, Managing Director, said that during 2001, the company would invest heavily on the training of technical manpower of Gestetner.

``We would also bring in more digital equipment and total solutions to enter newer markets and segments,'' he told reporters after the company's 77th annual general meeting.

Gestetner India is now a subsidiary of Japanese automation major Ricoh through the British holding company Gestetner UK Plc. Some years ago, Ricoh acquired the worldwide operations of Gestetner UK, which has a controlling 51 per cent stake in the Indian company.

The company, it is pointed out, would continue with the production of traditional duplicators. Worldwide, Gestetner and Ricoh have stopped manufacturing these machines except in India.

According to Mr Jahar Sengupta, Chairman, Gestetner India is also exporting these machines to other Gestetner units.

Mr Swetharanyan said: ``Sales and after sales services of traditional products together contribute about 20 per cent of our total business. In India, we are trying to establish a dealer network to tap the schools, colleges and gram panchayats in the rura l and semi urban markets for these products.''

For the year ended December 31, 2000, the company registered a turnover of Rs 77.46 crore, up by almost 20 per cent over the Rs 64.9 crore achieved in the previous year. The net profit jumped by 295 per cent to Rs 2.29 crore (Rs 59 lakh).

The company has maintained dividend at Re 1 per share (10 per cent). ``During the current year, we are expecting a 20 per cent growth in turnover. Profitability is likely to witness a similar growth,'' the Managing Director said.

Earlier, replying to the queries of shareholders, the chairman ruled out any possibility of buyback of shares or a bonus issue. ``Buyback only has a temporary effect. For the time being, there is no possibility of a buy back,'' he said.

Mr Steve King, Group Finance Director, ruled out any proposal of the parent company hiking its stake in Gestetner India.

``We are comfortable with our existing share of 51 per cent,'' Mr King said. He also ruled out, for the present, any fresh introduction of Ricoh's worldwide brands into India through Gestetner.