Escolar Documentos
Profissional Documentos
Cultura Documentos
A DISSERTATION SUBMITTED IN
PARTIAL FULFILLMENT OF THE DEGREE OF
Master of Philosophy
by
N. KRISHNASWAMY
Enrollment Number: X4MEC22001
Research Guide
DEPARTMENT OF ECONOMICS
UNIVERSITY OF MADRAS
Chennai 600 05
OCTOBER 2006
-I-
K.
NARAYANAN,
my
- II -
Place:
Mysore
Date:
- III -
DECLARATION
Post
Graduate
Centre, K. R. S. Road, Mysore 570 016 and has not formed the
basis for the award of any degree, diploma, associateship,
fellowship or other titles in this University or any other University
or Institution of higher learning.
Place:
Mysore
Date:
- IV -
ACKNOWLEDGMENT
I take this opportunity to express my deep sense of
gratitude to my teacher and guide Dr. C. K. Reukarya, Ph.D,
Professor of Economics, Director, Pooja Bhagavat Memorial
Mahajana Post Graduate Centre, K. R. S. Road, Mysore 570
016 for accepting me as his research student, his scholarly
guidance and immense encouragement throughout the tenure of
the preparation of this dissertation.
I am thankful to Dr. R. Rajkumar, Reader, Department of
Economics, Institute of Distance Education, University of Madras,
Chennai 600 005 for extending all the possible help in bringing
out this dissertation.
I acknowledge thankfully the cooperation received from
the teaching and non-teaching staff of Institute of Distance
Education, University of Madras, Chennai during the course of
this study.
I express my sincere thanks to the All India Federation of
Master
Printers
and
Madras
Printers
and
Lithographers
-V-
N. Krishnaswamy
- VI -
CONTENTS
List of Tables
List of Maps
Chapter
Title
Page No.
INTRODUCTION
1- 20
II
REVIEW OF LITERATURE
21 26
III
METHODOLOGY
27 - 32
IV
RESULTS
33 69
70 79
BIBLIOGRAPHY
80 - 83
- VII -
TABLES
Table
Title
Page
No.
1.1
No.
Growth of Commodity Production since
Independence
1.2
1.3
1.5
1.6
1.7
segments
in
the
manufacturing
- VIII -
Table
Title
No.
4.10
4.11
4.12
4.13
4.14
4.15
Page
No.
- IX -
-X-
CHAPTER 1
INTRODUCTION
-1-
CHAPTER 1
INTRODUCTION
Industrialisation has a major role to play in the economic
development of the underdeveloped countries. The industrial
sector which possesses a relatively high marginal propensity to
save
and
invest
contributes
significantly
to
the
eventual
attitudes
and
skills
of
industrial
work,
with
of
higher
incomes
and
means
of
higher
productivity.
Industrial development depends upon the rate of capital
formation. Supply of capital goods can be augmented either
through imports or through domestic production. Increase in the
imports of capital goods depends upon the rate of growth of
exports. The exportpromoting industries, import substituting
industries and domestic capital goods industries are not mutually
exclusive.
-1-
The Indian industrial structure reflected a lop-sided sizepattern prior to independence and early sixties. The peculiarity of
the industrial pattern of India was the high concentration of
employment either in small factories and household enterprises,
i.e., the lowest size-group or that there is a high concentration of
employment in large factories, i.e., the highest size group. The
medium size factories are not developed in India. Another feature
of the Indian industry was the prevalence of low capital intensity.
It is the result of two factors first, the general level of wages in
India is low and second, the small size of the home market in view
of the low per capita income and the limited use of mass
production.
India made tremendous progress in industrial sector since
1960s. The Table 1.1 indicates the growth of industrial output in
selected commodities. India has attained self-sufficiency in almost
all consumer goods. Growth of capital goods production has been
impressive
Table 1.1: Growth of Commodity Production since Independence
Commodity
Unit
Cloth
1970-71
2000-01
7602
19718
Fertilisers (N)
000 tonnes
830
11025
Cement
14.3
99.5
Finished Steel
4.6
29.3
Electricity
Billion kwh
5.1
55.8
499.4
Aluminium
000 tonnes
4.0
168.8
620.4
000 tonnes
116
755
3090
8.6
41.2
152.0
1950-51
Commercial
Thousand
vehicles
numbers
and
minor
industries.
The
infrastructure
including
1980-85
1985-90
1993-94
to
2000-01
V Plan
VI Plan
VII Plan
Basic industries
8.4
8.3
7.4
5.8
Capital goods
5.7
7.1
15.7
7.5
Intermediate goods
4.3
6.2
5.5
8.5
Consumer goods
5.5
6.5
6.6
7.4
Durables
6.8
15.2
12.1
12.4
Non-durables
5.4
5.3
5.4
6.1
-3-
significant
feature
of
the
Indian
economy
since
-4-
Mining
& Manufact-
Quarrying
Electricity
Overall
uring
10.47
79.36
10.17
100.00
1995-96
9.7
14.1
8.1
13.0
1996-97
-1.9
7.3
4.0
6.1
1997-98
6.9
6.7
6.6
6.7
1998-99
-0.8
4.4
6.5
4.1
1999-00
1.0
7.1
7.3
6.7
2000-01
2.8
5.3
4.0
5.0
2001-02
1.2
2.9
3.1
2.7
2002-03
5.8
6.0
3.2
5.7
2003-04
5.2
7.4
5.1
7.0
2004-05
4.4
9.2
5.2
8.4
2005-06#
0.4
8.9
4.8
7.8
Weights
large
shift
of
workforce
from
agriculture
to
Indian
following
cost
-8-
Last seven
Overall period
(1990-91 to
to
98 to
2003-04)
1996-97)
2003-04)
Manufacturing 7.4
4.7
6.0
Industry
6.5
5.1
5.8
GDP
7.8
5.7
5.7
Textile articles
Textile yarn
-9-
10
11
12
13
14
15
16
Pesticides, disinfectants
17
18
19
20
21
22
23
24
25
26
27
Hydrocarbons, derivatives
28
29
30
31
32
33
34
35
36
Rubber articles
37
Glassware
- 10 -
38
39
40
41
42
Aluminium
43
Tin
44
45
46
47
Office supplies
48
Indonesia Malaysia
13
9
Korea
14
10
Operating Surplus of
Less than 10%
Operating Surplus of
above 20%
1.7.1
In the case of India there was not even one single industry where
the share of operating surplus in total output value was above
20%. In contrast 9 industrial segments in Malaysia where the
operating surplus was higher than 20% and 14 manufacturing
segments each in Korea and Indonesia.
1.7.2
Indonesia
Malaysia
Korea
17.2
29.9
13.2
28.1
Glass
16.0
41.4
38.4
38.4
Rubber products
14.5
12.2
24
33.1
Electrical machinery
14.1
24.2
17.7
Non Electrical
13.2
30.9
19.8
27.2
Industrial chemicals
12.7
33
28.7
32.1
Plastic products
12.7
25.3
25.5
30.1
11.5
29.0
18.9
19.4
39.1
machinery
- 12 -
11.0
33.2
35.9
41.8
Transport equipment
10.9
51.3
21.0
30.1
Leather products
9.8
23.0
16.9
22.4
Metal products
9.4
28.3
20.6
31.4
Wood products
8.9
27.8
21.3
27.9
Food products
7.4
24.3
9.8
29.9
Textiles
7.4
26.6
27.6
28.5
Average
11.8
29.4
22.6
30.6
1It
for
its
future.
It
does
- 13 -
not
always
recognize
the
sophistication and size of the industry and the major role it plays
in peoples lives and in the economy.
third
largest
manufacturing
industry
worldwide,
and
the
of
some
3,007
printing
factories
and
1,06,993
market
place,
ink-on-paper
business
21st
century
Navigating
Complexity
and
Flexibility
Indias printing industry faces a number of challenges as the new
millennium dawned. Rapid technological change will continue for
the foreseeable future. The processes of industrial convergence
will accelerate creating both opportunities and threats. Printing,
information and telecommunications industries will play key roles
in the new and emerging knowledge-based economy. The future
for Indian printing industry will be exciting, complex and
uncertain. To borrow a nautical analogy, in this situation the
industry must ready itself to navigate through uncharted waters.
This Dissertation Printing Industry in India - aims to capture
this idea of navigating through the uncertainties that the new
millennium is bringing.
Navigating the Future
Complexity
Flexibility
Clear
Business
Appropriate use
of Technology
Drivers of
Sustainable
Growth
- 15 -
Creative and
Skilled People
1.10
Plato spoke against the idea of writing in the 5th century BC. He
believed that being able to write things down, write words on
paper or parchment would ruin our natural capacity for memory.
From the 7th to 15th centuries printing was largely in the form
of religious manuscripts, entirely constructed by hand. Then in
1452 the printing press was invented by Gutenberg, bringing
together the technologies of paper, oil-based ink and the winepress to print books using movable type.
The concept of print was revolutionised in the late 1990s
when it came to mean anything that you can print on paper, a
computer screen or to any other media. This included words,
graphics, images, icons, holograms, AVIs, MPEGs, MP3s - the list
was endless. Combining this with digital presses and digital
workflows, the printing industry had an enormous opportunity to
capitalise on the next revolution - but it missed the virtual boat.
The IT and communications industries stole the lead even though
most of their employees were not educated in graphic design or
layout, let alone being able to effectively communicate with
images and words. But the printing industry survived on the
crumbs thrown to them by their bigger IT cousins - whenever
someone needed a better web page design or the occasional bulk
printing for a marketing strategy, they managed to find a cheap
printer who could do the job.
Two segments of the market survived and even prospered at
times: the print factories and the customised market printers.
The print factories operated by filling the bulk orders for clients
- 16 -
What the industry has been, and what it is now, will not be what
it is in the next five to ten years. The industry has the will to
survive and thrive but it must transform itself in very radical
ways if it is to enjoy meaningful and sustainable growth in the
foreseeable future. In moving from the Industrial Age into the new
Age of Information, a vibrant and robust printing industry is
fundamental for the emerging knowledge based economies. In this
new world, in addition to traditional ink on paper printing,
significant opportunities for products and services are opening up
as a result of the increasing shift towards electronic and
information based activity. The Indian printing industry has
recognised that it is operating in a turbulent environment
characterized by rapid changes in technology. It has to initiate a
process to assist the industry and its individual companies to
operate in what is becoming an increasingly more complex set of
pathways.
Bearing in mind this highly dynamic environment, the
dissertation does not aim to chart a single or narrow range of
directions for the industry in a way that may have been possible
- 17 -
Businesses
will
increasingly
need
to
navigate
- 18 -
1.12
key
business
environment
signposts/trends
that
will
impact
- 19 -
on
the
sustainability
and
competitiveness
of
the
industry.
The
directional
changes
- 20 -
CHAPTER II
REVIEW OF LITERATURE
-1-
CHAPTER II
REVIEW OF LITERATURE
In this chapter an attempt is made to present the literature
pertaining to the research work relate to the present study. Since,
not much work has been one on the printing industry in India,
the study is undertaken, Studies conducted on the printing and
allied industries in general and Indian printing industry in
particular have been reviewed under the following sections.
2.1
2.2
Industry economics
2.3
had
been
classified.
In
this
classification
paper
- 21 -
However
all
these
had
focused
mainly
on
the
- 22 -
products
industry
in
1962
Standard
Industrial
Printing
and
Related
activities.
The
1998
Industry
of
Australia
- 23 -
in
1998
and
published
Association,
National
Association
of
Printers
&
Paperboard
Industries of America,
Packaging
Council,
USA,
Printing
on different
- 26 -
CHAPTER III
METHODOLOGY
-1-
CHAPTER III
MEHODOLOGY
This chapter deals with the description of study area, the nature
and the sources of data collected, the various tools and
techniques employed in analysing data. These are presented
under the following heads.
3.1
3.2
3.3
3.4
During the same period the population has grown from 359
million to 1090 million and the literacy rate from 18.33% to
65.38%. The paper, paper products and printing industry with a
weight of 26.52 has grown from 108.3 in 1981-81 to 230.7 in
2004-05 (Base: 1980-81 =100).
The earliest printing presses in India were located along the
west coast line of the peninsula namely Goa, Cochin, Pudikoil,
Vypicottah and Ambadalakkad. Also Tranquebor, Madras, Fort
William, Calcutta and Serampore, along the East Coast in the
east coast had the first of the printing presses in India. All these
happened between 1579 AD to 1795 AD. In 1817, Bombay had its
first printing press. Subsequently it led the phase of the vigorous
growth of early Indian printing. Since then printing industry has
gone through several phases in technology, constitution and
functioning. It organises itself in clusters for development all
through the country, functioning basically as a supporting service
industry.
3.2 Nature and sources of data
The secondary data needed for the study has been obtained from
the Cental Statitical Organisation, Government of Indias Annual
Survey of Industry and Reserve Bank of Indias Annual report and
Government of Indias Economic Survey.
The
secondary
data
also
has
been
sourced
from
- 28 -
The definitions for these ratios are generally taken from Analysing
Company Accounts by Martin Roth, Wright Books, 1995, and
Financial Accounting by Carnegie, Jones, Norris, Wigg, and
Williams, McGraw-Hill, 1999.
Caveats on the Use of Ratios
Financial ratios are indicators only. They do not present a
complete picture of the business or industry. Other important
factors may be determinant on performance and not captured by
financial ratios. A ratio is a comparison of two figures, a
numerator and a denominator. At times it may be difficult to
determine whether, in comparing ratios, the differences are due to
the numerator or the denominator or both. Comparison between
companies can be difficult due to the adoption of different
valuation methods. Ratios are interconnected and should not be
treated in isolation.
3.3.2
Return on Assets
3.3.4
Financial Stability
2.
3.3.4.1
Current Ratio
financial
obligations
from
current
assets.
The
- 30 -
This measures debt exposure and generally the higher the ratio,
the more likely it is that there may be difficult to pay debts;
especially if interest rates rise. There is no safe figure though the
practice seems to be that if the ratio does not exceed 100%, there
should be no difficulty. Too much equity can mean that
management is not taking advantage of the leverage associated
with long term debt. Outside financing will become more
expensive as the debt to equity ratio increases. Therefore the
degree of leverage has to be considered in light of profitability and
industry volatility.
The ratio is given by:
Debt to Equity ratio = Total Debt/ Equity*
* Shareholders or Owners Equity depending upon whether the
company is public or private
3.3.4.3
Interest Cover
3.3.4.4
in
the
general
medium
to
longer
term
- 32 -
CHAPTER IV
RESULTS
-1-
CHAPTER IV
RESULTS
In consistence with the objectives of the study the necessary
data collected from different sources were and interpreted. The
results of such analysis are presented in this chapter under the
following Heads.
4.1
4.2
4.3
4.4
4.5
4.6
4.7
- 33 -
Total
Printing,
Paper
making
and
Packaging
Machinery
Description
Class
221
2212
2213
2219
222
- 34 -
2221
2222
223
2230
- 35 -
Pulp, manufacturing
21012
Manufacture of paper
21012
21012
21013
21014
21017
21019
21019
21021
21024
21091
21091
21092
21092
21092
21094
24294
24294
24299
- 36 -
29293
29293
29294
29294
29294
29294
29294
29294
29294
29294
- 37 -
and
Other
Issues,
Federation
of
Indian
http://commerce.nic.in/annual2004-05/englishhtml/content.htm.
Year
General
Index
% Year
on
Year
Paper,
paper
products
& printing
% Year
on
Year
Base Year
1981-82
109.3
108.3
- 1980-81
1990-91
212.6
94.5
198.0
1994-95
108.4
108.6
1995-96
122.3
12.8
125.5
15.6
1996-97
130.8
7.0
136.9
9.1
1997-98
139.5
6.7
146.4
6.9
1998-99
145.2
4.1
169.8
1999-00
154.9
6.7
180.5
6.3 =100)
2000-01
162.6
5.0
164.0
9.1
2001-02
167.0
2.7
169.0
3.0
2003-03
176.6
5.7
180.5
6.8
2003-04
189.0
7.0
208.7
15.6
82.8 =100)
16.0 1993-94
- 39 -
199091
200001
Industry
Unit
Paper &
paper
board
'000
116.0 349.0 755.0 1,149.0 2,088.0 3,090.0
tons
Year on
Year %
201
116
52
82
43
- 40 -
Industry
Unit
199192
199293
199394
199495
199596
199697
199798
Paper &
'000
paper board tons
Year on Year
%
19
-7
Unit
199899
199900
200001
200102
200203
200304
200405*
Paper &
'000
paper board tons
3,114
3,459
3,090
3,176.0 3,412
3,684.0 3,848
Year on Year
%
10
-12
Industry
- 41 -
Factories
22
All
127957 2.38
3007
129074 2.33
Fixed Capital
Productive
Capital
402260
47333140 0.85
573092
59256189 0.97
Invested Capital
531049
67959786 0.78
Workers
Total Persons
Engaged
3046
All
2003-04
76954
6161493 1.25
70634
6086908 1.16
120592
7935948 1.52
112974
7870081 1.44
Wages to Workers
Total
Emoluments
45130
2968905 1.52
44291
3047777 1.45
114255
5515801 2.07
115299
5833675 1.98
Total input
Gross Output
106544
Depreciation
50094
50975
4482349 1.14
300878
20295377 1.48
Rent Paid
10769
379355 2.84
10332
416084 2.48
Interest Paid
28054
3835182 0.73
30591
3397229 0.90
Rank
18
18
- 42 -
22
All
Number Of Factories
2393
129074
156475
Working Capital
2002-3
22
All
1.85
2428
127957
1.90
47333140
0.33
156704
44475938
0.35
64773
11923049
0.54
79307
10012110
0.79
Invested Capital
211113
67959786
0.31
206780
63747308
0.32
Outstanding Loans
106589
28977564
0.37
96259
26339233
0.37
Number of Workers
44535
6086908
0.73
52075
6161493
0.85
59809
7870081
0.76
69513
7935948
0.88
Wages to Workers
20728
3047777
0.68
23521
2968905
0.79
Total Emolumnets
36276
5833675
0.62
43838
5515801
0.79
5689
1411759
0.40
7100
1318412
0.54
19383
9198216
0.21
13260
6657582
0.20
Fixed Capital
- 43 -
Percent
Percent
Materials Consumed
202224
77501526
0.26
234037
70077245
0.33
Total Inputs
289932
103962329
0.28
321179
91618549
0.35
285247
113574250
0.25
316890
100128587
0.32
Value of Output
393661
128740055
0.31
437649
113056111
0.39
Depreciation
20131
4482349
0.45
20665
4203558
0.49
83598
20295377
0.41
95805
17234004
0.56
2458
416084
0.59
3564
379356
0.94
14443
3397229
0.43
12430
3835182
0.32
Rent Received
984
106548
0.92
954
83324
1.14
Interest Received
576
260947
0.22
1128
260313
0.43
Net Income
66696
16482065
0.40
79810
13019466
0.61
18550
1271031
1.46
17330
541866
3.20
38681
5753380
0.67
37995
4745424
0.80
5260
1318920
0.40
6954
1087077
0.64
1041
130864
0.80
492
229669
0.21
777
215599
0.36
2494
335468
0.74
(d) Total
7078
1665383
0.43
9940
1652214
0.60
45759
7418762
0.62
47935
6397638
0.75
Profits
24732
9236632
0.27
28872
6185254
0.47
Rent Paid
Interest Paid
Addition in Stock of
- 44 -
The industry has grown about 80% during the last decade,
with its overall contribution to the Indian industry in the form of
Net Value Added is about half percent.
Indias printing and related industries are predominantly
small to medium sized firms with average number of employees of
around
ten
per
establishment.
These
small
and
medium
the
dramatic
shift
of
opportunities
towards
downstream servicing.
4.3.1.1
industry
services
currently
provided
to
customers:
In addition to the traditional forms of printing, significant
opportunities are opening up as a result of the shift from the
marketplace to the marketspace. The marketplace refers to the
physical world of resources that customers can see, feel and
touch. The marketspace is the electronic and information based
- 45 -
need
for
constant
innovation
and
responses
to
Quick print
Commercial print
Direct mail
Forms
Stationery
Packaging
Services to publishers
Book printing
Security printers
Point of sale
Data management
Services Bureaus
Finishing
- 46 -
GDP
Manufacturing
Rs.
Year
Rs. In
Year
Crore
on
lakhs
on
Year
Year
NIC 22
Rs. In Year on AS %
lakhs
Year % of GDP
1999-00 1792292
2000-01 1870387
4.36 92690185
3.23 228041
-4.82 0.1219
2001-02 1978055
6.00 96245663
3.84 216821
-4.92 0.1096
2002-03 2052586
26.58 0.1337
- 47 -
0.1337
2003-04 2226041
9.63 0.1352
are
located
in
state
capitals
and
registered
and
and
Noida.
However
many
unregistered
- 48 -
Trade Trends
The analysis shows that the Indian printing industry is, to a large
measure,
domestically
based
industry.
The
industrys
Profitability
analysis
is
commonly
accepted
technique
for
from
an
industrys
operation
before
tax
and
interest/gearing.
TABLE 4.11: Profitability in the Printing Industries Is
Declining
Year
1998-99
- 50 -
1999-00
4733475
0.06
107206
83.49
2000-01
3569880
-24.58
65408
-38.99
2001-02
3488385
-2.28
41634
-36.35
2002-03
6185254
77.31
28872
-30.65
2003-04
9236632
49.33
24732
-14.34
and
responding
to
changes
in
the
business
and volume
and less so
on
- 51 -
ManufacTuring
Fixed
Capital
Profits
Return
on Fixed
Capital%
NIC 22
Fixed
Capital
Profits
Return
on Fixed
Capital%
1998-99
384802 58427
1999-00
2000-01
363506 65408
17.99
2001-02
340358
12.23
2002-03
156704 28872
18.42
2003-04
156475 24732
15.81
41634
15.18
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1998-99
NIC 22
Current
Assets
160913
1999-00
390860
162738
2.40
2000-01
71582
76170
0.94
2001-02
45510
71741
0.63
2002-03
90375
86889
1.04
2003-04
71851
77136
0.93
NIC 22
Profit
1998-99
5847
1999-00
107206
28650
3.74
2000-01
65408
13718
4.77
2001-02
41634
13678
3.04
2002-03
28872
12430
2.32
2003-04
24372
14443
1.69
4.3.3.1
Capacity Utilisation
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Technology Analysis
- 55 -
4.3.3.3
What next?
the
knowledge
management
process
by
positioning
Government Policy
Traditional
boundaries
that
existed
between
result
of
the
emergence
of
new
technologies,
continuous change has occurred with companies merging, reorganising, and re-focusing. A high level of awareness of
production costs has also resulted in higher demand for output at
lower costs, which is normal in industries reaching maturity.
Hence the need to shift to new generation products and services
based on staying close to and understanding the changing needs
of the industries customers.
Sheet fed and web presses have dramatically increased
speed of production and automatic make-ready systems have cut
times to those not thought possible even 10 years ago. The advent
of desk-top publishing has opened new horizons and expanded
rapidly from the traditional prepress companies to printers
reclaiming
pre-press
and
new
styles
of
operations.
New
4.4.2.1
Print-on-Demand
to
levels of
- 57 -
customer
profile
and
preference
information
held
on
products
personalized
sent
according
to
to
them
or
customers
products
that
are
preferences
or
requirements.
4.4.2.2
Sheetfed Lithography
Technological
innovation
will
also
see
many
significant
Web Offset
Flexographic Printing
- 58 -
issues
are
concerned
with
achieving
consistency
and
4.4.2.6
Gravure
4.4.2.7
Newspaper Printing
4.4.3
gains
sought
through
new
equipment
and
- 59 -
4.4.4
data
transmission,
greater
bandwidth),
file
- 60 -
MARKET PLACE
TO
CREATING PROJECT
DATABASE
LEVERAGING
SOURCING
CONTENT PACKAGING
ELECTRONIC
PRODUCTION
DISTRIBUTION
INTERFACE
PHYSICAL
DISTRIBUTION
MARKET SPACE
MARKET PLACE
Globalisation
economies
of
scale
become
less
crucial
for
firms
strength
of
printing
industries
has
traditionally
This
approach
helps
strategically
based
- 62 -
For
the
Indian
Printing
Industry
global
commerce
poses
of
knowledge
based
economies
providing
to
potentially
huge
global
markets
through
by
products
and
services
obtainable
in
the
international market.
The global market will inevitably become more competitive,
and the Indian printing industries will need to develop and
- 63 -
Consumers
on
how
consumers
purchase,
receive
and
store
- 64 -
new
markets
and
help
industry
become
more
- 65 -
4.4.6
Environmental Issues
through
cleaner technologies
and
environmental
- 66 -
4.4.6.1
- 67 -
international
competitiveness,
regardless
of
either
through
self-regulation
or
continuing
external regulation.
4.7 Choices for Future
In this highly dynamic world the industry faces three choices
regarding its future:
1. Stagnate and die, or
2. Maintain and survive, or
3. Grow and sustain.
The premise on which this paper rests is that it is the
responsibility of all those committed to the future of the Indian
printing industry to choose to grow and sustain. In order to grow
and sustain growth on a long-term basis, careful analysis of
intermediate and long-term market opportunities is essential.
When examining the basic dynamics of future growth strategies
for the industry, it is learnt that the product life cycle dictates
that the market for current products and services will decline
over time. Along with this the Indian domestic market will only
- 68 -
business
development
options.
By
going
- 69 -
CHAPTER V
-1-
CHAPTER V
Chapter One
capital of Rs. 5,31,049 lakhs and Rs. 7,52,581 lakhs has made
avalue addition of Rs. 3,00,878 lakhs in 2003-04.
5.1.2
Chapter Two
5.2
5.3
5.1.3
Chapter Three
and
industries
to
initiatives
achieve
that
long
will
term
position
Indian
sustainable
printing
growth.
The
understanding
of
the
existing
and potential
customer needs.
2. Appropriate use of print technology and most importantly,
3.
Patient
investment
by
firms
in
the
professional
development of people.
5.3 Conclusion
Success of printing industry in India is more likely to follow if the
conditions given below are met.
1. The firm in the industry has a clear idea of why it is in
business.
2. The firm has a clear understanding of how it fits in the broader
scheme of things, viz., the economy, the industry, etc. It
continuously monitors and reassesses the implication of change
that will inevitably occur in its operating environment.
3. The firm knows exactly who it is competing with.
4. The firm understands where value is or can be created within
the firm. The study has shown that so often, areas that can create
value in printing firms are either undervalued or not valued at all.
- 72 -
Strengths
Imaging capabilities
Uptake of new technologies by traditional printers
Expertise in the application of technology
Uptake of new technologies in a more developed form
Value of knowledge and expertise in documents and imaging
Technology convergence
Market size can facilitate closer relationship between
customer and supplier
Breadth, spread and proliferation - in every electorate
Efficiency of small companies
Flexibility of a large number of companies
Ability to source new opportunities by younger players
Modern image in design and desktop
- 73 -
Opportunities
Imaging
Benefits for commercial printing
General reduction in tariffs (cheaper raw materials)
Domestic regulations, which protects local products
Opportunities for import replacement (books, packaging)
Government purchasing policies - developing the industry
Intellectual property - closer links to customer, content
creators
Potential benefits from taxation reviews
Venture capital if taxation system changes
Potential opportunities with R & D incentive schemes
Technology now at the disposal of non-traditional printers
Customer education
New opportunities for business growth - market space,
customisation
Technology convergence
Copyright document management, records, knowledge
Recycling - if cost of technology makes it competitive
Waste disposal - new markets with disposal technologies
Environmental regulations if can be exploited to advantage
Market size can facilitate closer relationship between
customer and supplier
Quality of the product that can be produced in Australia
Commitment by industry regarding training
Intellectual Asset management - ie, records, documents
- 74 -
5.3.3
Weaknesses
structure
inability
to
keep
up
with
new
technologies
Lack of trained workforce and trainees
Inability to capitalise on value of knowledge and expertise
People displacement - inability to capitalise on people who
move on
Recycling - expense of technology, lack of markets due to
cost
Waste disposal by-product of the technology
Management skills - lack of formal trained personnel
Quality issues at times
Labour market reform still required
Career paths and industry recognition
Commitment by industry regarding training
Dominance of industry by small players (employee numbers,
size of companies)
Antagonism to new technology by older players
Inability to think long term
Lack
of
business
planning
and
vision
in
areas
of
competitiveness
Don't market the industry / firm as total process producers
5.3.4
Threats
exporting
culture
in
those
sectors
where
export
- 77 -
industrys
future
growth
and
development,
and
disseminate to industry.
F.
innovative
activities
through
networking,
cooperative
- 78 -
technologies
and
media.
This
provides
newer
and
and
developing
global
markets
for
the
industry.
4. Foreign direct investment in printing industry.
5. Addressing issues of value addition in the emerging future
by improving the competency.
6. Development
industry
of
operational
standards
and
to
benchmarks
address
for
low
setting
capacity
utilization.
7. Collection and collation of industry wide statistical
information and intelligence with a view to forecast trends
and build scenarios to identify the opportunities and focal
areas.
- 79 -
BIBLIOGRAPHY
-1-
BIBLIOGRAPHY
Books
Altman, E I (1968): Financial ratios, Discriminant analysis and
the prediction of corporate bankruptcy. The Journal of
Finance Vol 23, No 4, pp589-609.
Printing for Profit 2000, (1999), British Printing Industries
Federation, Unite Kingdom.
Carnegie, G., Jones, S., Norris, G.,Wigg, R.Williams, B. (1999).
Financial
Accounting
Financial
and
Organisational
Martin
(1995):
Analysing
Company
Accounts
by,
Wrightbooks, McGraw-Hill.
Ruddar Datt, K. P. M. Sundharam, (2004): Indian economy, S.
Chand & Company Ltd., New Delhi. Pp 639-704.
Reports
A
Unique
Printing
Association
of
Industry
Australia,
Resource
2005:
Printing
Industries
Printing
Industries
Association of Australia
An Overview of the Printing and Publishing Industry in the US,
Including Future Predictions to 2009, 2005: Business Wire,
Dec 6, 2005
- 79 -
Trends
in
Indias
Foreign
Trade,
2004:
http://commerce.nic.in/annual20045/englishhtml/content.htm.
U.S. Bureau of Labor Statistics: Office of Occupational Statistics
and Employment Projections, Suite 2135, 2 Massachusetts
Avenue,
NE
Washington,
DC
20212-0001,
URL:
http://www.bls.gov/oco/cg/home.htm.
Association Organisations
Digital Printing & Imaging Association, 10015 Main St. Fairfax,
VA 22031, Phone: (703) 385-1339, Fax: (703) 389-1336,
www.dpia.org
Federation of Societies for Coating Technology, 492 Norristown
Rd. Blue Bell, PA 19422, Phone: (610) 940-0777, Fax: (610)
940-0292,
E-mail:
fsct@coatingstech.org,
www.coatingstech.org
Flexible Packaging Association, 971 Corporate Blcd, Suite. 403
Lithicum, MD 21090, Phone: (410) 694-0800, Fax: (410)
694-0900, E-mail: fpa@flexpack.org, www.flexpack.org
Flexographic
Technical
Association,
900
Marconi
Ave.,
737-6813,
E-mail:
membership@flexography.org,
www.ffta.org
Graphic Arts Technical Foundation, 200 Deer Run Rd. Sewickley,
PA 15143-2600, Phone: (412) 741-6860, Fax: (412) 7412311, E-mail: info@gatf.org, www.gain.net
- 81 -
1335,
Fax:
(703)
273-0456,
E-mail:
sgia@sgia.org,
www.sgia.org
Society of the Plastics Industry, 1801 K St. NW, Suite 600,
Washington D.C. 20006, Phone: (202) 974-5200, Fax: (202)
296-7005, www.socplas.org
Technical Association of the Graphic Arts, 68 Lomb Memorial Dr.
Rochester, NY 14623-5604, Phone: (585) 475-7470, Fax:
(585) 475-2550, Visit us in www.taga.org
The All India Plastics Manufacturers' Association.
The All India Printing Ink Manufacturers Association.
Waterless Printing Association, P.O. Box 59800 Chicago, IL
60659, Phone: (773) 743-5677 or (800) 850-0660 (U.S. and
Canada), Fax: (773) 743-5756, www.waterless.org
- 83 -