Ajay Mehta, MD, MCC Group spoke to Darinia Khongwir in an exclusive interview for Channeltimes
MCC Group, formed in 1912, has its head office in New Delhi with branches all over the country. MCC has worked with some of the largest imaging brands in the world and has helped these brands to create a robust sales network and presence in India. It has worked with large customers across India including Croma, Hotspot, Ezone and others. It recently tied up with DNP, Japan to bring thermal printing technology to India.
Excerpts from the chat:
How is the printing market evolving?
The photo printing business is going through a big shift. It is moving from the erstwhile silver halide technology –the use of light-sensitive paper which passes through chemicals to give you a picture. That whole technology worldwide has almost come to a standstill and it is declining rapidly in India. Now, it is moving to a new technology called the dye sublimation printing or thermal printing.
What are the reasons for this shift?
The reasons for it are because the printing on silver halide is quite cumbersome. It requires a large space and heavy machinery that is very expensive –approximately Rs 30-40 lakhs. The new technology is less expensive at about Rs 75,000. So it becomes very convenient and it is a lot cheaper.
MCC, which is an old company in the photo business, has been exploring the possibilities of bringing the new technology to the Indian channel. So, we chose to tie up with Dai Nippon Printing (DNP), as it is one of the largest manufactures of the thermal printing in the world. And they have the technology and the wherewithal for the hardware as well as the paper. MCC tied up with DNP about a month ago on October 31, 2012.
What are the trends you see in the coming years in photo printing?
The trend in terms of technology is very clear. Thermal printing will completely replace the silver halide technology. It will take a couple of years for the shift to take place.
And how extensive is this market is expected to be?
The thermal printing business is expected to grow by 100 per cent per year because the base is very small right now and the base of conversion is going to be very large. We are looking at installing the about 10,000 units in the next three years.
How has the profile of a channel transformed in the last couple of years?
The channel has consolidated largely because the photographic channel has been the same for the last 10 years. That channel per se does not exist any more. The channel has moved from the convenient photographic shop to selling multiple products. They are doing mobile phones and recharge coupons. So, the whole distribution and channels has moved accordingly. The thermal printing market is at a nascent stage. The conversion just started as this is a new technology. So, it is difficult to put a number to it.
How has that impacted your business?
I have just started the tie-up last month. So, I don’t see a large impact as of now. But the opportunity is very vast because the whole channel is available. The whole silver halide channel which existed in India is going to change. So, that’s a very large opportunity right there itself.
What are the challenges of the reseller today?
For thermal printing resellers the primary challenge is the shift in technology. The people who have been using silver halide for the last 40 years, they have to be convinced to shift to this new technology. They see the benefits but it takes time and understanding. The biggest problem is that the people who are using silver halide technology costing Rs 30 lacs, so if the technology has to be replaced they have to wait as they don’t have any resale value. So, that is the big challenge to convince them to move the machine out and put in something new.
Do you think there is change in the face of the customers today?
End users don’t really care about the technology as long he gets a quality print. So, the good news is the thermal printing technology has phenomenal quality. It is 300 dpi printer. So as far as the customer is concerned there is no big change. He is not concerned where the prints are made and how they are made.