The Hindu Business Line : WeP Peripherals fine-tunes export strategy

The dot matrix printer segment has been growing at a healthy rate both in India and overseas markets and WeP plans to double the production capacity of dot matrix printers.

Bangalore , June 20

WeP Peripherals Ltd, formerly known as Wipro e-Peripherals, is fine-tuning its exports strategy to tap emerging markets in Latin America, Africa and West Asia apart from Europe. The company has made Dubai as a hub for its international operations and plans to step up exports of dot matrix printers and UPS to these markets.

WeP entered the global market two years back and the impact has been good, said Mr Ram Agarwal, managing director and CEO.

"We expect the exports sales to account for 50 per cent of our total revenues by 2008-09," Mr Agarwal said. The exports accounted for four per cent of company's revenues of Rs 350 crore in 2005-06. Currently, the company exports dot matrix printers mainly to Europe and the West Asia.

"We expect our export sales to grow by over 100 per cent CAGR over next three years," he said. For 2006-07, the company has set a revenue target of Rs 450 crore, which includes an export target of Rs 26 crore.

"For the last three years, we have invested in making our products exports worthy," Mr Agarwal said adding the company's dot matrix printers have been RoHS (restriction of hazardous substances) certified.

The RoHS directive is expected to come into force from July 2006 and manufacturers of electrical and electronic components containing lead, mercury and chromium among others in more than permitted levels, exporting to countries in European Union have to get their products certified.

Contrary to the public perception, the dot matrix printer segment has been growing at a healthy rate both in India and overseas markets, Mr Agarwal said adding Europe accounts for 60 per cent of the company's current exports.

According to IDC, the dot matrix printer market in India grew by 18 per cent last year, whereas globally it grew by 5-6 per cent. The dot matrix printer category accounts for 40 per cent of the company's revenues.

Meanwhile, WeP plans to double the production capacity of dot matrix printers from 1.5 lakh units per annum to three lakh units at its facilities in Mysore and at Baddi in Himachal Pradesh this year.

"We expect to invest Rs 15 crore in Mysore and about Rs 6 crore in Baddi in expanding the manufacturing facilities," he said.

More Stories on : Hardware | Strategy | Outlook | Wipro Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page