Ricoh mulls local mfg; aims Rs 4,000-cr turnover by FY17

Imaging solutions provider Ricoh India today said it is targetting a turnover of Rs 4,000 crore by March 2017 and evaluating plans to set up a manufacturing plant in the country.
"The proposal for setting up manufacturing plant is under consideration and we are working on it... That is one project we are evaluating feasibility of," Ricoh India Managing Director and CEO Manoj Kumar told PTI.
He said once the in-principle go-ahead is received from global headquarters, the investment details will be known, Kumar said when asked how much the firm plans to invest for setting up the facility.
"It's a very major decision because setting up a manufacturing plant requires a lot of investment not only in terms of finances but in terms of time, logistics everything, besides we are also evaluating if we along with India, could manufacture for supply to the neighbouring countries," Kumar added.

He said the company, part of Tokyo-based Ricoh Group, is growing at a compound average growth rate (CAGR) of 55-60 per cent and targets to achieve a turnover of Rs 4,000 crore by March 31, 2017.
"Our turnover was Rs 1,000 crore in 2014 and we would make it Rs 4,000 crore by the end of March 31, 2017 that translates into CAGR of 55 to 60 per cent," Kumar added.

The company achieved a turnover of Rs 1,637 crore in FY15.
Asked about the government's 'Make in India' initiative and incentives given to companies for manufacturing locally, Kumar said the government is striking all the right moves and the firm is very much satisfied with the policies.

"Because of the will that the government demonstrated in making 'Make in India' a reality, we are now evaluating these plans. Otherwise, we were not considering that," Kumar added.
Asked if the company has identified a place to set up the facility, Kumar said the company has a site already available in Gandhinagar where they are carrying out limited manufacturing operations but he said that it is not final if that could be used for setting up the manufacturing plant.
Ricoh India had bagged Rs 1,370 crore order from Department of Post, to provide rural ICT solution and first phase for the project will commence next month.

He said the company is also in talks with various state governments regarding ICT projects. IT services contribute about 60 per cent to the overall revenue of the company.