Gestetner Delivers An Encore

The company has taken its performance a step up by improving profitability, as its 1996 profit before tax growth was only 31.63 per cent.

Despite the launch of new products involving additional expenditure, GIL has maintained its margin growth. The operating profit margin increased to 13.22 per cent in 1997 from 12.77 per cent in 1996, against 12.25 per cent in 1995. Sales growth was largely aided by new products. It launched two models of the copyprinter in February 1997. In the second half, it launched the 'Aficio' which is a high end digital copier, printer and fax machine all rolled in one.

This product saw Ricoh's (which has a 51 per cent equity stake in GIL) market share improve considerably in Europe. The launch of these new products enabled it to ride out the slowdown without adverse impact on its turnover.

GIL also entered into technical collaboration with Ricoh Wellinborough products for electronic duplicators. It plans to launch an electronic stencil duplicator 4130 version in April 1998. GIL will act as a sourcing base for Ricoh's global requirements. Another Ricoh company in India is RPG-Ricoh which makes photocopiers.

Ricoh has apparently taken a decision to use both these companies as competing channels to market a range of Ricoh products to be sold under different brands.GIL's performance has been much better than that of RPG Ricoh which incurred a loss of Rs 5 crore in the half year ended September 1997.