Schawk to invest $ 20 mn in 2 years

Schawk India, a 50:50 joint venture (JV) between Chennai-based RKKR Group and Schawk Inc, a knowledge-based brand imaging solutions provider, is planning to invest $20 million and increase its headcount from 30 design and artwork professionals to around 1,000 by 2007-end.

The investments will be funded through internal accruals and will go primarily towards equipment, infrastructure and personnel costs. The company will extend its present 15,000 sq ft facility in Chennai to 60,000 sq ft by 2007-end to accommodate its planned growth.

"India is strategically important as a retail market," said David A Schawk, president and CEO, Schawk Inc, referring to the change in Schawk India's strategy to target the Indian retail and FMCG market other than serving global clients.

Going forward, the company may expand its portfolio of services to include conceptual design and photography in India. Schawk has lined up meetings with many Indian companies and MNCs to convince them to use his company's services during this visit.

Schawk Inc had set up the graphics services outsourcing company with an investment of $2 million to initially serve as an outsourcing destination to some of Schawk's worldwide clients that include Wal-Mart, Unilever, P&G, Heinz and Kellogg's.

Schawk focusses on packaging development for the retail industry which includes creative design, art production and pre-press (colour separation, image enhancement). In India, Schawk does only the art production and pre-press activity.

Schawk Inc may also exercise its option of increasing its 50 per cent stake in the JV to 90 per cent by 2007-09.