Despite impressive growth in inkjet multi-function devices, the overall printer market grew just 5.9% in FY 07 to reach Rs 1,650 crore. This is because of negative growth in both single-function inkjets as well as in dot matrix printers (DMPs). While single function inkjets showed a decline for the second year running, DMPs showed a decline after a healthy growth last year. The inkjet multi-functional devices (MFD) overtook single-function inkjets, while laser printers managed to sustain double-digit growth.

The SMB segment clearly stole the limelight as all prominent vendors targeted this segment with considerable focus. The government too has been one of the biggest spenders with several e-Governance projects launched during the year. Other factors driving sales included VAT implementations and core banking solutions implemented by the leading banks.

The printer market in FY 07 was characterized by a high growth in lasers, hi-speed impact printers and those pitched at retail. The year also reaffirmed the shift from inkjet to lasers across several segments. Lasers certainly are closing in on the gap. The increasing affordability of laser printers was one of the important factors behind this phenomenon. FY 07 can possibly be regarded as the watershed year as lasers start to become the largest selling printer segment. There is also a substantial leaning towards the multi-functional devices owing to a significant drop in price points.

DMPs Hold Ground
With the entry of the non-impact technology making its presence felt from the start of the decade, many observers yet again predicted the end of the dot matrix printer era. Interestingly in India, the dot-matrix printers co-existed with lasers and MFDs, with three out of seven companies still having their impact printer plants operational; these Indian companies being TVSE, Wipro (WeP) and Lipi.

The DMP market showed a decline of 8%, after a healthy growth of 10% last year. They recorded total sales of Rs 477 crore in FY 07 with Epson dethroning TVSE from its leadership position. Epsons market share in this segment was 39.3%. This was made possible by the launch of its DMPs with additional features like support for 10 Indian languages.

TVSE was a close second with a 35.7% share largely due to buoyant demand and repeat orders from banking, insurance, and government, besides a strong SMB demand. Some of the major orders bagged by TVSE during the last fiscal included LIC branch computerization, Indian bank, Bank of Baroda, UCO, Dena Bank and the SBI.

The government sector was once again one of the biggest spenders with a majority of the investments towards e-Governance projects including computerization of the primary education in Andhra Pradesh, Tamil Nadu and Assam.

WePs overall printer business was characterized by significant growth in its high-speed impact printer category. This included the line matrix and high-speed dot matrix range. The company launched DR400 impact printer to address the strong growth in the retail segment.

At the other end of the scale TVSE launched the Pro VX 3810, an 80-column 380 characters-per-second printer that constitutes part of the Proton range. The Pro VX 3810 is redesigned for tough Indian conditions, with even the tear bar made of stainless steel.

However the future for dot matrix does not seem bright even though the technology has managed to hold on until now. Madhan Dhandayutham, assistant manager, Peripherals Research, IDC India says: "With the rapid advent of lasers and other alternative products such as Point-of-Sale (PoS) printers, the growth opportunity for this product category looks bleak. The market is anticipated to decline marginally over the coming years due to the higher penetration of competing printing products."

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