It had set a target of between 18-20 per cent growth and expected to achieve a turnover of about Rs 74 crore. However, the company is unlikely to achieve more than 10-12 per cent growth. Thus, the turnover is expected to hover between Rs 68 crore and Rs 70 crore. In the first quarter ended March 1999, Gestetner had clocked a better turnover growth. It recorded sales of Rs 22.85 crore, on which it earned a lower net profit of Rs 1.7 crore, compared with the same quarter the previous year. The sales and net profit in the corresponding period in 1998 were Rs 19.98 crore and Rs 2.3 crore respectively.

Gestetner India managing director Paul Wilkinson refused to comment about figures, but acknowledged that the growth was expected to be slower than the target. ``We havefixed a target of 18 per cent for ourselves, but the market has slowed down due to various reasons. "Things like the uncertain political situation, industrial recession and Kargil have led to a lot of decision-making being postponed in government departments, which has a bearing on our business. Hence, the end-year projection is a tough task,'' he said.

Pointing out that the office automation industry was going through a difficult phase, Wilkinson claimed that Gestetner was nevertheless beginning to make headway through its new range of products. As part of its new strategy to increase its market share and revenue, Gestetner, which has so far been focused heavily on the government sector buying, has decided to tap the corporate sector in a big way.

Government sales have been taking place at low rates, which is not found to be profitable by the company. Besides, Wilkinson feels that some of the product offerings are more specifically suited to the corporate sector. Thus, it has set up a separate team tolook after and tap the new market segment. However, Wilkinson ruled out a radical shift in the strategy. ``We are not shifting away from the government market. That is our core strength, so there is no question of deserting our traditional market. But we will look for newer strengths,'' he said.

At present, 70 per cent of Gestetner's revenues come from the government market and the rest from private education and corporate sector. Wilkinson expects the ratio to become 50:50 over the next few years.

The company is in the process of restructuring its operations into strategic business units to cover the entire spectrum of operations gradually. In June, it carved out one such SBU solely to look after its duplicators business with MK Roychowdhury as its head.

The entire team of Gestetner's regional managers is scheduled to meet in Delhi this week to reorient itself for specific product focus in the company. ``We want every piston thumping now,'' observed Wilkinson.

Gestetner India is implementing anenterprise resource planning (ERP) system, after which Wilkinson says a clearer focus of its markets can be had. It will help it clearly analyse its core strengths and identify the market share, for instance between government or private schools and banks.

Gestetner India is owned 51 per cent by Gestetner Holdings which, in turn, is fully owned by Ricoh.