Godrej & Boyce is diversifying from solution providers to communication solutions to stoke market growth, currently at 10 per cent per annum. The total volumes of photocopiers have slumped from 40,000 units in 1997 to 30,000 units this year.

Communication solutions is a complete package of network printers, scanning system, PC faxing, photocopiers, short messaging services, colours options. Says Godrej & Boyce Photocopiers division general manager (sales & marketing) Mr Sunil Manwati: "The government is the largest purchaser (65 per cent) of the analogue photocopiers. However, the government has slowed down on these purchases. Further, the duty on photocopiers has gone up by 1.8 per cent which has led to a market slowed down."

He further adds: "But five years from now, 75 per cent of the photocopiers market will be converted to digital mode. Currently, 97 per cent of photocopiers are in the analogue mode. The growth will come if duty levels are brought down from 74 per cent to 25 per cent later."

Mr Manwati said that the running cost of the digital mode is one-third of the running cost of the analogue mode. Thus, while the customer pays Re 1 per print in the analogue mode, the digital mode offers a better price option.

Godrej and Boyce markets 14 modular models of photocopiers. Of this, the seven new models belong to the digital mode. The price ranges between Rs 75,000 to Rs 12.5 lakh.

Modi Xerox, Ricoh and Gestetner have already introduced communication solutions in the market. Modi Xerox which is following a trend of communciation solutions since 1997 commands a leadership position with a share of 56 per cent. Another player Ricoh has a 11 per cent share, Canon has 10.6 per cent and Panasonic 12 per cent. These players introduced communication solutions in July this year.

"Godrej and Boyce has moved from solution providers to complete solutions in reaction to an increased level of competitive overtures in the market," admits Mr Manwati.

Godrej & Boyce's move is also understood to be in response to a new player in the photocopiers market - Imagestar. Northcoast Business Systems, a leading distributor of Lanier machines in the US, has introduced its wholly-owned subsidiary, Imagestar (India) Pvt Ltd, to bring in a range of Lanier products comprising photocopiers.

The capacity ranges from 13 copies to 85 copies per unit, full colour copiers; high speed, heavy-duty fax machines; and multi-functional devices which has capacity to print, copy and fax. The prices range from Rs 80,000 to Rs 10 lakh. Imagestar is also planning to diversify into communication solutions as this is what will deliver the growth in the near future.The market growth for the current year is estimated at 10 per cent. For the year end 2000, the company's photocopiers has garnered a market share of three per cent. For the year ended September 2000, the photocopiers division of Godrej & Boyce posted a turnover of Rs 25 crore and a net profit of Rs 50 lakh.

According to Mr Manwati: "The company is targeting volumes of 600 units of photocopiers in the first year of operations." Godrej & Boyce, which first started marketing conferencing products and photocopiers in 1996, re-entered the market in September 1999 after a gap of three years due to an unavailability of infrastructure facilities. For the year 1999-2000, the company has achieved a turnover of Rs 30 crore through the marketing of conferencing products. The company achieved a turnover of Rs 6 crore through marketing photocopiers and has sold 500 units in the last seven months.

Godrej sources photocopiers from NRG of UK.