Repro India Limited · NSE:REPRO
Repro India — Book Printer's Conference (November 2011)
39 slides from Repro India's conference presentation, Nov 17, 2011
Slide 1: Vision 2017: Books for the World – Made in India
Vision 2017 Books for the World – Made in India Pramod Khera Executive Director – Repro India Ltd. 17th November 2011
Slide 2: India in the Book Printing World
INDIA IN THE BOOK PRINTING WORLD
Slide 3: Global Print Market
Global Print Market N. America, W. Europe & Asia – 90% of Global Print Market 2006 2011 (Estimated) REGION MARKET MARKET REGION MARKET MARKET VALUE VALUE VALUE VALUE (US$MILLION) (%) (US$MILLION (%) ) NORTH AMERICA 198,137 32.5 ASIA 217,004 30.0 WEST EUROPE 183,379 30.1 NORTH 214,515 29.8 AMERICA AS
Slide 4: India – Fastest Growing Print Market Globally: Increased Outsourcing trend
India – Fastest Growing Print Market Globally: Increased Outsourcing trend
Slide 5: Overview of Indian Print & Publishing Sector...
Overview of Indian Print & Publishing Sector...
Slide 6: ...Overview of Indian Print & Publishing Sector
...Overview of Indian Print & Publishing Sector
Slide 7: The Opportunity
THE OPPORTUNITY
Slide 8: Domestic Opportunity
Domestic Opportunity • India has a healthy consumption of books. The book demand in India is propelled by – The GDP growth, – The reading habits of the burgeoning Indian middle class – Increase in literacy rates and – A young and knowledge hungry population. • Publishers forecast that India will bec
Slide 9: Demographic Structure favors investment in Education
Demographic Structure favors investment in Education • India’s population in the age group up till 24 years constitutes 52% of the total population. • This showcases that more than half of the country’s population falls in the target market for providing education and related services.
Slide 10: Domestic Opportunity
Domestic Opportunity • The Indian books market, estimated to be $1.75bn in size, can be divided into two segments – – Text books ($1.2bn) and – Supplementary books ($510m). • However, private publishers have access to just 60% ($1bn) of the market given the monopoly of state boards and NCERT in 95%
Slide 11: Global Opportunity
Global Opportunity The global publishing market in the English language was approximately $270 b in 2008. The global educational publishing industry stood at approximately USD 22 billion (8%) in 2008.
Slide 12: Export Opportunity – Are we missing the boat?
Export Opportunity – Are we missing the boat? • China is investing heavily to become the largest book printers to the world • Even Thailand is home to a thriving publishing industry of 1,020 publishers and over 4,700. • Indian print exports in 2009 were worth over $1.5 billion, estimates for 2010 ar
Slide 13: The Opportunity for India
The Opportunity for India • Increasingly, global publishers are looking to India due to the country's advantages of – English language, – Digital and IT competence and – Better copyright protection environment. • Global publishers are eyeing India. – Besides print, they are also looking at India as
Slide 14: Two-Pronged Strategy for Vision 2017
TWO-PRONGED STRATEGY FOR VISION 2017
Slide 15: 2-S Strategy to address the Domestic & Exports Opportunities
2-S Strategy to address the Domestic & Exports Opportunities Solutions Scale • From Print to Solutions • Execute Large Orders • Premium pricing • Invest in new Technology • Tie-in clients • Invest in Automation – Relationships across the • Economies of Scale client's organisation • Go aggressive in
Slide 16: Solutions
SOLUTIONS
Slide 17: From Print to Solutions
From Print to Solutions • From Pre-press services to complete solutions – India is fast becoming a hub for the outsourcing of publishing and printing services. – In the case of BPO services in publishing, analysts believe the value of the industry will be $1.2 billion (€0.88 billion) in 2012. – Curr
Slide 18: End-to-end publishing services solutions – Domestic & Export Opportunity
End-to-end publishing services solutions – Domestic & Export Opportunity • Content solutions – Content Digitization – Content Conversion – Content Management – E-books • Pre press – CTP & CTF systems • Print solutions – Print on demand and Short run printing – Web offset / Sheet fed printing – Post
Slide 19: Scale
SCALE
Slide 20: Scale
Scale • India lacks capacity and scalability. • All the Indian book print firms put together are smaller in terms of capacity than say, two print book firm in China. – Leo Paper Group – which has 26,000 workers in a single factory complex; – The South China Printing Company – which has 5,000 workers
Slide 21: China vs. India – Book Exports
China vs. India – Book Exports Book Print Exports 2009: India Vs China (US $ Millions) • The Chinese firms have USA Country China $725.78 India $24.41 achieved scale. Australia Canada $58.89 $33.61 $2.06 $2.81 • In addition, the Chinese Mexico $14.17 $0.44 Singapore $8.33 $2.47 South Africa $7.60 $2
Slide 22: U.S. Print Case Study
U.S. Print Case Study A Large, Highly Fragmented Market Opportunity 2009 Total U.S. Printing Industry = The global print industry in 2009 was estimated at approx. $140.7 Bn’ $393.7 billion?, $278.3 billion excluding Newspaper .7 Bn = The US print market, excluding Newspaper, declined 13.9% Commercia
Slide 23: The Top League - Global
The Top League - Global Industry Peer Comparison in $mm Company Name Revenue EBITDA Margin Timeframe Debt pent’ RR DONNELLEY 9,816.9 1,319.9 13.4% LIM3/10 3,318.7 2.5x WORLDCOLOR 3,012.5 3720 123% LTM3/10 554.0 15x EEnscomtinental 2 2,048.8 366.6 17.9% LTM4/10 774.7 24x Pe cuadcraphics 1,776.6 313.2
Slide 24: Scale
Scale • Today Indian printers are working with the global publishers, but the numbers woefully miniscule even though each of these publishers have print budgets in the range of $ 100 millions. • In a highly fragmented industry, key book print firms have emerged and consolidated their presence. – The
Slide 25: Obstacles for Indian book print firms
Obstacles for Indian book print firms • The reasons Indian book print firms lag behind are: – Fragmented nature of the industry resulting in low scale which restricts companies from investing in automation, state-of-the-art equipment and marketing – Unbalanced trade laws – benefits for exports are n
Slide 26: Way Forward
WAY FORWARD
Slide 27: The Book City – A Billion Dollar Opportunity
The Book City – A Billion Dollar Opportunity • China printed over seven billion books in 2010; and there were about 3,30,000 titles, close to 60% being new titles. The export of books, printed in China, grew by 9% to $323 million in 2010. ... • What is India's targets for 2017? • The Book City prese
Slide 28: Book City – The Vision
Book City – The Vision • A Book City is envisioned as a place with publishers, printers, content companies, paper mills / suppliers, equipment suppliers, artists' studio spaces, innovation labs for material experimentation, technologists, educational & vocational institutes, booksellers, wholesalers
Slide 29: Slide 29
Slide 30: Book City – A partnership approach
Book City – A partnership approach In order to make the “Content and Book City” concept a reality, we are looking at a partnership approach for various aspects of the city • State Government • Entrepreneurs, Franchisees, – To provide land print companies – Utilities like electricity, water, – Produc
Slide 31: Benefits to the State
Benefits to the State • Book City is envisaged as a print services eco-system, which will bring development and employment in the area where it is set up. • In addition to direct employment generated by the content and Book City, there will be a need for a lot of ancillary services like financial se
Slide 32: Benefits to the Publishers
Benefits to the Publishers • Indian book print firms can become a one-stop solution for the publisher: right from managing the content to production to fulfillment. • With this, the publishers are free to focus on their main business, which is getting additional titles, interacting with the authors
Slide 33: The Book City – A roadmap
The Book City – A roadmap • To address the projected demand for printing services, we've conceptualised a “Content and Book City” plan, which is – An eco-system for setting up the content management and print services. • Under this concept, a core Group comprising of select top book print firms and
Slide 34: The Book City – A roadmap
The Book City – A roadmap • The core group of top book print firms, through its relationships with global publishers, will bring in business from around the globe and – The partner units will be executing the same, in addition to the business that they source on their own. • The endeavour here is to
Slide 35: Distributed Expansion
Distributed Expansion • The Book City will become the hub and in the second stage establish print clusters across different regions of the country • These print clusters will operate as outsourcing hubs for the print city • Investments in IT and content infrastructure will not have to be replicated
Slide 36: Distributed Printing Set-Up
Distributed Printing Set-Up
Slide 37: Book City and Print-Clusters: Value Added Print Solutions to Publishers
Book City and Print-Clusters: Value Added Print Solutions to Publishers • Offer total solutions for managing and distributing content in print (Offset & Digital) • Integrated content, design, production and fulfillment processes • Extensive use of the Internet & Technology to complement customer pro
Slide 38: Next Steps...
Next Steps... • Set up core team of printers • Identify Infrastructure parters • Distribute White paper to Central and State Governments • Invite print companies / Entrepreneurs to guage interest • Presentations to state governments for identifying location of Book City • Implement....
Slide 39: Thank You
pramodk@reproindialtd.com THANK YOU
Repro India — Book Printer's Conference (November 2011) on 6ix