Printer ribbon and IT consumables manufacturer Abee Info Consumables has entered into a joint venture with IT Image of the UK, under the banner of Abee IT India Ltd, to manufacture compatible inkjet and laser cartridges.
IT Image will hold 26 per cent of the equity through its group company, IT Image International Franchising Ltd, while Abee will hold 51 per cent. The remaining stakes will rest with venture capitalists.
"This is an unusual arrangement for IT Image," says Steve Lynch, managing director, ITIIFL, "where the indigenous partner holds the majority shareholding." This is also the first joint venture for IT Image, which has franchisee operations in other parts of the world.
IT Image will also bring in new concepts into the printer cartridge business through the introduction of practices such as collection of new cartridges, long term non-conditional
guarantees on the products, besides cost benefits of between 30-to-60 per cent over OEM prices.
Abee IT India will also act as the sole franchisee for all SAARC nations except Pakistan for all IT Image products. The new unit is also likely to act as the global sourcing centre for laser cartridges, says Lynch. "Our target market would be Europe," he says.
IT Image will provide the technology for the Rs 10 crore project. The new unit is expected to become operational by September 2000, and reach a production figure of 20,000 cartridges per month within the first year of production.
Abee Info Consumables (formerly Abee Printer Ribbons Ltd) is the market leader for dot-matrix printer ribbons (sold under the brand AbeeFill), with a market share of nearly 50 per cent. It also has a presence in Europe, Middle East, Asia Pacific and Africa, besides India.
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