Megtec expects to continue its growth story in India

Good service creates sales in the long term – Madhav Athalye

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Megtec
Madhav Athalye, managing director of Megtec Systems India

B&W Megtec is one of the key suppliers to the newspaper industry with its auto splicers and auto pasters. The Megtec AR35-I splicer has been particularly popular with the industry. B&W Megtec’s factory in Pune, India manufactures the AR35 splicer, which it has been supplying in increasing numbers to both Indian web offset manufacturers as well as to global single-width press manufacturers. Originally a product of Megtec Sweden, which has over 1,000 installations worldwide, the Indian version has had over 200 installations since its launch in 2009. The AR35-I splicer is aimed at newspaper and book printers as a compact yet robust kit, which allows installing and running in limited space. With a capacity to handle reels up to 1070-mm diameter, the splicer is designed for right angle installation, basement or inline to press.

The AR35-I features a splicing speed of 25 to 400 m a minute with a dancing roller system which holds web tension constant, even during splicing. It is also equipped with a control system attached to a disc brake, which ensures tension in paper web is constantly held at
preset value, irrespective of reel size and web speed. The focus is on reducing wastage of paper and also that of production time. The splicer is suitable for presses with a speed of up to 50,000 copies an hour.

While Megtec India’s revenues have been growing steadily in the last few years banking on the growing popularity of its splicers, the high growth is also due to its other environmental systems. B&W Megtec’s environmental solutions products include oxidizers, energy recovery systems, solvent recovery systems, distillation systems, scrubbers, wet electrostatic precipitators, and other equipment for industrial applications. Its engineered product offerings include integrated custom coating and drying technologies with applications ranging from digital printing to energy storage.

The current financial year has not been the best for the Indian newspaper industry, feels Madhav Athalye, managing director of Megtec Systems India. “The growth level of the industry has come down and this year it has not been very good. There are a lot of challenges for the industry at the moment of which the primary one is to sustain the growth of the newspaper industry in India. The major growth for the industry is poised to come from the non-metro locations and it is a phenomenon which is already happening at the moment. We have a strong service and support team, and we believe that it is our service which creates sales in the long term.”

On an average, Megtec India installs around 30 to 50 splicers every year—a mark they have been unable to reach this year. However, with around three more months still remaining in the financial year and a healthy order list at the moment, Athalye is confident of reaching the figure this year as well. The major part of the business for Megtec India comes from its environmental systems division. “Since our business is diversified into many divisions, the lack of growth in the printing business does not affect our overall revenue. Our environmental systems are in good demand at the moment and in the future, they are expected to perform even better,” he says.

While Megtec India’s revenues have been growing steadily in the last few years banking on thegrowing popularity of its splicers, the high growth is also due to its other environmental systems. B&W Megtec’s environmental solutions products include oxidizers, energy recovery systems, solvent recovery systems, distillation systems, scrubbers, wet electrostatic precipitators, and other equipment for industrial applications

Megtec India has been supplying its splicers to major newspaper houses in India with the notable ones being Amar Ujala, Rajasthan Patrika, Sangbad Pratidin and Lokmat. Since space is a constraint for the newspaper plants, Megtec has come up with new innovations so as to suit these requirements. Athalye says, “We have installed 4-Hi towers on top of splicers, which have been running faultlessly at Amar Ujala. We have even mounted splicers on top of splicers at Sangbad Pratidin in Kolkata as they had limited space. Overall, my feeling is that although the newspaper industry is not growing at 2006–07 levels, there is still growth in the market. Nevertheless, with our environmental systems expected to
hold us in good stead over the next few years, we expect to continue to grow well in the future,” he concludes.

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