Ricoh India revival plan contested by Kotak Investment Advisors

Postscript – Ricoh India resolution-revival

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Ricoh India Ricoh Pro c7100x in Mumbai (2016)
Ricoh India's install base includes digital production presses. Shown here is Nor Enterprise’s Nitin Nor with his newly installed Ricoh Pro c7100x in Mumbai in 2016. Photo IPP July 2016

News comes to us that the resolution of the Ricoh India insolvency and revival plan could take a bit longer. The resolution plan of the Dharamshi-Jhunjhunwala consortium approved by the NCLT in Mumbai is being contested by Kotak Mahindra’s private equity investment arm, Kotak Investment Advisors.

On 11 December 2019, Kotak Investment Advisors challenged the NCLT ruling in the Bombay High Court, arguing that the entire resolution and revival plan was flawed. KIA’s plea to the NCLT was rejected as was its appeal to the Mumbai High Court, which ruled that “the petitioners have an ‘alternative’ and equally efficacious remedy’ of appeal to the NCLAT.” There are indications that KIA may move the Supreme Court challenging the approved bid of the Dharamshi-Jhunjhunwala led consortium.

The battle to be the Indian lead partner in Ricoh India’s revival is because it is seen as a technology company with substantial revenue potential. While it suffered governance issues and losses of Rs. 1,123 crore in Financial Year 2014-15, the company won a project to digitize 130,000 post offices across India in late 2014 that is said to be still under implementation. 

The company has a significant installed base of equipment, including digital production presses in the country on which it continues to earn maintenance and consumable annuity income. In FY17-18, it reported a revenue of Rs. 680 crore and a net loss of Rs. 894 crore. While Ricoh India has considerable debt, it is reportedly, mostly, to its parent company in Japan.

In 2024, we are looking at full recovery and growth-led investment in Indian printing

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. It created the category of privately owned B2B print magazines in the country. And by its diversification in packaging, (Packaging South Asia), food processing and packaging (IndiFoodBev) and health and medical supply chain and packaging (HealthTekPak), and its community activities in training, research, and conferences (Ipp Services, Training and Research) the organization continues to create platforms that demonstrate the need for quality information, data, technology insights and events.

India is a large and tough terrain and while its book publishing and commercial printing industry have recovered and are increasingly embracing digital print, the Indian newspaper industry continues to recover its credibility and circulation. The signage industry is also recovering and new technologies and audiences such as digital 3D additive printing, digital textiles, and industrial printing are coming onto our pages. Diversification is a fact of life for our readers and like them, we will also have to adapt with agility to keep up with their business and technical information needs.

India is one of the fastest growing economies in nominal and real terms – in a region poised for the highest change in year to year expenditure in printing equipment and consumables. Our 2024 media kit is ready, and it is the right time to take stock – to emphasize your visibility and relevance to your customers and turn potential markets into conversations.

– Naresh Khanna

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