Viability high because of 500 employee strength

RMGT December 2019 results down on 2018 figures

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RMGT
RMGT 920ST 6-color sheetfed offset press

RMGT stands for Ryobi Mitsubishi Graphic Technology and is represented in India by Provin Technologies. RMGT’s financial year was changed from ending on 31 March to 31 December in 2018. Thus the figures for 2018 pertain to nine months working only.

Nevertheless a thoughtful comparison shows that the past year was not as good as 2018 for the company. In India too its number of installation decreased which is similar to each of our five manufacturers except Heidelberg which did better in the current financial year ending 31 March 2020 in comparison to the financial year ending 31 March 2019. RMGT is facing, similar to the other press manufacturers, intense price pressure on its products and like them and the industry and global economy as a whole, the effects of the Coronavirus.

However, the company with its 500 employees ranks high on overall viability amongst the global offset press manufacturers.

1. Order intake
– Fiscal period of December 2018 (for 9 months) – 13,926 million JPY Indian Rs. 906 crore
– Fiscal period of December 2019 (for 12 months) – 15,916 million JPY 1,085 crore
Note:  The above figure includes only order intake of printing presses itself and does not include any order  intake of spare parts and service.

2. Revenue. net sales
– Fiscal period of December 2018 (for 9 months) – 19,704 million JPY Rs. 1,304 crore
– Fiscal period of December 2019 (for 12 months) – 23,661 million JPY Rs. 1,612 crore
Note: The above figure includes order intake of printing presses, spare parts, service and materials.

3. The EBITDA, net profit, cash flow and payroll cost figures are not available at the time of writing for publication.

4. Payroll as of 31.12 – 500 employees

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

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