Abhishek Goel
IBH Print and Bind
Brand new machine v/s secondhand machine? And why?
In a constraint-free world I would like to meet someone who would prefer an old thing over a new one unless the old thing is old enough to have a heritage significance. However, our world is full of constraints and our actions are dominated by external environmental factors. The single most significant external factor that governs my decision is price and that’s why I prefer an old machine over a new one. The differential between the cost of old equipment and new equipment is staggering. There is a marginal difference in the quality that is produced for the price our customer wishes to pay. Hence a secondhand machine is the way to go for the above mentioned reasons.
Reasons for growth of secondhand market in India
Print industry in India is unorganised. That’s the reason the used equipment market is flourishing. The fierce competition in the industry forces you to sell product on the cost per 1,000 units and not on its quality.
Dealer credibility and service delivery
When we buy used equipment from any dealer, we look for the manufacturing company’s service and support network in India. We ensure that the company has operations in India and can cater to all our after-sales and service requirements.
Financing secondhand machinery
It’s difficult to get funding from NBFC but banks certainly support if your credit history is good.
Print’s growth vis-à-vis new machinery
Again the answer will be standardisation of printing industry in India. The print industry is growing but government apathy towards the industry is an impediment. The government needs to be proactive in providing special incentives to the manufacturers of print equipment in India and also relax the import duty on machinery.
Falit Pandya
Print Vision
Brand new machine v/s secondhand machine? And why?
I believe both new and old machines hold their individual market share and it depends on the client’s requirement for quality, time and price. It is similar to full fare airlines and low cost airlines. If one’s preference is to purchase a low price machine with an acceptable quality, then for this purpose secondhand machines will suffice. However, if quality is of paramount importance, then a brand new machine is an easier choice.
Reasons for growth of secondhand market in India
Anyone entering this industry will mostly opt for secondhand machines, mainly because the initial investment cost is low.
Dealer credibility and service delivery
Since we are a third generation company, we have been working with a set of dealers for years and have developed faith in them. However, before buying any equipment, we have an in-house team, which is sent to check the machine. We always prefer to buy equipment after inspecting its runability and production capacity. Where support is concerned, we do not expect much from the dealers of secondhand machines. This is when the brand new machines earn its spurs as one can always procure technical support.
Financing secondhand machinery
These days, I doubt anyone with sound financial background will face a problem in procuring finance for either secondhand or brand new machines.
Print’s growth vis-à-vis new machinery
The Indian print industry has mastered the art of adapting to the client’s requirements. When the client starts expecting more and is ready to pay for the quality of the brand new machines, more printers will change track. However, people have started to realise that secondhand machines give immense downtime. These print firms will start to opt for brand new machines very soon.
Anurag Dubey
Color Photo Print
Brand new machine v/s secondhand machine? And why?
Always opt for a brand new one; keeping in tune with the latest technology proves to be efficient in the long run.
Reasons for growth of secondhand market in India
No comments on this, since I have not experienced sheetfed units.
Dealer credibility and service delivery
Services and spare parts availability becomes a problem once the manufacturer discontinues a particular model.
Financing secondhand machinery
Not all finance companies provide proper support for secondhand machines. And even when some do, the project cost is expensive because of lower depreciated value and lower tenure of the finance period.
Print’s growth vis-à-vis new machinery
I strongly believe that printers have started buying new machines and keeping themselves updated with the latest in print technology.
Pratyush Basak
Thomson Press
Brand new machine v/s secondhand machine? And why?
In the present market situation, very few customers are ready to pay the price, which will justify investment for a new machine. Interest and depreciation are the largest part of our fixed cost. To reduce this cost, we are left with no other alternative but to opt for used machines.
Reasons for growth of secondhand market in India
Mechanical machines like binding and web can be refurbished to match the original performance. But in case of a sheetfed machine, it is difficult to achieve that level of original performance. In India more and more printers are opting for used web and binding machines. Due to the economic meltdown in USA, a lot of used machines have become available at low prices.
Dealer credibility and service delivery
In India, we do not have dealers who have good facility for refurbishing machines. It is normally done by foreign companies; and our dealers get machines from them. If we have good relations with new machine dealers, they help in checking the history of the machine, which is intended to be purchased. If a machine is purchased on "as is where is basis" then no service or guarantee is expected from the dealer. But some dealers give guarantee for satisfactory commissioning of the machine. Before buying a machine a thorough inspection is necessary, a print trial too, if the machine is still on production.
Financing secondhand machinery
It is difficult to get bank or finance companies to support old machines. However, if you have a chartered engineer’s certificate followed by a good project report, it is possible to pursue bankers.
Print’s growth vis-à-vis new machinery
Growth does not mean anything. Unless price structure improves and becomes sufficient to cover 100% of fixed cost plus some mark up, it will not justify new machine purchase.
Jayraj Salgaokar
Sumangal Press
New machine is an obvious choice. But new machines entails much larger investments, which in turn means selling printed products at a higher cost. The market is still not ready for that kind of a proposition. Today many printers buy secondhand or re-conditioned machines with hardly any checks on the condition, age, configuration or technology deployed. Many a times, personal favours offered drive decision makers to overrule quality of the machine and even quantity. However, there are some printers and clients, who care for all these aspects and do not compromise on quality. These printers and clients are the future rays of hope.
Finally, our corporate governance will decide, what we deserve and what kind of reading and printed material our children will get. This holds true not only for the printing industry but for most of the products and services in the country.
Manu Choudhury
CDC Printers
Brand new machine v/s secondhand machine? And why?
This is tricky. For instance, when a secondhand car is bought, and you have the driver driving it around the city; in busy traffic conditions and returns home, saying he’s met with an accident due to the brake failure. The fault is squarely rested on the malfunctioning of the car. The owner trusts the driver more than the car. But in a similar situation where the car was new, the owner would have trusted the car more than the driver because malfunctions in a new car are generally ruled out.
Reasons for growth of secondhand market in India
Price forms the foremost dictating factor for making decisions in investing of machines. This constitutes minimum 90% of the business. Moreover, the secondhand machine dealers have interesting financing options – one which is declared and some undeclared. India is a growing market and so is the demand for printed products. If the operator in-charge is accountable with regular maintenance, 90% of the print jobs in India can be carried out without any hindrance.
Dealer credibility and service delivery
We have not purchased any secondhand machine in the last five to six years, be it press or post-press. But, from what I know, one can authenticate the dealers credentials by visits to the dealers’ warehouses and presses installed by these dealers.
Financing secondhand machinery
Do not know much about this.
Print’s growth vis-à-vis new machinery
The purchase of brand new machines will gain momentum when the print industry associates realise that a new, automated and efficient machine is actually cheaper. It is easy to procure print jobs giving satisfactory results and is able to run on a day-to-day basis.
Rohit Khanna
Creative Ideas
Brand new machine v/s secondhand machine? And why?
I would prefer secondhand machines because the cost of a new machine does not justify its revenue potential.
Reasons for growth of secondhand market in India
What you mean is, the secondhand sheetfed units have outweighted new machines. The high price of new machines coupled with high custom duties are a big deterrent. I also think that with rates that we get from our clients, it seems that a new machine in the present scenario will not be able to pay for itself.
Dealer credibility and service delivery
We have had dealings with a few of the big dealers and I must say our experience has been mixed. Only in our last transaction did we come across a dealer, Sodhisons, who was willing to share all the details of the machine. As far as support goes, it depends on the dealer you are dealing with. We were not so happy with those we dealt with earlier. Not so with Sodhisons.
Financing secondhand machinery
Now-a-days finance is available, as long as the machine is not too old and is of a reputed brand.
Print’s growth vis-à-vis new machinery
As the printers are growing and the clients are becoming more quality conscious, the need for new machines will grow. I think that if the manufacturers offer a mid-term, low interest funding option, the viability of new machines will increase tremendously. I have seen a lot of relatively new fully loaded machines coming into India recently, and expect people to move on to new machines in the next 7 to 10 years.
Apurv Garg
Brijbasi Art Press
Brand new machine v/s secondhand machine? And why?
I would prefer refurbished machines with low impression counts, over brand new machines. Today the cost of land and building has increased tremendously. Interest rates have also soared. Investing in new machinery at a huge cost could make the project unviable. It makes better sense to invest in a good pre-owned machine with reasonable automation at reasonable cost. This would take some pressure off the other expenses in the project.
Reasons for growth of secondhand market in India
There is not enough inspection on the imports of secondhand machines. The government should put a definite stop on machines which are older than 10-12 years old as it is detrimental to the entire print industry rather than doing any good.
Dealer credibility and service delivery
The used machinery dealers’ reputation depends upon the number of years they have serve the industry. The longer they serve, the better is their reputation. It is also important to consider the dealer’s background, the kind of machines they supply and how they turn out to be! I find it better to work with freelance engineers. Even the new machines, which are under warranty, remain unserviced on weekends, holidays or most evenings, in the event of a break down. We have our own maintenance department and have stocks of key spare parts. We source the rest of the spares from the company or from the spare part dealers.
Financing secondhand machinery
Yes, the process followed is the same as for the new machines. In the past, some people bought new machines while trading with the Yen currency and lost a handsome amount of money. I guess it was a gimmick from the new machinery dealers. Due to this, some printers were priced out of the market.
Print’s growth vis-à-vis new machinery
The Indian industry has fallen victim to lack of government support and increase in prices. I don’t think the print industry, particularly big printers who have already invested much, can sustain the levels of investing in brand new machines. The industry may be expanding but is not escalating in terms of value-added development. When compared to the rest of the world, you will understand better, what I am trying to say! That said, I think that it would take a visionary among small printers to opt for new machines. They have a long way to go.
Vasant Goel
Gopsons Papers
Brand new machine v/s secondhand machine? And why?
Preference for either a new machine or a secondhand one depends on the need, price and condition of the machine. If the machine you need is available in the secondhand market, and is of a relatively young age, in good condition and comes at a price difference of 30% to 50%, then the secondhand machine will win hands down.
Reasons for growth of secondhand market in India
When a good four-colour secondhand machine manufactured in 2005, with lower impression count is available at half of the given cost price, it is a good bargain. Cost price of the machine is one of the reasons for the growth of secondhand market in India.
Dealer credibility and service delivery
It depends entirely on the printing firm. The printer should collate adequate details about the dealer along with a legal contract, covering terms of purchase and service. This is vital. The other essential is witnessing of live demonstration of a running machine.
Financing secondhand machinery
Yes, banks can bring in more consolidation and aid in scaling up. But again this depends on the financial strength and the balance sheet of the printing company.
Print’s growth vis-à-vis new machinery
In my opinion, a new machine will be purchased only if there is no suitable alternative available in the market. It boils down to your ROI.
Jaimone Kuruvilla
Nectar Prints
Brand new machine v/s secondhand machine? And why?
There are many reasons why printers prefer secondhand machine to a new one. Considering the Indian market dynamics and business strategy, a printer makes his business plan keeping in mind his business prospects, competition and profits and therefore thinks of reducing overheads including his bank interest and installments. One more reason why printers prefer secondhand machine is quality. The Indian consumer is looking at reasonable quality which can be produced from a 10 year old German or Japanese machine. However, the dream of any Indian printer will be to buy a new machine at least once in his lifetime.
Reasons for growth of secondhand market in India
The Indian customer demands good quality, lesser turnaround time and a reasonable price from the printers. Having said that, in India, the main emphasis is always on price and therefore the Indian printer is burdened with a sense of cost sensitivity which pushes him to the wall. The brand new high-tech machines require trained manpower and continuous upgradation indulging high cost. The runs are small and the price is challenging, which is why secondhand machines are preferred.
Dealer credibility and service delivery
I guess it’s mostly determined by the dealer’s track record and relies on high recommendation from a friend.
Financing secondhand machinery
Banks do have reservations even when the documents are presented correctly. Recently, we installed a Heidelberg CPtronic large-sized machine and getting finance for it was troublesome. Reason: It was a secondhand machine and the finance company had doubts about the machines runability, stability etc. Though this machine was coming directly from Italy with all the documents in place, the finance company had its reservation. Finally, we pooled money from our own resources and installed the machine to commence operation.
Print’s growth vis-à-vis new machinery
True, the print industry has grown. We have grown by 25% in the last financial year. New machines are much better than secondhand ones. I guess, by the middle of this decade, we should see new machines replace the used ones. At Nectar, we are planning to buy a brand new machine in the next financial year and look expectantly for the market to respond positively.
Khushru Patel
Jak Printers
Brand new machine v/s secondhand machine? And why?
The market, which we are in, does not commercially allow us to buy a brand new machine. Hence, we are compelled to buy secondhand machines. Now, over the years, we have learned to survive in the secondhand market.
Reasons for growth of secondhand market in India
Brand new sheetfed units outweigh secondhand machines only by 20%. The major factor being lack of technical knowledge of the local suppliers to get the best out of brand new machines. Reason for growth of the secondhand market is the availability of reasonably priced machines. They are also cost-effective.
Dealer credibility and service delivery
We have never purchased a secondhand machine through a dealer. Whenever we have decided to buy a secondhand machine, we have always inspected it and picked it up ourselves. For service support, there are enough freelancers available in the market.
Financing secondhand machinery
Yes, the financial institutions offer support after verifying a company’s worth. Once they believe in you, they believe in everything.
Print’s growth vis-à-vis new machinery
Print is growing. But it’s not about how much it is growing, its about the ROI (returns on investment) on each project. The representative of the original manufacturer, many a times, becomes the deciding factor on what you opt for, a secondhand or a brand new machine.
Jeeten Bhambari
Bhambari Printers
Brand new machine v/s secondhand machine? And why?
I commenced my printing business with secondhand machines. However, over a period of time, we have moved to buying brand new machines. The reason is simple, the brand new machines increases the production level, reduces turn around time between various jobs, low maintenance cost and provides good quality.
Reasons for growth of secondhand market in India
In order to establish their business, printers generally opt for secondhand machinery. Later, when they plan to expand, they shift their vision towards brand new machinery.
Dealer credibility and service delivery
It’s a mixed bag when it comes to authenticating the dealers or the kind of service support one receives from them. One should rely on the Indian dealers at their own risk. We have had two good and one bad experience with one of the Delhi firms. We believe one can bring in secondhand machine but AMC and spare parts should be brand new and preferably original.
Financing secondhand machinery
Financing secondhand machinery depends on which bank or finance company is being approached. Keep your fingers crossed.
Print’s growth vis-à-vis new machinery
Yes, print industry is making double digit growth and one expect the positive outlook towards acquiring new machinery. It’s happening, the perception is changing. Now-a-days, the companies prefer good quality of their products and are expanding on a larger scale. The time is close at hand when new machines will clean sweep the market share.
O Venugopal
Anaswara Offset
Brand new machine v/s secondhand machine? And why?
I prefer brand new machinery because of its good performance, trouble-free running and satisfactory backup service along with consistency.
Reasons for growth of secondhand market in India
The print industry in India is unorganised and 90% of the printers fall in the small business group. There is a huge price difference between the new and secondhand machine. Despite this, most of the printers from other industries favour less investment for a maximum output: automation with affordable price.
Dealer credibility and service delivery
The goodwill of the firm is important. We can acquire the secondhand machines in two ways: with the help of the parent company or through the dealers. When machines are procured from the parent company; it is expected to consider satisfactory backup service, spare parts support and even AMC from the manufacturer.
Although there is risk involved in purchasing machines through dealers, most of the printers prefer secondhand due to its attractive prices. The printers collect feedback of the dealer from the industry and after a thorough inspection of the machine, they go for the deal.
Financing secondhand machinery
The print industry is booming with respect to technology. The financial institutions are aware of this and hence are ready to support good projects.
Print’s growth vis-à-vis new machinery
The requirement of the printed products, volume and quality are important factors in deciding whether the unit can opt for a brand new or a secondhand machine. If the market requires the volume of machines in good quality, then the printers will definitely start purchasing brand new machines. The role of a printer in this regard is a healthy development from a small to medium and later to a big set-up.
G K Deshpande
Geekay Print & Packaging
Brand new machine v/s second-hand machine? And why?
When we started off our offset print business in 2005, we opted for factory reconditioned machines. But today, I would certainly opt for new machines. There are many reasons: more features and automation, no worries on repairs for at least 3-4 years, less downtime and faster turnaround, reliable delivery, lesser dependence on operators and reduced wastage.
Reasons for growth of secondhand market in India
I think there are more buyers of used machines in India because of the improved market growth and availability of used machinery in the overseas market.
Dealer credibility and service delivery
The network of used machine sale is very bad with unprofessionals who operate without any technical knowledge. The buyer has to struggle to get repairs done. Electronic components used are not available and are often discontinued. It boils down to pure luck.
Financing secondhand machinery
Banks are supportive as long as they are safe with their investment.
Print’s growth vis-à-vis new machinery
Both, used and new machinery purchases will continue. However, I think the percentage of new machinery will increase marginally.
R Narendra
Ramya Reprographic
Brand new machine v/s secondhand machine? And why?
I prefer buying brand new machines with enhanced technology because I believe it provides high efficiency and performance. Also, I am given a fixed guarantee for the life of the machine (a minimum of 10 years). Apart from the guarantee, I will be assured of prompt service, availability of spares and above all company trained engineers available 24x7.
Reasons for growth of secondhand market in India
New machines costs more and hence higher finance requirement at high interest rates, which in turn means high installments to pay. Also the custom duty on a new machine is comparatively higher than other countries.
Dealer credibility and service delivery
By and large the sale of secondhand machines are carried out by machinists who are familiar in the market. Nevertheless, there are also dealers who have been in the business for long. Even manufacturers like Heidelberg, Komori, Mitsubishi sell refurbished machines with 100% guarantee and AMC.
Financing secondhand machinery
The banks and financing firms offer loans against 100% collateral at a higher rate of interest.
Print’s growth vis-à-vis new machinery
The gen-next is academically qualified and are aware that in order to get an edge over competition in the print market, quality and timely deliveries are essential and hence would prefer new machines only.
Kirit Faldu
Positive Point Graphic
Brand new machine v/s secondhand machine? And why?
I would prefer a brand new machine. You get the latest technology with a new kit, which a secondhand machine may not offer.
Reasons for growth of secondhand market in India
Cost is a major factor affecting sales of brand new machines in India. The capital investment soars.
Dealer credibility and service delivery
I think credibility is known through actual users. Not sure about service support for secondhand machines. However, dealers of new machines provide excellent support and after-sales services.
Financing secondhand machinery
Yes, I think banks and finance companies offer reasonable support for secondhand machines.
Print’s growth vis-à-vis new machinery
The industry will soon start purchasing new machines. However, there will always remain a market for secondhand machines.
