Post on 24-Dec-2015
Shuttleworth Business Systems’Shuttleworth Business Systems’experiences experiences
in the in the Indian MarketIndian Market
Shuttleworth Business Systems’Shuttleworth Business Systems’experiences experiences
in the in the Indian MarketIndian Market
• Formed 1981• Market leaders in MIS for the Printing Industry• £4,000,000 turnover (2006)• UK market is mature• Consolidation amongst MIS suppliers
• Shuttleworth acquired 3 companies in last 5 years
• Clients in South Africa, Kenya, UAE, Sri Lanka• All managed from UK• Agent in Ireland• Other European distributors
• Poor experiences
• Formed 1981• Market leaders in MIS for the Printing Industry• £4,000,000 turnover (2006)• UK market is mature• Consolidation amongst MIS suppliers
• Shuttleworth acquired 3 companies in last 5 years
• Clients in South Africa, Kenya, UAE, Sri Lanka• All managed from UK• Agent in Ireland• Other European distributors
• Poor experiences
• DRUPA 2004
• 2nd highest number of visitors to the Shuttleworth booth
• Curious
• Investigate
• DTI assistance
• Stroke of luck
• Market Research
• DRUPA 2004
• 2nd highest number of visitors to the Shuttleworth booth
• Curious
• Investigate
• DTI assistance
• Stroke of luck
• Market Research
Why India?
Market ResearchMarket Research
• British Consul undertook study of Indian Market
• Gave us the confidence to investigate personally
• British Consul arranged meetings with Indian Printing Companies September 2004
• Seminar arranged in Bangalore• Led to meeting with printer following day
• Report for Shuttleworth Board and DTI
• Decision to look for Distributor• Logistics of dealing with India determined need for Distributor• Couldn’t handle directly
• Search for Indian Distributor
• British Consul undertook study of Indian Market
• Gave us the confidence to investigate personally
• British Consul arranged meetings with Indian Printing Companies September 2004
• Seminar arranged in Bangalore• Led to meeting with printer following day
• Report for Shuttleworth Board and DTI
• Decision to look for Distributor• Logistics of dealing with India determined need for Distributor• Couldn’t handle directly
• Search for Indian Distributor
Distributor choiceDistributor choice
• 3 options• 1 Delhi based• 2 Bangalore Based
• Chose Infosense Technologies • November 2004
• Why?• Closest fit to Shuttleworth
• Business built around support• Dynamic CEO• Prepared to build a team for Shuttleworth project• British owner
• Trust!
• 3 options• 1 Delhi based• 2 Bangalore Based
• Chose Infosense Technologies • November 2004
• Why?• Closest fit to Shuttleworth
• Business built around support• Dynamic CEO• Prepared to build a team for Shuttleworth project• British owner
• Trust!
More market researchMore market research
• Series of Seminars with Infosense in March 2005• Both parties needed to be sure!
• Agreed strategy for partnership
• Signed agreement May 2005
• India Recruitment started
• 3 x Indian staff in UK for training July 2005• Sales, Implementation and Support staff
• UK team of 3
• Launched Shuttleworth/Infosense at Exhibition in Bangalore September 2005
• Series of Seminars with Infosense in March 2005• Both parties needed to be sure!
• Agreed strategy for partnership
• Signed agreement May 2005
• India Recruitment started
• 3 x Indian staff in UK for training July 2005• Sales, Implementation and Support staff
• UK team of 3
• Launched Shuttleworth/Infosense at Exhibition in Bangalore September 2005
Indian Market SummaryIndian Market Summary
• 135,000 printers• UK Market 7,500
• 300,000,000 middle class• Drive demand for print
• Massive overseas inward investment• Drive demand for print
• 30% Growth p.a. in packaging sector
• 15% Growth p.a. in commercial printing sector
• Need systems to control costs
• 135,000 printers• UK Market 7,500
• 300,000,000 middle class• Drive demand for print
• Massive overseas inward investment• Drive demand for print
• 30% Growth p.a. in packaging sector
• 15% Growth p.a. in commercial printing sector
• Need systems to control costs
Results to dateResults to date
• 3 systems sold in first 3 months• Implementation challenge!
• 4th system Mid 2006
• 5th system March 2007
• Recent visit met with half of country’s top 20 printers
• Moving towards orders from many of them
• Projected £100,000 p.a. on bottom line by end 2008
• 3 systems sold in first 3 months• Implementation challenge!
• 4th system Mid 2006
• 5th system March 2007
• Recent visit met with half of country’s top 20 printers
• Moving towards orders from many of them
• Projected £100,000 p.a. on bottom line by end 2008
Barriers faced in IndiaBarriers faced in India
• Software• Coping with Indian Tax laws
• Integration into India’s leading Accounts system
• Market• Pioneer
• Educating market
• Obsession with price
• People• Problem the world over
• Some can be trusted, some can’t
• This applied to both teams – UK and India
• Software• Coping with Indian Tax laws
• Integration into India’s leading Accounts system
• Market• Pioneer
• Educating market
• Obsession with price
• People• Problem the world over
• Some can be trusted, some can’t
• This applied to both teams – UK and India
Positives about IndiaPositives about India
• People• Warm, welcoming and friendly• Genuinely a pleasure to visit
• English is the language of business
• No local competing products • Yet!
• Massive potential market
• Be prepared to ride the wave
• People• Warm, welcoming and friendly• Genuinely a pleasure to visit
• English is the language of business
• No local competing products • Yet!
• Massive potential market
• Be prepared to ride the wave
If I could do it all again, what would I do differently?
If I could do it all again, what would I do differently?
• No changes to Market Research
• Get the maximum financial help from UK Government
• No changes to our Distributor
• Had a more mature UK team structure• Great opportunity
• Use experienced staff
• Investigated Taxation issues earlier
• Driven them harder from the UK during 2nd 12 months• 4 month gap during autumn 2006
• No changes to Market Research
• Get the maximum financial help from UK Government
• No changes to our Distributor
• Had a more mature UK team structure• Great opportunity
• Use experienced staff
• Investigated Taxation issues earlier
• Driven them harder from the UK during 2nd 12 months• 4 month gap during autumn 2006
ConclusionConclusion
• The market is developing quickly
• Be thorough in the Market Research
• Revenues developed there will replace lost business in the mature UK market
• Be prepared for hard physical work
• Work with people you can trust
• Be positive about your product and your skills
• It will succeed
• The market is developing quickly
• Be thorough in the Market Research
• Revenues developed there will replace lost business in the mature UK market
• Be prepared for hard physical work
• Work with people you can trust
• Be positive about your product and your skills
• It will succeed