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