"The customer is the king, and if he wants to buy an OEM cartridge, then we would be glad to sell that to him”

In India, the refilling industry is unorganized, but it is still a very big
business, estimated at over $100 million. Cartridge World is trying to give out
some structure to this situation by setting up franchisee outlets that will
offer customers a predictable sales environment as well the choice to buy
remanufactured or OEM cartridges at a single place

What services are provided at Cartridge World outlets?

At any Cartridge World outlet you can buy printers, printer cartridges of
most OEMs, as well as other storage media and accessories. However, the core of
Cartridge World's existence is cartridge refilling and remanu­facturing of toner
cartridges. We also offer free cartridge care information to our clients and as
we go forward, we are also looking at printer repairs.

What are the environmental benefits of refilling cartridges?

If you look at cartridges, a toner cartridge is said to take a gallon of oil
to manufacture, and around 450 years for a toner cartridge thrown into a
landfill to naturally decompose. Consumers are always looking at how they can
contribute to the environment, and this is a small and novel way in which a
consumer can contribute to the environment without compromising on quality and
at the same time saving on cost.

How many times can a particular cartridge be refilled?

It is very difficult to put a number to it. But on an average, a cartridge
can be refilled several number of times, if the cartridge is handled properly,
the right processes are used for refilling of the ink, and the right ingredients
are used.

Where is the refilling of cartridges undertaken?

Each of the Cartridge World outlets is a micro manufacturing unit. Here, the
whole process of remanufacturing and refilling takes place. Every cartridge that
we refill or remanufacture comes with a 100 percent money back guarantee. Also,
each of these cartridges is tested before it is given back to the customer.

Mike Fuller MD-APAC, Middle East and South Asia, Cartridge World

How big is the refilling services industry in India and globally?

We cannot put a figure to it. However, the digital imaging supplies industry
is over a $101 billion globally. Out of which, 65 percent is ink and toner and
the balance is paper and other consumables. In India, the estimates for the
toner and ink cartridges put together would be around 2,500 crore and this is
growing at about 30 percent YoY.

Any plans on the anvil for Cartridge World?

We are going to sign up with 50 franchisees by March 2008, out of which 35
stores would be already serving customers. We are looking at 250 stores by 2010.
Cartridge World is targeting

B and C-class cities in India. AFL is the master franchisee for Cartridge World
for the Indian sub-continent.

We started franchising in Australia in 1997 and in India in Nov 2006. By
2010, we will certainly be at the forefront of this industry.

Printer vendors have formed a cartel of sorts asking consumers not to
refill cartridges, and if they do so then the warranty on the printer would be
null and void. Any comments?

I have not read anything to that effect. On the contrary, I have read the
CEOs of OEMs being quoted, as saying that merely using a refilled cartridge
would not void the warranty.

However, is it not true that OEMs along with their printers add pamphlets
and stickers saying that it is better to use original ink?

They are doing their business in their own style. Whether we mind it or not,
does not make any difference. We have to carry on doing what we feel is right
and continue educating the consumer. The customer is the king. If the customer
wants to buy an OEM cartridge, then we would be glad to sell that to him.

The refilling industry in India is very unorganized at present. How is
Cartridge World trying to change this scenario?

We would encourage people to get more organized. Most of the times, when you
get your cartridge to a neighborhood shop to get it refilled, the print quality
and yield would be affected. By getting empty cartridge to Cartridge World, you
would not only save 50 percent on the cost.

The fact that most of the refilling is done unscientifically, where there is
no respect for ink or a particular process results in generic processes and
generic inks being used. All this adds up to poor print quality. The other
problem in this is you can refill your cartridge at best twice, after which you
would have to dispose off it because the right process and the right ink was not
used.

Cartridge World is not known as a brand in India. What are you doing about
this?

For a business like ours, you need a distribution strategy in place before
getting into advertisements. You need to have very deep pockets to be splashing
your brand every­where. We are currently not in that space. We believe that we
have a very interesting offer for the consumers and doing roadshows and local
neigh­borhood marketing is the right way for us to go.

We would look at advertising in a way that would do the brand well when we
have proper distribution in place. We would need to have at least around 100 odd
stores across India to even start thinking on those lines.

AFL is the master franchisee for Cartridge World in India. What role is
the master franchisee playing in the business?

Basically, what we have done to expand quickly around the world is that we
have appointed master franchisees in various countries. We are looking for
people with similar values and ideas of building a business. If we had to come
to India and do it all by ourselves, then we would not have been able to achieve
what we have achieved by having AFL as our master franchisee. The master
franchisee signs a 30-year agreement with Cartridge World after which it has the
rights to name, brand and information. The master franchisee then overlooks the
appointment of other franchisees.

Do these franchisees go through any training?

The master franchisee goes through a training period during which it learns
the philosophy of Cartridge World, what we are looking for, and how they will
expand the business. Part of the training is in India, while the other part is
done in Australia.

What is Cartridge World's USP?

Our USP is to offer quality products at a very affordable price. Also, they
should be environment friendly.

Ravish Khapra

ravishk@cybermedia.co.in