Control Print - Deserves attention?

AR22 notes
Domestic market share: 18.5% market share

Business strategic focus:

  • Dedicated managers in sectors (Dairy, Beverages, Bakery (Biscuits), Frozen Food, Ready to Eat, Pharma, Packaging, Plywood, Lubricants, Carton Coding)
  • Increased conversion strike rate by growing sales staff for tele communicating with customers

Technology

  • Continuous inkjet (largest market share due to high speed + efficiency on any surface + low cost continuous printing)
  • Drop-on-demand (DoD)
  • Ribbon-based technology
  • CO2 technology
  • Hot roll coders
  • Laser coding and marking
  • Thermal inkjet (TIJ)
  • Thermal transfer overprinting (TTO)
  • Developed 230 ml. Maxi Cartridge. This is Unique Model with 4x ink capacity and company has applied for IP Rights
  • Implemented CRM software to centralize, optimize and streamline engagement with customers

Miscellaneous:

  • Small Character Printer (SCP): Growth was attributable to better output in sectors like dairy, healthcare, food, cable and wire, agrochemicals, pharma, paint and wood
  • Laser: Gradually expanding with improvement of product technology and a new team
  • Large Character Printer (LCP): Grew with modest improvement in cement & sugar sectors. With introduction of new applications, company is shifting attention to non- Cement industry
  • Original Equipment Manufacturer (OEM): Approach for a separate vertical for major accounts and a more focused strategy is yielding promising results
  • Impressive growth rates were registered by Thermal Inkjet Printer (TIJ), High Resolution Printer (HiRes) and the thermal transfer overprinter (TTO) divisions
  • Aspire to grow revenues to 400 cr. in 3 years, should grow sales in double digits in FY23 while maintaining 24%+ EBITDA margins
  • The newer products allow to print on any surface ensuring continuous operation
  • Invested in Innovative Codes (Chennai based) to augment offerings in price sensitive segments. Revenues: 2.18 cr., PAT: (-0.66 cr.)
  • Industry is witnessing shift towards coding and marking solutions which enables high-volume printing at high speeds (like continuous inkjet)
  • 300+ sales and service field workers spread throughout 9 branch offices in India and Sri Lanka
  • Strengthening in-house software development team to create comprehensive solutions to meet the customer needs
  • In building materials section, Company increased market share. In dairy and food sectors, Company saw increased customer engagement
  • Control Prints became the fourth Indian company to receive US FDA approval for surgical facemasks
  • In view of economic and political uncertainty in Sri Lanka, company has decided to wind-up the Sri Lanka operation
  • Export: Sri lanka, Bangladesh, Nepal, Bhutan, Kenya, Italy, Tanzania, Germany. Company has exported components used in Printer Manufacturing to its Technology Partners KBA-Metronic in Germany. Company has also started exporting components to KBA Metronic Plant in China
  • 62 contractual employees (vs 48 in FY21)
  • Contributed 1.18 cr. towards CSR (0.75 cr. in excess of required)

Disclosure: Invested (position size here, no transactions in last-30 days)

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