CHAPTER ONE: INDUSTY PROFILE

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 Printing Industry

News Papers Magazines

Others
Books (post cards-memos-
business order forms)

1.1 Introduction:

Printing Industry encompasses numerous fields of every economy. Printing Industry

generates a wide range of products which require in every step of our everyday life. Starting
from Newspapers, Magazines, Books, Post Cards to Memo Pads and Business Order Forms
each are the products of Printing Industry. Other than the direct contributions, there are many
indirect influences of Printing Industry up on the economy. This is because, all the activities
like Binding, Embossing which generate considerable amount of income and employment are
related closely with the Printing Industry. Packaging industry and Advertising Industry in
many ways depend on the Printing Industry.

Trend:

Printing Industry Trends has been very significant over the years. This trend is actually the
force that is determining the future of Printing Industry. The increasing use of Internet in the
publishing world has brought a revolution in the Printing Industry. Remote Distribution of
Data and Variable Data Printing has been possible by the use of Internet.

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The special ability of Internet of distributing large quantities of data to diverse locations
bridged the gaps of Printing Industry. Earlier, almost all printing work was used to be done
through press. But, in today's world of technological advancement, many printing work is
done from customer's home printer.

Internet publications have opened a new horizon for printing industry. The Publishing
Companies are realizing that it is better to distribute data through Internet in the first step and
to print them in the second step. This is because if they carry out the traditional process of
firstly printing and then distributing then it may generate much more costs. So, in this
context, the biggest challenge faced by the companies which operate through Printing Press is
of lowering costs.

Technology:

The pressure of lowering costs has risen more because of the recent technological
advancements which have invented the concept of e-commerce. E-Commerce has lowered
administration costs and the proofing time. To keep pace with these emerging technologies,
the Printing Industry has now concentrated on Digital Printing. But this advent of
technology in the field of printing is killing the Cottage Print Industry. According to
survey, the number of companies in the cottage print industry is going to decline sharply
within 2010. But as a whole we can say that Printing Industry has already ridden a growth
wave through technological innovations and further growth can come only through new
innovations and high level of productivity.

Growth:

Printing Industry Growth is an outcome of different actions and reactions which took place in
past few decades all over the world. In most of the cases, growth of any industry is driven by
the increase in demand. The Printing Industry is no exception. The Growth of Printing
Industry has taken place due to rising demands for printed products. Now if we want to find
the reason behind this increase in demand we will find several factors. Among these, the
main factors are Overall Economic Growth, Population Growth, Increasing Advertising
Expenditures and the Advent of Internet. If we go through detailed analysis, we will find that
there have been some key changes in the Printing Industry in the last two decades. To
understand the Printing Industry Growth we need to discuss these changes in details.

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The main changes which contributed significantly to Printing Industry Growth are the
following:

 Desktop Publishing-This introduced Typographic Print put in place of traditional

Typewritten Print out.
 Personalization of Data-This introduced use of specific data to generate printed items.
This was possible due to increasing use of personal computers and personal printers.
 Digital Printing-This introduced Toner based and Inkjet based technology. Digital
Printing also holds Variable Data Printing Capacity.
 E-Commerce-E-Commerce has given the relationship between buyers and sellers a
new dimension. E-Commerce or E-Business has strengthened the business
communications and has contributed significantly to Printing Industry Sales.
 Use of Color-In the past decades most of the printing work was done in Black and
White. But, in the present era use of color has risen tremendously in the print medium.
Newspapers, Magazines, Catalogs Printers have shifted to color reproduction.
 Distributed Production- The production process has changed immensely. From the
Press Centric Production the Printing Industry is slowly moving to Printer Centric
Production.

The journey of Print Media:

59 BC Caesar orders the publication of events in Rome

748 First hand written newspapers - China

1440 Guttenberg develops wooden printing press

1502 First mass produced news report – Zeitung

1653 First double column paper – Oxford Gazette

1702 First daily newspaper – Daily Courant

1731 First magazine published – Gentlemen’s Magazine -Scotland

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1833 The Penny Press - $.01 newspapers

1845 Paperbacks appear in America

1880 First photographs in newspapers

1909 Conde Nast buys Vogue, and transforms it into a photo fashion monthly for up market
women.

1.2 : Indian Printing Industry:

India is one of the fastest growing print media markets in the world. In 2001-06, the Indian
print industry grew at an 8.8% CAGR, against 1–3.5% growth for most other markets
globally over 2001–06. Going forward, we expect strong economic growth, rising incomes
and rising literacy levels to accelerate India’s print media industry growth. . India is one of
the few markets in the world where newspaper readership is growing, driven by rising
income levels and increasing literacy. In addition, there is a literate population of about 300m
who do not read newspapers, which provides for opportunity of growth in readership.

While print may be losing out to television and the Internet in other countries, in India the
print media industry (including newspaper and magazine publishing) is buoyant and is
expected to grow at a 13 percent cumulative annual growth rate over the next five years. With
readership (222 million adult readers) growing at a fast pace, the industry is estimated to
almost double from its current size of US$ 3.2 billion to US$ 5.80 billion by 2011. This
growth is being attributed to two distinct factors; Indian government liberalizing laws
pertaining to foreign investment in Indian publishing companies and the Indian economy’s
fast growth in English-educated middle-class citizens with increased disposable incomes.

Global media companies are now eyeing the Indian market and are actively seeking entry
through collaborations and joint ventures. A number of Indian versions of international
publications (franchises of the original) have entered the Indian market, including Elle,
Cosmopolitan, Scientific American, Good Housekeeping and Maxim.

Growth in India’s print and publishing sector is assured in the years to come due to the
growth in the literacy levels in both urban and rural India. Laws to protect intellectual

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property (IP) rights are also now in place in India. Although enforcement of the laws at local
levels needs drastic improvements, IP theft in India is much lower as compared to other
emerging markets. Consequently, interested American publishers should consider entering
the Indian market.

Strong growth — Indian print media grew at a CAGR of 8.8% over the last five years, ahead
of the 1-3% growth for most markets globally. We expect Indian print media growth to
accelerate to a CAGR of 14.8% over FY06-11E on a strong macro environment, rising
incomes, improving literacy and media penetration.

Advertisers turning to smaller towns —

Rising affluence in non-metro cities is driving advertisers to increasingly allocate higher

budgets to non-metro/regional newspapers. Advertising rates for regional papers, which have
been at a steep discount to metro (typically English) newspapers, have now started to catch
up.

Mismatch between circulation & advertising share: Hindi and regional

languages have a 25% share each in the Indian advertising revenue pie,

despite their clear leadership in circulation and readership. English

newspapers command higher advertising yields and more than a 50% share of the advertising
pie. We believe this mismatch will eventually narrow as highgrowth industries such as
financial services, retail, real estate, etc, increasingly use print to target Tier II and Tier III
cities for growth through focused, cost effective advertising.

Faster print media growth in non-metro towns: Non-metro and smaller towns are subject
to stronger growth in print media compared to the larger metro cities. This, however, is
changing. Based on our estimates and using local language newspapers as a proxy for non-
metro advertising, the share of advertising for local language newspapers has increased to
45%, from about 30% about seven years back.

Market Demand:

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The vibrant Indian print industry, comprised of newspaper and magazine publishing,
generates a turnover of around US$ 3.20 billion annually and ranks third in the world in
number of English publications per year (after the United States and United Kingdom).
According to estimates in a report published by the Federation of Indian Chambers of
Commerce & Industry (FICCI) and PricewaterhouseCoopers, this industry is projected to
grow from its present size to around US$ 5.80 billion by 2011. Lower cover prices,
spreading literacy and rising incomes have translated into rapidly growing newspaper and
magazine sales. Including several new publications released in recent years, both the
newspaper and magazine industries are expected to show a healthy growth rate as provided in
the table below.

Newspaper Magazine Total print media

Reach (# of readers) 204 million 68 million 222 million

Size current (2006) in US$ 2.79 billion 0.32 billion 3.20 billion

Size estimated (2011) in US$ 5.04 billion 0.76 billion 5.80 billion

Leading print media players are enjoying revenue growth of between 20 and 30 percent,
contrary to the worldwide trend of print losing to television and the Internet. Print continues
to dominate advertising revenue in India. Its market share is almost 50 percent, which
amounts to US$ 1.95 billion.

Market Data:

A booming Indian economy, growing need for content and government initiatives that have
opened the sector to foreign investment are factors driving growth in the print media. With
the literate population on the rise, more people in both rural and urban areas are reading
newspapers and magazines. The industry has a potential to grow still larger as 360 million
people in India are do not subscribe to any publication.

The National Readership Study 2006 (NRS 2006), conducted annually in India by the
National Readership Studies Council, is the largest survey of its kind in the world. One of the
main objectives of this survey is to estimate the readership of publications. The study covers

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535 publications (of which 230 are dailies and 305 are magazines) and provides a very good
view of the readership patterns in India and future trends. Some key findings of the NRS
2006 follow.

The reach of the press medium (dailies and magazines combined) has increased from 216
million to 222 million between 2005 and 2006. As a proportion, however, press reach has
stabilized in urban India at 45 percent and in rural India at 19 percent. Dailies have driven
growth in the press medium, with their reach increasing when measured as a proportion of all
individuals aged 12 years and above. Magazines have declined in reach from 9 percent to 8
percent over the last one year. Time spent reading has increased in urban India (from 41 to 44
minutes daily) and decreased slightly in rural India (from 36 to 35 minutes daily). Literacy as
measured in the NRS 2006 has risen slightly to 71 percent, giving an additional small boost
to publishers. Press (dailies and magazines combined) added 7 million readers over the last
year. Apart from news and politics, sports is the topic of most interest among readers, and is
followed by coverage of films and television soap operas.

Best Prospects:

As readership increases in India, the demand for foreign publications has expanded as well.
Import statistics for printed books and newspapers for the past two years follow:

Imports $ (in million) % change

2005-2006 372 30

2006-2007 450 21

What makes Indian print market unique?

1. Highly fragmented nature

India’s print media industry is highly fragmented, with more than 8,500 daily newspapers
published across the country. The print media has a total readership of around 215m.

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Vernacular newspapers have the highest readership, followed by Hindi newspapers (9.2%
readership) and English newspapers (2.7%).

2. Mismatch between advertising & circulation

Regional newspapers are leaders in circulation and readership...

Indian newspapers can be segmented into English and regional (Hindi and local language
newspapers).

...but English newspapers dominate the advertising pie

Despite clear dominance of the circulation and readership charts, regional newspapers’ share
in the total print industry and specifically advertising pie is disproportionately low. This skew
has traditionally existed as the income level and purchasing power of a regional
language/Hindi newspaper reader is typically low and hence is not the target of many
advertisers. English newspapers' advertising rates are at a 35-60% premium to local language

newspapers. Industry sources indicate that English newspapers have a 50% market share of
total print advertising and Hindi and local language newspapers have a 25% share each.

3. Print media in non-metro towns growing faster

Non metro and smaller towns are witnessing stronger growth in print media compared to the
larger metro cities. Traditionally, large metro cities, which also tend to have high percentage
of English newspaper readership, have commanded significant advertising rate premium over
non-metro newspapers, owing to superior per capita incomes and higher growth potential.

1.3 Industry Trend : Print Media

The print media industry recorded an impressive growth of 15%, significantly higher than
any other country in the world in the four years spanning 2003-2007.. Magazine publishing
grew at a rate of 15%, relatively less when compared to news papers which grew at 17%.
The size of the magazine publishing industry was estimated at Rs 19 billion in 2007, which
grew from 16.5 billion in 2006, registering a growth of 15%

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 Newspaper Magazine

Growth in Avg ads per day 33% 69%

( English)
Language wise share of 33% 69%
News papers and Magazines
( English)

Media ad Volumes : Top Category

1) Educational Institutes 150 (col*cms in lakhs)

2) properties real estates 67

Media ad volumes : Top Brands

1) IIPM 11 (col*cms in lakhs)

2) Tata sky 9

Outlook for the 5 year period : 2008-2012

The Indian print media industry is projected to grow by 14% over the next 5 years, reaching
to Rs 281 billion in 2012 from 149 billion in 2007. The advertisement segment is projected to
grow at 16%

1.4: NEWS PAPER:

History:

The Newspaper as we know it today is a product borne of necessity, invention, the middle
class, and democracy, free enterprise and professional standards. Choose the historical
marker to begin the history of newspaper. The first new sheet? The first newspaper? The first
daily newspaper? Pre history ‘newspaper’ was one-to-one in nature. The earliest variation on
a newspaper was a daily sheet published in 59 BC in Rome called Acta Diurna [Daily
Events], which Julius Caesar ordered posted throughout the city. The earliest known printed
newspaper was in Beijing in 748.

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In 1451, Johannes Gutenberg uses a press to print an old German poem, and 2 years later
prints a 42-line Bible, the significance being the mass production of print products, ushering
in an era of newspapers, magazines and books. By 1500, the genesis of a postal system can be
seen in France, while book publishing becomes popular throughout Europe and the first mill
can be found [England].

Zeiung [Newspaper] is a news report published in Germany in 1502, while Trewe Enountre
becomes the earliest known English-language news sheet in 1513. Germany’s Avisa Relation
order Zeitung, in 1609, is the first regularly published newspaper in Europe. 44 years after the
first news paper England, the Oxford / London Gazette is considered the first true newspaper.
The First North American newspaper, Public Occurrences both Foreign and Domestic, was
published in 1690 in Boston.

The 1700s was a century in which market elements were created that encouraged the
development of daily newspaper: rising literacy, the formation of nation-states, a developing
postal system, the proliferation of urban centres, a rising literacy and philosophical tradition
emphasizing involvements of government, and technologies that supported news paper
production. In short, it was great news century. The first daily S Courant in London, 1702. In
174, he daily Advertiser in London uses the first four column format. France’s first daily
newspaper appears in 1777, Journal de Paris, while the first United States daily was the
Pennsylvania Packet in 1784. The rise of the middle class transformed newspapers in the
1880s. A penny buys a New York newspaper in 1883, opening of the first mass market for
newspaper. In 1847, the telegraph is used as a business tool, transforming for-away stories. In
1873, an illustrated daily newspaper can be seen in New York. In 1878 the first full page
newspaper advertisements appear, and in 1880 he first photographs are seen in newspaper,
using halftones.

With the basic technology ground work for the modern newspaper in place by the late 19th
century, the story of the newspapers in the 20th century was about professional development
and adaptation to changing consumer and media markets. The story also involved an evolving
business model that rode an ever growing wave of mass market advertising. Increased
profitability and higher revenues attracted publicity owned corporations interested in buying

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newspapers from descendents of company founders, while simultaneously exposing
newspapers to the whims of cash and profit hungry stock markets.

By 2000, newspapers were juggling priorities: fragmentation of news consumption,

fragmentation of advertising investments, the advantages of being a mass medium, balancing
the wants of the market place with the company’s duty to provide the needs of the market
place, a journalize backlash changes, the sheer physicality of ink-on-paper production and
distribution versus digital distribution, increasing profit pressure surrounding the core
product, and extension of the company’s core brand into other profit centres.

1.5: MAGAZINE

Definition of magazine:

A magazine is a periodical publication containing a variety of articles on various subjects.

Magazines are typically published weekly, biweekly, monthly, or quarterly, with a date on
the cover that is in advance of the date it is actually published. They are often printed in color
on coated paper.

Magazines usually have articles on popular topics of interest to the general public and are
written at the reading level of most of the population. An academic periodical featuring
scholarly articles written in a more specialist register is usually called a "journal."
"Periodical" is the word usually used to describe magazines, journals, newspapers,
newsletters, and anything else that is published in regular intervals for an indefinite period of
time, but "Serial" is sometimes used, especially in librarianship.

News magazine:

A newsmagazine, sometimes called news magazine, is a usually weekly magazine featuring

articles on current events. News magazines generally go a little more in-depth into stories
than newspapers, trying to give the reader an understanding of the context surrounding
important events, rather than just the facts.

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History of magazine:

The Gentleman's Magazine, first published in 1731, in London, is considered to have been
the first general-interest magazine. Edward Cave, who edited The Gentleman's Magazine
under the pen name "Sylvanus Urban", was the first to use the term "magazine", on the
analogy of a military storehouse of varied materiel, originally derived from the Arabic
makazin "storehouses".[1] The oldest consumer magazine still in print is The Scots Magazine,
which was first published in 1739, though multiple changes in ownership and gaps in
publication totaling over 90 years weaken that claim. Lloyd's List was founded in Edward
Lloyd’s England coffee shop in 1734; it is still published as a daily business newspaper.

1.6 Others

This Others include everything other than Newspapers, books and magazines like :

 Mugs
 Labels
 Bags
 Brochures
 Business Cards
 Calendars
 Canvas Prints
 Caps
 Idol Card Holders
 Chopping Board
 Desk Stands
 Hoodies, T-Shirts & Jackets
 Envelopes & Greeting cards
 Mouse Pads
 Notebooks & Notepads
 Pen Drives & Pens
 Bottle Printing

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Threats to the Printing Industry:

Radio (FM)

Talk radio allows consumers to listen to views on political, social, or sports topics.
Consumers can interact and voice their opinions on issues.

Broadcast and Cable Television

 24 hour news channels cover stories in depth and break news instantly
 Video presentation is more entertaining to the mass society

Internet

 News consumers can seek out the stories that interest them
 Consumers can interact and voice their opinions on issues

1.7: Federal publishing policy:

Publishing was hitherto a protected sector. The country has now opened the doors for
international publishing companies to come in with equity participation in varying degrees.
The recently announce policy allows foreign equity up to 74percent in non –news- based
publishing companies in the country. On the news side, it is limited to 24 percent. Local
established publishing companies are restructuring their respective businesses to
accommodate foreign equity investment accordingly.

However, there is no clear policy defined for investment in directory and custom publishing
agencies in India. Directory publishing companies can safely be 100 percent owned y foreign
companies. In case of custom publishing, since the titles are/ would be owned by Indian
companies, these companies technically would not be subjected to foreign investment
limitations.

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Publishing overview:

The ‘News & views’ publishing sector in India can be broadly classified along general news
dailies, business dailies, general news magazines, especial interest magazines and B2B
(trade) magazines.

The market of general news dailies is dominated by publishing groups like Times of India,
Hindustan Times, The Hindu and Anand Bazar Patrika in the country’s for regions of west,
north, south and east. The Times of India and Hindustan Times are engaged in a fierce fight
to win the market leader position in the north.

The India Today group enjoys almost monopolistic position in the general English news
Magazine category, with ‘The Week’ from the south – based Malayala Manorama group
coming a distant second. Except for The week’, the rest all is base in New Delhi- the political
capital of the country.

In the non-English ‘news & views ‘publications’ category, three are several publications in
Hindi, Malayalam, Tamil, Bengali and Gujarati. How ever, these are broadly confined to the
different regions. With a reported 41 percent of Indian govt’s tax accruals coming from the
country’s commercial capital Mumbai, the major B2B publishing companies understandably
are based in Mumbai

B2B publishing in India is largely unorganized with the major industry and trade publications
being published by small publishers. The major national publishing companies have forayed
into B2B publishing. However, the smaller and independent publishers still call the shots in
there respective niches.

In B2B category, the notable publishers serving the computer and software section are cyber
media in the north and Jasubhai Media in the west. Times of India withdrew from this
segment after a failure, while Indian Express group has met with modest success with its
weekly title Express Computer. Apart from being unorganized, another peculiarity is that the
B2B category has virtually no non-English publications. Almost all of B2B publishing
happens in English. India has a huge non- English h speaking Trading community. However,
there is no major magazine serving there needs More over, a majority of the B2B publications
severely lack quality of contents and production. Other categories like special interest, sports,
leisure and lifestyle have still not taken off on a large scale. There are a handful of successful
publications in segments lied women, cricket, lifestyle & fashion and children.

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1.8: International publishers in India:

Over the last few decades, when foreign equity was barred in India publishing, international
publishers signed licensing and content syndication deals with Indian publishers. This is now
equity participation. Major India publishers are restructuring themselves to accommodate
international publishers, in accordance with the foreign equity laws. Already, news of
financial times taking up equity in the country’s second larges business and financial daily-
Business Standard – publishing company have been reported.

BBC Magazines has also entered in to an MOU with the Times of India group for a separate
magazine publishing entity.

One existing route that is being explored aggressively now is licensing of publication.
However, a few licensing relationships have gone sour- the most notable being Frugal’s
licensing of this computer magazine “CHIP” in the India markets. While CHIP was off them,
the earlier publishing partner launched another magazine to fill in the void created by Chip’s
absence. The re launch of Chip with another publishing partner happened with expected
setbacks in circulation and advertising revenues.

New Delhi’s India Today group is aggressively pursuing licensing relationships, having
introduced cosmopolitan magazine, amongst

others, in the country. Magazines like L’Officie and Elle are also being published through the
licensing route. Though significant opportunities exist in the different categories of
publishing in India, inter national publishers will be better off with there own/ independent
research and understanding of the India marketplace.

1.9: Industry regulation:

Foreign investment in Indian print sector is governed by the Ministry of Information and
Broadcasting (MIB) regulations. The important features of the regulations:

1. FDI and portfolio investments by FIIs are allowed up to a ceiling of 26% of the total paid
up capital

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2. Equity held by the Indian shareholder must be at least 51% of the paid up capital of the
resultant entity

3. Publication of facsimile editions of foreign newspapers by Indian entities (with and

without foreign investment) is allowed provided the entities are registered and incorporated in
India.

FII investments and publishing of foreign newspapers in India were not permitted until 2005
when laws were relaxed. Foreign papers are imported to India, but because of the delay in
their distribution, their appeal to readers is limited. Relaxation of government regulation
allowing foreign investment and printing of foreign papers in India should contribute to unit
circulation growth.

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Company Profile:

Mahaveer Print solutions is a well known player in the printing industry in Bangalore. It was
started in the year 2001 with the name Padmashree print solutions which was later changed to
Mahaveer screens and then later changed to Mahaveer Print solutions.

It started with 4 screen printers and now have almost machinery for every type of prints. It is
running successfully since then till date.

2.1: MAHAVEER PRINT SOLUTIONS:

Mahaveer print solutions is a cimpress company located in Bangalore which is involved in

printing customized designs for customers. Their wide range of quality products at affordable
prices, along with design tools suited to every skill level and need, mean everyone can create
the customised materials they need to get their message across.

It all started with the vision of the founder, Chandrakanth. He wanted to provide people with
something different of the regular products they generally use. Say for an example back in
those days around 10-15 years ago visiting card was given just to contact and no much
importance was attached hence it was a plain card with an address on it. But now people give
more importance to cards they go for customization they want the card to be more attractive
to get the first impression better. This made him to start the business of print solutions. They
provide high-quality, custom-printed products that individuals, companies and small
businesses enjoy. Mahaveer print solutions bought in machinery and technology that delivers
professional-quality printing in small quantities, affordably. Then they took a process that
was traditionally only available offline and made it possible for both business owners and
individuals to conveniently create and order their custom materials over a call.

It took about 20 years for Mahaveer print solutions to get a recognizable share in the market.
They have greatly expanded their product offerings. They are completely focused on
customer satisfaction because only satisfied customers turn back incase of additional
requirements and repetitive orders can be expected.

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Reason for Mahaveer Print Solutions to enter printing accessories industry Market
Entry:

In today’s world with the hype of business spreading in all parts of the world, printing
services have taken the world by sweeps. If you want to begin a business, you have to print
your brochure, if you want to publish a book you have to print it in a press, and if you want to
do some major printing you have to take the assistance of digital printing to make it a
success. It’s important to make the customers’ companies stand out – in a good way. A clean,
customized print marketing plan is an effective way to do just that. By encouraging your
customers to take the time to create a unique design scheme for their business, they’ll
instantly be setting themselves apart from the number of companies that opt for a standard
“pre-made template” style of print marketing.

While a pre-made template may be quicker and cheaper initially, your customers should take
the time to think about things like which colours they want to use, what an ideal logo for their
business will be, and what exact types of custom printing they would like to have done,
which will prove to be incredibly beneficial in the long run. They’ll be able to figure out
exactly who they want to target as potential customers and then will be able to build a
customized brand that is geared specifically towards that target audience. This will make your
customers’ overall marketing plan much more effective, and will prove to be a much better
investment for their time and money.

Growth opportunities:

Low advertising penetration in India:

Indian media is under-penetrated compared with the developed markets. Total advertising
spend in India is only 0.34% of GDP, vs. 0.8% in Japan, 0.6% in Singapore and 1.3% in the
US. Even developing markets, such as China (0.5%) and Malaysia (0.9%) have higher
advertising-to-GDP ratios than India.

Low advertising penetration, coupled with strong GDP growth and rising consumerism, are
likely to drive strong growth for advertising in India.

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Alternative media

As advertisers look for more ad-spend efficiency and seek out more effective ways of
reaching their target audience, we expect the significance of alternative media to increase.
We believe there is a lot of opportunity for publishers in alternative media such as out-of-
home and events management, which will enable them to leverage their existing relationships
with advertisers and grab a greater share of the advertising pie.

India’s out-of-home advertising (OOH) market at Rs10b is highly unorganized and

fragmented due to lack of regulation. It is dominated by small local players, which typically
directly market these sites to advertisers. Though the market size of OOH advertising in India
at Rs10b is small, it stands at 6% of the total advertising spend in India, which compares
favorably with global standards. Globally, OOH advertising spend is 5% of total advertising.
According to FICCI PWC forecasts, OOH advertising is set to grow at a CAGR of 16.5% till
2011E. The live entertainment industry/events management industry is worth Rs9.4b and is
expected to grow at a CAGR of 18.6% to Rs22b from 2006-11. Corporate events form a
significant portion of the events management industry.

Print market growth drivers:

1. Rising incomes and improving literacy

There is a direct link between literacy and income levels, especially in marketslike India.
People reading newspapers are literate, which means a highercorrelation with higher income
levels. This is an attractive target audiencesegment for virtually all advertisers. Also, in lower
income segments print-media penetration is still low, and rising incomes and literacy rates are
likely to drive growth of the country’s print media. The industry estimates 300m literates in
India still do not read newspapers, presenting a growth opportunity for publishers.

2. Emergence of new categories as big advertisers

High growth industries such as real estate, automobiles, financial services andretail chains are
becoming increasingly dependent on print media to reachtarget audiences. This is based on its
cost effectiveness, longer retention and broad base.

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3. Migration to color advertising

Emergence of new fast growing industries like retail, real estate, financialservices, etc, and
availability of good quality newsprint and augmentation of color printing capacities by some
of the large publishers has led to an increase in demand for color advertising. Color
advertising rates are typically at a 30-50% premium over black & white ad-rates. A migration
towards increased color advertising not only improves ad–yields and profitability for
publishers, but also bodes well for the print industry as a whole as it expands the total
revenue pie. The companies that we are focusing on in this report, Jagran Prakashan and

Deccan Chronicle already report a higher share of ad-revenues coming fromcolor. Color ads
contribute to 33% and 37% of Jagran and DCHL's advertising space, respectively.

4. Print has 47% share of advertising pie

Over the last decade, increasing penetration of cable and satellite TV has shifted market share
from newspaper advertising towards broadcasting. Thistrend, however, seems to have
stabilized over the last few years. Strong growth in sectors such as retail, real estate,
telecoms, and financial services has led companies to target penetration in Tier II Tier III
cities. In these markets, local print advertising is an effective means of communication, with
positiveimplications for print sector growth

MANAGEMENT PRINCIPLES:

To lead and operate an organization successfully, it is necessary to direct and control it in a

systematic and transparent manner. The success can result from implementing and
maintaining a management system that is designed to continually improve the performance
while addressing the needs of all the interested parties.

Eight Quality Management Principles have been identified by Mahaveer print solutions that
can be used by the Management in order to lead the organization towards improved
performance.

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1) Customer Focus
MPS depend on their customers and therefore should understand current and future
customer needs, should meet customer requirements and strive to exceed customer
expectations (Customer delight)

2) Leadership
Leaders establish unity of purpose and direction of the organization. They should
create and maintain the internal environment in which people can become fully
involved in the achievement of organization objectives.

3) Improvement of People
People at all levels are the essence of an organization and their full involvement
enables their abilities to be used for the organization’s benefit.

4) Process approach
A desire result is achieved more efficiently when activities and related are managed as
a process.

5) System approach to Management

Identifying, Understanding and Managing inter-related processes as a system
contributes to the organization’s effectiveness and efficiency in achieving its
objectives.

6) Continuous Improvement
Continuous improvement of organization’s overall performance should be a
permanent objective of the organization.

7) Factual approach to decision making

Effective decisions are based on the analysis of data and information.

8) Mutually beneficial supplier relationships

An Organization and its suppliers are interdependent and a mutually beneficial
relationship enhances the ability of both to create value.

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SWOT ANALYSIS

STRENGTH

1. Well recognized among the competitors

2. Offers new and innovative designs to customers
3. Young, Aggressive and Spirited team
4. High experience in the field of operation

WEAKNESS

1. Low Promotional Methods adopted

2. High attrition rate
3. Competitive prices offered

THREATS

1. Open for new and Big players

2. High competition
3. Rapid changes in market expectation.
4. Rapid duplication strategies by competitors

OPPORTUNITIES

1. Has got a very response in the market and can exploit the market to a greater extent.
2. Can introduce the product to many other territories.

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