Printing

Presentation by Dr The Hon. Rajesh Jeetah, Minister of Industry, Small and Medium Enterprises, Commerce & Cooperatives Event State of Printing and Publishing Sector The Way Forward For Development 1 March 2007

Vision Develop a World Class Printing Industry with the capacity to take advantage of market opportunities

Ministry of Industry, SMEs, Commerce & Cooperatives

Overview „ „ „ „ „ „

Building New Growth Pillars Overview of the Printing Sector Challenges Global/Regional Perspective Development Strategy Conclusion

Ministry of Industry, SMEs, Commerce & Cooperatives

Building New Growth Pillars „

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Predominance of the Textile & Clothing Sector, which accounts for: - 50% of domestic exports - 11% of labour force - EPZ Output Rs 40 Billion in 2007 Other important sectors - fish & fish preparations - Jewellery and processed diamond Need to expand activities of nontextile sectors

Ministry of Industry, SMEs, Commerce & Cooperatives

Building New Growth Pillars (Cont…) „

Printing/Publishing offers significant scope • • •

Bilingual Publishing of books Knowledge Industry

Ministry of Industry, SMEs, Commerce & Cooperatives

Building New Growth Pillars (Cont…)

Ministry of Industry, SMEs, Commerce & Cooperatives

Overview of The Printing Industry Large Establishments (Employment > 9 Persons)

2002

2003

2004

2005

2006

42 2,423

49 2,567

47 2,684

47 2,857

43 2,771

1

1,783

2,084

2,511

2,800

2

N/A

Exports(Rs M)

-

No. of large establishments Total Employment Output

161

301

283

1. Includes reproduction of recorded media 2. Estimated

Ministry of Industry, SMEs, Commerce & Cooperatives

219 (Jan-Sep)

Small Establishments (Employing < 10 %) 2002 (Last Census) Number of Establishments Employment Output (Rs Mn) Value Added (Rs Mn)

Ministry of Industry, SMEs, Commerce & Cooperatives

292 1,053 347 210

Main Products of the Industry „ „ „ „ „

Packaging Newspapers Magazines Books Labels

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Ministry of Industry, SMEs, Commerce & Cooperatives

Office Stationery Catalogues Directories Commercials & Advertising

Main Export Products (Rs m) Books and directories Brochures and leaflets Postcards/Greeting Cards Calendars Instructional Charts/ Pictures & Designs Advertising materials & Commercial catalogues

Ministry of Industry, SMEs, Commerce & Cooperatives

208 71 10 5.4

% Total 69 24 3.4 1.8

3

1

2

0.7

Exports - Countries of Destination Countries Kenya Tanzania Reunion Zimbabwe

% 44.0 21.0 13.0 3.5

Countries Madagascar France Senegal S. Africa Comoros

Ministry of Industry, SMEs, Commerce & Cooperatives

% 5.0 5.0 2.0 2.0 2.0

Main Features of the Industry „

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Some companies are capable of producing quality works Around 10% are large establishments Large establishments account for around 80% of total output & value added and around 70% of total employment 6 large establishments account for the bulk of exports Good pre-press facilities in a number of companies

Ministry of Industry, SMEs, Commerce & Cooperatives

Main Features of the Industry (contd..) „

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A few of the large companies have modern equipment, including colour-separation machines The vast majority of enterprises are poorly equipped Most lack technical expertise in tone reproduction, pre-press, proofing systems and electronicmedia publication

Ministry of Industry, SMEs, Commerce & Cooperatives

Main Features of the Industry (contd..) „ „ „ „

Has been traditionally domestic-oriented Enjoy high profit margin Have a captive market The industry have spare capacity (any guess on the capacity?)

Ministry of Industry, SMEs, Commerce & Cooperatives

Main Challenges Facing The Industry „

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HR Issues: Training & Mastering of production techniques Upgrading of equipment Availability of precise, detailed market information

Ministry of Industry, SMEs, Commerce & Cooperatives

Defining/Measuring the Global Print Markets „

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Global Print Production estimated at USD 600 billion Share of US:30% Share of Western Europe:30% Share of Asia:30% Geographic region of print demand and production may differ In recent year shifts in global supply & demand

Ministry of Industry, SMEs, Commerce & Cooperatives

Global Perspective „

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Increase in production and supply capacity of China & India China expected to become the world 2nd largest printing country by 2010 Chinese industry growing by about 15% annually Increase in outsourcing expected

Ministry of Industry, SMEs, Commerce & Cooperatives

Global Perspective (Cont …) No. of Enterprises

Singapore India UK China

1,000 130,000 Over 8,000 180,000

Ministry of Industry, SMEs, Commerce & Cooperatives

Employment Output (USD Billion) 17,000

2.0

1.3 Million

12.4

164,000

18.4

3.4 Million

38.0

Comparison with Singapore „

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The success of the Singapore industry in developing export capability can be emulated The industry is characterised by a small number of large enterprises and a large number of small enterprises The industry is upgrading itself to keep pace with change

Ministry of Industry, SMEs, Commerce & Cooperatives

Profile of Industry in Singapore „

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Big firms have state of the art equipment Printing of books and magazines for leading publishers in Europe, US and Australia Tie-up with RMIT University of Melbourne for training

Ministry of Industry, SMEs, Commerce & Cooperatives

Comparison with India „

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Indian industry poised for further growth by leveraging outsourcing in IT for outsourcing in printing Mauritius can adopt the same approach Indian industry dominated by relatively few large players India is estimated to have a 40% cost advantage over foreign companies

Ministry of Industry, SMEs, Commerce & Cooperatives

Profile of Indian Industry „

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Publishing (English Language): Third largest Making greater inroads into foreign markets

Ministry of Industry, SMEs, Commerce & Cooperatives

Profile of Industry in UK „

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A small percentage of companies account for the highest share of sales growth A large number of companies are struggling to survive Intense competition impact on ability of a large number of companies to stay in the market

Ministry of Industry, SMEs, Commerce & Cooperatives

Comparison with China „

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The economic transformation of China has benefited the print industry Poised to develop into one of the largest printing country Can become a major outsourcing centre for printing

Ministry of Industry, SMEs, Commerce & Cooperatives

Profile of Industry in China „

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Industry growing at 15% annually Multinational establishing operations in China

Ministry of Industry, SMEs, Commerce & Cooperatives

Print Industry in Major Asian Countries „

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Asia has advanced, high-technology manufacturers: Japan, China, India and Singapore Significant growth projected by 2010 Print Market (USD Billion) 2010

2005 Japan China India Singapore Mauritius

95.3 37.0 12.2 2.5 0.1

105.7 64.5 17.2 2.6 ?

Ministry of Industry, SMEs, Commerce & Cooperatives

% increase 11 73 34 17

The Regional Market Imports of Some Countries in the Region (2005) (USD Mn)

Sources of Imports

South Africa

254

UK: 40%, USA: 19%

Tanzania

37.4

Germany: 43% South Africa: 27% UK: 13%

Uganda

36.8

UK: 48% China: 11%

Kenya

32

UK: 55% Mauritius: 12%

Guinea

11

France: 39% UK: 25% Mauritius: 4%

Mauritius

21

France: 22% UK: 20% India: 8%

Ministry of Industry, SMEs, Commerce & Cooperatives

The Regional Market (contd..) „

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Attractive market for print products in the region Substantial imports from European countries Export opportunities for Mauritius

Ministry of Industry, SMEs, Commerce & Cooperatives

Development Strategy Resources available on which to build the sector „ „ „ „

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Medium & large industrial printing News press enterprises Small enterprises Pre-press enterprises – type setting, image processing, colour-separation, design, etc. Skills

Ministry of Industry, SMEs, Commerce & Cooperatives

Development Strategy (contd..) „ „ „ „

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Penetration of SADC/COMESA & other African markets Target niche markets in Europe In-house skill upgrading Upgrading small printing establishments: to cater for small runs, short-notice/short lead-time orders Market research & intelligence

Ministry of Industry, SMEs, Commerce & Cooperatives

Conclusion „ „ „ „

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Sound footing in the Industry Multilingual Spare capacity Potential to become a new growth pillar Strategic alliances necessary Define strategies

Ministry of Industry, SMEs, Commerce & Cooperatives

Ministry of Industry, SMEs, Commerce & Cooperatives

Thank You

Ministry of Industry, SMEs, Commerce & Cooperatives