TVS Electronics launches recycled toners market

TVS Electronics on Monday announced the launch of its recycled laser print toners. This marks India's largest computer peripherals manufacturer's entry into the Rs 400 crore laser toner market dominated by the likes of HP.

The company targets a 3 per cent to 5 per cent share in the segment by reaching out to 10 tier I and tier II cities that account for 70 per cent of the installed laser printers in the country.

In the Bangalore market for instance, the company hopes to better on its target of cornering 5 per cent of the market. Bangalore accounts for 10 per cent of the total Indian laser toner market.

TVS Electronics will price its products 10-30 per cent cheaper than the original. For example, the HP '09A' is priced at Rs 7,900 (market price), a similar product from TVS-E will be sold at Rs 6,500.

The launch by the company follows a survey across Chennai, Bangalore, Mumbai, Delhi and Bangalore which concluded that 60 per cent of the original toner users were willing to adopt recycled toners if there was a quality guarantee. According to the survey, 80 per cent of the toner users preferred the originals over the refills.

Currently customers can opt either for originals or cheaper refills, but which are of dubious quality. The company's recycled products will differ from refills because the defective components in the toners the company recycles will be checked and replaced. The toners will also be subject to quality tests on a par with the original equipment manufacturers.

A TVS-E official said that the aim is to wean away the refill buyers. The refill market accounts for 40 per cent of the volumes, but is much lesser in value. It is split equally between two segments. One, an organised regional player and two, unscrupulous small time players with little care for quality.