Xerox eyes 13 per cent revenue growth in 2004

Xerox Modicorp said its 2004 revenues were expected to grow 13 per cent from Rs 446.6 crore in 2003 on the back of higher sale of equipment like digital printers and copiers in one of the world's fastest growing markets.

"We are looking forward to a fantastic performance this year," managing director Marcus Childs said at a press conference here today.

Revenues from equipment sales jumped 39 per cent during 2003 with a four-fold growth in the high-end colour business.

Equipment sales comprised 41 per cent of revenues, while the remaining 59 per cent came from non-equipment sales.

Childs said the revenue split of 41:59 in 2003 between equipment and non-equipment sales was expected to change to 50:50 this year and 45:55 the year after as the company has lined up a multi-pronged marketing and after-sales strategy along with 20 new products to boost its equipment sales like laser printers and multicopiers.

The company, a joint venture between the US-based Xerox Corporation and the Modi group, will soon add 25 people at its software development centre in Gurgaon, taking the total workforce to over 95.

The company will roll out a partner-led sales and service model to strengthen its channel presence, build loyalty amongst sales and channel partners and further improve its customer service network across India.

"We have reinvigorated the Xerox brand and introduced products and services to improve the quality of customers' experience of us. All customer service metrics improved by 20 percent in 2003. We are seeing growing market share across multiple product categories. A year ago one in three sales was digital, now it is one in two," said Childs.

India is part of Xerox Corporation's developing market operations, which have played a critical role in the company's strong business performance in 2003. In the fourth quarter 2003, developing markets delivered revenue growth of 1 per cent and equipment sales growth of 21 per cent.

Detailing the company's 2004 strategy, Gennady German, marketing director, said, "We will execute our strategy to integrate our product and after sales support. A partner-led programme will enhance our customer responsiveness in the office and printing markets. We have augmented our sales presence and we now have 620 channel partners and a team of qualified and trained indirect sales personnel."