Shuttleworth Business Systems

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Shuttleworth Business Systemsexperiences in
the Indian Market
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• Formed 1981
• Market leaders in MIS for the Printing Industry
• 4,000,000 turnover (2006)
• UK market is mature
• Consolidation amongst MIS suppliers
• Shuttleworth acquired 3 companies in last 5 years
• Clients in South Africa, Kenya, UAE, Sri Lanka
• All managed from UK
• Agent in Ireland
• Other European distributors
• Poor experiences

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Why India?

• DRUPA 2004
• 2nd highest number of visitors to the
  Shuttleworth booth
• Curious
• Investigate
• DTI assistance
• Stroke of luck
• Market Research

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Market Research

• British Consul undertook study of Indian Market
• Gave us the confidence to investigate personally
• British Consul arranged meetings with Indian
  Printing Companies September 2004
• Seminar arranged in Bangalore
• Led to meeting with printer following day
• Report for Shuttleworth Board and DTI
• Decision to look for Distributor
• Logistics of dealing with India determined need
  for Distributor
• Couldnt handle directly
• Search for Indian Distributor

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Distributor choice

• 3 options
• 1 Delhi based
• 2 Bangalore Based
• Chose Infosense Technologies
• November 2004
• Why?
• Closest fit to Shuttleworth
• Business built around support
• Dynamic CEO
• Prepared to build a team for Shuttleworth project
• British owner
• Trust!

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More market research

• Series of Seminars with Infosense in March 2005
• Both parties needed to be sure!
• Agreed strategy for partnership
• Signed agreement May 2005
• India Recruitment started
• 3 x Indian staff in UK for training July 2005
• Sales, Implementation and Support staff
• UK team of 3
• Launched Shuttleworth/Infosense at Exhibition in
  Bangalore September 2005

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Indian Market Summary

• 135,000 printers
• UK Market 7,500
• 300,000,000 middle class
• Drive demand for print
• Massive overseas inward investment
• Drive demand for print
• 30 Growth p.a. in packaging sector
• 15 Growth p.a. in commercial printing sector
• Need systems to control costs

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Results to date

• 3 systems sold in first 3 months
• Implementation challenge!
• 4th system Mid 2006
• 5th system March 2007
• Recent visit met with half of countrys top 20
  printers
• Moving towards orders from many of them
• Projected 100,000 p.a. on bottom line by end 2008

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Barriers faced in India

• Software
• Coping with Indian Tax laws
• Integration into Indias leading Accounts system
• Market
• Pioneer
• Educating market
• Obsession with price
• People
• Problem the world over
• Some can be trusted, some cant
• This applied to both teams UK and India

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Positives about India

• People
• Warm, welcoming and friendly
• Genuinely a pleasure to visit
• English is the language of business
• No local competing products
• Yet!
• Massive potential market
• Be prepared to ride the wave

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If I could do it all again, what would I do
differently?

• No changes to Market Research
• Get the maximum financial help from UK Government
• No changes to our Distributor
• Had a more mature UK team structure
• Great opportunity
• Use experienced staff
• Investigated Taxation issues earlier
• Driven them harder from the UK during 2nd 12
  months
• 4 month gap during autumn 2006

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Conclusion

• The market is developing quickly
• Be thorough in the Market Research
• Revenues developed there will replace lost
  business in the mature UK market
• Be prepared for hard physical work
• Work with people you can trust
• Be positive about your product and your skills
• It will succeed