Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Photoquip (Elinchrom) update : Photofair 2011

with 20 comments

If there is anyone from Delhi visiting Photofair 2011 from 6th to 9th January 2011 ? I would be glad to hear on who the competition is.

I noticed there are couple of studio shooting scenes in this video that use Rotalux softboxes

Also, Mr J P Soni founder of Photoquip is VP of this industry body somewhere in middle of this video.

I have been thinking of Photoquip with intensity.

New products that have been introduced in 2010 or that will be in 2011 are hardly with 1% Photogs. Therefore as the lineup of new product increases their consumption isn’t going up immediately. Upgrades will take time. As it takes 5-10-20 years to exhaust old products, the latent demand will continue to catch up. Thus, we should see similar results as we see for a toothpaste company / FMCG company i.e. 10% growth for many years once the explosive growth tapers off, just from existing business. What we observed was Digitial Photography rub off during the last 5 years as more people opted for Photography field and less companies survived analog to digital shift. Rise of DSLR. The dynamic of new products, new competitors etc is unseen and better unsaid.

I believe if some company can make economical robotic array softboxes that can be remotely controlled by iPad / iPhone, it would be a killer app. For that robotics have to become cheap enough to commercialise. I believe the need for light source would continue even in 3D immersive TV of future.

It appears to me that Indian consumer would buy # 4 or #5 brand i.e. cheap products where chappal / slippers are concerned, hence the continued liking for Relaxo, it will be devoured by lower income strata too (its bottomline may continue to suffer in coming quarters due to rubber ), but consumer will not compromise when buying a durable product that may last a decade. Lets see how the game plays out.

Written by amitdipsite

January 4, 2011 at 11:16 pm

Posted in Uncategorized

20 Responses

Subscribe to comments with RSS.

  1. And Cravatex too, Seems healthcare/proline is where they are focusing and yes its Urban Consumption now. Even my junior earning < 4 lacs was thinking of buying trade mill, and yes Proline is his choice:

    Rahul Kumar Paliwal

    January 5, 2011 at 3:30 am

  2. Lets see December and March results, I am guessing Cravatex will grow topline faster, if it does over 40-50% growth in both quarters then serious re rating on the cards.

    Photoquip – I personally believe its still dirt cheap.


    January 5, 2011 at 3:40 am

  3. Price differential in US and India is insane, 7X times for a ditto product. No wonder people are making money selling these on ebay and shipping abroad


    January 5, 2011 at 4:04 am

  4. While I agree on the price differential being high between India and some other western countries, there is a reason. Of course, I do not feel its a reason enough for such a big differential. For instance Nokia phones are more expensive in Dubai and cheaper in India. The difference is not that high, but somehow I have still seen people who travel abroad prefer to buy these phones from Dubai and pay more, but not from India. Same for Canon cameras too. Of checking closely I found the reason. Nokia phones sold in Dubai are made in Finland, while the ones sold in India are either made in China or Taiwan. Canon cameras sold in Dubai are made in Japan, while the ones sold in India are made in China or Taiwan. May be its just a psychological thing or the old craze for imported stuff.


    January 5, 2011 at 6:13 am

  5. I harbour similar perceptions about Japanese electronics. I have read people write in discussion forums about “Swiss Plastic” being able to withstand pressure (in reference to Elinchrom Quadra).

    When a shopkeeper selling bait of multiple colors was asked by a person 'does this coloured bait attract the fish' ? Shopkeeper replied, 'I am not selling this to fish'

    I have learnt that Made in Chinese is often superior workmanship compared to western countries, if it involves manual labour (eg shoes)

    A lot of it is what is injected in mind by marketing. No juice can beat fresh fruits but all fruit juice companies will advertise something Xtra and improved with their juices, most of which is crap. People think Dabur / Real etc juices are 100% fruit juice. I have not checked it but if it says “made from concentrate”, read it as “made for suckers”.


    January 5, 2011 at 7:15 am

  6. Guys,

    Have you noticed between the lines of their hiring spree, they have diversified. I'm not sure whether to be glad or to worry.

    Quote unquote from their job advertisement:

    “Thru their diversification in dye sublimation thermal printing technology, PQIL is now poised to revolutionize digital printing in the Indian market by offering an array of cutting-edge world class technology-based products. This new PQIL venture will bring convenience and quality to the fore like never seen before. “

    Will update more on this soon.


    January 5, 2011 at 9:41 am

  7. Yes. It appears that management was always interested in this space (that small stake in Kiri Dyes). Dye Sublimation Printing space is filled with players like Epson, HP and Samsung's of the world. Don't know what kind of a role Photoquip will play in this space. Also the job ad mentions Dye Sublimation Printing “Products”, that might give some clue.


    January 5, 2011 at 11:36 am

  8. It could be inks, adhesives, consumables or it could be sublimation printers. Trading / marketing activity is fine in my opinion. I would imagine. How can any Indian company compete with Samsung with billions of $ R&D budget manufacturing ?

    But Kiri Dyes is now global leader after acquisition of Dystar of Germany last year ( ), in dyes, inks, that/ trading makes sense to me…Dystar Colors Gmbh has over 1 Billion $ revenues.


    January 5, 2011 at 7:14 pm

  9. im Few week old 2 this blog & NOW A BIG FAN. how can i follow all the comments discussd under various post


    January 6, 2011 at 4:48 am

  10. At this stage I only have information that diversification venture is manufacturing which is complementary with existing manufacturing facilities. Company wants to retain expertise in manufacturing. (I am guessing 'dye sublimation printers' has to be more of integrating software and hardware components from established players and rebranding product, think Dell for PCs ).

    Scaling up of marketing activities should help both existing business as well as new venture.


    January 7, 2011 at 5:16 am

  11. Thanks for the info Amit. I am guessing they would have already incurred some part of expenses in this quarter. Would be intereting to see their numbers for the next 2 quarters. Think there is not much to worry unless they are spending a lot of money on this.


    January 7, 2011 at 7:19 am

  12. Exactly, if they were taking a 20 – 30 Crore bank loan, that would be worrisome.

    Ansh, someone I know, may be visiting the trade fair in Delhi this weekend, so we may get some answers. I have also sent email to company to answer on my doubts. Today I had to find out from some marketing person.

    Above average sales team is a plus. Hiring people has no fixed or big sunk cost.


    January 7, 2011 at 7:40 am

  13. I have yet to hear back from the company, but I seem to have solved the case, for the most part, on weekend with a few dozen google searches, took a few hours of reading and searching…

    Photoquip website has SNAPZ labs. It mentions word 'd!pep', try searching for in google, you'll find nothing. Took a dozen plus searches and combinations of extra words to find. There is a company in Switzerland that is distributor for various imaging products

    This is where I found d!pep

    They sell San Marco Imaging Minilabs

    Does the lab on SMI Group look similar to SNAPZ on Photoquip ? Oh yeah ! No manufacturing only cosmetic surgery !

    Tribex also sells Pakon

    Photoquip also sells or sold Pakon in past, search Pakon on this page

    Tribex also sell other printing consumables and dye sublimation printing products.

    I have read that Canon India is growing very rapidly in India 50% per annum clip in the last 2 years. Sales of Nikon and Canon DSLRs and other cameras are good news for Photoquip.

    Canon are hopeful of Selphy printer which uses dye sublimation thermal print

    Digital print market is rapidly growing and here to stay. Maybe Photoquip will be able to refocus on this business and get some share. I would not call it diversification but refocus on mini lab business again. In 2010 Annual report I thought there was indication that they completely closed non Elinchrom business like minilabs. They seem to be coming back at it again. I would also keenly watch for any big expenses in manufacturing side for printing venture. I am sure they have tasted it in the past, how manufacturing investment in tech intensive products work.

    Elinchrom brand stays the original investing premise.
    Your friendly neighbourhood detective found a useful lead on why PQIL may be interested in dye sublimation thermal business.

    Go to internet archives and look at how Tribex Switzerland website looked in 2008 !

    How it looks in 2011

    Notice the addition of new products. So, Photoquip is likely to get these products from them… 😉

    Tribex Switzerland has been using DNP printers

    DNP is a huge Japanese company (Dai Nippon Printer)

    15 Billion $ in annual revenues.

    Needs confirmation from Photoquip about this. I am not sure they would answer, since they rebrand it. But if indeed they are getting DNP just as Tribex Switzerland, it would be nothing short of quantum leap.

    As per Photoquip's recruitment Ads, which uses a rather grandiloquent language

    “PQIL is now poised to revolutionize digital printing in the Indian market by offering an array of cutting-edge world class technology-based products. “

    This has to match up with something like…

    Yet to be confirmed from company.


    January 9, 2011 at 3:41 am

  14. Another clue pointing to DNP Japan from this link

    “‘d!pep (Swiss) Enhancement Software ’ d!pep (Swiss) and superior quality Japanese Dry Printer.”


    January 9, 2011 at 3:51 am

  15. Thanks to Ansh for his time, efforts and resourcefulness, he was able to find out for Photoquip investors all that we are interested in. It would not have been possible for any of us to derive these facts by phone calls, without personal visit by Ansh. From my conversation with Ansh, here is the summary:

    – Cash register was ringing on the fair at Photoquip booth

    – No Broncolor or Profoto contendor from American or European brand India as yet, Simpex is the distant competitor with Elinchrom lights leading with 80% share

    – A relief, new venture is more of assembling hardware and software components from various parts of world rather than spending crores in manufacturing

    – Marriage industry is biggest growth driver. Its a billion $ plus industry for Photographic products. Many companies are trying to capitalise it along with Private Equity interest. eg. is financially supported by couple of PE players

    Thanks to you Ansh again.

    – Something no promoter will ever tell you, nor would it be in any book (dividend will be paid someday only when Promoters have had their fill in equity shares, why would they want to buy shares from open market at higher rates if they declare 1 or 2 Rs right now, that would change the trajectory of common stock ala Symphony Ltd )


    January 9, 2011 at 10:33 pm

  16. In my original post at this link

    where I tried to estimate the number of Professional Photographers in India, I got mixed replies and many people did not believe in numbers i.e. 2.4 Lacs i.e. 1:5000 ratio to population.

    I feel absolved now of that calculation. On below link, please read “ADDRESSABLE MARKET”


    January 9, 2011 at 11:45 pm

  17. Elinchrom has a Youtube channel now

    their sister concern in UK has it for a while

    Amit Arora

    January 14, 2011 at 6:04 am

  18. Still hiring…

    Another Photoquip hiring Ad for Lucknow posted on the 12th of Jan

    and the 7th of Jan

    Amit Arora

    January 18, 2011 at 2:40 am

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: