Canon India is targeting revenue of around Rs 1,700-crore this year, growing by almost

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30 per cent over 2010-11. The company is upbeat about its services business in the printer segment, which is expected to drive growth, a senior Canon official said.

Alok Bharadwaj, senior VP, Canon India told Financial Chronicle: “Large enterprises are looking at print as a cost area. The general shift in the market is towards an op-ex (operational expenditure) model, which is called managed document service. Our customers pay as per the number of printouts they take in a month.”

Organisations spend ab-out Rs 1.50 for a black and white printout and Rs 7 for that in colour. In a pay-per-use model, companies save a guaranteed 30 per cent on cost of printing, he added. Canon enters into a minimum three-year contract with clients for this model.

Companies lose money in printing due to large number of small devices as opposed to consolidated large printers; devices sou-rced from multiple vendors (have to manage several ma-intenance contracts), and unclaimed printouts at the machine. On an average, large banks print about one crore sheets a month spending close to Rs 2 crore.

The total printer market in India is about Rs 2,000 crore, of which the size of the B2B segment is 15-lakh units a year (laser printers) worth close to Rs 1,500 crore. On the other hand, the B2C home market is of 13-lakh units (inkjet printers) worth Rs 500 crore.

While printers contribute about 50 per cent of Canon’s revenue, the rest comes fr-om products including digital and surveillance cameras. In the printer segment, 20 per cent of Canon’s business comes from government, 25 per cent from enterprises and the rest from small and medium businesses and consumers. Glo-bally, Canon tops the multifunction printing segment.