Xerox eyes tier 2, 3 cities for expansion

Plans to ride on the government’s digital initiatives

In an effort to sustain its long-term growth plan in India, Xerox India, the Indian arm of global leader in printing and documentation services Xerox is planning a thrust to expand its presence in the second and third rung cities in the country.

Equipped with a wide product portfolio that covers from the entry-level copier to higher level printing solution, the company sees emerging opportunities in the tier 2 and tier 3 cities and intends to beef up its presence.

“The present government’s focus on digital initiatives and enhancing electricity availability in smaller towns and places improves the market opportunity for expanding our business. On our part, we have already developed products that consume less power, ranging from 10 – 70 per cent over that of competitive products in that range, offers us tremendous scope to tap the emerging opportunity,” Balaji Rajagopalan, executive director – technology, channels & international business, Xerox India told FC.

According to him, the company is focusing on growth from both services and products, and it has 150 plus channel partners, who are taking our products to specific segments. “Last year, we saw a 10 – 12 per cent growth in channel partners. By focusing more on B & C cities with specific products, we see growth coming from there,” he said.

“Of course, the volume, in terms of copies, will be less in those markets. For instance, someone will have demand for only 5,000 copies per month and it will be 20,000 in a bigger town and even 30 lakh in the larger cities. We have products that range in prices from Rs 10,000 – Rs 12,000 to Rs 25 crore – Rs 30 crore. We have products for all segments and for all verticals,” Balaji added.

Despite digitisation, printing as an industry will continue to grow, he observed. “Around ten years ago, people took the ‘print & distribute’ approach, when product lifecycle was longer. But, it came with additional costs in terms of storage (warehouses), postal and courier charges among others. Now, the approach is distribute electronically and print locally, as product lifecycle is lower. Digital in many ways is helping customers get the best for the buck spent,” Balaji pointed out.

The big publishers are licensing good printers, who are equipped with the state of art machines, to print locally.



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