Universal Print System Ltd.

Vrushank Raut
Rahul Satpute
Milind Thakur
Swapnil Wagh
 Universal
Print Systems
Limited
(UPSL)

Competitors
About MPL
Case

Label
Industry in
India
 Increase Existing
Customer Share

New Facility
Target Export
Planning in Dilemma Market
Industrial Cluster

Online
Aggregation of
Standard Orders
and Digital
Printing
1. Increase Existing Customer
Share:
• Surrounded by big industries
• No existing customer sources entire
labeling requirement from UPSL
• Top 6 customers provide UPSL only 6%
of their requirement
• Marketing and sales team have failed so
far in convincing customers to increase
their order
• One of UPSL’s goal was to increase
order value rather than order quantity
2. Target the Export Market:
• Export: 2% of Indian label production
• Expected to rise to 10-15% over next 5 years
•In 2013, FINAT ( a Global Self-Adhesive Label
Converter’s Association), India won 8 award
out of 19 submitted entries
• Helped India to increase export by 15%
• UPSL can target export business of its own
parent group companies
• Need to meet International standards and
longer transportation time
• Require new machineries

3. Online Aggregation of Standard Orders and Digital Printing:

• Worldwide digital printing expected to grow at 3-5% annually
• Advantages: High print quality - minimal setup time and reduced substrate waste
• Disadvantages: High initial investments - slow speed - high maintenance cost and high
consumable cost
• 2 Business models: 1. Lightning Label
2. Maverick Label
• Require minor change in workflow and marketing team would need to target new
customers or can convince existing customers to switch to this model
• Benefits: increase flexibility
4. New Facility Planning in Industrial Clusters
• UPSL Target: Southern – Northern – Western India
• Constraint: Lead time for serving PAN India customers
• New order label design and production: 35-55 days
• Approval: 4-10 days
• Government subsidiary: 15% to modernize – plants and machinery and production
techniques
• Benefits: Customization – speed service delivery and improve prospective customers
• Drawbacks: High initial investment – high supply chain co-ordination cost

Days Needed To Transport

Business Potential In Select Special Economic Zones Order From Chennai
Location Estimated Land Cost Wage Rate From Chennai Days
Business (in Per Hour
Potential (in INR/sq.m. (in INR) Bangalore 1
million INR) ) Hyderabad 2
Ahmadabad 112.7 850 207 Goa 2
Jamnagar 112.7 800 207 Pune 3
Nagpur 205.3 1800 231 Mumbai 3
Mumbai 205.3 6000 231 Surat 4
Hyderabad 93.87 1300 205 Kolkata 4
Visakhapatnam 93.87 1000 Gurgaon 5
Evaluation Of Options
4. New Facility Planning in Industrial Clusters
• Setting up plants in northern and western area is not viable as Chennai plant is
running under its actual capacity
• There are no boundaries after GST and it takes an average of 3-4 days to deliver in
parts of India
• Also in western India like Mumbai land costs are very high

Location Estimated Business At Land Land Cost Wage Wages Of 50

Business 5% Market Cost (in For 5000 Rate Emp. For 1
Potential Share (in INR/sq. sq.m. Area Per Shift For 300
(in Million Million m.) (in Million Hour Days (in
INR) INR) INR) (in INR) Million INR)
Ahmadabad 112.7 5.6 850 4.3 207 24.8
Jamnagar 112.7 5.6 800 4 207 24.8
Nagpur 205.3 10.2 1800 9 231 27.7
Mumbai 205.3 10.2 6000 30 231 27.7
Hyderabad 93.87 4.6 1300 6.5 205 24.6
Visakhapatnam 93.87 4.6 1000 5 24.6
3. Online Aggregation of Standard Orders and Digital Printing:
•It requires minor changes in workflow which can be done
• It will be easy to convince existing customer to move to new model as it is beneficial
to them also: speed of service – increase flexibility and cost reduction
• The NP (pioneer in online sales) has acquired 8000 customers in just 2 years of its
business commencement
• High initial investment: As it is suited for long runs and it is high volume industry (so
for short term profitability it is not advisable but for long runs it can opt for tested
digital technologies)
•Supply chain modifications
•Process technology
•Quality issues

2. Target the Export Market:

• Rise in exports share to 10-15% over next 5 years
• UPSL can explore foreign market if “International standards and machinery” investment
can are justified
• UPSL can fetch for orders which can be produced on existing machineries
• Plant’s running capacity will increase
•Need of major supply chain changes
•Parent group companies can (?) help UPSL to grow in International market
1. Increase Existing Customer Share:
• UPSL has already tried and failed in acquiring more share from existing players
• It is a price competitive industry so focusing on higher order value can adversely
affect UPSL business

5. Strategic Solution:
• UPSL can try to increase share by small percentages instead of trying for big business
• UPSL can invest in building local supplier and help them producing require standards
• In future if the southern plant is running at full capacity then UPSL can think of
setting up plant in central India to cater to the maximum PAN India region/states to
reduce shipping time
• Once you get the hold of foreign market then it would be advisable to setup plant in
foreign country with the help of Parent Group
• UPSL can collaborate with NP to get its hands on Digital Printing
 Increase existing Target export Online New facility
customers’ market aggregation and planning
share digital printing
Supply Chain Increased Revamp for new Major Similar, more
production, markets modification complex supply
S&M chain
Technology No To match global Extensive use of Replication/
standards technology minor changes
Organization No much change New skilled New skilled Increase in staff
structure personnel personnel
Quality impact No change High (Different Low (Proven Low (Replication
quality technology) of existing
standards) model)
Process No change Major change Major change Can adopt new
Technology process
issues technologies
Investment and No capital High (New High (New High
implications investment machineries to machineries and
meet standards) technologies)
Investment & Risk Factor
 0- No risk 6- High risk
Quality impact Process Investment and Total
Technology implications
issues
Increase No change No change No capital
existing investment
customers’
share
0 0 0 0
Target export High (Different Major change High (New
market quality machineries to
standards) meet standards)
6 6 6 18
Online Low (Proven Major change High (New
aggregation and technology) machineries and
digital printing technologies)
3 6 6 15
New facility Low (Replication Can adopt new High
planning of existing process
model) technologies
3 3 6 12
 0- No risk 6- High risk
Supply Chain Technology Organization Total
structure
Increase Increased No No much
existing production, change
customers’ S&M
share
6 0 0 6
Target export Revamp for To match global New skilled
market new markets standards personnel
6 6 3 15
Online Major Extensive use New skilled
aggregation modification of technology personnel
and digital
printing
3 3 3 9
New facility Similar, more Replication/ Increase in staff
planning complex supply minor changes
chain
3 3 6 12
 Total score Probability of Final score
not happening
(%)
Increase 6 90 540
existing
customers’
share
Target export 33 25 825
market
Online 24 25 600
aggregation
and digital
printing
New facility 24 90 2160
planning
Thank You