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Price-Revision : What, Why & How
Dear Customer,
In keeping with our tradition of total transparency, this release has been prepared to provide you with a full insight into the current price-revision of TechNova's Digital Print Media Range.
The contents include :
Self-imposed Guidelines :
Before we proceed any further, we would like to reiterate TechNova's self imposed guidelines for price-revisions that we have been meticulously following for the last 15 years :
- TechNova should absorb increases in its overhead costs through continuous improvements in productivity, process innovations, market expansion and cost-reduction initiatives.
- Cost-increases in raw materials, consumables and direct variables may be passed on to the customers not more than once-a-year (unless the inflationary pressures are clearly unbearable).
- Customers should be provided with full information concerning the cost-increases that are causing the price-revision.
- Cost saving schemes should accompany price-revisions to soften the impact wherever possible.
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Cost-escalation Data :
It has been 17 months since our last price review & revision for films, which took place in March 2003. Since then, there has been a considerable increase not only in the cost of polyester, but also in the costs of other direct variables and overheads. At this point, we would like to present you with some facts.
(Please click on the appropriate link to see cost-escalation Data for Media Range of your interest)
CAD / Repro Media Range
Large Format Media Range
Laser Media Range
CAD / Repro Media Range
Here is a summary of the input cost-increases for CAD / Repro Media Range experienced by TechNova in the last 17 months.
Table 1.1 : Cost-escalation Data for key inputs
| Item |
Amount |
| Polyester |
15% |
| Chemicals / Solvents |
40% |
| Packaging Material |
15% |
| Freight Inward |
5% |
Notes :
- On an average, polyester, chemicals & solvents and packaging material account for 65%, 30% and 5% of the cost respectively. The weighted average impact of the above on the cost of finished goods works out to 22-23%.
- Polyester price increase indicated above is in the basic price; all levies & taxes are extra. Please feel free to contact our suppliers, M/s Garware Polyester Ltd for first-hand information concerning their price-increase. The contact details are mentioned below.
| Name |
: |
Mr. R. P. Sinha |
| Designation |
: |
General Manager, Sales - Garware Polyester Limited |
| eMail |
: |
rps@garwarepoly.com |
- Power cost-increase is for all industries in M.I.D.C., Taloja area. Over the last 2 years power cost has gone up by approximately 18% over last 2 years.
- Due to continuously rising fuel prices, the freight inward which is also an input cost has gone up by about 5%.
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Large Format Media Range
Here is a summary of the input cost-increases for Large Format Media Range experienced by TechNova in the last 17 months.
Table 1.2 : Cost-escalation Data for key inputs
| Item |
Amount |
| Polyester |
15% |
| Chemicals / Solvents |
40% |
| Packaging Material |
15% |
| Freight Inward |
5% |
Notes :
- On an average, polyester, chemicals & solvents and packaging material account for 65%, 30% and 5% of the cost respectively. The weighted average impact of the above on the cost of finished goods works out to 22-23%.
- Polyester price increase indicated above is in the basic price; all levies & taxes are extra. Please feel free to contact our suppliers, M/s Garware Polyester Ltd for first-hand information concerning their price-increase. The contact details are mentioned below.
| Name |
: |
Mr. R. P. Sinha |
| Designation |
: |
General Manager, Sales - Garware Polyester Limited |
| eMail |
: |
rps@garwarepoly.com |
- Power cost-increase is for all industries in M.I.D.C., Taloja area. Over the last 2 years power cost has gone up by approximately 18% over last 2 years.
- Due to continuously rising fuel prices, the freight inward which is also an input cost has gone up by about 5%.
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Laser Media Range
Here is a summary of the input cost-increases for Laser Media Range experienced by TechNova in the last 17 months.
Table 1.3 : Cost-escalation Data for key inputs
| Item |
Amount |
| Polyester |
15% |
| Chemicals / Solvents |
40% |
| Packaging Material |
15% |
Notes :
- On an average, the polyester, chemicals, solvents and packaging material account for 65%, 30% and 5% respectively. The weighted average impact of the above on the cost of finished goods works out to be 24%.
- Garware Polyester price-increase indicated above is in their basic price; all levies & taxes are extra.
Please feel free to contact & verify this data with the company.
| Contact person |
| Name |
: |
Mr. R. P. Sinha |
| Designation |
: |
General Manager, Sales - Garware Polyester Limited |
| eMail |
: |
rps@garwarepoly.com |
- Power cost-increase is for all industries in M.I.D.C., Taloja area. Over the last 2 years power cost has gone up by approximately 18%.
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Price-revision Data :
(Please click on the appropriate link to see price-revision Data for Media Range of your interest)
CAD / Repro Media Range
Large Format Media Range
Laser Media Range
Price-revision Data for CAD / Repro Media Range
The aggregate of the input cost-escalations mentioned in Table 1.1, amounts to more than Rs. 10-20 per square meter on an average, across all products in Reprographic Films and CAD Media. As against this, the actual
price-increase on many products is much lower as shown in Table 2.1 below, as a result of the re-engineering of our production processes and volume expansion of these products.
Table 2.1 : Price-increase Data for TechNova Reprographic Films and CAD Media (in Rs. / m2)
| Product |
Increase in End-user Price (Excludes Local Sales Tax & Octroi) |
| Premium Matte Film 50 mic : 915 mm |
8.96 |
| Premium Matte Film 75 mic : 915 mm |
9.26 |
| Engineering Matte Film 50 mic : 915 mm |
5.97 |
| Engineering Matte Film 75 mic : 915 mm |
6.72 |
| Reproducible Tracing Film-T 50 mic : 813 mm |
12.24 |
| Reproducible Tracing Film-E 50 mic : 915 mm |
13.66 |
| Reproducible Clear Film 75 mic : 813 mm |
27.25 |
| Laser Film 100 mic : 915 mm |
2.31 |
Notes :
- The revised prices take effect from September 15, 2004.
- The above price increase is in Rs. per sq meter. Local taxes & octroi are extra.
Price-revision Data for Large Format Media Range
The aggregate of the input cost-escalations mentioned in Table 1.2, amounts to more than Rs. 15-25 per square meter on an average, across all products in Large Format Media. As against this, the actual price-increase on many products is much lower as shown in Table 2.2 below, as a result of the re-engineering of our production processes and volume expansion of these products.
Table 2.2 : Price-increase Data for TechNova Large Format Media (in Rs. / m2)
| Product |
Increase in End-user Price (Excludes Local Sales Tax & Octroi) |
| Opaque Gloss Film 4204 |
14.93 |
| Opaque Gloss Film 4270 |
7.47 |
| Poly Matte Opaque 4504 |
14.93 |
| Poly Matte Opaque 4570 |
7.47 |
| Poly Banner E 5100 |
22.40 |
| Vinyl Matte E 1310 |
31.35 |
Notes :
- The revised prices take effect from September 15, 2004.
- The above price increase is in Rs. per sq meter. Local taxes & octroi are extra.
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Price-revision Data for Laser Media Range
The aggregate of the input cost-escalations mentioned in Table 1.3, amounts to more than 24% on an average, across the NovaDom & NovaSharp Product Ranges. As against this, the actual price-increase on NovaDom is as low as 15% shown in Table 2.3 below, as result of re-engineering our production processes and volume expansion of this brand.
Table 2.3 : Price-increase Data for NovaDom & NovaSharp (in Rs. / m2)
| Brand |
End-user Price (without Local Sales Tax) |
| NovaDom |
| Platinum |
100.50 |
| ULR |
105.00 |
| UMR |
80.15 |
| USR |
68.30 |
| Presto-100 |
87.60 |
| Presto-75 |
80.15 |
| Budget |
59.40 |
| NovaSharp |
| Diamond |
82.50 |
| Pearl |
82.50 |
| Topaz |
70.50 |
Notes :
- The revised prices take effect from September 15, 2004.
- Price-revision for NovaSharp Laser Films has been kept to a manageable 10% due to certain price rationalisation & productivity improvement exercises undertaken by us.
Overhead Cost-increase :
Overhead costs have escalated significantly during the past 2 years as we have made substantial investments to enhance the quality of our products and services : two state-of-the-art production plants (for film based products), end-to-end ERP systems, overseas offices, application laboratory & training facilities for customers & our sales force, etc. With your support, we hope to neutralise the overhead cost-increase through sales volume expansion, and these increases are, therefore, not factored into the price-revision.
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Cost-saving solutions :
As mentioned in our price-revision guidelines, stated earlier, it has always been our endeavour to help our valued customers absorb these inevitable price-increases by introducing innovative cost-saving initiatives and schemes. One such initiative is the TechNova Cash Price. These are prices offered by TechNova dealers against cash payment. We are happy to inform you that it has been receiving an encouraging response from our customers.
Price List :
(Please click on the appropriate link to see Price List in PDF Format for Media Range of your interest)
CAD / Repro Media Range
Large Format Media Range
Laser Media Range
Summary :
We hope that the information provided above will help you understand the following points :
The price-revision has been caused entirely by, and is exactly equal to, the cost-increase in raw materials
TechNova has absorbed all other increases in overheads.
TechNova has successfully insulated the printing industry from the frequent price-increases in polyester, by entering into fixed-price contracts with its raw material suppliers, M/s Garware Polyesters Ltd., or by absorbing the cyclical cost-escalations.
Keeping in line with our commitment of providing our customers with the finest quality Digital Print Media at lowest costs, we have been able to maintain our commitment to global standards of Zero-Defect Quality, by bench-marking our products from our existing and new plants, despite the pressures arising from the cost-increases.
Contact details for price related enquiries :
We hope that we have been able to provide you with all the information that you need to grasp the genesis of the price-increase. Should you require any further clarification or wish to share your comments and concerns, please contact our HelpDesk :
We sincerely hope that we will receive your whole-hearted support for our endeavour to implement this inevitable price-increase in the least painful manner. Thank you!
With best regards,
Jivan Bhatt
Business Unit Leader, Digital Print Media
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