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Ricoh India set to raise prices up to eight percent

June 28, 2013

The OEM’s Indian subsidiary has been forced to raise prices due to the depreciation of the rupee.

Tetsuya Takano, Managing Director and Chief Executive Officer of Ricoh India [Shiv Kumar Pushpakar]

Tetsuya Takano, Managing Director and Chief Executive Officer of Ricoh India [Shiv Kumar Pushpakar]

Business Wire India reports that Ricoh India has been forced to make the price rises, which will be from five to eight percent, in the Office Products & Services sector.

The price increases are a result, according to MD and CEO Tetsuya Takano, of the Indian rupee dropping “drastically” to a “record low of Rs. 60.70 vis-à-vis USD (€0.78)”. Takano added that “in spite of the huge depreciation” the OEM has been “trying to hold on to our sales prices to our customers and channel partners till now, hoping that the situation would improve soon”.

This has not occurred, and the rupee has fallen 12 percent since March 2013, which Takano noted has “directly impacted the cost of imports of all our products, spare parts and consumables. We are now constrained to increase the prices of our Office Products and Services […] so as to at least partially cover the impact”. The price increases will be put into action from 1 July.

Takano mentioned that “India is a high growth market for Ricoh and we have ambitious plans here”, which is reflected in the company’s huge 4Q2012 growth of 48 percent, and added that the company expects the country’s market to allow it to “bring the best of technology at affordable price points to our customers, to rapidly expand across our business segments”.

Takano concluded by noting that “customers are now looking for true ‘value for money’ proposition rather than just low price tags […] hence, I don’t think the price increase will have any major impact on sales, as we will continue to focus on providing value to our customers through productivity, security, compliance, workflow improvement and total green office solutions”.

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