Drop in the INR vs. USD is Imposing Further Burden on the Partners in the Aftermarket Imaging Consumables Industry

The imaging industry has already been under pressure due increasing competition, high-price sensitivity and shrinking margins. The recent sudden drop of the INR vs USD rate has further compounded the woes of the brands. Below we listed the opinions of some of the leading players in the imaging industry on the current INR vs USD dynamics.    

Mr. Masood Khan, Founder & President, Image Star Pvt Ltd (Brand: IMAGE KING), “India has been doing well supported by the government’s measures to uplift the economy. However, recent sudden drop in the INR vis-à-vis USD rate has been posing a big challenge to the honest players and the matter needs immediate attention from the government. For a long time, the Indian government has been trying to keep the change in the INR vs USD rate relatively flat inducing different measures. While this strategy helped to control the inflation, it has led to a huge trade deficit, as imports exceeded exports. The high INR vs USD value makes the Indian exports less competitive globally. However, rapid drop in the INR vs USD can put the imports-dependent imaging industry in a difficult situation. On 31st October 2024, the USD stood at ₹84.09; and as of 23rd January 2025, it increased to ₹86.44, marking a difference of ₹2.35 per USD or 2.77%. However, the overall impact is greater at 3.07% due to an 11% increase in duties (10% basic duty + 10% surcharge). The impact of this includes benefit to exporters: The higher dollar price increases export values, potentially boosting India’s trade revenues. On the other hand the rising import costs negatively impact on raw materials, machinery, and other imported goods. Businesses reliant on imports will face cost pressures; and 3. Flat GST Collections: GST collections remain flat, indicating stagnant domestic consumption. This puts further strain on businesses, as selling prices are not rising in proportionate to the costs, leading to a profit squeeze. Under these conditions, the suggested action plan for businesses is revaluating the pricing: align your pricing strategies to accommodate the rising costs and currency fluctuations. Current situation demands proactive measures and adapting to the evolving financial landscape to successfully navigate the current tough situation.”

Mr. Girish Mamtani, B2B and Government Business Head, RX Infotech, “The impact of INR vs USD dynamics on the imaging industry is undeniable, influencing pricing but not disrupting overall sales, as it affects all industry stakeholders equally. While currency fluctuations may adjust cost structures, the steady demand for imaging solutions remains intact. The rapid digitalization of citizen-centric services moderates traditional printing needs, yet the surge in organized retail, e-commerce, and Q-commerce fuels demand for labelling and invoice printing. At RX Infotech, we navigate these shifts with agility, ensuring businesses receive cost-effective, high-quality solutions. As the market evolves, our commitment to innovation and adaptability keeps us ahead, delivering value despite economic fluctuations.”

Mr. Lalit Kumar Rakhecha, Founder, Softline Sales Corporation (Brand: GreenForce), “Depreciation of the INR vs USD helps to keep Indian exports (various industries other than the import-dependent imaging industry) competitive. However, it is disadvantage to the Indian imaging market which is import-dependent. The players in the imaging industry have to consider several other costs too while calculating actual costs which include: 1. Currency fluctuations, 2. Freight cost fluctuations, 3. EPR cost that is divided in next 10 years, 4. Bad debts, 5. Replacement costs, and 7. Other Compliance costs. Printing consumables industry is based on quality and services valuation worldwide including China, but unfortunately, it is a commodity product in India. We have seen many companies in the past collapse because they were selling only on low-price approach, ignoring the quality and brand value. Importers trading on very thin profit or low profit will lose in the long-run. It is a historical fact.”

Mr. Rahul Zine Patil, Print it (domestic manufacturer of cartridges), reveals, “I am sure that most importers will fail. In the working capital cycle now 33% investing only duty and GST. For example, if 1 cr value cartridge is imported, the total value becomes 1.35 cr around 35 lacs interest by 1% means 70 thousand normally container value comes to 40000 USD total cost comes around 47 lacs means three container only 1.25 Rs is interest cost per unit.”

Mr. Ravi Chaudhary, Managing Director, Alphabet Imaging Technologies Pvt Ltd (Brand: Alphabet), “Today, EPR, delayed recovery of payments, bad debts, rejections, admin costs etc, add 10% to the import costs. Nowadays, importers are operating on 5%-6% margin. Under these conditions, the long-term outlook is gloomy.”

Covered By: Imaging Solution / Imaging Consumables Industry

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