Monday, September 8, 2003		Feature

Originals inked out
Peeyush Agnihotri

REFILLED ink is smudging inkjet printer companies’ sales projections. While consumers are elated and refilling companies are enthused, printer companies are crying foul.

Earlier, when inkjet printer’s cartridge used to run out of ink, a consumer had no option but to purchase a new one. Or get it refilled. In the latter case, the fear of poor quality ink being used persists.

Now, the scene has changed and foreign companies have stepped in to collect the used cartridges, refill, repackage and sell these to consumers at 3/4th of the cost of a genuine company-sold cartridge. Most of the refilling companies are based outside India and they execute the whole process in a highly professional manner. Such products are called ‘compatible or remanufactured cartridges’ in market speak.

Piqued OEMs

Remanufactured cartridges are recycled and reprocessed from an original cartridge. The recycling process involves inspection, cleaning, replacing of worn-out parts and refilling with ink. The cartridge is then print tested and ‘guaranteed’ not to leak in transit or during use.

Media reports suggest that selling after refilling is a $ 100 million business currently. So, for instance, if HP (Hewlett Packard) inkjet printer’s 20 number cartridge conks off, the consumer need not spend Rs 1,200 on the same. He can get a refilled one from Canocare for Rs 850. Ditto for other reputed company cartridges like Epson, Canon etc.

Naturally, the OEMs (original equipment manufacturers) are not amused. "Yes, these refilled compatible cartridges are eating into our sales revenue. Exactly, by how much, I cannot tell. It all is because the Indian market is money-driven. Quality will be the main casualty in this case," says Rajiv Nair from Epson.

"Even if refillers take just a bit of the market share of such MNCs, how does it matter?" asks Vikas Bansal who deals in refilled cartridges. "And it’s a myth that poor quality ink is used. Ink used is superior quality and gives exactly the same results as those given by branded cartridges," he says.

However, Naveen Beri, a computer and peripherals dealer, says that use of non-specified ink may harm the printer. "For instance," he says, "Canon uses ethyl-based ink that is waterproof too. If someone uses a different kind of ink, he may end up having a flat printer head."

Combating incursion

It is estimated that compatible cartridges control 15 per cent of the market share currently. So perturbed are the original cartridge manufacturers that they are forming alliances to study the effects of reusing a used cartridge.

Cartridge.co.za, a South African company, has formed a strategic partnership with Perform Set Technologies, a company that specialises in printer maintenance, in an effort to understand the relationship between the use of refilled cartridges and the frequency of printer repairs. Initial findings point out that over 40 per cent of all inkjet printer repairs are due to the use of non-original inks.

Aditya, area sales manager, HP, says if a consumer’s printer runs into problem because of a ‘compatible cartridge’ being used, the warranty on printer is void. He agrees to the fact that compatible cartridges are eroding some of the HP’s market share but says that numerous schemes have been launched to woo back the customers and combat this lateral incursion.

In fact, companies have already chalked out strategies to combat the entry of compatible cartridges. Almost every company is heavily advertising its products and educating customers about the negative points of refilling. HP plans incentives for its dealers while Canon has come out with ink packs. Varinder Phutela, a Chandigarh-based Canon dealer, says that the company’s plan to market ink-packs has borne fruit. "Now people prefer the company-packaged ink over the refilled cartridges," he says.

Vikramjeet Singh from Epson avers that with refilled cartridges being used, chances of printer head getting jammed are high. "All I can say is that you cannot use such cartridges for more than three to four times. After that, it might mean higher costs by way of maintenance."

Madan Mehta, an HP representative, agrees. "A printer card may get short-circuited and it may mean an additional expenditure of Rs 4,000," he says.

Confident refillers

Refilling companies, however, scoff at the idea. Jetpack, a refilling company, maintains: "We professionally recycle original equipment cartridge with fresh ink of the highest quality."

Larry Durham from Ameriquest, a remanufactured cartridge selling company, is more pragmatic. He avers photo-quality printing may not be that good if compatibles are used. Replying to a query posed by Login Tribune, he says: "The ink used in remanufacturing by top-of-the-line companies today is OEM-specified or better. Keep in mind, however, that remanufacturing works best for those people who do a lot of plain text printing. Photos can be done, however, the quality may not be as good."

Cartridge USA asserts that even top companies are resorting to refilling. Visit their Website (http://cartridgeusa.com/faq.html) and here is what they have to say: "Cartridge manufacturers do not recommend refilling and recycling. But you know what the funny thing is? They do it themselves. Apple recently signed a contract with a recycler in Texas. They want you to think they are doing it themselves, but they’re not. Hewlett Packard is looking for a site in Europe to build a recycling plant. The fact is, everybody recycles. Hewlett Packard, Apple, everybody. There is more profit for these companies in a new cartridge, so they push them."

Despite repeated attempts, senior HP officials refused to comment on the issue.

Consumers prefer decent quality at cheap rates in India. With refurbished compatible cartridges hitting the market, a smear campaign between them and the original ones is already on. It will be sometime before what the best bargain is becomes clear.