At the Ipama Expo in Hyderabad we had an opportunity to briefly speak with Sanat Shah who personally explained to us some of the implications of the DGM acquisition. Mr Shah clarified that Manugraph's relationship with MAN Roland remains unchanged, whereby MAN will continue to sell Manugraph presses in designated markets. These markets do not, for instance, include North America or India. At the same time Manugraph can continue to manufacture the MAN Uniset, which is single width double circumference press.
Mr. Shah also said that he anticipated a very strong market in North America for the Frontline single-width single-circumference 60,000 impressions an hour single press. Although the first customer is a major Indian newspaper that will likely install Frontline presses in a couple of their remote printing plants within the next few months, the press will only be made available for export after it is thoroughly proven in day to day live production.
Mr. Shah said he was excited by DGM's expertise in press design that could possibly lead to several innovative new products for the combined company. It is also expected that the acquisition will raise Manugraphs capacity to close to 1800 single width units a year which is close to half the worldwide demand of 4000 units. We also believe that by sourcing machine components from Manugraph's Kohlapur plant DGM could save as much US$ 20 million each year. Mr. Shah said, “There will be a substantial savings in costs.”
Shah told us that he looked at DGM's owners as active partners and that they were not simply looking to cash out. He added that DGM's management continue to run the company in the US with Manugraph possibly appointing a financial controller to help with the day to day integration of the combined company.
DGM already has three single width double circumference presses. Two of these run at 50,000 impressions an hour capacity and another, the DGM 870 is rated at 70,000 impressions an hour. The DGM 870 is shaftless fully automated double circumference 4-high tower press. The design features a high quality ink train with three ink form rollers, three oscillators, and is fully oil lubricated on both gear and operator sides. Naresh Khanna
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