To guarantee optimum in print quality, Kyte has given a valuable piece of advice – prints should be created from high resolution digital files. According to him reason for this is simple, resolution = detail. “I pride myself on fine detail I incorporate into my artwork and for that detail to show on final print it is important to start with a file that for a typical 12x16 print can be as large as 200 megabytes or more. This makes for a print that has vibrant color and smooth crisp lines.” This must be reason why he emanates outstanding obra maestra !

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Absolute Zero An absolute zero duty regime would prove good for channel, as many more manufacturers will foray into market. This will in turn enhance quality standards, improve profitability, raise service levels, get additional backend initiatives and increase profitability. But based on past experience Indian government will not allow absolute Zero duty (i.e. nil customs and countervailing duty) and lower VAT. One reason for this is that government needs to protect local IT Industry by imposing reasonable tariffs. Bhuwania too feels that though basic duties might be brought down to zero, CVDs and other tariffs would remain. Says he, “CVD will remain, as both PCs and color televisions use same PCBs (populated circuit boards). The government can’t have separate duty structure for same component.” Adds Pansari, “CVD will continue to be at 16 percent. So minimum tax liability will be around 15 to 20 percent.”

Emerging Scenario For distributors and channel partners zero duty brings with it promises of increased business opportunity. But Pansari feels that transaction cost needs to be brought down further. According to him, distributors need to adopt a cautious approach while selecting brands for distribution, as market will be flooded with multiple products and brands. “Quality and not price should be deciding factors,” says he. Plain box movers without focus stand risk of being wiped out. Distributors need to change delivery systems to reduce transit time and damages. Pansari suggests that distributors should take proactive measures like re-organizing its marketing staff based on regions instead of states, increasing post sales support and tapping retail channel if distributors want to survive onslaught.

Conclusion At moment, distributors role is to provide logistics, support and credit. Even post zero duty its role would remain same. But difference is that many more manufacturers would enter market. Hence, distributors would have to develop USPs to attract these MNCs. Manufacturers that were not able to make headway in Indian market thanks to monopolistic hold of a few will now get a more level playing field. This will improve service levels, as multiple manufacturers will now compete on services, back-end incentives, and absolute profitability. This will open up new opportunities for channel. Whether India emerges as an export hub remains to be seen. Since privileges given by MNC manufacturers might no longer be available, product price would be decided at a global level. Lowering of zero duty will bring in more business and increase affordability. The biggest advantage of zero duty if implemented effectively, will be that India can compete globally as a manufacturing hub, as power and labor cost is much cheaper. But Indian manufacturers definitely need to ramp up its exports. In a truly zero duty environment, growth will be exponential. The industry should now focus on strategies to harness this new phenomenon.