Manugraph-DGM Continues its Relationship with MAN Roland

By: Jim Rosenberg The Manugraph Ltd. acquisition of Dauphin Graphic Machines Inc. will not affect Mumbai-based Manugraph's relationship with German press maker MAN Roland, according to the Indian company's top executive.

Manugraph and DGM, based in Millersburg, Pa., with a plant in nearby Elizabethville, announced the deal yesterday, saying the resulting Manugraph-DGM will be "the largest single-width press manufacturing company."

Manugraph is spending $19.2 million for DGM, a former Pamarco subsidiary with approximately $70 in annual revenues that was bought out by management two years ago.

In the current business environment, "the need to form worldwide alliances is a must," said DGM's CEO and largest shareholder, Chris Lunt, who referred questions regarding the status of Manugraph's relationship with MAN Roland to Manugraph Managing Director Pradeep Shah.

In an e-mail last night, Shah said the Manugraph-MAN relationship is unchanged, with MAN continuing to sell Manugraph products outside of North America and Manugraph continuing to manufacture MAN's Uniset for the Indian market. Shah further stated that MAN Plamag will continue to support Manugraph "as decided between the companies on an on-going basis."

A MAN Roland Inc. spokesperson said the company had no comment on the relationship of its parent company, in Augsburg, Germany, with Manugraph "because until we hear otherwise, our business doesn't change."

Manugraph and MAN Roland have collaborated for a number of years, with MAN selling Manugraph presses worldwide and Manugraph manufacturing in India and selling MAN Roland?s two-around Uniset 60 press. The arrangement provided MAN with presses that operate in a range up to 45,000 copies per hour and gave Manugraph a singlewide rated at 60,000 cph, as well as MAN technology for its own presses, originally through a relationship with MAN Plamag, in Plauen, Germany.

Manugraph-DGM said it will maintain manufacturing and assembly operations at its three facilities -- two in India and one in the U.S. -- and continue to offer all products from each, as well as sales through DGM representatives in North America and elsewhere, and Manugraph representatives in India and throughout the rest of the world.

DGM's Lunt said "each company's strengths perfectly complemented the other's." He also cited "global sourcing of components, world class, cost effective manufacturing facilities, incredible R&D resources" and the companies' compatible cultures.

Boosting annual capacity from 1,400 machines to 1,800, the acquisition moves the Manugraph close to its goal of supplying half of world demand for 4,000 singlewide units, according to Shah.

If able to rely on Manugraph manufacturing in India, the Pennsylvania plant reportedly will be able to shrink the $22 million it spends on parts. "There will be a substantial savings in costs," Shah told Reuters.