Noel D’Cunha (NMD): What role has HP played in multiple markets such as India in the last 40 years?
Tony Paguirigan (TP): Over the past 40 years, India has become an untapped market for HP PageWide Industrial printing. HP entered India in 2019 and 2020, with one customer. This customer challenged HP to transform their production environment to cater to short-run books, specifically for the fastest-growing eCommerce platform in India. They cater to domestic and export jobs. They have created a niche market for small publishers, new publishers, and old titles in India that are difficult to find.

NMD: In what way?
TP: The advent of technology, especially with HP, allowing them to produce a book of one, three, or five, depending on the order of the publisher or customer, has enabled them to produce these kinds of publications or books. The India Print Market that caters to exports has been growing. In 2019, it reached a peak of USD 400 million. However, it was USD 250 million in 2021. In 2022, it rose to USD 363 million. Recently, it has notched up USD 382 million in exports from India. Within the next two years, it is expected to break the record of USD 400 million in 2019. (Data Source: Ministry of Commerce and Industry, Department of Commerce, Export Import Data Bank).

NMD: What is your strategy?
TP: HP is working diligently with its partners in India, including a new partner for PageWide Industrial in India, to cater to this growing need for digital short-run requirements.

NMD: You have one press HP PageWide Web Press T240 installed in India? Print-on-demand (POD) is a growing trend in India. But given the capex linked to the HP page-wide, how short is the POD (short-run)?
TP: Yes we have a customer in India. Our customers worldwide use our workflow suite of solutions, to enable POD solutions, which are used in Japan and China. We sell the hardware and provide the entire ecosystem of solutions, such as PrintOS, SiteFlow, workflow management, and print management systems that enable printing on demand. This includes producing a "book of one" - a real book that is unique and customised to the customer's requirements. However, producing a "book of one" is not just about the press or the workflow. The other critical component is the finishing process.

NMD: Please explain.
TP: To achieve the book of one, our customers need to group all their requests into one job and use an efficient finishing machine that can cater to different book sizes and types of finishing, including hardbound, softbound, or paperback. This is important because every book on the roll of paper will be different, and the finishing process needs to automatically adjust based on the book size. The customer in India is open to innovation and wants futuristic solutions to cater to the market's "book of one" requirement, so we will undoubtedly be available. We work with our customers to provide them with the most efficient and cost-effective finishing solution based on their current and future requirements.

NMD: The PSPs are seeking an affordable inkjet option, and that option is coming from China. My question is: How many PageWide presses does HP have in China?
TP: China is a unique market with low price expectations, good quality, and speed in technology. Although the market is highly competitive, there is still a niche area for foreign brands like HP, that is looking for high-quality output, upgradeable and reliable. HP still sees potential in it.

NMD: My question stands.
TP: To answer your question, currently, we have 13 presses in China, all belonging to a single customer. The loyalty of our customers is a testament to HP's vision and value proposition. They value our commitment to upgradeability, quality, and economics, which has led them to increase their machine count from one to 13 in just six years.

NMD: What would be an ideal situation – 13 presses at one customer site, which is most often the case with HP PageWide or 13 presses on 13 different customer sites?
TP: That's quite an interesting question. (NOEL SIR: I concur with TP) Our team responsible for PageWide at HP is a small one with a few members. Our main objective is to help our customers succeed, regardless of who they are. Investing in a digital printing platform requires a significant amount, which can often be our customers' life savings. Because of this, we are extremely mindful of the investment they're making in terms of effort, time, and resources. As a result, we try to avoid cultivating customers who directly compete with another customer of ours, as it would be detrimental to our credibility and relationship with both parties. Although we would like to sell to their competition, we prioritise ensuring our first customer succeeds before moving on to the next. We believe competition is healthy, but we value our customers' relationships and are mindful of their long-term success.

NMD: A related question: when you say just one book, pricing will be a challenge, won’t it?
TP: Of course, producing books digitally is viewed as more expensive than producing them in an offset environment or with analogue methods. It costs around two to five times more. However, if you account for the overhead cost of creating plates and everything else required, offset printing makes it much more expensive. If you compare producing one book digitally and one book in offset printing, then the cost of offset printing is 20 times more than digital printing. This is because the setup cost for offset printing is quite significant. You need to spend up to USD 1,000 just to set up a 10,000 run of books on offset printing. On the other hand, in digital printing, the cost remains the same irrespective of the number of copies produced in general. From one copy to 200 to 300 copies, the cost per unit remains the same in digital printing.

NMD: The HP PageWide presses and the 21,000 nozzles on a printhead. Can you share the fundamentals of the printhead?
TP: The presses in both the 22-inch and 42-inch models use the same printhead, which is a 4.25-inch printhead. This technology is also used in our desktop printers, which have around 1,000 to 2,000 nozzles in a small cartridge. Over the last 40 years, our scientists have staggered these nozzles in a single line to form a 4.25-inch wide printhead. We then staggered these lines into five printheads to form a 22-inch line with each printhead containing 21,000 nozzles. There is a dual line, which contains 21,000 nozzles. When multiplied by five, this gives us around 1,00,000 nozzles per line. For the 42-inch model, you would have 10 of these printheads in a single line, while the 22-inch model only has five.

NMD: That's a huge number of printheads.
TP: We don't use all of the 21,000 nozzles, as they are designed for redundancy and form the core of our technology. The printhead dictates the quality, ink used, cost per page, and number of pages produced. The biggest advantage of our technology is that it is customer-replaceable, unlike our competitors' machines, which require an engineer to replace the printhead. We have designed our industrial machines with the same customer-replaceable printhead feature as our desktop printers. This allows operators to replace the printhead without using any tools or calling an engineer.

NMD: And what's the outcome? What's the advantage?
TP: There are several benefits of using thermal inkjet technology. Firstly, it ensures high reliability and uptime of your machine. This means you don't need to call a service engineer for any printhead-related issues. Secondly, if the machine breaks down or there's a quality issue, you don't need to replace the entire machine; you can just replace the faulty part with a new one. This makes it easy to maintain and repair. Overall, thermal inkjet technology is a convenient and efficient solution for printing needs.

NMD: Any differences?
TP: There are some notable differences. Firstly, there is a feature called the HP Optimizer, a proprietary technology developed by HP. This technology facilitates the printing of offset-coated and uncoated media, allowing our customers to use their existing media from the offset environment.

NMD: Can you explain nozzle redundancy?
TP: The main advantage of HP's thermal inkjet technology is its nozzle redundancy. Each dot that needs ink has eight nozzles available to fire ink on it. When one nozzle gets clogged or stops working, the system detects it immediately, and the other nozzles take over, firing on that same dot. This prevents the formation of a straight line in the output, which would be visible to the naked eye. The system cycles through the nozzles, firing them one after the other to ensure the ink is evenly distributed. This ensures that the output is high quality and free of visible defects.

NMD: So there is thermal inkjet. Also there is water-based inkjet. What is the difference?
TP: Thermal inkjet technology is HP's technology, and it uses water-based ink. Thermal printing is a process that involves using heat to eject ink onto paper. We heat the chamber to create a bubble that expels the ink onto the paper. This process is commonly referred to as thermal or heat-induced printing.

NMD: Has the printhead technology been developed in-house?
TP: Yes, everything is developed and manufactured in-house. Only two companies in the world started with thermal inkjet technology. The first one is HP, while the second is another company from Japan, which another scientist developed. Interestingly, both companies created their technology around 1980, and it has since evolved into two versions of thermal inkjet available today.

NMD: There are different inkjet technologies in the market; how much does HP’s technology help improve sustainability?
TP: Thermal inkjet technology is sustainable in various ways. It does not produce waste ink in an ink tank; it spits out ink only where needed, without waste. The printhead used in thermal inkjet technology is also recyclable. Moreover, thermal inkjet technology uses water-based ink, which is safe for the environment and can even be recycled through paper recycling processes. This technology also has low VOC non-hazardous materials, making it more sustainable for the environment.

NMD: How does your printhead architecture optimise for different applications, like publishing and packaging? What are the design considerations?
TP: One of the biggest differentiators is that we develop and manufacture our own technology, including the chassis, engine, and everything else. This means our customers can enjoy the benefits of our high-quality machines, which can handle a wide range of media and applications.

From the core technology, we have introduced a platform to cater to the corrugated and packaging applications that use a different type of ink that can sustain the corrugation process.

NMD: What about lower gsm Bible paper?
TP: With the HP PageWide Advantage 2200, our customers can print on very thin, lightweight paper (30-40 gsm) for pharmaceutical applications. It also produces postcards and small-scale posters up to 320 gsm. This range of capabilities allows our customers to cater to their changing market landscape, making our machines more versatile. These are on top of the core applications we dominate in the market, such as publishing. The point is, a majority of our install base is unique. We customise solutions that meet our customers' unique applications and production environments. These include integrating with their existing systems like MIS and ERP and some in-house developed systems and processes.

NMD: How customisable is the solution? Can it integrate with our existing MIS/ERP systems and be configured for unique processes?
TP: That's the advantage of HP being a Technology Company. We design and create solutions that meet the market requirements. We understand the importance of connectivity and seamless solutions. To achieve this, we integrate with existing or legacy applications, including the MIS and ERP systems, on the upstream side. However, the game changer lies in integrating with finishing machines, which is the most challenging part. While many off-the-shelf solutions are available for the software part, the finishing process requires integration with the customer's existing workflow, including their cutting, folding, and binding machines. This is where our huge differentiator lies. We work with almost all of the leading finishing machine providers globally to leverage their infrastructure and provide an integrated and packaged solution with our Digital Print Platform.

NMD: So from what you have shared with me, I see you have a long line with so many printheads, they tend to become more expensive when it comes to maintenance...
TP: HP operates differently than its competitors. Our business model is similar to offset printing. Customers buy the machine and then purchase the service from HP, paying a fixed amount based on the required service level agreement (SLA). This comes with unlimited spare parts replacement, like an insurance policy.

NMD: What about the cost of consumables?
TP: Regarding consumables, HP operates like offset or analogue printing. Customers only buy the supplies they need, including the printhead, web cassette, and inks. They buy them as they need them, without being charged for unnecessary items. Unlike traditional toner space where there is a click charge for every page, HP offers an a la carte service or a la carte supplies. In other words, customers only buy what they need - inks, printheads, and web packages.

NMD: From a customer's point of view, what are the key factors that one should consider when choosing between different generations of printheads to achieve the best balance of print quality, speed, and reliability for a specific application?
TP: At HP, we offer the latest technology. Currently, we have the HP PageWide Advantage 2200 and the HP PageWide Web Press T485 platforms. Our customers have choices when it comes to selecting a platform or press, based on their specific application needs and printing volume. The technology and platform are comparable, regardless of whether it's a 22-inch or 42-inch press. The key is to choose the right one for your application and printing volume that will support our customers’ current and future needs while maintaining the essence of automation, efficiency, and compelling economics.

NMD: What kind of total cost of ownership savings can I expect from newer printhead technologies with improved nozzle redundancy and lifespan?
TP: Firstly, investing in HP technology ensures long-lasting and comparable results to offset printing. Our customers who invested a decade ago have machines that are running. Secondly, our printers are upgradable in the field, so customers don't have to buy a new machine every time we introduce a new technology. They can simply upgrade using the new printhead, inks, and electronics. This provides a lot of value for investment.

NMD: You offer a la carte business model for your supplies. How does that work?
TP: This gives our customers the flexibility to buy what they need. This means they can price their prints based on the quality expected by their end customers. They can separate pricing for mono-only books, high-colour magazines, etc. Our customers can use this flexibility to their advantage and price their products appropriately. From our side, this provides them with cost flexibility to manage the quality expectations of their end customers. These are the three key things that differentiate our technology from our competition in the market.

NMD: Returning to the cost, what role does the ink chemistry and formulation play in achieving high-quality print versatility and sustainability, which are the goals of both HP and the PSP? But how much does it cost?
TP: We have come a long way from our ink's initial days. We use several types of inks on various platforms. As part of the SDG and sustainability initiatives globally, we are now using water-based ink. HP is a big-time supporter and evangelist of sustainability. Our ink comes with water, and we use a lot of it. If we use a lot of water, it raises concerns. To address this, we've developed the latest ink called “HP Brilliant Ink”, which uses less water but more colourants. This improves the print quality while reducing water use. Furthermore, we use less power to dry the ink on the paper. We keep improving and innovating to reduce the resources required to print on paper. We no longer require customers to use a specific paper type. You can use almost any paper on HP's PageWide Web Presses, including from offset. Our proprietary technology, HP Optimizer, makes this possible.

NMD: Are these applicable when producing unique packaging applications, such as specialised ones?
TP: The technology and innovation we have on the commercial side are also available and apply to the corrugated and packaging side of the business

NMD: Some analysts are claiming that digital printing growth rates may slow down from the current double-digit levels. What is HP's response?
TP: Yes, the print industry is indeed slowing down in some areas that no longer make sense. Newspapers and magazines are going online, and these can be seen on tablets. However, in the market that HP is responsible for - Asia Pacific, Southeast Asia, particularly India and Indonesia - the volume of printed books is still growing. This is due to the population and demographics, as many students prefer to study using printed materials. A study, a few years ago, said the effectiveness of learning using tablets or electronic devices is not effective. That's why schools have returned to paper-based learning: books and printed materials.

NMD: Bullish about print?
TP: Our products are still in demand. These are our products for book publishing, particularly educational trade books. These are growing. As of today, books are still preferred for higher education, especially in India. Also many consumers want to order books online, which is driving the print industry's average production.

NMD: HP has introduced HP Brilliant ink. How does this differ chemically from your previous generation?
TP: The previous ink generation is nearly identical to the current one. The only significant difference is that we now use less water and more concentrated ink with more colourants. This improved formulation has enabled us to achieve a wider colour gamut, making it possible to reproduce famous brand colours more accurately.

NMD: The HP PageWide Advantage 2200 has a feature that allows you to reduce the density of the ink—move to 80% or 100%, black or colour?
TP: HP operates in various markets and applications, each with specific cost expectations. For instance, in the case of transactional printing statements such as telephone bills, insurance bills, or utility bills, the end customer of a print service provider (PSP) expects a certain cost per page or cost of production per envelope. As an a la carte supplier of printing supplies, HP cannot control what the PSP prints but has created a colour profile that allows customers to reduce the amount of ink they use to meet their cost expectations.

NMD: What is the advantage?
TP: This colour profile provides flexibility for PSPs who use the HP PageWide Advantage 2200 printer to reduce the amount of CMYK ink they use while achieving acceptable print quality for their end customers. Depending on the type of paper used, the colour profile can determine the maximum amount of ink that can be used and reduce the ink usage from 100% to 80%, 75%, or even economy mode while still meeting the customer's print quality requirements. The selection of the appropriate colour profile, such as 80 profile, 90 profile, or 100 profile, plays a significant role in this kind of printing application. It allows customers to meet their cost expectations while also giving them the flexibility to adapt to different market needs. This feature instils confidence in PSPs, knowing that they can always meet their customers' print quality requirements.

NMD: Also, the HP PageWide Advantage 2200 can be printed on paper and paper board. What changes are required when one shifts from one application to another?
TP: We are proud to introduce the new capabilities of the HP PageWide Advantage 2200 platform, which can accommodate paper ranging from 40-gsm and now up to 320-gsm. Shifting from lightweight to heavy paper like paper board requires proper job batching or management that includes paper and colour profiling. This profiling is automated and can be set up within a few minutes. However, the critical aspect is the ability of the finishing equipment to handle such change. Few finishing solutions in the market can handle paper weights ranging from 40- to 320-gsm. This is especially important if you run an in-line process connected to the A2200 machine. This means that the finishing machine must also be able to handle the 800ft/minute speed and the weight of the paper.

We are pleased to work closely with our leading finishing partners to create solutions that can handle the demands of the A2200 machine. Our partners are already bridging the gap to create a capability to handle the high-speed process and the weight of the paper, up to 320-gsm.

NMD: Tony Paguirigan, if you were a printing service provider (PSP), which of the HP presses would you pick?
TP: If I were a PSP, I would invest in both the 22-inch and 42-inch printing machines. The 42-inch machine would be ideal for large print runs, enabling me to complement and compete with offset printing. With digital printing technology, I can produce hundreds of thousands to millions of books with a lower cost per page and quicker time to market while maintaining the same quality as offset printing. This is perfect for high-volume jobs. On the other hand, the A2200 printing machine would be perfect for high-value, shorter print runs, such as gift cards, postcards, magazines, etc. This machine is ideal for dynamic applications in the commercial market. By investing in both machines, I can cater to a wider range of printing needs and capture a larger market share.

NMD: Thank you. It was nice talking to you.