Summary

Ink Toner is a leading importer and distributor of OEM remanufactured toner cartridges in South Africa. Established in 2021, the company has rapidly expanded its reach, currently servicing resellers approved on the SITA panel under the RFB 740 contract. Unique in the market, Ink Toner is the sole accredited distributor for KODAK remanufactured OEM toners and maintains an active agreement with SITA, the governing body for government IT products and supply chain management.

Give me more information

Products and Services

Products and Supply Chain:

The company specializes in importing high-quality OEM remanufactured toner cartridges sourced from the UK. These toners are original components that undergo a strict remanufacturing process, ensuring compliance with yield requirements and quality standards. Certificates confirming the product specifications are available upon request.

The sourcing is done on a cash on delivery (COD) basis, utilizing primarily air freight to maximize profit margins, which exceed 60%. Once stock is received, it is processed, and orders are fulfilled within approximately five days. Ink Toner does not sell directly to the public sector; instead, it operates through Supply Chain Managers (SCMs), facilitating orders to government departments efficiently.

Payment Structure and Warranty:

All transactions with SCMs are conducted on a cash basis or via Purchase Order Funding. The company provides a two-year warranty on its products, ensuring customer satisfaction with a straightforward swap-out process for any faulty toners with appropriate evidence.

Benefits for SMEs and Public Sectors:

Ink Toner’s products achieve significant cost savings of 15-20% for end users while allowing SMEs to enjoy profit margins of 25-40%, significantly higher than traditional OEM toner sales. In light of discontinued printer models, many public sector institutions like hospitals and police stations benefit from continued access to necessary toner supplies without needing to replace older printers.

Sustainability Initiatives:

The business promotes environmental responsibility by providing recycling boxes for empty cartridges, enhancing brand visibility while contributing to waste reduction.

Market Resilience:

During challenging times such as a pandemic, Ink Toner remains operational, providing essential supplies to key sectors, including the Department of Defense and healthcare facilities.

Expectations from a Potential Buyer:

The prospective buyer is expected to nurture existing relationships with SMEs and proactively engage with government departments—particularly hospitals—to deliver product presentations and keep pricing current.

Financials and Forecasts

Financials is available

Reason for Sale

Seller relocated

Conclusion

In conclusion, Ink Toner presents an exceptional investment opportunity due to its established position as a sole accredited importer and distributor of OEM remanufactured toners in South Africa. With a strong partnership with SITA and significant profit margins, investors can benefit from a consistent and growing demand, especially in the public sector. The business not only meets regulatory standards but also caters to the unique needs of SMEs by providing cost-effective solutions in a market where OEM alternatives are increasingly unavailable. Furthermore, their commitment to environmental sustainability through recycling initiatives enhances their appeal in today’s eco-conscious market. With the infrastructure in place and tremendous potential for growth, acquiring Ink Toner is a strategically sound decision for any investor looking to enter the robust toner supply industry.