“Retail is one segment that is currently growing very fast in the country. During the Pandemic, it looked like there was a contraction in the retail businesses and there was a general sense of uncertainty.  But post Pandemic retail expansion has been happening at break-neck speed in India, especially by some of the bigger brands. We want to participate in this growth of the retail sector and there cannot be a better time than this to enter this segment,” Naresh Kumar Dasari, Managing Director, Macro Media Digital Imaging Pvt Ltd, tells Retail4Growth in an exclusive conversation, while speaking about Macro Media Digital’s recent acquisition of Bangalore based fixture manufacturing company Dovetail Furniture Pvt Ltd.  It may be recalled  that Macro Media Digital Imaging also acquired Kalpana Graphics in December of 2020.

The acquisition of Dovetail, which transpired just over two weeks ago, currently sees Macro Media having a majority stake of 51% in Dovetail, and in about a year’s time the transaction will be complete with Dovetail becoming a 100% owned company of Macro Media, as Naresh informs. He adds, that even as a 100% subsidiary of Macromedia, Dovetail will run as an independent company with its own identity. 

While the financial terms of the acquisition were not disclosed due to NDA between the concerned parties, the deal does point to the combined entity’s enhanced focus on Retail and catering to the current needs of big retail brands.  As Naresh says, while throwing more light on the background to the deal, “We are constantly looking to expand our operations across adjacent domains and looking for businesses that can complement our offerings in the market. We realised that many of our larger customers were looking for a consolidated offering of signage and furniture and wanted the same vendor to supply both for their stores. That’s when this whole of idea of acquisition seeded in our minds. We were looking for the right opportunity when Dovetail came along. We evaluated them and felt that was the right company for us to acquire.”

Strategic leveraging of mutual strengths

Says Sundar Subramaniam, who was the Co-founder and MD of Dovetail Furniture Pvt Ltd, and who will continue in the capacity of Chief Design Consultant for Dovetail post acquisition by Macro Media, while speaking about the acquisition to Retail4Growth, “It was just the right timing - we were looking to sell and they were looking to buy, and since we were all professionals, we were able to find a good meeting point.”  

Indeed, for Macro Media Digital Imaging, a 25 year old company that has been a prominent player in wide format graphics business since 1999 with facilities across the country, Dovetail is a right fit. As Naresh says, “Dovetail is a 39 year old company run by professionals in a professional manner. During the last nine months or so when we observed the way their business was being run, our confidence only grew. And I must say that we acquired it at the right price for all concerned. For us it’s very important that any transaction is a happy one for all. It’s very important that the seller believes there is a future for the company with us and that it’s going into the right hands at the right price. And I’m happy that this is what happened with both our transactions, our last acquisition of Kalpana Glass Fibre in 2020 and our recent acquisition of Dovetail.”

Sundar echoes similar sentiments and agrees that with Macro Media’s strength of infrastructure and market reach, Dovetail will tap into a wider client base while catering to existing clients with expanded offerings.  “We have long standing clients and we have always believed in growing with them, while looking for new clients, as that’s the only way to grow the business. This whole synergy makes sense for all of us.”  

Scaling up facility & offerings

Macro Media is building a 1 50,000 sq feet facility at a four acre industrial area in Hyderabad as a combined unit for both Dovetail and Kalpana Glass, which is expected to be operational by the third quarter of this financial year. Dovetail’s current facility in Bangalore is also being relocated to a larger facility. “By moving it to a larger facility with expanded capabilities, we will be making the whole manufacturing process more seamless and organised, bringing everything together under one roof,” says Naresh. He adds that Dovetail staff will continue to be part of the entity and that all existing projects are on track.      

Further, talking about the company’s immediate plans and focus area, Naresh shares, “We want to expand our market reach and expand both the topline and the bottomline by focusing on consolidated offerings to clients, including signage, graphics and fitout and leveraging the strengths of all three entities. Any brand will be happy to work with a single entity as they are assured of both consistency and commitment.” Towards this, Naresh informs that Macro Media plans to have one more manufacturing unit in a different part of the country. “By end of 2025 we will definitely have one more facility, may be in the West or North. Retail fixtures are voluminous in nature and the transport cost itself is prohibitive so it’s important for us to have our facilities spread out so that we can service our customers better.” 

Setting down best practices & standards

Naresh is also very clear that all new initiatives will aim at one clear goal: establish best manufacturing practices. “We want to make investments in capabilities that would make us the best in the industry.  Dovetail has a legacy of knowhow, equipment and manufacturing process, and we want to enhance them to the level of global standards.”

In terms of integrating front-end technology in retail solutions, Naresh says that with digital displays increasingly taking over retail spaces, the company will be looking at that area as well and will be exploring right opportunities for collaborations in the next 12-15 months. 

Finally, while summing up and diving into the core of what the market is looking for today, and how the company is charting a path in that direction, Naresh says, “Today end customers have certain expectations from their brands and the brands therefore seek a certain standard and quality, which would cater to their customer’s expectations. For example, even for something as simple as powder coating, there are greener options available today, wherein the human health safety standards are also met. So, the point is that these aspects are coming into a lot of focus today and we are also looking at investing in that direction, offering higher grade materials and finishes to our clients. We are a very specification driven business and as a company we also love to work with clients who seek specific standards.”