Self Adhesive Labels Industry In India and The World
The pressure sensitive adhesive labels and packaging industry is growing at a steady and rapid pace in India. It is now time that the contribution of those who have achieved success is chronicled so that those who wish to move ahead have a platform to look for information, news and interaction. This Website intends to provide all that along with inspiration and reference.
LMAI (Label Manufacturers Association of India) has recently announced the 6th biennial LMAI conference 2023 themed, “Creativity-Innovation-Sustainability”, to be held at Jaipur on 20th to 23rd July 2023. The registrations for the same have begun. The main conference is slated to be organised at hotel The Leela Palace Jaipur and due to the big number of delegates expected, accommodation is also arranged at Hotel Fairmont Jaipur, just a few minutes away. The Leela Palace is nestled against the majestic backdrop of the Aravalli range. It boasts over eight acres of landscaped gardens and an enviable location – near key heritage and tourism sites within the ancient city complex. The majestic splendor of Rajputana heritage at this landmark structure uses traditional thikri craft, inlaid mirrors, Shekhawati paintings and silver foiled domes in its decor. The second hotel, the Fairmont Hotel is an ode to Jaipur, popularly known as the pink city, through awe inspiring architecture and decor, inspired by the Mughal Dynasty and Royal Rajputs of yore. This luxury Jaipur hotel is also nestled amongst the majestic Aravalli hills, all 199 rooms and suites are elegantly appointed, to reflect a perfect blend of traditional Rajasthani décor and modern amenities. Over 600 delegates consisting of label printers, leading industry suppliers from India and around the world and media are expected to attend this biggest event of India’s label industry.
Harshdeep Kaur performing at LMAI conference
In 2011, writing the preview of the first ever LMAI conference, which was held at Hotel Park Hyatt Goa, the author wrote in this blog, “History is being created”. So true it turned out to be! The 2011 LMAI conference titled “Innovations Unlimited” was an immense success. Now 12 years on, we nostalgically look back to rejoice the value of this biennial event that brings the entire Indian label industry, including printers and suppliers, together for 3 full days to network, share knowledge and party together. In 2011 the progressive Indian label fraternity was elated by the presence of suppliers and media from destinations around the world and the journey has moved on with growing numbers of delegates at the conference. The large congregation justifies the saying, “More the merrier.”
Gaur Gopal Das at LMAI Conference
The previous editions of LMAI conferences have been held at venues that include Goa-2011, Goa-2013 Jaipur-2015, Agra-2017, Kochi-2019, due to the pandemic 2021 had to be cancelled and now planned to be held at Jaipur 2023. The number of delegates has been steadily growing, from just 271 in the first showing, it is likely to cross over 600 in the forthcoming conference. The label industry has been undergoing a tremendous transformation in the ensuing period. India is already or almost, the most populated country in the world. It is one of the five largest economies with a young population having median age of 29 years and a huge young population being educated and coming out of universities and skill development centers. The demand for consumer goods is steadily rising and
Images of Kochi Conference
so is the demand for labels and packaging. Labels have always been registering a robust double digit CAGR (compounded annual growth rate). Currently there is an increasing number of new entrants in label manufacturing leading to intense competition as well. In a continuously evolving scenario, LMAI has been putting across message to its members to adopt innovations that will result in value addition. However, this year sensing the imperative need for industry to implement sustainable manufacturing processes, LMAI in this year’s theme for the conference is putting across a message to be creative and innovative along with a focus to manufacture products that are sustainable and have reduced impact on the environment. Thus, the theme “Creativity- Innovation- Sustainability.”
Delegates partying!
The LMAI organizing team works hard to put together a variety of programs along with technical presentations, to liven up the moods of their members who attend the conference. There is knowledge sharing, entertainment, partying, motivational presentations, and a lot of fun. Already 31 leading industry suppliers led by platinum sponsors Avery Dennison have confirmed their support as sponsors for this prestigious conference. There are still many others who are in-waiting to confirm their sponsorship. Once the list is complete and the offer for sponsorship closed, the complete list will be shared with industry. The memories of these wonderful events linger on, triggering yearnings to have more such events that bring this colourful industry together.
Panel Discussion
The LMAI conference is open only to its members. Nonmembers who wish to attend the conference and events thereafter, must enroll as members of the association before applying to join the conference as delegates. Printer members and Sponsors will be accommodated in the main venue The Leela Palace Jaipur. Associated members other than sponsors and the late registrants will be accommodated at the Fairmont. There will be adequate arrangements for moving the delegate between the hotels.
Those wishing to become members of LMAI may download the membership form from the link https://www.lmai.in/membership/LMAI-Membership-Application-Form.pdf . Members wishing to register as delegates may download the forms from the following links and send to LMAI secretariat mentioned below along with remittance;
Dehradun headquartered Zircon Technologies has invested in the first ever OMET XFLEX X7 670mm machine in Asia.
The machine is capable of handling films and foils starting from 12micron PET. It has been equipped with special coating and drying technologies which will allow Zircon to deliver decorative packaging with sustainability built into it.
With this investment, Zircon will offer brand owners solutions in flexible packaging and labeling which are second to none globally. The press has capabilities in printing soft-touch and tactile varnishes, metallic foil and the most varied special effects.
Sanjeev Sondhi, Managing Director of Zircon says, “Zircon has always been the front runner in bring latest and best technologies available globally to India. With the new OMET XFLEX X7, we aim to provide brand owners with flexible packaging solutions which enable them to attract and engage with consumers better, while still maintaining their sustainability targets! It is the first of its kind machine in Asia!”
Sanjeev Sondhi has been associated with the author and his family for many years and it is appreciated that he says, “ I treat Harveer Sahni as my mentor and this decision to upscale with a state of art Omet is due to motivation by him!”
This machine with capability to print at speeds of 250 meters per min, while automatically maintaining all critical parameters of printing, will take the Indian packaging to levels never reached before. It will allow consumers a unique experience with Shrink Sleeves and Stand-Up Pouches, the products of the future.
As per Andrea Angeli, Sales Area Manager of Omet, “In life, as in business, having a vision is the ability to imagine and anticipate the future: If you can see the invisible then you can achieve the impossible. This is the idea behind this OMET XFlex X7-670mm machine that has been specially designed for Zircon, based on the new innovations requested by their team, led by Mr. Sanjeev and perfectly developed by OMET.”
“Zircon and OMET are companies driven by passion to innovate. With this new investment, the relationship between Zircon and OMET is strengthened further. We anticipate new innovations in embellishments and sustainability being launched by Zircon, in the near future. We are excited to be Zircon’s partner in these new solutions!” says Pawandeep Sahni, managing director of Omet India.
Marco Calcagni the Sales Director of Omet Srl, Italy commenting on the Omet-Zircon relationship mentions, “Zircon and OMET are known to be strong partners to jointly develop technologies. This investment celebrates 10 years of partnership between the 2 companies, and I am sure, together we will achieve great heights in the future to come!”
Ever since 1450 when goldsmith Johannes Gutenberg invented the movable-type printing press, which started the Printing Revolution, printing technology has been evolving. The technology has come a long way from the first use of flat wooden blocks being inked and stamped on to paper to production of metal typesetting mechanizing the process. The history is very interesting and long. Printing process or technology has evolved in many forms of contact printing from flat bed to offset printing in sheet and roll to other forms of printing like rotogravure and screen to finally reach the present-day non-contact digital printing without the need of blocks or plates and with just click of button from computer to print.
With time, labels and packaging evolved and there was a dire need to decorate the packages and labels to catch the attention of discerning customers. Embellishing processes have also been developed to become an inherent part of printing and converting process. These include varnishing, hot-foiling, cold-foiling, embossing, debossing, lamination, die-cutting etc. With the development of different printing technologies it became apparent that each technology has its own advantage. For high quality images to reproduce skin tones and vignettes, offset is preferred. For the desired pantone shades, flexo is preferred.
To achieve higher deposition of ink, screen printing delivers the desired results and to get the good metallic effects in printing with metallic inks, gravure printing is used. To produce personalization in print, have variable printing, to achieve track and trace information and security information, digital provides the option. The advent of organized retail and e-commerce becoming a part of our daily life, has brought about the need to bring the best of each technology together and achieve excellence in printing and packaging. The organisers of Pamex 2023 exhibition, All India Federation of Master Printers (AIFMP), in association with Print-Packaging.com saw immense value in adopting the theme “Convergence in Print” and delivering the importance of this theme to printers and other visitors to this prime show.
The theme was conveyed to the printers in the nation at different geographical venues in India by the promoters. Roadshows with presentations by sponsors offering equipment with convergence in print and panel discussions were a part of these presentations. Technical presentations on technologies such as printed electronics were also a part of the roadshows. Diverse information and knowledge was delivered to attendees at locations like Bangalore, Pune, Guwahati, Indore and Haridwar.
The focused efforts by the team of AIFMP headed by President Ravi Joshi, Tushar Dhote and organizer Anil Arora of Print-Packaging.com produced a successful event. The final show Pamex 2023 held at Bombay Exhibition Centre Goregaon Mumbai on 27th-30th March 2023 was an immense success. 33,812 visitors and over 450 exhibitors thronged the venue and came from many countries around the world.
On the penultimate evening Pamex 2023 played host to a glittering awards ceremony at the Gala Exhibitors’ Evening. AIFMP decided to institute several new awards to add to the prestigious NAEP and VCPLA Awards that were given away in the last edition. The awards was with full attendance and printers and suppliers networked and celebrated the togetherness.
If the number of visitors at recent printing and packaging shows is an indicator of growth in demand, it sure is a time that indicates that demand is rising, and the shadow of gloom spread by the pandemic seems to have faded if not disappeared completely. So scary was the impact of Covid-19 that despite the resilience this industry portrayed, all investments were put on hold as uncertainty prevailed. Indians are largely brought up such that as a deliverance of heritage, when anyone questions, “how is business?” Most of the times the prompt answer is, “Good!” This is expressed so, even though there may be a slowdown or other challenges in the workplace. However, when an Indian answers “Very Good” with a broad smile, like we have witnessed at the recent packaging shows, it surely indicates happier times are back again.
The exhibition industry has faced some of the most challenging times due to the pandemic but when the shows returned, the number of visitors and participants have been on the rise. Last May 2022, as PrintPack India drew to a close, reviewing that event , Noel D’Cunha managing editor of Printweek India wrote, “A feeling of business returning back to normal was apparent”. Many found that despite two postponements and the scare of Covid, the Greater Noida event to be busier and more successful than expected. IPAMA, the organisers of Printpack reported 1,03,412 visitors from 52 countries visited the show that was showcased by 487 companies. In July 2022 PackPlus in New Delhi also reported success with 12239 visitors and 153 exhibitors. Labelexpo Americas in September 2022 saw 362 exhibitors and 13,569 visitors from 77 countries including India. It is surprising that many Indians travelled such long distance for a label show. Later in November 2022 Labelexpo India also reported a triumphant return after a hiatus of 4 years, they reported over 12000 visitors, a 22% increase over the last show with 250 exhibitors.
After being postponed for over a year, Pamex 2023 being organized in Mumbai from 27th to 30th March 2023 is heading for a massive success. The last edition of the show witnessed over 35,000 visitors and 375 exhibitors. The current edition of the show is slated to be 25% larger than the previous one.
It will be spread over 12,000 square meters in 3 halls with 425 exhibitors and the organisers are expecting over 40,000 visitors. According to Anil Arora President Print-Packaging.com, the organizer of Pamex, “despite no direct participation from Chinese exhibitors, the show will be at least 25% larger in terms of space sold over the last edition. We hope to see a similar growth in visitor footfalls”. The label, printing and packaging industry is already optimistic and looking towards a great show with networking opportunities with not just national but also global peers.
There are diverse estimates of the market size of the packaging industry in India but a conservative figure hint at close to USD 200 billion growing at around 10%, but this all includes many segments of packaging. The Indian pressure sensitive label industry is a miniscule portion of the total packaging industry though it is the largest segment of the overall labels industry. Labels have now moved into different tangents like wet glue, shrink sleeves, wrap around, in-mold labels, etc. The global pressure sensitive label market is estimated at about 50 billion US Dollars.
As for the market size of pressure sensitive labels industry in India, it has been estimated at very diverse figures. The author’s personal estimate has always been considered higher, but the author asserts it is more realistic and estimated on strength of his experience in the Indian market. The finished label market size according to the author’s personal estimate is between Rupees 4500-5000 Crores which by current conversion rate amounts to 610 million US Dollar. The figure translates in less than 1.5% of the global pressure sensitive label market size, indicating a huge potential for growth. This estimate includes all the labels in roll form, sheet form, Barcode/EDP labels, plain labels and manually produced pressure sensitive or self-adhesive labels.
Current trends as witnessed from the moves and actions of the labels and packaging industry indicate a robust growth in capacities. The increased demand for packaging has been witnessed with the advent of developments in ecommerce, tempting more and more consumers to make purchases online from within the confines of their homes. Innovative and attractive labels and packaging ensure a greater brand recall without dependence on shop shelves to decide what to buy and where to buy. There have been challenges due to a dire need for sustainability, but the good thing is industry is now making efforts for the betterment of humanity by taking these challenges positively. Now industry is moving away voluntarily from single use plastics, compostable or bio-degradable, using materials that are recyclable or reusable and reducing adverse impact on environment.
New investments are being made with such sustainable measures in mind. Reducing production waste, producing to economies of scale and managing waste responsibly are imperatives considered when expansions are being made.
Another change that one has witnessed in the last few packaging shows is that the Make-in-India effect has become evident and acceptable not just for consumer products but also for equipment and tooling. It was interesting to see so many Indian label press manufacturers offering good acceptable quality equipment that is comparable to the international presses.
All the press manufacturers who exhibited at the labelexpo India reported sales and some of them multiple sales with information of them having made numerous installations successfully not only in India but also around the world. The Make in India concept was not limited to press manufacturers, there were Indigenous manufacturers of magnetic cylinders, anilox rolls, tooling, inspection systems, plate mounters and in fact the whole gamut of requirements of the printing and converting fraternity. The best part is that the offerings not only perform fairly well but are also affordable and come within the reach of middle level printers and converters.
With the middle level printing companies increasing their capabilities by investing in new India-made modular all-UV and all-Servo presses with all accessories as in the international brands, there is intense competition. Such label printers have an advantage as the impact of the capital expense on input cost is substantially reduced.
Thus, there is a need for the top end printers to further enhance their capabilities by investing in higher end equipment with hybrid printing presses employing diverse printing technologies including digital, gravure, screen and offset besides flexo, embellishing and innovative possibilities, quick changeovers, reduced dependence on manpower, faster job setup with high-end automated registration controls ensuring minimal setup waste, lower energy consumption, nonstop continuous production for longer runs, etc. There is compelling evidence of new demands from print buyers. The industry is in an evolutionary phase, on one side there is increasing competition due to increasing number of label printers on the other hand, print buyers big and small are also demanding short runs with digital printing for variable and personalized labels. It is time when the sustainably endeavors indicate efforts to cut down on secondary packaging, the need for higher end more embellished labels with security features are in demand to aid aesthetics that will enhance brand value. The growing Indian population and increased literate workforce is ensuring an increase in demand with better labels and packaging. At this time when the growth is becoming evident, the better equipped and the fittest will excel!
Written By Harveer Sahni, Chairman, Weldon Celloplast Limited New Delhi March 2023
Global leader in Corona treatment, Vetaphone A/S will exhibit at Pamex International Exhibition from 27th to 30th March 2023, Stand No. G5 Hall No. 2 along with their exclusive Indian agent Weldon Celloplast Limited.
Corona surface treatment is essential in label printing. When the label is made from plastic substrate the ink tends to become blemished due to its inability to bond to the plastic. This problem occurs because the surface energy of the plastic is insufficient to permit a proper bond. A quality Corona treatment is necessary to ensure the perfect label print quality. Vetaphone Corona systems help obtain a flawless and long-lasting quality print. Adding Vetaphone Corona treater to web press, often eliminates the need for using top-coated materials.
Weldon Celloplast Ltd. New Delhi India. Weldon established in 1982, are providers of total label manufacturing solutions with exclusive representation of leading international equipment brands as principals.
Suitable for flexographic printing on film substrates with solvent inks
Offers exceptional and consistent print quality with finest highlight dots
Optimized for both bank and LED exposure for reduced complexity
New formulation is less prone to plate swelling
XSYS has announced the introduction of nyloflex® FTV Digital, a hard durometer photopolymer plate for flexographic printing of flexible packaging with solvent inks. Developed with inherent flat-top dot technology and a smooth plate surface, the new plate formulation will appeal to customers serving brand owners who require the highest-quality printing of film-based substrates, while also offering maximum flexibility and higher productivity.
“Our customers are under constant pressure to deliver consistent print results quicker and more efficiently,” said Simon Top, Product Manager at XSYS. “With the nyloflex® FTV Digital, XSYS has introduced the latest plate innovation for the printing of high-end flexible packaging. Moreover, the new plate does not require any changes to existing solvent digital washout processing equipment or any additional costs from auxiliaries or consumables.”
In combination with standard bank exposure, the nyloflex® FTV Digital can hold the finest highlight dots resulting in a wider tonal range and achieve excellent solid ink densities in combination with surface screenings. In the print room, higher OEE can be achieved thanks to its AIF (anti-ink filling) technology for longer and cleaner print runs with solvent based inks. As the new formulation is less prone to plate swelling, benefits also include reduced plate waste and longer durability on press. High consistency and excellent repeatability is achieved due to the 1:1 image transfer on the plate, making it suitable for optional surface screenings. The new plate works exceptionally well with ThermoFlexX Woodpecker surface screening patterns, including Woodpecker Sharp and Nano, as well as being ideal for extended gamut printing.
Unlike similar plates in the market, nyloflex® FTV Digital has been developed to achieve brilliant quality regardless of whether it is exposed using conventional UV-A tube lights or LED UV-A light technology, before being processed in a solvent washout system. The LED-optimized plate formulation makes the nyloflex® FTV Digital plate perfectly suited for exposure on the ThermoFlexX Catena-E unit, resulting in superior Overall Equipment Effeciency (OEE) in plate production. “The nyloflex® FTV Digital offers customers the best of both worlds because it is equally efficient in both conventional bank exposure and newer LED systems. Since it also reduces complexity in the plate room, it perfectly complements our portfolio for the high end flexible packaging market. Next to well-established nyloflex® NEF Digital, which was the first LED-optimized plate for the high-end flexible packaging segment, we can now offer a second LED-optimized plate that also brings excellent print results with bank exposure.” commented Simon Top. “The new plate will give those customers who plan to move to LED exposure, such as our Catena-E technology, an easy and straightforward path to the future with a market-leading quality.”
He concluded, “As always, XSYS’ goal is to enable our customers to be brilliant and help them reduce complexities in the plate room, while increasing their productivity and quality with best-in-class innovations. We have already received excellent customer feedback proving that with the nyloflex® FTV Digital, we are definitely achieving just that.”
Avery Dennison acquires Thermopatch, a leader in industrial laundry labeling, heat transfers and emblems on textiles, advances the company’s strategy to drive growth in external embellishments.
Avery Dennison announced today that it has completed its acquisition of Thermopatch, a leader specializing in labeling, embellishments, and transfers for the sports, industrial laundry, workwear and hospitality industries. Thermopatch will become part of the company’s Solutions Group. The acquisition will allow the combined business to build on collective industry knowledge, leveraging the company’s know-how, quality, and service to drive growth in external embellishments. Thermopatch, headquartered in Syracuse, New York, had revenues of approximately $40 million in 2022, with around 200 employees, with operations in North America and Europe.
“We are thrilled to welcome Thermopatch into the Avery Dennison family. It’s an excellent strategic fit for expanding our position in embellishments, labels and transfers,” said Michael Barton, senior vice president and general manager, Apparel Solutions, Solutions Group. “We continue to accelerate our progress within our external embellishments business, going from strength to strength and entering new markets. In doing so, we are building on last year’s launch of Embelex, Avery Dennison’s full-service, end-to-end platform for on-product branding, graphics and trims, and accelerating our strategy to drive growth and innovation in this market. Combining Thermopatch and our strong product portfolio and long-standing customer relationships will enable us to continue to grow and deliver value for all our stakeholders.”
“This next chapter is a great opportunity for us,” said Tom DePuit, CEO of Thermopatch. “I am proud of what we as a business have accomplished over the last 85 years, and I am confident that Thermopatch will continue to thrive. With the combined capabilities of both businesses, we can further advance innovation and provide increased value for our customers and the industries we serve while continuing to deliver the same quality of service.” Thermopatch is now an Avery Dennison Company
The Indian print industry has a reputation for being a boy’s club, but there are women carving a niche in the Indian printing and packaging segment, with many in leadership roles.
PrintWeek is celebrating the power of women with The Women to Watch Awards in 2023. The Women to Watch Awards are for outstanding women who lead, inspire, and motivate greatness in the printing and packaging community. As part of PrintWeek’s commitment to promote the advancement of diversity, inclusion, and equality in the printing industry, these awards, in their first ever year, celebrate the achievements of India’s business leaders, change makers, trailblazers, and rising stars.
Harveer Sahni of Weldon Celloplast is of the opinion that when women in print-packaging do receive public attention, it tends to be the rare CEO. Once upon a time, Indian family businesses were always handed down from father to son. Not any longer. The trend is changing. Across the print and packaging industry, more and more women scions can be seen at the frontline of their family business.
Also there are women technocrats, who populate every level of print-packaging – management, production, education and finance. “In label manufacturing, there is Honey Vazirani. She’s an amazing story of a leading label lady,” said Sahni.
Vazirani’s first visit to a packaging company was in 1989. Having been shortlisted as a management trainee for The Paper Products, India’s largest and oldest flexible packaging company then, she was visiting the factory for my final interview. “The journey from Santacruz (Western Mumbai suburbs) to Thane was an adventure in itself. I started to wonder whether I could do that 33km commute every day,” said Vazirani. “But once I visited the production floor, my first ever manufacturing plant tour, I was in love with the technology, the printing presses and the pulse of a manufacturing floor. And that fascination continues to date.” From The Paper Products to leading the Fuji Seal India team, Vazirani has taken the label world in her stride.
With the Women to Watch Awards, PrintWeek/WhatPackaging? will celebrate and salute women in print-packaging – from the plant floor to the executive office, who are making a difference. “It’s a great initiative, one that will cause the Indian print-packaging industry to evolve and encourage more of their peers to join the party,” said Sahni.
Founded in 1998, Tarsus, the owners of Labelexpo series around the world has grown to become a well-known and respected name in the B2B events industry. Tarsus has been owned by Charterhouse Capital Partners since 2019. Informa, the international Academic Markets, B2B Markets and Digital Services Group has announced the acquisition of Tarsus for $940M. Informa has reached agreement with Charterhouse Capital Partners and other shareholders to acquire Tarsus, for an initial enterprise value of $940m. The Informa Board believes the combination is both commercially and financially compelling, with strong portfolio alignment that will deliver enhanced value for customers, additional opportunities for colleagues and attractive returns for shareholders.
Stephen A. Carter, Group Chief Executive, Informa, said: ”We have long admired the Tarsus business which, like Informa, has been built around major brands in attractive, specialist B2B markets in the growing regions of Asia, China, the Middle East and the Americas.”
Douglas Emslie, Chief Executive, Tarsus added: ”I am extremely proud of the Tarsus business, our people and our customers. I could not think of a better partner than Informa to lead our brands and colleagues through the next phase of growth and expansion.”
The acquisition is funded with cash and $210m of new Informa shares In 2023, Tarsus full year revenues are estimated to be more than £175m.
The Informa and Tarsus portfolios are complementary, both geographically and by market category, strengthening Informa’s position across a number of verticals including:
• Beauty & Aesthetics: A4M, LiVDerm, South Beach Symposium
• Healthcare: Health Connect Partners, PAINWeek, Cardiometabolic Health Congress
Driving profitability in labels, with embellishments, digital printing & hybrid printing
Self-adhesive or pressure sensitive labels industry in India has grown steadily right from the time of its initial entry into India to be indigenously produced in the mid-1960s when a screen printer manually created the first label. Thereafter, label manufacturing has evolved and completely transformed technically over the years. Initially, small and slow very narrow web letter presses, 4 or 5inch wide, from the eastern part of the world were used to print with blocks and die-cut labels with flatbed dies in roll form. These presses eventually started going wider in printing width with growth in demand. The need for increased production in 1980s brought in the adoption of rotary flexographic printing presses. However, since the flexo plate technology was just evolving, usage of letterpress block printing was still growing. It was in the new millennium that developments brought in prepress and plate making technologies, made it possible for printers to decrease their dependence on letterpress printing technology and invest in flexo presses that eventually became modular and print widths going wider with increased speeds.
Toward the middle of the first decade of the new millennium, the pop and Mom retail stores, known as Kirana stores catering to consumers, started being replaced by the entry of organized retail outlets and with it, came the increase in demand for labels and packaging. When it was realized the customer’s point of purchase decision to lift the product off the shelf is the driver for sales, brands felt the imperative need for attractive labels and packaging. Different print technologies started being employed and presses with advanced capabilities started being developed and offered. While all this transformation was happening, the label industry in India was all along registering a robust double-digit growth. It was largely accepted fact that even though labels are a very small part of the large packaging industry, it was more profitable. Due to this, the number of label printers kept growing, investments also came in from established offset printing companies. With cheaper label presses coming from China and availability of good affordable machines in India, the label printing capacities have grown exponentially. This increase in capacities, the pandemic, the strikes in Finnish paper mills, the Ukraine war, the re-emergence of Covid in China, etc. brought the margins in the labels industry under intense pressure. Raw material prices have since escalated, freight rates, salaries and overheads have increase while competition does not leave room for increase in selling prices. In such a difficult scenario, label converters are looking at options to drive in profitability.
Opinion and comments of label printers across India was sought on how to drive-in better margins in the label production in the given circumstances. Three questions were posed to all, their response is somewhat similar, yet some do have apprehensions about the steps that are suggested whether they will actually drive in margins? However still, a direction on the way forward appears to be an imperative. The printers in the diverse geographical zones who contributed their views are as follows;
North:
Anuj Bhargava, Kumar Labels NOIDA hereinafter referred to as (AB)
Lakshminarayanan Parthasarthy, Signode India Ltd. (Wintek) Bangalore (LP)
Question:Do you agree that Embellishments, Digital printing & Hybrid printing or converting are important steps to get better prices for labels?
AB: Yes, value added labels do add to margins. However still, the main buyers are few. Startups or premium products cannot add volumes where multiple players offer value additions.
RC: Embellishments certainly will get you a better price if you have a technical edge over your competition. Just a different printing process does not get you more price from customers. One needs to decide which process to use to get better return based on machine capabilities .
Hybrid is still not suited for the Indian Market. However good converting and finishing is important for short runs on digital to reduce wastage.
MS: Yes, I agree. With increase of just-in-time orders, shorter runs and demand for innovations, it is economical and faster to produce with Digital printing. Embellishments complemented with other capabilities, aid improvement in value addition.
HK: More technical the labels are, better is the margin. Unfortunately, large companies expect more for less. The basics of costing has been lost by most label converters. Embellishments also add to costs, but to recover those costs is difficult.
PV: We aim for the best process fit for a job, be it digital, flexo, hybrid or offset. That is the only way to master production cost. Digital embellishment always gives an edge and keeps business secure but does not always guarantee increased profitability, it comes with its own limitations.
MK: I agree that Embellishments, Digital printing & Hybrid printing or converting are important steps to get better prices for labels. Value addition invariably leads to a better realization. Brand protection elements such as hologram, security inks, security designing also add value.
RS: Not only embellishments, but also innovations along with having capabilities for attending to needs of customers are important. If food and pharma customer needs labels with water-based inks, we need to have those capabilities. If they need booklet labels it becomes an imperative to be able to create them. Every printing process has its own specialty so when you are able to create labels with Hybrid and digital technologies, then of course selling prices are better.
LP: QR codes and AR (Augmented Reality) in labels, connecting consumer to the brand – is what we see as way forward for profitability . Embellishment leads to aesthetics, shelf appeal, increased sale and brand value for better profits to the buyers and converters.
Question:Have you taken any steps in this direction to increase your capabilities?
AB: We are always focused to value added labels. We have capabilities do embellishments like 3-D effects, embossing, textured foiling, screen printing and many other such processes that enhance the aesthetics of product.
RC: We have already invested in converting equipment with finishing and embellishing capabilities like foiling, Screen printing, Lamination etc. Our range of labels includes- Foil stamped/embossed labels, labels with tactile effects, Laminated, 3-D embossed, Variable data and Holographic labels etc.
MS: Since long, our customer profile is such that embellishments and employment of multiple print technologies is an imperative, for this reason we invested in hybrid presses many years back. Currently to achieve just in time capabilities we are investing in digital printing which will also give us additional production time on our main printing presses.
HK: We have always invested to be a capable company, right from inception so have the capacity to do all types of embellishments.
PV: Yes, we have added digital capabilities. Having multiple printing technologies at our disposal, enables us to pick and choose processes that are best suited for a particular job depending on the complexity of decoration required.
MK: We are constantly trying to scale up our capabilities of adding diverse authentication features and other embellishments such as foiling, registered hologram stamping, variable data printing and finding new materials that are unique.
RS: At Seljegat we always endeavour to stay invested and capable with the latest developments. We have already installed machines with multiple capabilities, and we prefer all inline. We can do embellishments, special varnishes, multilayer labels, digital for variable or personalized labels, embossing, etc. We are always ready to cater to the changing needs of customers, nowadays pharma and food companies are demanding labels to be done with water-based inks or low migration inks, we have immediately empowered ourself suitably to serve them. In today’s time if we cannot deliver that extra, then we get lost in the crowd of intense competition.
LP: We are already having all capabilities and exploring AR in labels as next step towards Brand connect and Brand promotion.
Question: What in your opinion are factors that can drive in better margins? Please mention steps at given prices of inputs.
AB: Label companies should invest in making labelstocks for captive use, negotiate hard while buying machines and for buying raw materials.
RC: As competition gets aggressive, systems need to be designed to reduce wastages, increase productivity and buy raw material at competitive prices. Making our internal systems strong is the only way out to drive-in better margins.
MS: We started the process of optimizing production costs, long time back. We collected data of all ongoing jobs for past 3 years and calibrated all processes as per the following;
a) We dwell on actual time needed for the job and check if the processes are complying with targeted numbers.
b) If not complying what’s the core reason and if for some reasons not meeting norms, can solutions be found?
c) Evaluating, if no solution is possible, is the job generating profit for the company?
d) If not , either get the price increase or discard such jobs to save time for more sustainable jobs.
HK: Rather than controlling the input prices on which we have no control, we should focus on getting better prices from clients. We need to factor-in the basics like label waste that is completely non-recyclable and cannot be salvaged. Label machines are capital intensive we must add the impact of cost of investment in the total price of end product.
PV: To improve profitability;
Freight cost management is an imperative, it can save lot of money.
Process improvements and wastage control is necessary. One should start with small steps like exact web sizes, proper sheet layout, special sizes for volume jobs, ink management and keeping a track of low moving stocks.
Refrain from unhealthy competition.
Learn from your mistakes as a team. Take all complaints seriously. Try implementing simple solutions.
Update monthly performance chart of individual operators, give them incentives for faster turnaround and increased capacity utilization. Take corrective steps to reduce downtime due breakdowns.
· MK: Key to improve margins is to provide customised solutions by understanding what the customer needs. We try to incorporate various levels of authentication, embellishments and decoration to tailor solutions that best meet their needs. If a customer cannot afford to pay for the hologram, we focus on enhancing the printed authentication features keeping costs under control, and yet get a price that enhances our profitability while the customer appreciates the value we deliver.
RS: For driving in better margins, the instant reaction is to buy cheaper but if we have to think of steps at given raw material prices then one has to research internally and implement changes. As a first step we have opted for equipment and steps for faster changeover time between jobs to increase productivity. We have invested in a system for make ready to be completed before one job ends. The changeover time for us has reduced from one and half hour to just thirty minutes. For job set up we were using fresh labelstock but now we use rejected, old and leftover unusable stocks. Next, we are now switching over to LED UV as its operational and lamp replacement cost is lower. New equipment has been ordered and will be installed soon. We plan to install an automatic butt slicer for non-stop production. Reducing wastages is also on our radar and we constantly work on it.
LP: The following steps are necessary to drive in profits;
Watertight operations, control on wastages and minimising set-up waste.
Reducing overhead costs, improving efficiency and OEE (Overall equipment effectiveness).
Propose embellishments to customer making the label more premium to claim better realisation.
Summation:
Price increase is an ongoing process, the impact of inflation is felt every year along with that of other unavoidable circumstances. So, manufacturers need to gradually increase selling prices to maintain a healthy bottom line. Unfortunately, that is an ideal scenario but in actual the selling prices are driven by market dynamics and competition. In the present situation, for the label industry, it is time to look internally and evaluate. Based on the views of the printing fraternity it is largely agreed that embellishments, security features and innovative concepts on labels that enhance the shelf appeal and lead to better sales volumes for brands, can help get better prices. The simpler the label is, more is the competition. As indigenously produced label presses have come within the reach of middle level printers, the competition in that segment has become intense. Moreover, with organized retail and ecommerce becoming the predominant selling systems, need for more decorative labels, IT enabled labels and personalized variably printed labels with security features has escalated.
Not long-ago setup of label jobs took an hour or more with 2 or 3 persons on each press and at least 100 meters of material being used before final saleable production commenced. With increased automation, advanced automatic registration controls, higher speeds, etc. now a single operator can setup a job in just a few meters in about 15-30 minutes, with increased productivity, less wastages and quick changeovers between jobs by keeping the next jobs ready. Using exact size materials and not generating offcuts is also a necessity. These are changes that add to margins and reduced operational expenses.
Food and pharma safety and health concerns are matters of importance for discerning customers, this, along with statutory rules for toxic or unsafe materials used in converting labels, are to be avoided. There is an increased demand for non-migration and water-based inks because UV inks are considered somewhat hazardous for direct food contact and skin contact applications. Printers need to have such capabilities to supply as demanded by print buyers. Most companies feel that to reduce costs there is need for internal production systems and the workflow to be strengthened or monitored continuously to reduce downtimes at each stage, opt for more automation to reduce manpower and use energy efficient machines, equipment or systems.
Finally, time has come when EPR (Extended producer responsibility) compliance has become mandatory. Sustainability and circular economy are becoming a social responsibility for earth to be a safer planet. Large FMCG companies and brands have already started opting for or expressing preference to buy from certified green companies. It will not be out of place that producing in compliance, may as well add to cost but it may also qualify for better pricing for this good social cause.
Written by Harveer Sahni Chairman, Weldon Celloplast Limited, New Delhi February 2023
