Faridabad, a hub for label presses part-1-The Printers House!

Faridabad, a hub for label presses part-1-The Printers House!

The last Labelexpo India 2022 was witness to an interesting evolution in the display of high-end label printing presses. For the first time since the inception of this show, the European and American presses running live were missing.

However, the flexo presses displayed at this all-important label exhibition were made in India. This was an indicator towards the Indian press manufacturers to have come of age. These Indian manufacturers are now, not only announcing sales in India but also succeeding in the global label arena. An interesting part of this evolution is that most of the successful brands of flexo presses that have been developed come from Faridabad, the neighboring industrial suburb of New Delhi. Faridabad is a part of NCR Delhi and a major industrial hub of the state of Haryana. It is famous for henna production from the agricultural sector, while tractors, motorcycles, switch gears, refrigerators, shoes, tyres and garments constitute its primary industrial products. There is reason why most of the leading brands of Indian made flexo presses are from this city. These presses include Multitec, Webtech, NBG, Label Flex and many other smaller ones. Even UV Graphic technologies now headquartered in NOIDA, started their manufacturing in partnership with Faridabad based Multitec. 

The credit of printing equipment manufacturing industry flourishing and growing in this city goes to the establishment and transformation of a company founded by Kishan Das Kohli, a man who fought for the independence of India prior to its partitioning.

The Printers House now renamed as TPH Orient group was founded by Kohli in 1946 as an agency house bringing global printing technology to India. He was responsible for installations, commissioning, providing technical expertise and operators for the imported equipment. For the pioneering work he did for the printing industry in India, he received numerous awards that included the Kohinoor Ratna award. An enterprising businessman, he started manufacturing printing presses in India in the mid-1960s initiating his maiden startup manufacturing unit in Faridabad to build letterpress and offset printing presses there. Around this manufacturing unit, an ecosystem of mechanical engineering professionals and engineering companies was built and went on growing. Many companies now making flexo presses or any other type of presses in Faridabad first started out as their vendors. Making any type of press requires components such as frames, cylinders, etc.

The Printers House helped create the infrastructure and this supply chain in Faridabad, which is what makes it ideal for printing press manufacturing hub. Later another company Sud and Warren led by Baldev Sud, Arora and Ahuja  also commenced manufacturing  slitting machines and later web-based computer stationery. The company did not grow as envisaged and some of their ex-employees are now narrow web label press manufacturers

I, the author, having had two factories in Faridabad since the 1960s, producing stationery and silicone release papers under the brand Weldon, had  heard a lot about The Printers House and the kind of work they had done. Weldon’s vendors in earlier days used to print their packaging on the old traditional treadle presses and when the Mercedes automatic presses from TPH were launched, it was a game changing moment. The author reminisces an evening during a party in connection with Printpack India in 1991, he was introduced a tall smart man who was surrounded by print industry stalwarts of that time. He was  Manmohan Kohli, heading The Printers House (TPH) and was the son of the founder K D Kohli. Manmohan was an alumnus of ETH Switzerland, a university of science and technology from where he passed out as gold medalist engineer.

He pioneered the evolution of printing technology in India. Under his leadership TPH became a name to be reckoned with globally, having installations in over 60 countries. Manmohan Kohli, a legend in Indian printing equipment industry,  passed away in June 2022 at the age of 83 years passing the reigns of the company to his only young son Rishab Kohli who now aged 28 years heads TPH as Managing Director.

The first few years of Rishab’s schooling were at New Delhi based Sanskriti School and thereafter he was sent to Gordonstoun school in Scotland. Finishing school in Scotland, he joined Georgetown university in Washington DC where he studied economics and had the opportunity to go through numerous internships in Washington DC including prominent lobbyist firms and international organisations. Completing his education at university, he initiated his career in the United States in finance/investment banking in the US where he worked between the US and Europe extensively. Thereafter he returned to India and in 2020 he took over the reigns of The Printers House now renamed The TPH Orient group, as CEO. Backed by his experience and pedigree in business he envisioned to create a group of companies in India that would cater to the printing , packaging, and other industries.

On assuming the leadership in TPH, Rishab worked with numerous partners across the globe to acquire technology and bring it to India. He saw the label segment growing rapidly and felt there is high reliance on imports on capital equipment in this segment. On his indulgence, TPH  launched their flexo and inkjet label press, extending their application to packaging as well. Given the infrastructure available at TPH, Rishab has decided to produce equipment with economy of scale to make it cost effective and such that customers feel secure with their investment and service. He felt the technical expertise to produce flexo and digital label presses of global standards was still needing upgradation, so he or his team travelled to acquire appropriate technologies.

Rishab mentions that development of the first fully digital ink delivery system made by them in India that successfully printed a full color label at high speeds is huge achievement for TPH. Being the first of its kind developed in India, it will remain as one of the most memorable moments. With the ability to print at 1200 DPI with in-house dynamic RIP (RIP stands for Raster Imaging Processor software), it is a prime competitor to the established leaders in the field of digital label printing. He gives credit for support, guidance and help to the late Ramani Vishwanathan who was a pioneer in digital printing in India. He helped Rishab create this technology. Justifying his move into Digital label printing equipment he states that Inkjet is crucial for label printing due to several macroeconomic factors and market forces. With the rise in short run jobs and customization in packaging, a roll fed digital press is crucial to meet the needs of end clients. Additionally, with the speeds of inkjet presses increasing and head technology advancing at the pace that it is, the mid to long runs may also be catered to by inkjet.

As regards the flexo press developed by them, he asserts, “It is the fastest Indian made machine of its kind at this moment. Additionally, we offer sleeve technology and narrow web along with wider width options.”

The TPH Orient group is now a diversified group of companies and a market leader in printing machinery, packaging machinery , printing consumables , engineering services for defence, aerospace, and solar. They have 800 employees spread over a 20-acre campus and 6 factories in Faridabad working in numerous segments. They also now manufacture inkjet presses, flexo presses, folder gluers, web offset presses, printing chemicals etc. They have one of the largest CNC machine shops in north India and perhaps largest in Faridabad. According to Rishab, TPH Orient group is the largest Indian exporter of printing machines with exports to 60 countries. They have service engineers and offices in 12 locations in India and presence worldwide. They are considering extending manufacturing operations in foreign locations.

Talking of challenging times in his short career, Rishab says, “Covid was a tough period, but we got through it, taking every day at a time. But a lot was learnt, and we came out of it stronger.” In his journey so far, a key member of TPH board of directors, Naveen Chahal, has been a mentor to him. Being an extremely experienced person, his guidance has helped the turnover grow to over 15 times the figure when Rishab took over. In printing and packaging Rishab acknowledges the guidance of Christoph Mueller, director Koenig and Bauer, for his guidance in quality enhancement of their products.

Rishab Kohli sums up his vision for the future as, “The key for Orient in the printing and packaging industry is to provide a holistic solution to the printing and packaging community worldwide. We have a simple goal which is to be the largest equipment supplier in our field coming out of India and ideally Asia in this segment. With our infrastructure , scale, and history this is a realistic and an important 5-year goal.”

 Written by Harveer Sahni, Chairman Weldon Celloplast Limited New Delhi August 2024

Driving profitability in labels!

Driving profitability in labels!

 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)

Rajeev Chhatwal, Kwality Offset New Delhi (RC)

West:

Mahendra Shah, Renault Paper, Palghar (MS)

Himanshu Kapur, J K Fine Prints Mumbai (HK)

Priyank Vasa, Unick fix-a-form, Ahmedabad (PV)

East:

Manoj Kochhar, Holoflex Kolkata (MK)

South:Raveendran Selvarajan, Seljegat Sivakasi (RS)

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