Marks Emballage, an international banker’s foray into Label Manufacturing

Marks Emballage, an international banker’s foray into Label Manufacturing
Marks Emballage factory at Baddi

 

In May 2018, the Indian label fraternity was amazed to read the news of an upcoming relatively young label company Marks Emballage announcing the confirmation to buy two Gallus Labelmaster presses in one go. This one step would take this nondescript label manufacturing company into the big league. The author has been in the Indian label industry for over four decades. As far as memory recollects, there have been instances when two presses have been ordered by printers to be delivered one after the other with a gap of time, but the unique instance of two presses to be delivered and installed in just one go is a first one such occurrence so far, this is history for the Indian label industry! By rough estimates, a 4 billion Dollar labels industry (not label stock but finished labels) growing at an average of 10-15% per annum surely needs such investments regularly to meet the 400-500 million Dollar growth in demands of labels. Leading Mark Emballage, Aadtiya Kashyap, a former international banker, is the courageous one who made his foray into the Indian label industry and announced his first significant expansion investment with a bang.

 

 

Aaditya and Khushboo

Aaditya was born and brought up in Mumbai, an Alumnus of St. Xavier’s School Mumbai (He prefers to call the city Bombay as he has called it all his life). Later he finished his graduation from the prestigious Ruia College, Mumbai, in Mathematics. He had considered a career in computers and did a couple of courses in that, but he graduated in the subject since he was good in mathematics. While in Ruia college, he fell in love with Khushboo Singh, who was pursuing BA in the same college. After a courtship lasting almost five years, they decided to tie the knot and got married in 2008. After graduation, Aaditya got his first job in the international bank J P Morgan, where he worked for the next seven years. This job was a good learning experience in how systems in business work and how different departments work. He was the only one in the organization at that time who got four promotions in seven years. Those were many learning years that added to his experience. Looking back, he is happy that he worked there, as the experience has been helping him when in business. 

 

 

 

Aaditya’s wife Khushboo belongs to a successful business family involved in pharmaceuticals, so it was a matter of time that his In-Laws prompted him to consider entrepreneurial options. The suggestions ranged from indulging in pharmaceutical products to items connected to pharma. Khushboo’s grandfather Samprada Singh took it upon himself to mentor Aaditya. Samprada Singh, the founder of Alkem Laboratories, had a significant influence on Aaditya. He was a true visionary and an impactful leader whose life was full of beautiful lessons of courage, resolve, hard work and indomitable willpower. His journey from a tiny village in Bihar to establishing India’s largest pharma company is just an extraordinary one. His life story portrays the old English adage, “From tiny acorns grow mighty oaks.”

 

 

 

Initially, Aaditya spent time in Alkem Laboratories to learn various aspects of the pharma business. First, he spent time with the purchasing team before moving on to “Doctor’s gifting”, a concept that was a contact-building and promotional cum marketing exercise undertaken by pharma companies to stay connected with doctors. A year down the line, he moved to Galpha laboratories owned by his Father-in-law N K Singh taking care of the same portfolio of doctor gifting until a government notification limited the scope of “doctor giftings”. At this time, he faced another change of job profile or considered another line. In his time spent with the purchasing team at Alkem & Galpha, he had gained much knowledge about packaging and its nuances. Khushboo, being born into the pharma business family, was a natural fit to take up professional responsibilities. As business was in her blood, she joined her father’s company, GALPHA which she had joined immediately after college in 2004-2005, primarily taking care of production planning, purchase of packaging and raw materials. The circumstances, as they evolved, led Aaditya to consider making a foray into packaging.

 

 

Meanwhile, Aaditya and Khushboo decided to move to Baddi to set up a pharma unit extension of GALPHA, manufacturing formulations. Aaditya’s experience as a banker kept bringing to him the realization that if two people are doing the same thing, then the output is restricted. He started looking at some other venture. His brother-in-law Dr J P N SINGH (Khushboo’s sister’s husband), who also is looked upon as a mentor by Aaditya, was making pet bottles, suggested label manufacturing and that, eventually led him to decide on labels. JPN had prompted, “all the bottles I make will have labels made by you on them”. His father-in-law NK Singh and grandfather Samprada Singh all agreed that labels were good business. So, in 2011 the decision was taken to set up a label manufacturing unit. The initial two and half years were spent trading in labels, outsourcing them from different vendors and supplying to group companies. During this period, he spent much time with the printers at their factories, getting the right kind of labels and in the process learnt the basics of label manufacturing from prepress to plate making and finally converting. He is indebted to Datta Ram Fulsundar of Aarya Printpack – Mumbai, with whom he had confided about setting up his unit, yet the printer agreed to teach and train him all about manufacturing labels.

 

Since Aaditya had made up his mind to invest in a label press and print labels himself, JPN mentoring him on, suggested; that to test the heat, one should check with just a finger touch before putting your hand in, meaning start the operation at a tiny stage and go thereon. In November 2013, Aaditya, with his wife Khushboo as a partner, launched their maiden startup venture, Marks Fine Printers in Baddi Himachal Pradesh, in a 2000 square feet industrial shed with just one Chinese stack type flexo label press. While Khushboo continued to look after GALPHA Laboratories Baddi, Aaditya got full time into setting up the label unit. The first order, even though it came from a family-owned company GALPHA laboratories, the experience was, as Aaditya says, “Exhilarating! It was like scoring a maiden cricket century.” For the next two years, they catered to family-owned pharma companies. The biggest challenge was getting the suitable operators and people to run the press but then time elapsed, which has taught him to manage that. 2 years after initiation, Aaditya seemed to have tested the heat and confidence, invested in a Bobst label press. Once the operations were well set, it was time to get customers beyond the family companies. The natural step was to rope in companies that were contract manufacturers to the group. Subsequently, they ventured out to service customers outside the family reach, initially it was all pharma as they had much experience in the segment, but later, they got into all segments like Food, FMCG, Liquor and others. He remains indebted to the four mentors that including his father. It is their advice that made this possible. Aaditya always wanted to be like his father, who taught him; “The name that you earn, always has more value than the money earned”.  Walking on his father’s footsteps, Aaditya has ensured a good name for himself along with setting up a successful business. Once established, it was time to get experienced professionals in and systemize the whole operations. They looked around and slowly got their team together.

 

 

 

C K, Aaditya with Ferdi and Sameer of Gallus 

In packaging requirements for pharmaceuticals, the size of labels is relatively small, but when Aaditya started to look at other segments, the label size was much bigger, which meant that with the same inputs and infrastructure, the costing would be different, turnover would grow bigger. This was an exciting realization, and the vision to expand started getting more precise. Initially, Aaditya had planned to add a press every three years, but this new realization prompted him to grow exponentially. He established the new company Marks Emballage Pvt. Ltd. in 2018 to invest in two Gallus label presses in one go. Hoping to make a substantial impact in the Indian label industry with their big move, however, as luck would have it, they started printing on these two presses in April 2020 when the pandemic hit across. Covid has been a difficult time for Marks Emballage. The first few days were a mixture of too many different feelings inside, from the fear of the unknown, concern for employee’s safety, responsibilities to serve the customers. Despite the uncertainties, they gathered themselves and planned to navigate through the difficult time. This was possible only with the total dedication of their team, who put up great courage and kept the business going and growing. They realize that going into the future, leaner companies and more automation will be the way forward. Cloud technologies, robotics, artificial intelligence, and virtual reality combined will reduce human physical contact and dependence. This will be the biggest shift for all businesses and Marks is no exception. This goes on to validate their investment in the right equipment, processes, certifications, and team.

 

 

 
Besides having residence in Mumbai, Aaditya and Khushboo now stay in Chandigarh with their 8-year-old daughter Kiara. While they complement each other in work yet look after different businesses. Marks Emballage Pvt. Ltd. is a fast-growing company headquartered at Chandigarh and operates out of factories at two locations in Baddi. The plant is spread over 30,000 square feet and equipped with some of the finest equipment like print kits from Gallus, Bobst, AVT, Prati , Pantec and Xrite. A team of 60 people is creating a work culture of excellence. Talking of new ideas and projects and the vision for the next five years, Aaditya says, “We have too many ideas to implement. I am working on many exciting new projects in technology, consumer products, packaging, and pharma. We aspire to roll out at least one new project every year for the next five years. This is the time for us to spread our wings before getting into a consolidation mode in 5 years. 
 
CK Gadhia of Marks giving student of year awards
 
 
 
The journey has just begun”. Marks Emballage has, as a part of its CSR initiative, invested in sponsoring the annual “Printweek Student of the year” award. They are very keen to backup educational initiatives for encouraging the new generation to take up print as a career. 

 

 


As he plans his way forward in the label and packaging field, Aaditya makes a fervent appeal to peers, “I would like to appeal to all the fellow label printers that we should all work with better collaboration and work with each other rather than work against each other. Together we can have great strength to backup print education to ease our recruitment needs, have complimentary print technologies to avoid idle capacities, and have a better say in purchase or sales negotiations. The advantages are just many. It is time to team up and grow the industry together. We need to increase the overall pie. While we are all doing the basics of waste management today, the need of the hour is to attack the problem from the very base. We are studying and closely following linerless labels and believe that they can be a game-changer for our industry. As per industry reports, only 5% of the laminates and self-adhesive label stock is reused or recycled. This area demands our closest attention. 

 

 

 

 

 

 

 

 

Marks Emballage is a company to watch, as an ambitious team aspires to grow 10-fold by the end next five years. With a young, dynamic leader like Aaditya Kashyap at the helm, hoping the pandemic’s after-effects soon end, this company will be moving fast to achieve targets and move tangentially, investing in technologies in synergy.

 

 

 

 

 

Written by Harveer Sahni Chairman Weldon Celloplast Limited New Delhi July 2021

Sigma Middle East labels- Rising from humble beginnings.

Sigma Middle East labels- Rising from humble beginnings.

 

UAE or the United Arab Emirates consists of seven independent city-states or emirates: Abu Dhabi, Dubai, Sharjah, Umm al-Quwain, Fujairah, Ajman, and Ras-al-Khaimah. Total population of all the emirates of UAE put together is much less than that of New Delhi India at 11.42 million with only 20% Emiratis and rest are expats making it the highest percentage  of  expatriates in any country in the world. The Indian expatriate population at 28% is the largest group in UAE. It is surprising that there is a substantial number of label printing companies there with more printers joining in year after year. In the start of the new Millennium, one could count the total number of label printing companies to around 10 which has now grown to over 40. Even though leading printers speak of intense competition and depleting margins yet there is a steady news of expansions and new companies joining the bandwagon of label printers. Obviously, it is not the local demand but due the business environment, conditions and facilities, the printing companies reach out to customers not only in the Middle East but also to Africa, Europe, and USA. It is a global hub from where they produce and export. It is normal to hear label printers in the region expressing difficulties due to a small market and intense competition, in such a situation it is heartwarming to see someone who comes from a fragile financial status, jumping into label printing and starting to register smart growth. One such person is Jagannath Wagle who endeavored to take the risk of setting up from virtually nothing, his maiden label venture, Sigma Middle East Labels that has started rising from humble beginnings.

 

 

 

 

Jagannath Wagle

It is rare to find humble people these days. Humility is putting pride behind, staying grounded to reality, have faith in oneself and learning from one’s modest beginnings to continuously move ahead with firm resolve and keep evolving. That is how Jagannath Wagle talks with respect and nostalgia about his humble background and times when he was growing up. this: As if living with his parents in a one 300 square feet room flat in Mumbai’s western suburb Nala Sopara along with two brothers was not crowded enough, to help the son of a family friend in village, his mother brought the boy to Mumbai to stay with them.” Jagannath’s father, an auditor with the government of India’s audit department had to manage within the meagre means to support a family of 6 people living in one room. However still they managed to impart the right education to all the children. Jagannath’s mother was a homemaker in true spirit, managing the household and the children by taking home tuitions, he reminisces fondly about her being an excellent cook.

 

 

Jagannath Wagle studied up to class 10th in Little flower English school in Nala Sopara followed by joining father Agnel technical college in 1992. Unfortunately, due to Mumbai riots in 1992 he could not attend college, had to drop a year, and later joined an institute in Vasai to complete the secondary school education. Later he wished to join an engineering college but could not afford the capitation fee demanded by institutes those days so as an alternative he studied to graduate with B.Sc. degree in Physics from Mumbai University in 1998. Due to the financial stress, a relative in Delhi suggested for him to join the Coast Guard but his mother did not relent as she wanted him to study further. He finally went on to get a B.Sc. (tech) degree that was equivalent to an engineering degree. Thereafter he started making applications for job in various organisations and also to start with, he accepted a job with a relatively small company TechGyan at a meagre salary of Rs.4000.00 per month (Approximately 55 dollars). He had a lot of interest in computers so had acquired knowledge about them and as a business to augment his earnings he started assembling computers for customers on job work basis charging Rs. 2000.00 per computer. He had already catered to almost 50 customers. At this time, he started getting interview calls from companies like HDFC, Wipro and Reliance. He was excited that he got selected in Reliance at a salary of Rs.18000. per month to start with. It is strange and a matter of kismet as to how life leads you to your eventual Karma Bhoomi, the land where one eventually works or performs his life’s deeds, this is as expressed in Indian literature. Before Jagannath could join Reliance, his family got a call from his mother’s brother in Dubai who had been tricked by someone to invest in a label manufacturing unit, knowing nothing about labels and he needed help. He requested the family to send Jagannath to Dubai.

 

 

Ajman
Like any young man Jagannath also had aspired to work in distant lands like Europe and USA but for the Dubai offer by his uncle, he was hesitant as he knew nothing about labels, his knowledge was limited to computers and engineering. His mother impressed upon him to go to Dubai and support her brother who needed help and who else he could rely upon except family at this time.  The decision was made and on 28 January 2004 Jagannath Wagle landed in UAE which everyone impulsively refers to as Dubai due to its being recognized as the face of UAE. He started to work with his uncle in Ajman, as a salesman on a salary of 1500 Dirhams per month. Though he started as salesman, but his job profile eventually became all in one, heading the label business with a team of only 3 persons just like a startup entrepreneur. Jagannath knew that with UAE having one of the highest per capita income, it would be expensive and difficult to manage in the income promised and more difficult if he got married. To make success of his career he plunged head on into the business he had no knowledge about. Customers and suppliers became his teacher and taught him all about plates, cylinders, color management etc. he was a fast learner. A business that was 10000 Dirhams per month when he joined and his uncle was pumping in money each month to sustain expenses, became 100,000 per month  in just a year’s time, all this with just one two color small tacky boy press. Any label printer will understand the  effort that must have gone into achieving this.

 

 

 

Pooja Wagle
In 2005 Jagannath convinced his uncle that to remain in business they needed another machine. A used 1980 model 7” 3color Mark Andy 830 was acquired. In today’s time of advanced servo driven modular presses that equipment sounds irrelevant yet by 2007 he was able to reach a sale of 350,000 Dirhams per month by working 24 hours every day, the Tacky boy press became redundant. Jagannath’s salary was enhanced to 3500 and he got married to Pooja from Bohisar in Mumbai. Pooja also came from a very humble background, the father having passed away, her mother taught children of poverty-stricken people. She was working as a credit card salesperson with ICICI bank. They came in contact through a matrimonial website and the marriage was arranged by parents with the couple having never met each other. Once married the couple faced financial stress and there was need to move up in life.

 

 

 

 

Part of Sigma old factory shed
There was no scope for further expansion with the existing Mark Andy 830 press, discontent crept in, Jagannath contemplated on starting on his own or returning to India, but his wife Pooja put her foot down that there was no way she will go back to India and bring up her children there. Meanwhile Jagannath’s cousin had joined the label business and took over the management. Jagannath decided to initially start his own trading business of making non adhesive liners for cores. Having no money to start manufacturing himself he started out sourcing converting also from his uncle’s company for whom he was working. He was so respectful toward his uncle because of whom he was in Dubai and had indulged in learning the label business, that he made sure not to touch any customer who was buying from them. He even kept working simultaneously with uncle during the day and after office hours for his trading business because he wanted to let his cousin to complete his MBA before he left that business completely. Once free Jagannath decided to get full-fledged into labels but making sure he never touched his uncle’s customers. He started getting his jobs done from a company called German labels and as luck would have it sometime later the owner of that company decided to quit business and sell the machine.

 

 

 

Old factory shed
Jagannath wished to buy that press but did not have the funds, so he requested the owner to accept instalments, fortunately as he was destined, the owner agreed to handover the press with 50% down payment and 50% in 6 months. Now the 50% down payment was also not there but a determined Jagannath Wagle refused to give in. In due course of time his two brothers and the friend who lived with him in Nala Sopara had all moved to Dubai and were in good jobs. They all came to rescue and pooled in money to help him buy the Mark Andy. The trade license he took in 2009 was converted to a manufacturing license in 2010. So, in January 2010 Sigma Middle East Labels Industries LLC  started their maiden venture operating with a 250mm preowned Mark Andy 830 press in an 1100 square ft shed in Ajman with just one operator and a helper. Hard work and sheer perseverance produced good results and at this time a difficult situation cropped up. The only operator he had met with an accident and in emergency had to go to India. It was during the Eid period when business is at a peak in UAE, not being the one to be left behind, Jagannath himself operated the printing machine for the next three months. When a container of stocks arrived, he and his only helper would unload and moved goods into the shed and stack them. As at that moment he could not afford help and this incident will always keep him grounded to reality. Watching him make the gigantic offer many suppliers came forward to support him. He is extremely appreciative of Ajay Mehta of SMI Coated products for his support in supplying material on credit to his start-up venture.

 

 

 

Multitec
In 2012 when his sales from just one press reached 150,000 to 200,000 Dirhams per month, it was time for Sigma to move on to the next level and acquire another bigger press, he wished to install a European brand, but paucity of funds made him decide on an eight color all UV Multitec 330mm label press which was installed in 2013. It was his first modular press and was a big jump for Jagannath. Even though he lost some money initially as his costing was not right but soon, he took corrective steps towards growth, “This was my biggest learning curve” says Jagannath. 

 

 

Bobst at New Premises
Two years down the line in 2015 a jubilant Jagannath fulfilled his dream of acquiring a European label press, a Gidue MX370 , 8 color all UV, 1 die station, delam-relam, cold foil and lamination was installed along with and some more additional equipment, also adding more shopfloor space. The fast unplanned expansion led to problems in cash flow and in 2016 Sigma ran into financial stress and troubles. Payments to suppliers were delayed and supplies became restricted. A person having risen from grass roots and not the one to give up, Jagannath kept constant touch with his vendors assuring them safety of their investment and in the meanwhile putting in enhanced efforts to nurture his company to good health. By 2017, recovery had started. Sigma moving ahead acquired yet another Gidue like the one they had. 

 

 

Brotech Finishing
Here on, a more professional approach was put in place, targets planned and achieved, more ancillary equipment including a Chinese press 5 colors with UV and hot air in 2019 to print the liners for cores was added and the second Gidue like the one bought before was bought. Yet again mentions Jagannath that SMI was there to support him, he remains indebted to them. However, learning from past experiences, he sold the Multitec press so that he did not run into financial stress again. The one 1100 square feet shed had multiplied to become 4 sheds and continued growth had become a reality at Sigma. The first used Mark Andy 830 that he had, was given to a friend in Oman at low price to help him.

 

 

 

New office

 

 

 

 

 

In 2020 things became comfortable, Sigma moved from the four 1100 square feet sheds to a plush well planned 12000 square foot facility with well-furnished and equipped offices. 

 

 

 

Going Digital with Konica Minolta

 

 

 

 

 

 

They invested 5 million Dirhams adding a Konica Minolta, foiling equipment and Esko and Asahi plate making system. 

 

 

 

 

Reception of new premises

 

In early this year 2021 Jagannath decided that his company had to upgrade to latest equipment to be more efficient in production, he sold the first Gidue he had bought and replaced it with a brand new fully loaded Gidue M5. Jagannath has finally put Sigma on its road to success and bigger business, he attributes the his journey so far to the inspiration that he got from a Indian picture “Guru” based on the life of Dhirubhai Ambani the founder of Reliance Industries Ltd. He still quotes the dialogue from that film, “If I am doing well why not for myself ?”. 

 

 

 

 

The credit for this amazing journey largely goes to the woman behind Jagannath, his wife Pooja who solidly supported him right through, besides bringing up their only daughter. Pooja is a partner in the company holding the purse strings as the financial controller. No business succeeds without a good team Jagannath and Pooja carefully built their team as a family and took only people from grassroot levels and trained them, two of their teammates had joined as labour/helpers and now work as business development executive bringing in half a million Dirham business each. During their struggling days, Jagannath’s brother in law Kishor Vedpathak quit his job in Mumbai to come and support him, he now looks after Sigma as admin manager. Looking back, he reminisces that his first big break was when he got a big order for 100,000 price marking rolls from Centre Point Chain retail stores. He plans to enhance capacity again later this year with yet another flexo press plus another digital press. Up from just two employees when he started on his own, he now works with 55 employees including four designers inhouse, Sigma has registered a sale of 25 million Dirhams last year growing 30% in a pandemic year!

 

 

 

Jagannath in his new office


Deep in thought and with a smile he mentions that he wishes to be if not the biggest, he will try to be one of the biggest label printers in UAE in 5years time. He is confident that he will continue to lead Sigma Middle East Labels to keep rising to higher levels.

 

Written by Harveer Sahni, Chairman Weldon Celloplast Ltd. New Delhi June 2021

Print magazines my reproduce the above article by giving credit to author.

Labels on the move-growth in India-2018

Labels on the move-growth in India-2018
Fifty years ago, 80% of India lived in villages.
 
People are moving from villages to cities to experience the modern-day city life as they see on TV and internet. 





 
The scenario has transformed over the years. As a result of ongoing urbanisation, the urban population in India has now grown from 19.4% in 1968 to 33.5% in 2017. The shift has a direct impact on the consumption of household goods, as daily needs in city dwelling are obviously different and more than that in villages. More so due to the impact of a growing rate of literacy level which is the percentage of people aged 15 and above who can read and write having increased to over 72% percent from 40.76% in 1981. People in the working age group 15-64 years has escalated to 66.2%, from a level of 55.4% in the last 50 years. In 2017 the median age of the country, which is half of the people to be younger than this age and other half older, was estimated to be 27.9 years. In a country of 1.32 billion people a growing need for household goods or consumer goods also referred to as FMCG or “fast moving consumer goods” means there is an ever-growing huge demand for labels and packaging that are a part of the consumables they buy.

 

According to a report in The Economic Times dated May 01, 2018, consumer products market grew
13.5% in the Financial year 2018, with eight of 10 leading companies posting double-digit value growth, FMCG being the 4th largest segment of the economy. Online sales of consumer goods is also seeing an enormous rise as number of online users is poised to cross 850 million by 2025. According to a report by marketing research firm “eMarketerOnline” retail sales in India are expected to grow by 31% this year to touch $32.70 billion, led by e-commerce players Flipkart, Amazon India and Paytm Mall. Retail market is estimated to reach US$ 1.1 trillion by 2020, up from US$ 672 billion in 2016 further expected to boost revenues of FMCG companies to 104 billion US Dollars. The data herein mentioned indicates a definite, constant and escalating demand for labels and packaging.

 

 

Indian Label industry has been witnessing challenging time since demonetisation of currency and later due to implementation of GST. While these measures may be beneficial for the industry at large, yet they slowed down the trade impacting margins and revenues. With capacity growth already committed by existing label companies who had already placed orders for new equipment and by those entering the segment in this period, slow down impacted adversely the positive sentiment in label industry. The Label printing and converting equipment was being upgraded globally by machine manufacturers to achieve efficiency in production, reducing wastages, producing to economies of scale and was becoming more expensive. An industry that was used to a quicker ROI (Return on Investment) and better margins found the situation challenging, decided to be cautious and held-back investing decisions. While the economic parameters of growth as mentioned in the earlier part of this article were on the move all the time, a pause or back stepping for two years created a gap that has resulted in now a positive situation whereby new investments to increase capacity are being made. However still, label printers are apprehensive that this sudden indulgence may result in over capacity, promote unhealthy competition resulting in lower margins and make servicing of loans a little difficult. Despite this the positive sentiment in the label industry is evident as those who have excelled are committed to expand and maintain their position.

 

 

Change is the only permanent in a growing scenario, also stagnation leads to deterioration so one has to keep improving, innovating and expanding to remain in reckoning in a vibrant colourful industry. The label industry, much to the discomfort of the existing peers of the industry is seeing a lot of investment from the sheetfed offset printers. The sheet offset industry is used to big time investments in equipment and voluminous sales justifying their lower margins with massive turnovers. They were content with ever growing toplines, yet when the bottom lines needed strengthening labels appears to be a solution. While this would not add much to the top line but would surely contribute positively to their bottom lines. In a conspicuous effort to make their balance sheets look more presentable, it seems the offset printing industry is becoming indulgent in labels. It is for this reason we see label exhibition stalwarts Tarsus targeting the offset printers for their upcoming Labelexpo India. This is much to the discomfort of existing label industry constituents as it would add to the intense competition bringing pressure on already depleting margins in terms of percentage.

 

 

The label demand in India continues to grow and investments in label printing and converting equipment is on the rise. Though not much authentic data is available, yet the author based on experience and time spent in the industry has attempted to reach a reasonable size of the market. There are about 1000 label manufacturing companies in India. These include very small and big plain label, barcode label and product label manufacturers both in roll and sheet, spread all over India. The number of machines that each of these companies possess varies from just one machine to multiple machines, in many cases the machines installed are in double digits. On a very modest estimation if I assume an average of just two machines per label company, the total comes to 2500 label converting machines. The number of rotary machines announced in media in the recent past as installed in India over the years till now by leading label suppliers like Mark Andy, Gallus, Nilpeter, Omet, Bobst, Edale, MPS, Weigang, Orthotec, etc. coupled with those supplied by local manufacturers like Multitec 200 machines, RK label 150 rotary plus 600 flatbeds, Jandu 135, Alliance, Webtech and others, is well over 1500. Now if we add the used machines, the intermittent and other flatbed/rotary options, the figure is definitely over 2500. Working backwards for converting capabilities with realistic downtime, the per capita consumption of labelstocks is well beyond 1 square meter.

 

 

Calculating quantities of label stock manufactured from the number of coaters installed with Labelstock manufacturers we have, according to the author’s personal estimation, Avery Dennison is leading the pack and SMI following, together they account for over 40% of the production in India with almost 48 Crore or 480 million square meters per year. According to Jandu Engineers, who have been the main coater laminator supplier to the unorganised sector, they have till date installed 150 adhesive coating lines in the country. While Jandu asserts that his coaters run at 100 meters per minute but for a realistic estimation their speed with down time has been considered at 50 meters per minute. Added to this is the production coming from numerous Hotmelt coaters installed and together with the stock lots used, the total again justifies the 1 square meter per capita usage. Another evaluation done with base consumption that most in the industry had agreed at 0.25 square meter in the year 2003. Applying a year on year growth rate of just 10%, this year we cross the 1 square meter per capita usage. The estimation is the author’s personal estimation only, many of the industry peers may not agree with the author’s estimation yet it appears that we have come a long way in the last 20 years. The self-adhesive label production and consumption in India all including roll, sheet, stock lots etc. this year seems to have reached a whopping 1.30 billion square meters!!!

 

 

Written by Harveer Sahni Chairman Weldon Celloplast Limited New Delhi India September 2018