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

Jandu’s 3rd generation inducted, initiates makeover!

Jandu’s 3rd generation inducted, initiates makeover!

Prabhjot Singh Jandu is the third generation of Jandus! His grandfather Baldev Singh Jandu set up his maiden venture Jandu Engineering Works from humble beginnings in 1972, operating from a 100 square foot rented premises with just one lathe machine that he was operating himself and grew it to become the most prominent supplier of coating and laminating plants in India. His son Gurdev Singh later joined him in business to help his father to further the growth. Their story written by the author in 2013 and also carried by leading print magazine Printweek India,  is already there on the blog https://harveersahni.blogspot.com/2013/01/baldev-singh-jandujandu-coaters-create.html This was at a time when his grandson Prabhjot was still in school. With time, it was felt that there is a need to upgrade equipment in terms of technology and automation, together with expanding the business in terms of size, planning, service and administration. When Prabhjot finished his studies, he joined the enterprise and spent a year or so in training before starting to take decisions, it was like a dose of fresh youthful energy in the company. He is the 3rd generation Jandu to be inducted who is now initiating a complete makeover!

Prabhjot Singh Jandu completed his education with a B.Tech. Mechanical engineering from Amity University followed by business training at the same institution. As a part of that training, he was sent to Adelphi University New York for six months and then to Birkbeck, University of London, England for another six months. On return in 2020, at the young age of 22 years, he joined the family enterprise Jandu Engineering Works and was handed over the responsibility of uplifting the company branding and to take up marketing aggressively. Once he got settled, in order to make component inputs consistent to standard specifications, he moved on to look after purchasing and improving infrastructure to build plants with improved performance of their coating and laminating equipment.

He is now taking it upon himself to create plants that were not only great in terms of aesthetics but also excelled in running at higher speeds with increased automation. Prabhjot endeavors to gradually move away from the basic market that they were catering to and transform his company to cater to the higher end of customers for coating and laminating plants that can make specialty coatings and curing with precision under controlled conditions. He plans to launch coaters for new and innovative products. To make their plants more sustainable they have managed to design and supply equipment that has reduced wastages, with lower manpower and less dependence on operators. For better after sales service, he is introducing remote access so that production downtime of customers is substantially reduced. They now have the capability to access the plant at customer’s premises through internet and diagnose the problem and provide solutions. This has helped them with providing service to their export customers as when they provide internet connectivity, the Jandu service team can troubleshoot and support. They are already implementing real time data access from the plant in production for better and more accurate coatings. Servo drives with software support from Siemens are incorporated for demanding customers. Better tension controls provide uniformity of coatings and smoother run ability. As for providing inline inspection and precision control for silicone coatings starting at 0.30 GSM (gram per square meter) they are ready with the technology but await the right customer who will invest in such a high-end system for their silicone coater. Jandu Engineering Works under Prabhjot’s guidance have started to follow industry 4.0 guidelines.

Earlier, to increase their outreach in the industry, almost all business came to them by reference from existing customers or friends. Prabhjot is making changes and has indulged in extensive marketing and brand promotion. Jandu’s emails are not plain text now and have transformed to well-designed ones and are informative. Their website is up there on the first page when a prospective customer is looking for coaters and laminators. They regularly exhibit at label and packaging exhibitions; in fact, their last international presence was at Labelexpo Europe 2023 in Brussels where it was seen, all three generations manning the booth.

Jandu’s initial growth in the label industry was due to the earliest label printing press that they produced, narrow web CI flexo, but they have now found immense success in building coaters and laminators for the self-adhesive label and other converting industries. Their label printing press manufacturing business is now a very small part of their operations, they are in the process of contemplating either to improve and upgrade their presses or just keep concentrating on coating equipment. There present range has expanded to offer multiple types of converting equipment besides label presses which include coating and laminating machines for; silicone coating and self-adhesive labelstock, specialized coated products, thermal paper, sublimation paper, solar coatings, medical tape coatings, Barrier coatings, PLA coatings, pattern coatings and car wrapping, etc. They also have strong demand for slitting machines as it is necessary equipment for the coating and laminating lines. With experience, Jandu Engineering Works can help new entrants in the coating industry for specialized products with technology, sourcing and other details. They keep acquiring the latest information from suppliers of chemicals and specialized coatings in contact with them who are promoting their technical coatings and advise the processes to be followed. Jandu believes in sharing information with their existing customers.

Prabhjot is happy that the company has grown  60% to 70% since his joining. When he joined their silicone coating line was running at 250 meters per minute and adhesive coating at 100 meters per minute. Now after upgradation the silicone coating runs at 350 meters per minute and after more design changes it is expected to increase to 500 meters per minute and adhesive coating can now run at 180 meters per minute with much improved drying system. Proudly he says, “their earlier customers used to look for basic machines at low prices and now after I explain to them the benefits of the newer technological changes in our equipment, they are ready to invest in the expensive advanced versions of our equipment.” Ninety percent of their customers repeat their orders as proof of their acceptability. Their penetration into the market segment they operate in is more than 80%. While the number of coaters being sold now may be a little less but in terms of value it is much more, almost doubling their turnover because of the sale of advanced equipment to a higher market segment.

Prabhjot is ambitious and with active mentoring and support from his grandfather Baldev Singh Jandu and father Gurdev Singh, he wants to grow the company at a faster pace and endeavors’ a 50% growth in revenue per year. When he joined the company in 2020 Jandu Engineering Works was already operating from a 25000 square feet shopfloor, which has now expanded 60,000 square feet despite the pandemic slowdown. The Jandu family is now looking for about 3 to 4 acres of land for further expansion. The total workforce employed when Prabhjot joined was 70 and has now increased to 120 people. In the last 3 years they have sold around 40 coating lines up to 2-meter width for various applications employing diverse coating methods like air knife coating, 5 roll silicone coating, bar coating, gravure, adhesive coating, etc. These lines have the capability to coat at a speed up to 350 meters per minute. Jandu coaters have been exported to 17 countries so far.

Written by Harveer Sahni Chairman Weldon Celloplast New Delhi January 2024

For advertising please write to info@labelsandpackagingworld.com 

Printing magazines may reproduce this article by giving credit to the author.

Pamex 2023 justifies theme; “Convergence of print.”

Pamex 2023 justifies theme; “Convergence of print.”

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.

I present my walk-through pictures of the event:

Mumbai to Toronto, successful in digital labels.

Mumbai to Toronto, successful in digital labels.

Born to Malayali parents in the south Indian state of Kerala, Hari Nair CEO of Digital Labels in Toronto  does not sound like a Malayali, on the contrary he sounds like a typical Mumbaikar (Local longtime residents of Mumbai). The Malayali people are a Dravidian ethnolinguistic group originating from the present-day state of Kerala in India, occupying its southwestern Malabar coast.

They are predominantly native speakers of the Malayalam language. They constitute the majority of the population of Kerala. It is pertinent to mention here that Hari is proud of his Indian heritage and firmly believes in the oneness of being an Indian rather than be recognized as a part of separate religious or caste-based segment of the society. Long years ago, Hari’s parents had moved residence to Mumbai, where he grew up. They lived in Santa Cruz, close to airport. He did his schooling from Kalina Education Society and  college in Parle college. He followed this with Masters in Organic Chemistry from Bombay University. Finally, he completed his MMS (Master of Management Studies) from Sydenham Institute of Management Studies, Mumbai. Post education in 1989 he along with a few others were hired by Suresh Gupta former Chairman Huhtamaki-PPL, which at that time was Paper Products Limited (PPL) promoted by the late Sardari Lal Talwar and his family. Paper Products Limited or PPL was later acquired by multinational Huhtamaki. Sardari Lal Talwar’s son in law, Suresh Gupta had joined PPL when it was facing tough times. Suresh Gupta fondly called SG, was in the process of transforming the company from purely owner driven to  professionally managed one. An elaborate program of in-house training was put in place. The program was designed by SG and his colleagues to suit their specific needs, may they be technology, sales, customer or people handling. They were transforming the company to project their acumen in offering the latest in packaging. So, he hired these youngsters and trained them. He would not let them to take it easy. They were initially trained in flexible packaging, learning every part of the process including slitting. Hari mentions, “SG had long term vision.” He achieved success by implementing his ideas. These new incumbents included 6 or 7 persons to be groomed as his core management team. Hari Nair was one of them and who considers Suresh as his mentor and remains in awe of his capabilities to transform a company that was just Rupees 35 Crores when Hari joined and under SG’s leadership PPL had crossed Rupees 2300 Crores when SG retired.

Hari started his career at Thane (Mumbai) plant of PPL in flexible packaging division. When SG introduced Shrink Sleeves 1993-94, Hari was sent to Fuji seal Japan for training him and taking other persons from the company along with him, for training. In 1997 he was moved as General Manager to Hyderabad plant of PPL. Hari came to Canada in 2001 from his last posting in India at PPL Hyderabad. When asked why he moved to Canada, he is not sure, but then says, ”I always thought it will be good for his daughter plus I was fascinated by the west.” Each time he visited these countries on his business trips, he was in awe of the infrastructure, the roads and facilities.

Comparatively, he felt India was always “work in progress” and in his lifetime, it will never be like this in India. He yearned to live in these countries and drive on these roads, though today he says, these were stupid reasons. He feels as one matures and looks back; the realization comes that they were not the right reasons however his vison for his daughter Mythili getting better education has worked well. Since so many children are coming to Canada to study, she would also have had to do that but now that she is here, it is working out for her, she is a doctor and moving on well with her life. When they shifted to Canada his family had no clue what they were going to be up against, on arriving in Toronto they were all holed up in one room of a town house in which four families were living, sharing kitchen. It was an extremely challenging situation from the life they had been leading back in India.

On landing in Toronto, he tried looking for jobs in the field that he was experienced in and approached companies in similar fields. Sandeep Lal the then owner of Metro Labels called him for an interview and in response felt Hari was overqualified and he did not have a position for him at that time. For a full year thereafter, Hari did not get a break and he was so distressed that he even sent a message to his mentor SG that he might want to come back to PPL. The experienced mentor and a professional management leader that he was, SG advised him that while he was welcome to return, yet he did not want Hari to regret later and feel he did not try hard enough. SG asked him to wait for some more time and try some more, things will work out. That was the motivation coming from a mentor that made him hang on, it was the encouragement that changed his mind. A year later while he was contemplating moving out of the packaging industry, he saw many youngsters joining banks as the jobs were there on offer. On a suggestion from a friend, he did a course in financial securities hoping to get a bank job. He was then living at Kingston Ontario and met almost all the bank manager there, looking for a job.

While he was searching for a job in banks, Hari stayed connected and following up with Sandeep Lal at Metro Labels. A year had elapsed and one fine day he got two calls, one from a bank offering him a teller’s job for 10 dollars an hour and that too for just 10 hours each week which was not enough to feed a family, and the second job offer came from Sandeep Lal which Hari accepted and joined Metro Labels as an estimator. The job was entirely different from what it was in  India, the workload was heavy. One of the first lessons he learnt was that in India if you are dealing with large customers the price for a particular customer remains same for all quantities of same label but in Canada, each job is estimated and quoted separately. In 6 to 8 months, he became the plant manager for Metro Labels. A year down the line he felt the discomfort as the environment was a lot different from the time, he worked in Paper Products in Mumbai. After having spent over two years  there he quit Metro Labels and joined another label company Labelad. He joined as a supervisor and gradually moved up and stayed there for the next 7 years. While in PPL he had worked a General Manager and had handled from production to selling more like as an entrepreneur but in Canada the work system was entirely different and here Hari worked completely in production.

During his tenure at Labelad, while he was attending a Fasson seminar, the speaker mentioned that there were two big opportunities in North America and those were flexible packaging and digital printing. Sitting at a round table along with his colleague Chris Henderson from sales in Labelad, referring to digital printing, Hari said to Chris, “this is the future.” They parted on that note and forgot about the incident. Six months later Chris was at Hari’s office asking him if he remembered his comments on digital and whether he wished to start something. With an affirmative reply, both indulged, and Digital labels was born. Chris had spent 14 years in Labelad and it was an ideal combination with Hari as the production person and Chris as the Sales expert. From experience Hari felt that the HP Indigo 4000 series could not sustain a business expense but when the 6000 series came it became a different story and once it was two years of launch of that model, they felt comfortable to buy the press. Within six months they came in contact with Charlie Maclean President from ASL Printfx and decided to get into an association with ASL investing in Digital Labels, taking a small part of the ownership. Since they also had interest in digital. It was a win-win situation as ASL could use the digital capabilities of Digital Labels who could in turn have access to ASL’s sales network. ASL has grown and is very focused in high-end jobs like wine and spirits and for short runs and personalized variable print jobs, Digital Label’s capabilities are an important resource.

Digital labels are into manufacturing of all segments of labels, shrink labels and decals, but mostly concentrating on short and specialized runs. To start they had huge challenges as both partners were into service before and had no business background, so banks were reluctant to fund them. Working capital dried up soon. Once they got over the initial hiccups and proved their capabilities it became smooth sailing. The first 6 months were tough as buyers did not trust them since they were new in labels business but then a Godsent opportunity came to them when a scented candle manufacturer who was having trouble with current vendors of labels, approached them. That business came to them as a big saviour. Once orders from that customer came in, they were operating better and later when ASL came into the picture, things changed for good.

Chris and Hari have worked tirelessly, and their efforts have been fruitful as Digital Labels has been growing in the last few years at around 25% each year. Their business is now around 7 million Dollars, and they plan and make efforts to reach 10 million in the next 3-4 years  from organic growth alone. They presently operate from a premises admeasuring 8000 square feet and the space it is fully utilized. Due to shortages faced following the pandemic, they had to increase their inventory. They rented a lot of space around their present premises so that they could maintain enough stocks to service their customers well. They operate with 25 employees, presently working 8-10 hours basis. They are a slim trim enterprise who are very careful with expenses and very focused to grow their business. Commercial real estate in Toronto is expensive so they feel that for any expansion that becomes imperative, they will try to rework their present setup and increase the working shift for the time being.

His wife Surekha with whom Hari got married in 1994, is from Goa. She is a social worker by training and now since 2007, she is working for the social services division of the city of Toronto. Their daughter Mythili was born in 1995. Hari remains connected with all his friends in India. But has no business with India. He still remains in awe of Suresh Gupta whom he looks at as a mentor and feels he has yet to meet anyone as smart, knowledgeable and professional as him.

Nostalgically and pensive in thoughts he says, “Whatever I learnt in my journey in profession so far, it has been from him”!

Written by Harveer Sahni Chairman Weldon Celloplast Limited, New Delhi December 2022

LMAI Webinar: Label printers’ woes, price increases and shortage of inputs

LMAI Webinar: Label printers’ woes, price increases and shortage of inputs
Frequent increase in paper prices have been adversely impacting the printing and packaging industry in recent times. The print industry has been at the receiving end not just because of the price rise but also due to shortages of paper and that too at a time when demand is rising. The printers have suffered because of long lockdowns due to Covid-19 pandemic; they had hardly heaved a sigh of relief as the situation started to improve when prices began their upward movement followed by shortages or unavailability of critical inputs, adding to their operational problems. The self-adhesive label printing and converting industry is an extension of the sheetfed or unsupported web printing industry. Unfortunately, the impact of the present situation on label printers is more severe, given the complex nature of their major raw materials, the self-adhesive or pressure sensitive adhesive labelstock. Unlike the single layer substrate that paper or board is, the labelstock is a laminate with many inputs. The face materials vary from various kinds of paper substrates, films, foils, etc., then there is a range of pressure sensitive adhesives like emulsion and hotmelts in variants like permanent, removable, for low and high temperature applications that are formulated with various polymers, plasticizers, emulsifiers, and other chemicals. Lastly the release base papers and silicone formulations. All these inputs are facing price increases. Realizing the impact and seriousness of the situation, LMAI (The Label Manufacturers Association of India) initiated by the current President Rajesh Nema, organized a webinar titled "Knowledge – Accelerating Growth" on 30th October 2021. The panelists included Saurabh Agarwal-Avery Dennison, Ajay Mehta- SMI Coated Products, Prashanth Raveendran- Seljegat Printers and Manish Desai- Mudrika labels. The webinar was moderated by Jaideep Singh Secretary LMAI and coordinated by Anurag Mohan Management committee member.

 

 

 

Ajay Mehta
Ajay Mehta spoke on the gravity of the situation due to rise in prices with price increases being announced by paper mills frequently despite not getting their full requirements of materials. Forward contracts are made with paper mills but those are for quantities required and mills in general, charge prices prevailing at the time of dispatch. However still, the increasing international freight rates, reduced availability of raw stocks with mills and the upswing in demand impacts adversely. While the mills give a date whereafter new enhanced prices will be applicable, but the adhesive suppliers do not even give time for price increase and announce the new price with immediate effect. Paper mills supplying release base papers are either facing shortages of pulp so have lesser materials to offer or they to recover the losses incurred during lockdowns are directing their materials to markets where the get higher value for their products. He cautioned that by modest estimates, the label industry will stand to lose over Rupees 250 Crores annually and there is no way this loss can be absorbed, they have no alternative but to pass on the price increase to the printers. They do get resistance from some quarters but there is no way to compromise on this if one has to survive and keep the company in sound health.

 

 

Manish Desai

Manish Desai of Mudrika Labels mentioned that print buyers strongly resist the price increases by expressing that there are other printers ready to supply at lower rates, however according to him they must be persistent as there is no other option. The possibility to downscale the product specification by lowering substrate grammages and adhesive coat weights to keep the prices stagnant is not the right step and will lead to inferior quality and rejections at the customer’s quality control. Moreover, since many print buyers are now mentioning the standard brand labelstock usage in labels supplied to them, printers do  not have the option to consider alternate suppliers. He suggested to the labelstock manufacturers that since they interact with print buyers to get their materials approved, they should in turn also impress upon to approve price increases in tune with raw material price escalations. It would also be prudent for labelstock manufacturers to make forward contracts with raw material suppliers such that they in turn can give some breathing time for printers to settle down with new prices. Price rise is an ongoing process in growing economies and eventually the industry settles down with it in 3-4 months, unfortunately now it is at a challenging time and too frequent. He further added that amongst their customers, with privately owned companies it is easy to get price approvals as one can deal directly with senior management and justify the need for higher prices. Contrary to this, it takes 3 to 6 months to get approval from multinational companies as they have multiple layers of management and the price approval is a long-drawn process and by the time the approval comes, the prices may already have increased some more.

 

 

Saurabh Agarwal
 

 

 

Saurabh Agarwal of Avery Dennison mentioned “'The significant increase in demand post the improvement in pandemic impact, especially in the large economies of the world, while the supply environment continuing to remain constrained has been the single biggest reason for the serious inflationary pressures. The rising oil and energy prices and the prevailing ocean freight crisis intensifies the impact and is now impacting almost every region. At Avery Dennison, all our efforts are geared to continue serving our customers in the best possible way during these volatile times, while at the same time keeping them informed of the prevailing situation.”

 

 

Prashanth Raveendran of Seljegat Printers was more focused stating that they have reached a level of success by continuously investing in the finest equipment to manufacture labels to international standards and creating innovative products. He said, not getting the appropriate and remunerative price for their products will hamper their growth and not justify their huge investments. He stressed that if some print buyers do not understand the situation and do not agree to give the right prices, unfortunately and sadly we will have to forego such orders. After all, we have to service our financial commitments.

 

Priyank Vasa
To get a wider view on the topic the author interacted with some more industry constituents. Priyank Vasa of Ahmedabad based Unick Fix-a-Form says, “The recent price hikes and inflation in raw materials has got us wondering how long we can sustain a healthy margin while continuing to offer the best rates and quality to our customers. Production efficiency has been impacted in the past two years because of the pandemic. Looking at the current situation, it is tough to offset increasing cost of raw materials with an improved efficiency. Labels have become a commodity, unlike older days where one could reap the benefits of developing a product for years altogether. Product  diversification could be the key which could offer a good balance between profitability and volume. Current market conditions do not offer many niche segments where business could thrive. Sustainability of the margins will take the driving seat vs the volumes. Expansion models must be feather light as nature of our industry needs repetitive investments that come with an interest burden.”

 

 

Mahendra Shah
Mahendra Shah of Renault Paper Palghar, a part of Manohar Packaging group says, “We call ourselves manufacturers of labels but technically, we are just converters without any consumer brand-value which can be encashed at a later part of our entrepreneurial tenure. Our current or past investments do not last long, due to fast changing technology. If you do not capitalize your investment in the first one thousand days, your time and energy is wasted in just recouping the investments done. Really, is this why we became entrepreneurs? Competition was always there and will remain in future, the only difference is the mindset. Now with fast evolving technologies we need to achieve the  return on our investment at a faster pace. As first-generation entrepreneurs, we took harsh calls and succeeded, with this huge price impact on our inputs now, we all need a fearless attitude to go for price increases from our customers before it is too late. We may lose some customers but with clear thoughts I am sure we can all make our business profitable and sustainable.” 

 

 

Anuj Bhargava

 

 

Anuj Bhargava of Kumar labels asserts that the price increase must be passed on and it is an imperative for survival. Another point he mentioned is that the industry is not realizing that people are a necessity in a company to work efficiently and the cost of people has dramatically increased post covid. So that cost combined with the enhanced raw material costs is a “Killer.” If label printers do not pass on the impact of the combined cost increase, then definitely it is a formula for suicide.

 

 

The PSA or self-adhesive labels industry is already at crossroads whereby evolution is leading to a lot of demand growth going off to different evolving technologies like shrink sleeves, inmold labels, wraparound labels and direct on product digital printing. Expansion in capacities coupled with commercial and other offset printers, facing pressure from the online communication, also investing in label manufacturing is bringing about intense competition and pressure on profit margins. Label manufacturing also has another challenge which is becoming a matter of concern and that is the waste management. Adhesive coated waste matrix and the release liner that form more than 50% of the laminate is either going to landfills or being incinerated. Facing pollution controls and attending to environmental concerns the printers must now invest in measures that support sustainable and environmentally safe production processes. At such a time when input prices are going up putting margins under pressure, their woes keep on escalating, prompting them to get together as an industry and ponder over workable solutions to counter the concerns that are arising. The positive side is that in a large country India with a huge young population, the growth is evident and there will be enough for all label manufacturing technologies.

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

 

Printweek India's edited version of this article  is also available at; https://www.printweek.in/Features/label-printers%E2%80%99-woes,-price-increases-and-shortage-of-inputs-55396