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 

Waste matrix stripping or removal in production of self adhesive labels is a very important part of label conversion and is an imperative that leads to a web of labels which can be dispensed on automatic label dispensers in high speed packaging lines. Even though it sounds to be a simple process of stripping the ladder like extra waste after die cutting of labels, yet it remains to be one of the most complex and problematic area of label converting process. A problem with waste removal, like matrix breaking or labels lifting with the waste ladder may slow down the machine or in some cases make it extremely difficult to remove it online. Converters may have to resort to removing the waste manually offline making the process unproductive and costly. A host of parameters affect the process and it is difficult to address the issue in a singular way. With so many variables that impact the waste removal process, it is difficult to predict a simple solution. It could be due to the shape of label, size of label, release liner, face stock, adhesive, die cutting process, speed of conversion, die blades or the design of the waste removal section that may affect the correct and efficient removal at the optimum machine speed. Any of these may impact the final result and slow down the machine and the printing process. No one solution can apply to all problems. The traditional waste rewinding system is gradually becoming unpopular due the fact that tension is the key to efficient waste rewind. The rewound waste matrix ladder roll has empty spaces from where labels have been die-cut and as the roll becomes bigger there is lot of irregular tensions leading to breaks. As the market becomes extremely competitive with rising prices of labelstocks printers tend to reduce the gap between the labels to 2mm making the process even more difficult. This article will dwell on most of the variables mentioned here above.
 
Release Liners: The most widely used base papers as release liners in self adhesive label materials are glassine, super calendared Kraft and clay coated Kraft. These are uniform caliper, densified and non porous papers that have adequate strength and accept a uniform coating of silicone giving excellent releasing properties to become a proper backing for self adhesive papers. In recent years due to possibility of recycling and reducing the tonnage of waste generated, filmic liners also are being used as backing in labels. Release liners play a major role in die cutting and in turn impact the waste removal process. The die blade has to cut through the laminate and stop at the face of the liner so has to achieve a perfect half cut or kiss cut. The uniform thickness or caliper of the liner is an imperative. If the liner has variations, it will create problems at die cutting and eventually at waste stripping. If the release gets thicker the die will pierce the liner making a through cut and exposing paper fibers to the adhesive.  This also may result in web breaks. If the liner gets thinner, the die will not cut resulting in labels lifting with the matrix. Release level of the liner is also very important. If the release level is tight the matrix will tend to break due to tension and if it is too easy, labels will tend to lift with the ladder. Uneven silicone coating or pinholes in coating may also create problems. If the labelstock prior to waste matrix removal goes through a nip roll that has excessive pressure between them, the edges may develop micronic nicks that may render the face paper susceptible to web breaks. The paper rolls may also develop these rough edges in transportation and mishandling. The web needs to be inspected thoroughly before taking up label conversion.
 
 Face Paper:  Paper and films are generally used as face materials. A fairly high strength paper will perform well if all other parameters are addressed. If the gap in labels is too small, 2mm or less, the matrix will tend to break repeatedly. Moisture content in paper should ideally be between 3.5% and 5.5%; sharp increase in moisture will affect the strength adversely. The tensile strength of paper at Relative Humidity (RH) up to 50% is maximum after which it moderately decreases with RH up to 65% and on further increase in RH, it drops sharply. The uncoated papers are hygroscopic, so they tend to absorb moisture faster than coated papers. Evidently weather and storage condition of paper does have an impact on waste removal. Even when using emulsion based adhesive if the adhesive is not dried properly, the face paper will tend to absorb the residual moisture from the adhesive and result in deterioration of paper and affect waste stripping. In case of filmic face stocks, weather may not impact but the condition of die and quality of die cutting does play a major role. If the die is damaged or blunt it may not cut properly resulting in label lifting or film tear.
 
Adhesive: Commonly available labelstocks are coated with either emulsion based or hot melt pressure sensitive adhesives (HMPSA). In both cases for a perfect waste removal it is necessary that the die cuts through the adhesive as well, as otherwise if the coated film of adhesive is not cut, labels will lift with the matrix. Emulsion adhesives have good die cut ability however hot melt adhesives for better die cutting properties have to be specially selected. In case of HMPSA if the waste is not lifted immediately after die cutting the adhesive may rejoin and lift the labels with the matrix.

 

 

Size and shape of a label: These are parameters that are customer driven based on their specific needs, so the converting company cannot request changes from customer.  Small labels have a very limited area of contact and reduced tack holding it to the release liner and with little force the label may fly off or lift off with the matrix. In such a case die makers suggest packing self adhesive foam in the die shapes so as to push the label back on the release liner. Other times printers have found limited success in addressing this problem by increasing speed of the web. Waste ladder removal of irregular and complex shaped labels with sharp corners like in a star shape, is even more complex to handle. This becomes even more difficult in substrates like BOPP where a small nick may lead to web break. Converters need to slow down the machine to a great extent to finish the labels online. Machine manufacturers have addressed this issue of handling complex shapes as explained later in this article.
 
Die design: The die has a definite role to play in waste matrix removal. The subject is extensive and can take a full article to dwell on the nuances. The blade angle, blade height and coating on the die are factors that lead to ease or difficulty of label conversion.  Thickness of the face materials, type of adhesive and thickness of release liners are all imperative inputs that are needed before a die is put into production. A die that is designed for paper material is not recommended for filmic materials. Blade angle for paper is kept wider so that after penetration of around 80% into the paper the rest of the cut happens by crush or bursting of the material before stopping at the surface of the liner. In case of filmic face material a sharper acute angle is needed to pierce the film as in case of a wider angle the film will stretch and not be cut. An acute angle blade appears to cut better but wears off faster than the wider angle blade dies. Depending on the materials used the die angle varies between 45degrees and 110 degrees. The blade height needs to be adjusted to cut through the face, which maybe paper or film or a laminate, and adhesive without piercing the release liner. If any of the parameters is not right, the waste matrix removal will become a challenge. If the blade pierces the liner even slightly, it may expose the release paper fibers to the adhesive and get stuck to them causing waste ladder breakage. If the blade does not cut through the adhesive, labels will lift with the matrix. In case of coated materials like direct thermal and thermal transfer the coatings on the paper are abrasive in nature and tend to make the die wear off soon. In such case laser hardened dies are recommended. Adhesive sticking and building up on the dies also results in uneven cutting and also resulting in early die wear off. This is more evident where aggressive high tack hot melt adhesives are used. For this reason special non stick, coated dies are available so that the adhesive will not stick to them. The standard gap between the magnetic cylinder and the anvil is also very important as in case of die wear off the gap increases resulting in spaces where labels are not cut and would lift off with the matrix and to get a perfect cut the die pressure is increased. This results in faster wearing off of the bearers leading to a smaller gap and over cutting. Care has to be taken in die storage and handling. Before commencing any job proper inspection of die should be done regarding cleaner blades, blunt edges or nicks. The dies need to be stored in an environment avoiding excess humidity which may result in rusting.
 
Machine manufacturers have been consistently making efforts to address the issue of waste matrix removal to aid faster converting. Some of the steps taken include; 1.Lifting the waste matrix immediately after die-cutting. 2. Taking the die to a larger diameter stripping roller that would support the waste ladder on separation rather than a thin diameter roll that would provide a sharp angle to waste being stripped off. 3. By rethreading the paper in such a manner that the label web is peeled off the matrix instead of the matrix being pulled off. 4. De-laminating the web and re-laminating it before die cutting as this would reduce the tension required to peel off. These measures did help to some extent but complex shapes and a host of issues and factors that impact this process have had machine manufacturers continuously researching this area to keep implementing changes. One such solution that came around some years back was suction of the waste matrix into a suction and shredding system. This does take care of the tension and also manages waste by cutting it to small pieces and compacting it, but such systems have other problems. They are expensive, large in size so difficult to be fitted on presses due to lack of space, costly to operate as they use extra motors, compressor or vacuum and very noisy to run. Yet there is a brighter side to it, there is development going on to separate the waste and recycle it inline so as to reduce the impact on environment.
 
 
The larger established press manufacturers seem to have reached a viable solution. Some years ago they have introduced a big innovation in the industry by designing a simpler contact system rewinder for waste matrix. The idea was very simple; instead of pulling only the matrix up to the rewinder, we pull the entire web up near the rewinder. Here the matrix is peeled off against an idle roll and immediately pasted on the rewinder. Basically this reduces the travel of the matrix from 1 meter to hardly 5 cm and the journey is even supported by a roll. This system has now become the standard with many label press manufacturers
 
 
 
 
 
“Simple solutions are invented to simplify the label converting process however It does not hold true for all jobs, when a problem comes it can be challenging and creating a solution can be another game changer”!
 
 
 
 
Written by Harveer Sahni Chairman Weldon Celloplast Limited New Delhi January 2018
 
NOTE: This article is exclusively written for magazine Label and Narrow Web USA. Publications desirous of reproducing the article may write for permission to Steve Katz editor LNW : skatz@rodmanmedia.com