Self Adhesive Labels Industry In India and The World
The pressure sensitive adhesive labels and packaging industry is growing at a steady and rapid pace in India. It is now time that the contribution of those who have achieved success is chronicled so that those who wish to move ahead have a platform to look for information, news and interaction. This Website intends to provide all that along with inspiration and reference.
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 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 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 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.
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 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 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
Covid-19 or Corona virus that has struck populations in countries across the globe creating a scare that has impacted adversely most affluent economies in the world. Governments are taking very strong measures to curb the proliferation as also find remedies for curing and containing this virus which is already declared a pandemic. Increasing numbers of affected people and deaths have created an alarming situation whereby vast geographical areas are being cordoned off, schools are shut, travel has become restricted, congregation of people is being restricted and businesses are suffering. The global printing industry at large is also facing the brunt of the impact. Important printing events where major buying decisions are taken and seminars that enhance knowledge besides providing networking opportunities have been postponed. Millions have been invested in planning the event by the event organisers, exhibitors and the visitors. Some of the important events that have taken responsible decisions to postpone in view of public safety concerns are as below.
Sri Lanka Print 2020 Colombo FINAT Technical Seminar Barcelona Labelexpo SEA Bangkok LMAI Digital Label printing event Mumbai PackPlus South 2020 Hyderabad India Interpack Dusseldorf Germany Drupa Dusseldorf Germany FESPA Brazil 2020 Sao Paolo Fespa Global Print Expo 2020 Madrid FINAT European Label Forum 2020, Rome is under consideration
The label industry has been greatly impacted by the spreading virus. China and Italy are two major producers and suppliers of label manufacturing equipment, both countries have been hit badly. Covid-19 originated in China and Italy became one of the largest sufferers of this spreading pandemic with tremors of this being felt by label printers across the globe. Even though China has indicated containment of the virus at their end yet since the virus has spread to other countries, governments around the world continue to make travel advisories and entry restrictions to contain the spread in their respective countries.
These travel restrictions or self-control in avoiding travel has greatly impacted the events business. With news of Covid-19 spreading to Spain; FINAT, the European association for the self-adhesive label industry postponed their FINAT Technical Seminar Barcelona. According to Chris Ellison, President of FINAT “Apart from the public health risk, the virus is now also spilling over into the real economy, and members of the label industry are taking measures to contain the risk for their staff’s well-being and their business’ continuity. In some cases, more far-reaching measures are taken than those recommended or enforced by local governments and public health institutes.” He further adds, “We are also reviewing the scenarios for the European Label Forum in Rome next June”.
Tarsus which was looking forward to a successful second Labelexpo southeast Asia at Bangkok has also announced its postponement. According to Lisa Milburn, managing director of Labelexpo Global Series, “We have taken the difficult decision to postpone Labelexpo Southeast Asia 2020 in May due to coronavirus/COVID-19.
This is an unprecedented situation and given the vast amount of preparation that goes into our shows, not a decision we have taken lightly. However, the health and safety of our exhibitors, visitors and staff is our top priority, and working on the advice of our local partners and BITEC, we feel the best course of action is to postpone the show until September.”
Drupa is the world’s leading trade fair for printing technologies. The last Drupa saw 1828 exhibitors from 54 countries, 260,165 visitors from 183 countries with the largest group from outside Germany coming from India totaling at 5% of the total visitors.
Until a few days back the Drupa website stated that the event will be held on the stipulated dates and that the organisers were taking adequate steps to screen the visitors as also to sanitize the venue for safety of all. Then on 13th of March 2020 came the press release from Messe Dusseldorf stating that both Drupa and Interpack are postponed.
A resilient Indian label industry has had its own share of voes over the past few years. Every time it is faced with a challenging situation it recovers to face yet another tough situation. First came the demonetization, hardly had the effect of that had worn off came the implication of GST.
The industry took its time to reconcile and adjust itself on to a growth path but as 2019 was coming to an end the country was facing an economic slowdown stemming the rate of growth. The resilience of this industry segment still makes it go on, sometimes rapidly and other down at a slower pace. Now the Corona virus has brought with it a new kind of situation whereby travel is curtailed, and expansions have gone on hold. With the Indian label industry starting its move in to digital label printing in line with trends in the western world, India’s label association LMAI had planned its 2nd event, “”DIGITAL PRINTING IN LABELS – THE WAY FORWARD” to be held in the evening of March 16th, 2020 at Hotel ITC Maratha Mumbai. The interest in the event got a huge response and was fully sold out two weeks in advance. As the situation of Corona Virus became alarming the LMAI management decided to postpone the event. Amit Sheth founder member of LMAI requesting postponement had said, “The way it is seen it is better to postpone the event. I think this is a National concern!” Commenting on the cancellation Kuldip Goel President LMAI said, “It is so unfortunate that immense effort had gone in preparation but for a humanitarian cause, it was needed to take precaution.!”
While the corona virus goes on unabated it is hoped that the containment happens soon bringing relief to the vast humanity that has got affected. While efforts go on by health authorities globally to find a vaccine, yet it is prudent for all to practice safety as suggested by bonafide governments and certified health authorities.
TLWritten by Harveer Sahni Chairman Weldon Celloplast Ltd. New Delhi India March 2020
The 3-day LMAI label conference from 25th-27th July 2019 was an event that was efficiently organized and delivered the promise of comradeship, entertainment and knowledge sharing. From the time of landing at Kochi to the time of departures on 28th, it was all done with clockwork precision. It was a gigantic task of hosting over 550-600 delegates from all over India and various parts of the world attending this biennial event. They were put up in 317 rooms spread across 3 hotels The Bolgatty Grand Hyatt, The Marriot and The Taj. The event was held at Grand Hyatt, perched on 26 acres of plush green land on the serene Bolgatty Island, Grand Hyatt Kochi Bolgatty is a waterfront urban resort overlooking the backwaters of Vembanad Lake.
After a smooth check-in and registrations, the delegates reassembled for start of conference.
It all started with traditional lighting of the lamp.
Welcome address by Kuldeep Goel President LMAI followed next.
Pankaj Bhardwaj Senior Director and General Manager Avery Dennison delivered the thought-provoking keynote address, setting the tone of the conference. Pankaj, while referring to the growing Indian market mentioned, “Diminishing divide between urban-rural population in India and an aspiring middle class means a growing demand of consumer products and also label”.
Due to a delayed flight, special guest Lisa Milburn Managing Director Labelexpo Group UK could not reach in time to deliver her address and in her absence, Pradeep Saroha country manager Labelexpo spoke to update the audience about the forthcoming Labelexpo Europe in Brussels, it being the 40th anniversary of Labelexpo additional features included will be on sustainability, flexible packaging, digital printing and a host of other technologies.
Manish Desai Conference chairman spoke on the flow of events at the conference.
Shahidi Ainain Director SIES School of packaging who was moderator for the event gave the guidelines to be followed while making presentations and advised speakers on the need for time management.
The audience dispersed to re-assemble again later for welcome dinner with Thallaavia theme.
The conference being held in Kerala, it was an imperative to give it a local theme on the very first evening. All the Board of Directors of LMAI and Committee members dressed up in the local Malayali traditional dress, giving the evening a local celebratory touch. After felicitation of sponsors by committee members and their walk on the ramp there was Carnatic band playing, networking and dinner.
A surprise announcement was made for bestowing upon Amit Sheth of Label Planet and Intergraphic a lifetime award for contribution to the Indian Label Industry! After an emotional thank you speech, Amit walked the ramp with wife Rupa and their two daughters.
Next day after breakfast the audience reassembled for a busy day full of presentations by eminent sponsors and of very high standards. Past President Vivek Kapoor’s welcome address was followed by presentation by Manoj KM and Parag Bagade of Avery Dennison. While Manoj spoke on futuristic labelstock offerings, Parag spoke on the sustainability endeavours by Avery including collection and recycling of liner and self-adhesive waste.
Presentations made were as follows; Avery Dennison India, Manoj KM and Parag Bagade, “Emerging Technology & Sustainability”Pulisi Technology, Olive Liu, “Relationship between Technology and Life”SMI Coated Products: Ajay Mehta and Rohit Mehta, “Technical Aspects of Applications of Label Stock Solutions”Domino Printech India: David Ellen, “Advantages of HYBRID systems for labels and Packaging converters”Vinsak India: Ranesh Bajaj, “Future Based Solutions”Retail Solution and Technologies: T. R. Ravishankar, “Trends in Barcoding and Enterprise Mobility”WEIGANG: Spring Xu, “Features enhancing to choose a good flexo machine”Luster LightTech Group: Carrie Duan, “Mining your potential”Nilpeter India: Manish Kapoor, Indian Label Indusrty – “The question of Scale and Scalability”Insight Print Communications: Ajay Aggarwal, “Transition to Digital – Now and for Future”Loparex: Manish Jain, “Future Sustainability”Heidelberg and Gallus: Samir Patkar, “The Power of 2 – when conventional meets digital (hybrid technology)”DuPont Advanced Printing: Shyamal Desai, “End user benefits”Flint Group India: Shailesh Kumar Sharma, “New Gen Color Management”HP India Sales: Appadurai, “Future is Now”BOBST Firenze SRL: Ludovico Frati, “Connectivity”Dragon Foils – Inter Films India: Raymond Lu, “Innovation and frontier of cold foil technology”
Two interactive and knowledge imparting Panel Discussions moderated by LMAI Board member Harveer Sahni of Weldon Celloplast were held after lunch. The first one was with printers where the topic was, “Creating the future vs embracing the future”.
Panelists included Priyata Raghavan Sai Security Printers, Tejas Tanna of Printmann, Aaditya Kashyap of Marksfine, Mahendra Shah of Renault Paper, Shakti Jain of Great Eastern IDTech, Yudhviram Solanki of Sicon Packs and Anurag Mohan of Interact.
The second Panel discussion was with industry suppliers as panelists and titled, “Evolving trends in Labels manufacturing!” Eminent suppliers who were in the panel and gave thought provoking inputs included;
Bhupinder Singh of Avery Dennison, Samir Patkar of Heidelberg Gallus, Appa Durai of HP, Ranesh Bajaj of Vinsak, Pawandeep Sahni of Omet, Manish Kapoor of Nilpeter, Prasenjit Das of Dupont and Sreenivas Goud of Flint. Time being a constraint the audience wished there was more time for these engaging discussions but since the schedule for the conference was so packed that there was no room for extension
After the day’s presentations ended, there was an excellent talk sponsored by SMI and Pulisi on “Secrets of Impactful Success” by motivational Guru, Gaur Gopal Das which left a full packed hall of almost 600 people spellbound and in awe of what he delivered.
The evening ended with yet another program sponsored by SMI and Pulisi, a musical performance by the visually impaired performers from the National Organisation of Disabled Artists. They sang old Bollywood songs so well that it left the audience full of awe and at that moment, compassion turned into joy, watching their special abilities to deliver so well to a large audience.
The label printing fraternity was up on its feet and on to the dance floor enjoying the renderings of this awesome group. Towards the end, the President LMAI on behalf of his team announced an additional sum of Rupees one lakh over and above what they had contracted for.
This was followed by many in the audience committing large sums to support the social cause of encouraging disabled artists.
On the final day after a welcome address more presentations as mentioned below followed;
Apex Asia Pacific: Carl Brock, “Nothing short of revolution in flexographic printing”Flexo Image Graphics: Ian Pollock, “Future of Printing Technology”ROGLER International Sàrl: Hannes Rogler, “Future based solution”Multitec Aids: Amit Ahuja, “Life beyond labels”RotoMetrics: Cain Harper, “It’s about more than the die”Brotech Digital Graphics: Ramon Lee, “The future of hybrid printing and finishing”GEW: Marcus Greenbrook, “Upcoming Technology”Numex Blocks: Supachai Theravithayangkura, “Innovative Flexo Plate Solutions for Narrow Web Printing”JN Arora presentation
A panel discussion jointly hosted and moderated by Ajay Mehta of SMI Coated papers and Amit Sheth of Pulisi Technology was conducted with young panelists that included Hemanth Paruchuri of Pragati Pack, Vidur Agarwal of Veekay Industries,
Krishh Chhatwal of Kwality Offset, Denver Annunvciation of Janus International and Naveen Goel of Any Graphics titled “Young printer’s perception on future of label industry”
After the presentations concluded that afternoon it was time for a “Sadhya” typical of that area. Sadhya in local language Malyalam is a feast of Hindu origin and of importance to Hindu Malayalis, consisting of a variety of traditional vegetarian dishes usually served on a banana leaf in Kerala, India.
Sadhya means banquet in Malayalam. It is a vegetarian feast prepared by both men and women, especially when needed in large quantities, for weddings and other special events. Sadhya is typically served as a traditional dish for Onam, the state festival of Kerala. It was a feast for the eyes to see, a diverse gathering Indians and foreigners relishing the local cuisine and eating with bare hands.
Past president Sandeep Zaveri updated the audience about the next program of Round tables, the interaction between sponsors and Printers.
“Round tables” program with all sponsors attending to a rotating groups of label printers was a much-appreciated part of this conference.
It gave the sponsors opportunity to interact with existing and prospective customers. This program was highly appreciated by the sponsors.
The final evening sponsored by Avery Dennison was themed “The Great Gatsby!”.
American author F. Scott Fitzgerald that follows a cast of characters living in the fictional towns of West Egg and East Egg on prosperous Long Island in the summer of 1922. Fitzgerald—inspired by the parties he had attended while visiting Long Island’s North Shore—began planning the novel in 1923,
desiring to produce, in his words, “something new—something extraordinary and beautiful and simple and intricately patterned.” In the novel the character Gatsby throws very extravagant, excessive parties with hundreds of guests, all for the purpose to attract a lady’s attention. The evening had the settings of the 1920s.
The evening began with a vote of thanks by LMAI treasurer Dinesh Mahajan of Prakash Labels.
It was then time for SMI Managing Director Ajay Mehta’s talented daughter Nikita Mehta who trained in the USA and is all set to go professional in the Indian singing arena, to go on stage and give a melodious heartwarming singing performance.
Finally, while people enjoyed photo ops and networking over drinks.
Bollywood singer Nakash Aziz took the stage while the LMAI conference delegates hit the dance floor and enjoyed the fun until late in the night.
Credit goes to Hemal Bhagwat who heads the event management company Mercury Integrated along with her husband and a dedicated team. “Thank you Hemal for making this a memorable event, memories will linger on till it is time to plan yet another better and bigger LMAI CONFERENCE”
Written by Harveer Sahni Chairman Weldon Celloplast Limited New Delhi July 2019
Magazines are free to reproduce by giving credit to author.
Labelexpo Europe 2017 at Brussels has been the biggest ever edition in the event's history so far. The show that is primarily dedicated to self adhesive labels industry has now evolved to different segments of labels and into the larger world of print packaging. Evidently the show will continue to become bigger in the years that follow. As per information from Tarsus, the show occupied nine exhibition halls to be 12 percent bigger than the previous edition in 2015. It hosted 679 exhibitors, including 198 new participants. There was 25 percent more working machinery demonstrated at the show, including a number of product launches. Labelexpo Europe attracted large delegations from Brazil, China, India and Japan, the show reported 37,724 visitors; an increase of 5.6 percent on 35,739 visitors to Labelexpo Europe 2015. There were a number of sales recorded on the show floor.
I reproduce here images from my pictorial walk through this amazing show and the events organised on the sides and attended by me.
The Omet Agents Dinner one day prior to Labelexpo
Harveer Sahni and Amit Sheth as Judges at World Label Awards
Judging in progress for World Label awards
Chinese Press Manufacturers Weigang, stand
With Mike Russel International Sales Director Mark Andy
Mark Andy/Rotoflex Stand
With Dirk Schroder, Sales Manager E+L displaying their intelligent inspection system
With Pankaj Bhardwaj Vice President and General Manager, South Asia Pacific and Sub Saharan Africa of Avery Dennison, India at their stand.
At the The Label Industry Global Awards Night and Gala Dinner, Tony White announcing the "Best of the Best" in World Label awards heldon the sidelines of Labelexpo Europe!
LMAI (India's label association) President Kuldip Goel and Vice President Rajesh Nema with Labelexpo Managing Director Lisa Milburn.
Professor Tan Junqiao receiving the receiving the Stanton Avery Lifetime achievement award from Georges Gravanis, President, Label and Graphic Materials, Avery Dennison and Mike Fairley
With Douglas Emslie, Tarsus Group Managing Director
With FINAT President Chris Ellison, FINAT events and communication manager Jakovina and LMAI Vice President Rajesh Nema
With Jules Lejuene, Managing Director FINAT
FINAT President in meeting with Mike Fairley at the "Label Academy" Stand
Networking at Dinner hosted by Lisa Milburn for Industry friends and colleagues around the world
Jakob Landsberg Sales Director of Nilpeter with Niklas Olsson Global Brand Manager of Flintgroup
With Lisa and Mike Fairley at the dinner
SMI Team at their Stand
Amit Ahuja Multitec
The Gallus Stand
With Lars and Peter Eriksen of Nilpeter
Kocher + Beck Stand
Karan Reddy of SticOn papers Hyderabad
Tapan Patel of BST Eltromat
John of Orthotec
Gavin Rittmeyer of Martin Automatic
Kapil Anand of Cosmo Films
Marco Calcagni of OMET
The Sahnis with Paolo Grasso, Omet
No Labelexpo at Brussels is complete without having spent a casual fun evening at the Grand Place!!!
Compiled By Harveer Sahni, Chairman, Weldon Celloplast Limited, New Delhi October 2017
Designing a label is a designer’s job, passion and creative indulgence, but converting it into a label that will deliver the envisaged results of communicating with the consumer, is the job of a label converter.If, as I mentioned in the earlier two parts of this series, the designer has taken care of the converters capabilities and challenges, the result is close to being as desired. However, if at the designing stage the eventual converting process is not revisited, converting may become a nightmare and may call for more time and involvement to make changes in design. Let us consider a label that is not one of the regular shapes like a square, a rectangle or a circle. If it is a like a star or an odd shape with sharp corners, it will be a challenge to die cut the labels slowing down label conversion, bringing up the cost of label. In such a situation label dispensing may also become erratic. Such label presses are now available with many label printers that die-cut and remove waste matrix of complex shaped labels while converting but then these options are not available with all venders. The designers need to consider ease of conversion and dispensing. Sometimes designers tend to create labels in the shape of objects like a flower, a dumbbell, a butterfly, a bird or even like a falling drop. These shapes will either be difficult to die cut and will substantially slow down the label press during conversion. I am not suggesting that such shapes should not be indulged in, but on the contrary if the product and its marketing warrant’s it so and can support a higher conversion cost, it may even become a necessity to create such complex labels. At times when it is an innovation being created to reach out to a specific customer segment, the challenges in conversion and speed must take a back seat. Die-cutting in label conversion in-itself is a very exhaustive topic and an intricate technology which is beyond the purview of this article as we are dealing with the life of a label from concept, design, and conversion to its final resting on the product and its performance there from.
Any brand from inception onwards, in its journey to success keeps gaining value as it reaches out to the product’s targeted audience. Label is one part of the package that contributes towards the brand promotion from the word go! The aesthetics and the decoration part have been dwelled upon earlier in this series, yet a very important part of the label is brand promotion. While the aesthetics and decoration of the label tempts the consumer, to impulsively lift the product off the shop shelf but it is the brand promotion in-built into the label that will bring the customers back to make a repeat purchase. A product may have been created with lot of skill and effort to be the best buy for the discerning consumer. Its commercial success will depend not only on repeated purchase by the impulsively indulgent buyer but by his spreading the message by word-of-mouth to others about the product. The information on the label should communicate the strength and reliability of the manufacturer. The label should deliver a message that the brand is “value for money” bringing appreciation from the judicious buyer who inadvertently becomes the brand’s ambassador. It is easy to mimic successful brands, but one must realize that the learned and well-informed consumer is quick to recognize a copy. I refer to this issue of duplication later in this article. The label needs to communicate the research and effort being put into creating the product to meet the emotional and aspirational requirements of the users. The label and eventually the product itself must communicate that it will add to the stature of the user. The message on label in the shortest form, given the limited space, is required to be conveyed emphatically and should be very strong and bold in branding! The content on the label is necessarily required to create an aura promoting brand recall. One must be mindful of the preferences and sensitivities of the target audience that could be children, young people, males, females or the elderly. The brand promotion capabilities of the label will create a communication link between the product and its consumer thereby establishing a channel for successful sale of the product on an ongoing basis. Often sales promotion is also incorporated in the label like free extra quantity or freebies with each purchase but here a word of caution is to be remembered, one should not confuse brand promotion with sales promotion. Brand promotion is a priority for building stature and value of a brand in the customers mind while sales promotion is a temporary step to give intermittent boost to sales. While brand promotion brings long term gains, sales promotion gives shorter gain.
As brands attain popularity and grow driving-in more revenue, another set of people wanting to make quick money by cashing in on the value of these brands, start to create look-alikes, duplicates and counterfeits. The innocent user falls prey to such unscrupulous elements by buying these non-standard products. They are exposed to dangers of being harmed by usage of such spurious products. Consumer is unable to judge whether the product is duplicate or the original product sold by the brand owner is of inferior quality. The brand is likely to suffer in value and reliability for no fault of theirs. The menace of counterfeits has attained gigantic proportions. According to a report by “The Organisation for Economic Co-operation and Development (OECD)”, Trade in counterfeit and pirated goods has risen steadily in the last few years – even as overall trade volumes stagnated – and now stands at 3.3% of global trade, according to a new report by the OECD and the EU’s Intellectual Property Office. Trends in Trade in Counterfeit and Pirated Goods puts the value of imported fake goods worldwide based on 2016 customs seizure data at USD 509 billion, up from USD 461 billion in 2013 (2.5% of world trade).
It has become an imperative to incorporate security features in labels and packages, as a part of brand protection keeping in mind that all brand protection features need to facilitate brand authentication as well. What good is a security feature if the user cannot verify its authenticity? Holograms have been used for quite some time and they have a high level of security in them but in recent time holographic labels without security features but resembling the original holograms have made it difficult for the consumers to differentiate between the original and fakes. The topic of security is large and needs to be dwelled upon separately, however still I emphasize that security features need to be considered while designing labels for leading brands. These may be tamper-evident labels, labels with micro texting, thermo chromic inks, invisible inks, holograms and labels with special printing effects that help in brand protection. Building-in security or anti-counterfeiting features in labels and the packages is an exercise that needs to be revisited by brand owners and by label designers from time to time. If the label security features have not been reviewed for long, it is possible that the counterfeiters will develop something resembling it. It is a known fact when referring duplicators, “If someone can make it, there is someone who can fake it”
Consumer is the king! It is a famous quote, I would modify it a little and say, Consumer is the king maker!” If consumers approve of a product, it could deliver fortunes to the brand owners. So, to reach out to these king makers, the brand owner must innovate both in the package and label design. One sometimes wonders what innovation one can create in a label. A small patch of label that carries the brand and its information, can be decorated as mentioned earlier in this series with foiling, embossing, varnishing, lamination and die-cutting in various shape. However, in an effort to catch the consumers fancy, labels must have innovations as per the label segment they cater to. A food product label is created with a natural effect where you can see and feel the texture of the label. Portraying freshness, a leaf or a flower may be created to exhibit water droplets that one can touch and feel. These are accomplished by using diverse printing and processing technologies on their combination presses. Development of such labels is the outcome of creative capabilities of innovative label printing companies. I quote some of the innovations that I have seen in recent times;
Consider a wine label; Wine enthusiasts like to know about the wine before indulging in it. They wish to know the quality of grapes used for making that wine, the region and the terrain where the grapes came from. The label is made like a book to be read! One cannot put all this information on a single label, so labels are produced like a small booklet affixed to the wine bottle.
The hazards of using infected syringes, has been highlighted for long to curtail the spread of infection. There is an imperative need to dispose-off the used needles safely. I visited the Schreiner facility in Munich Germany, some time ago and was shown labels where after use the needle is broken on to a plastic trap which forms a part of the label on disposable syringe. These traps are then sent for safe treatment and disposal.
Another interesting example is a label created for the Heinz tomato ketchup pack. On one side if you open the pack, ketchup can be squeezed out like it is done from a regular bottle. However, if there is need to use the ketchup as dip, one can peel off the entire label by pulling the tab on another end to expose the ketchup and get a feel as if it was in a bowl.
Other innovations are like a safety temperature indicating label on cooking gas cylinders that would change colours to indicate safe temperatures or Braille labels on wine bottles for the physically challenged blind who also like normal people enjoy their wine and will like to read the information as wine lovers.
Label printing and converting technologies continue to evolve and I have written about the different processes on my blog where a lot of information is available. The printing that initially surfaced as letter press, moved over to flexographic printing followed by stand alone or hybrid presses incorporating combination of flexo, digital, screen, offset Rotogravure printing and diverse embellishing process like hot-foil, cold-foil, UV varnish, embossing, debossing, front and back printing all done in a single pass. The packaging development specialists now need to be well versed with all the technologies and processes. In this three-part series, one can see the journey of the label from concept to its life on the product after application. It goes through a technical life cycle interacting with diverse technologies from design, to printing, conversion, dispensing and life thereafter. Each of the technologies that the label encounters in its life cycle including the chemical, mechanical and physical properties is a science it itself. Before concluding we must keep in mind the end-of-life waste management while creating a label or package. The whole chain of persons who contribute to the life of a label are a team who eventually rejoice in the success of a product that adorns a label they created.
The complete 3 part series are accessible at the following links;
As a young boy in school I had heard my school principal speaking about the American people. He had spent long time in the United States before returning to India to become the principal of our school. He said, the Americans when talking about their country, business or otherwise would like to hear, tell and experience words like Largest, Biggest, Tallest, Deepest, Longest, Costliest and so on. The habit was promptly adopted by the north Indian Punjabis, and with time, people across India have adopted the habit. They love it and wish to hear, tell and try hard to achieve this benchmark. Dhiresh Gosalia is one such achiever. He is the undisputed largest manufacturer of pressure sensitive adhesives (PSA) in India. His company Jesons Industries Limited commands over 70% of the market share for these products. It is a unique feat that few people aspire and achieve in their life time. Dhiresh Gosalia Managing Director of Jesons, is an approachable, realistic and straightforward individual. A dreamer and achiever packed in one. I remember once some 10 years ago when I approached him for a supply problem (He has been a star supplier for my label stock manufacturing company), his reply was clear cut and straightforward, “I have always wanted my company to be system driven and not person driven” he further added, “if there is an anomaly, I need to correct it. Else the customers need to understand the system we have”. Dhiresh has built a strong company on sheer hard work, commitment and delegation. He firmly believes in the mantra, “Think big and be innovative”.
Self Adhesive Stickers/Labels
Shashikant Gosalia, a Mumbai based trader in textile chemicals saw future in industry and manufacturing. In 1981, he setup his startup enterprise, Jesons Corporation to manufacture wood adhesive and binders. By 1985 he saw potential in the growing self adhesive label and tape market and started producing pressure sensitive adhesives (PSA’s). The initial plant consisted of two reaction vessels, one of 1 ton capacity and the second of 500 KG. The total installed production capacity was 300 tons per annum. Those days they were producing just 5 tons per month. In 1992 Shashikant saw growth in the market and decided to move his manufacturing to a bigger 3000 square feet factory in Palghar near Mumbai. Unfortunately that year he passed away due to a lung ailment, leaving the reigns of his startup venture in the hands of his son Dhiresh, who had been in the business with him for four years. Dhiresh was used to the fact that his father was the boss and handling the company but when responsibility came to rest on him due to this tragedy, he took hold of himself and indulged in the right earnest. He took stock of the situation and reviewed the ground realities prevailing at that point of time. The size of operations in his company was rather small for a huge debt of Rs. 85 lakhs. This did not deter his determination to think big. He was a dreamer, which he still is, as he self confesses. A dreamer who works hard to make his dreams a reality. He saw a whole lot of future in the PSA industry. He fondly remembers the day in 1985 when they produced and sold the “Sticker adhesive” to their first customer, Gunvantbhai of Excel inks, a trader of screen printing materials. He carried the 100kg lot in his car to deliver it. Dhiresh decided to indulge vigorously in this product segment and studied the business very intricately. He came to a decision that they were using a wrong chemistry for the PSA segment in which they wanted to excel. He immediately decided to switch over from VAM (Vinyl acetate Monomer) based chemistry to Acrylate based chemistry. It was a tough call but he took it boldly and emphatically, proving his resolve to lead the company to success.
As a young boy Dhiresh had dreamt of meeting the challenge of excelling against the multinational giants like Rohm & Haas and BASF who are world leaders in PSA’s. The task was gigantic yet the resolve was firm. He sold his Mumbai factory, home and office to raise working capital for his manufacturing. It was time to shift gears and move his business to a higher level. The process thereafter has been historical. In 1994 the second unit at Palghar was commissioned to produce Polyurethane based adhesive for flexible packaging and PSA’s. In 1996 when incentives and tax benefits were offered, they shifted to a small 2000 square feet unit in Daman. A year later the facility at Daman had swelled to be a 20,000 square feet manufacturing unit. Another year down the line in 1998, Dhiresh bought a 60,000 square feet plot opposite the existing factory at Daman and built a 45000 square feet plant creating additional capacity. At this time Jesons collaborated with Anchor adhesive to produce Polygrip brand rubber resin based adhesives. This Polygrip part of business was later in 2010 sold along with brand to Atul Ltd.
Jesons Daman Factory
Dhiresh’s resolve to think big, lead him to plan manufacturing globally at locations outside India. In 2003 he setup a 120,000 square feet factory in China and in 2004 a 60,000 square feet unit in Nepal to produce PSA’s and Paint emulsions. Unfortunately both these units had to be closed. The China unit was sold off in 2011 as it was not sustainable due to language problems and difficult work culture. The Nepal unit had to be closed in 2009 due to Maoist terrorist problems. Two of their security guards were shot dead. However now, the process for restarting the Nepal unit has been initiated. Production is expected to commence soon. In 2008, Jesons moved northwards in India and setup and additional manufacturing capacity at a 100,000 square feet facility in Roorkee to produce PSA, Paint emulsion, Construction chemicals and Leather chemicals. This year in 2012, Jesons has taken a very futuristic step by setting up a 5000 square feet state of art technology centre at Navi Mumbai, with an over Rupees 3.00 Crore investment in testing instruments. The centre is headed by a senior scientist specializing in polymer chemistry. With an overwhelming 70% marketshare in the self adhesive label and tape market, Dhiresh is confident there is scope for more. He, in his stride has taken on, on established players in the trade like Pidilite and Jubilant and has left them far behind in the number game, when we talk of PSA’s. He however laments that the pressure sensitive adhesive products industry lacks visionaries and companies who can take on multinational competitors like Avery and Raflatac. He feels, if he has succeeded in presence of world leaders like Rohm & Haas and BASF, others can also do it. All it needs is the ability to think big and innovate. Labels and tapes is a highly fragmented segment of the industry. It took 15 years for our coaters to achieve a speed of 50 meters per minute, there may be hardly one unit coating at 100 meters per minute. Big investment in state of art coating equipment is needed, he reiterates the need is to think big and innovate! Money is available for those who Endeavour.
Dhiresh is an avid reader and finds books as ideal motivators while his parents have been the teachers, the teachers who are the influence on every person’s persona. Being the only son, he joined his father’s business after graduating from Jai Hind College Mumbai. His only sister is married to a gold medalist eye surgeon now settled in Mumbai. Extremely interesting; In between his busy schedule and intense involvement in business, he found time to complete a three year executive Management programm from Harvard Business School!
Jesons Parel Office
His company Jesons Industries Limited is headquartered in an impressive 6500 square feet 9th floor corporate office in prestigious Peninsula Towers in Lower Parel, Mumbai. Jesons’ manufacturing emanates out of a total working space of over 1,85,000 square feet. 250 employees work tirelessly to produce 60000 tons per annum out of the installed capacity of 86000 tons per annum. It really is an achievement considering the initial installed capacity of 300 tons per annum. More or less close to what the capacity that was per year is now per day! PSA’s are 55-60% of their business with sales in 23 countries. Sale in last year was Rupees 450 Crores and is targeted at 550 Crores in the current financial year. 5 years hence Dhiresh feels they will be over Rs.1200 Crores. While talking about these figures he still remembers his first big break in the PSA industry when he sold a fifty thousand Rupees consignment to Hindustan Adhesives Limited, considered the most important PSA user at that time. It was a morale booster. The most difficult time came not long ago when in 2008, the Indian Rupee started to depreciate continuously. Raw material prices were falling and customers were expecting and getting lower prices. The buying was expensive while sales were being made at lower prices. First time in his life, Dhiresh made a massive loss! Jesons was not able to service their loans. Firm resolve, power to think and hard work is what it is all about, Dhiresh drove-in, the highest profit for Jesons in the year that followed.
Madhavi, Dhiresh’s wife is a masters in philosophy. Intelligent, smart, business woman and yet a home maker! She has been supporting Dhiresh by being at his side throughout. In the last two decades that I have known them I have seen Madhavi coming to office each morning after sending children to school and returning home in the afternoons to be with them. She has provided the perfect support. Her influence on this business is evident, just look around in the Jesons corporate office and you will see women manning all the important desks! Dhiresh has to agree women deliver! Honestly, even I believe. After seeing Jesons’ progress, I confirm, YES they do. Dhiresh and Madhavi have two wonderful daughters, Jhelum and Raveena. Jhelum has completed her BBA from London and followed it up with Masters in Theater production also from London. She is now in Mumbai and from earlier in June 2012 (Last month) she has started to work in Jesons. The reigns in her hand appear to be not far away. Raveena is still studying for graduation at Jaihind College, Mumbai.
In three years Dhiresh plans to completely professionalise the company, step down as CEO and hand over charge to a professional CEO. He will perhaps have more time for himself and his hobbies that include reading, walking and playing tennis. He is not sure what he will do after handing over charge of Jesons. He will still be working and that is sure. “It could be a foray into entertainment, another venture or a completely different enterprise.” However still the mantra will remain, “Think big and innovate”.
Written by Harveer Sahni, Managing Director, Weldon Celloplast Limited, New Delhi-110008 1st July, 2012.
When Shakespeare said, “Frailty, thy name is woman” he probably did not realize the strength that women generate when in a seat of power, cannot be matched by men. The level of mental endurance women have has made many a strong men in an otherwise male dominated society, lean on their feminine and delicate shoulders in hours of distress. Women have risen from being mere homemakers to world leaders. Margaret Thatcher and Indira Gandhi lead their countries and made the world realize that women can lead from the front with an iron hand. Over the ages women around the world have been given lesser opportunities to literacy and technical education as compared to men. It is a fact that countries that have invested in educating their women and have promoted their empowerment have seen their economies and rate of development grow faster. Across the world more and more women are now acquiring expertise and capabilities similar to their men folk. They strive hard to excel in their selected areas of work. We are seeing that change happening in India as well. A society that insisted on restricting their women to household chores is gradually transforming. With government spending heavily in bringing public awareness on the need to also educate the girl child and empower women, the results are evident. Walk into any big company’s office and you see a lot of young and bright women carrying on their work with confidence and crisp efficiency. Women are now more educated and capable of involving themselves in more and more arenas that were earlier the mainstay of men only. Whether it is police or army, flying aircrafts or travelling into space, heading businesses or governments, they are not restricting themselves. Our Indian label industry did not have active business women managers till not very long ago. All that is changing now, Indian women are acquiring technical and management skills to lead high levels of investments in the label industry that is in a growth path. It is thus that I felt it is time to recognize the contribution of these women.
In 1989 my friend Sushil Bhatia, who used to work for Avery Dennison before he started his own business, introduced me to a young and vibrant Honey Vazirani, working at Paper Products Limited, Thane. That was almost the beginning of this wonderful girls’ journey into the world of labels. From being a management trainee in1989, she rose to be the head of the labeling division of this 700 Crore company which is heavily into flexible packaging. It is truly a decorative and colorful travel. Ever since then Honey has been at the forefront of PPL’s foray into production of labels which began in 1991. Her job involved client servicing, marketing, product development and leading the labels team at PPL. She has handled key customers who are a virtual who is who of the fmcg sector. Servicing demanding customers like HUL and Dabur and bringing to them the most premium and modern labeling technologies has been a passion for her. In words of Torsten Jung Lenz, who in those days worked for Jacstadt Germany, “Honey is married to labels!” Her ambition is to excel in everything she does. Having spent 21 years in the industry she took a sabbatical in 2009. She spent a whole year consolidating herself by travelling, reading, spending time with friends and relatives and enjoying good food. Yes, she is a self confessed foodie! In 2010 she returned to PPL, which has four plants and 1500 employees, to head the company’s HR department. While she is contented and enjoying her new role in HR, yet you can see the twinkle in her eyes when you ask about her future in the labels industry. Her advice to others in the label printing and packaging industry is that it is a pity that for most in the industry, “Good enough is enough” She motivates people in her company by her mantra, “ Good enough is not enough”.
In the late eighties, I had the chance to meet a very talented screen printer Kartar Singh Dunglay of Goodwork Co. which had started to print in 1955. He is one of the elders in our industry from an era and class of people who were in love with their work as the youngsters are today with their girlfriends. They would think work and dream work. It was during that time I met his dynamic wife Kusum Dunglay. Kusum is an MBA from London University and lead Goodwork's entry into label printing. She first bought a Mark Andy press and followed it up with a fully loaded Gallus for specialized and decorative labels. She now heads sister concern Reydunn Label Printing Pvt. Ltd. With a work force of 80, she is handling clients like ITC, L’Oreal and other leading FMCG groups in India. Given the experience and innovative heritage that her husband mentored, she was one of the earliest ones to invest in a combination press. Kusum Dunglay is quite excited at the prospects of tapping the growth emanating out of the Indian indulgences in retail marketing. In 2002 at one of the roadshows at New Delhi for promoting the India Label Show, in my presentation, I talked about the two women who were heading successful label printing companies at that time. Both are like sisters to me. One is of course is Kusum Dunglay, while the other is Amila Singhvi. Amila Singhvi heads the large IPP at Noida. Since her print packaging business is growing multifold at a fast pace, she has decided to gradually exit from the label business and concentrate in the packaging business.
Soft spoken gentleman of the label industry Bharat Mehta is both, the history and present of the Indian label industry. He is one of the first label printers in India. I could sit with him and chat for hours about our time spent in this industry which has evolved like a family for him and me. Bharat Mehta’s Super Labels is one of the leading and respected label printing companies in Mumbai. His two sons have joined business in recent times after completing their management studies. Silently but emphatically, providing vital inputs and support is Bharat Mehta’s wife Meena Mehta, a B.Sc in Chemistry. For over 20 years she has been driving the organization through motivation, enthusiasm and participating in all decision making.
Renuka Raj, an MBA from IIFT Delhi, spent the first three years of her career in a paints company. Later she moved on to promote and run a pharmaceuticals business. A friend proposed for them to join in starting a label printing business, Renuka found it interesting as it was a backward integration for her pharmaceuticals business. That was the beginning for her labels venture Ra Labels at Hyderabad. She has been heading that business for the last 10 years. According to Renuka it was the first flexographic label printing company in Andhra Pradesh. Renuka has ambition to increase investment and grow in this industry to become leaders in Andhra Pradesh.
Delhi based Shaikher Kaishiv of Krishna Halftone Pvt. Ltd. Is also one of the earliest entrants into the label industry in the decade of 1980’s. In recent times he has handed over the reigns of this company to his daughter Divya Keshav, the present Managing Director. Divya works hard in this male dominated industry to carry forward the good work done by her father. She is post graduate in marketing and an alumnus of the India School of business, Hyderabad. She is recipient of “Rising Talent 2010” award given to 25 women entrepreneurs below the age of 40 across the globe by the “Women Forum for Economy & Society” France. Her company operates from two locations in New Delhi and Noida with multiple label presses. There are other women entrepreneurs who I am aware of but have not responded to my emails requesting information to cover them in this article. Shweta Sheth, an alumnus of Amherst, Massachusetts USA, is actively involved in the working of Primark labels as a director. Primark is a part of the General Metallisers Group. Anjali Deshpande, wife of LMAI General Secretary, Ramesh Deshpande has been the driving force behind the success of Renu Prints, Aurangabad. She has been honored for her work by the ministry of MSME (Micro Small and Medium Enterprises). Then there is the enterprising Ramesh at S K Labels in Chennai, who has also put his daughter in command.
After completing her post graduation course from IIM Lucknow, Priyata Raghavan joined the FMCG division of ITC Limited, before moving over to Sai Security Printers, a company owned by her father, Vijay Raghavan. Sai had invested in an imported press for producing scratch lotteries but a sudden ban on lotteries made them to sit up and rethink. The growing label segment presented the opportunity and they decided to enter this field. At that point of time Priyata took over the complete operations of the company in North India. The company has another unit in Bangalore. Priyata has lead the company’s label printing operations to profitability and an emphatic presence in the high quality label segment. Sai security printers surprised all at the last Labelexpo in New Delhi by announcing purchase of two Gallus Label Presses, one for their unit at Faridabad and the second one for Bangalore. Priyata sees tremendous scope in the growing label industry. She says, “There is a lot of scope for well managed vendors of high-end labels and packagings”. She is leading Sai Security Printers to be a leader, by offering well defined levels of services and technical competence.
Sandhya Shetty and Santosh Shetty
At the end of an industry meeting called by Roger Pellow, Managing Director of the UK based Labelexpo group in early 2008, to promote the next India Label Show, as I came down to the lobby of Hotel Grand Hyatt in Mumbai, I saw Manish Kapoor of Nilpeter in a serious discussion with a young man whom I did not recognize. Manish introduced him as Santosh Shetty Managing Director of Surface Graphics, a company founded by his father H G Shetty and involved in manufacture of cartons. Santosh was considering purchase of a Nilpeter press to expand into the label production. The venture was to be headed by his sister Sandhya Shetty. Sandhya is a graduate in Chemistry and Masters in management Studies (Marketing). On completing studies she had spent 8 years in the field of business research and analysis. She worked on projects involving Government contracts, Defence sector in the US and in the hospitality sector in India. When her brother Santosh brought the idea of producing labels to Sandhya, her feminine instincts went to work. The yearning to create products that would be decorative, add to aesthetics, have scope of innovation in design came to the fore. She called it a day for her research and analysis job and decided to be a “labels girl” from day one. Labelexpo 2008 was held in very traumatic times. Mumbai had suffered a dastardly terror attack and the global economies were in crisis mode and nose-diving. Sandhya’s new Nilpeter was being showcased at the show in New Delhi’s Exhibition Center Pragati Maidan. A confident brother sister team of Santosh and Sandhya were at the Nilpeter stand all the time meeting fellow printers, prospective suppliers, and other colleagues in the label industry. The industry found an instant friend in the ever smiling Sandhya. Despite the difficult economic scenario, she was determined to do justice to the MD’s chair that she was occupying in her company, Synergy Packaging Pvt. Ltd. and lead the company to its vision of success. In just two years of starting, Sandhya and her team produced their first award winning label. She aspires to take her company to global standards and global presence.
It was extremely difficult for me to write on so many women in one go. When I decided to do this article, I assumed that it would be a relatively simple job for me, given the knowledge and experience in the industry. Once I started to gather more and more information on these women and their capabilities, I was confused. I was wondering how short sighted Shakespeare may have been while calling women as frail. Well, that was his personal opinion and may have been true at that point of time. These are intelligent women with amazing capabilities and their craving to excel is unique. They are all educated and technically capable to talk the language their customers and their team will understand. Silently and efficiently they have worked their way to a position of strength. I wonder if I have done justice to their work. I could have written a separate article on each one of them and their achievements. These women are homemakers, mothers, sisters, and friends besides being the successful business persons they are. The more I tried to discover the more there was to learn. Maybe another time I will try to write on them separately but at this time it was necessary for me to write on them collectively, because it is my tribute to these women in the label industry, “The women who endeavored!”
Written by Harveer Sahni, Managing Director, Weldon Celloplast Limited, New Delhi-110008 6th March, 2011.
The following article was written in 2006, The second part written in July 2019 is published in a series of four parts. the first part 2A is available at http://bit.ly/2xOxY1P
Years ago in 1981, I came across a book on the house of Tata’s. The book written by Russi Lala was named, “Creation Of Wealth” and it chronicled the events that led to Tata’s becoming the biggest Industrial group in India at that time.
After reading the book I was overwhelmed and wished that some day I will write something like this. Maybe track the roots of my own large extended family. Somehow I never got down to seriously working on this. I guess the opportunity came around again when I was invited by Roger Pellow of Tarsus to make two presentations at the first India Label Summit in 2006. I decided that in the first presentation where we take an overview of the India Label Market, I will chronicle the events that led to the establishment of the narrow web label printing industry in India. I am sure that this topic is of prime interest to all the label printers in India. Though it is extremely difficult to put all those interesting historical happenings, bottlenecks or interesting landmarks into this presentation yet I have tried to put together in whatever best way I could. I feel less then writing a book, there cannot be proper justice done to the subject. Maybe one day if I can find time, I will attempt it. Meanwhile getting data on this has been a very interesting job and I thank my senior colleagues in the Industry, without whose inputs and help, I could not have put together this presentation.
The very beginning
The credit of bringing self adhesive labels, in their present form, to India goes to a US multi national, Johnson and Johnson. It was in the turbulent post independence time in 1947 that Johnson & Johnson came to India.
In 1957 they established Johnson & Johnson India Ltd. A couple of years later they started the permacell division to make self adhesive tapes. It was around 1965 that they entered into the manufacture of self adhesive labels. They installed a rotary label press. They sold only converted labels and did not offer any labelstock to others in the market. So there was no real scope at that time for others to setup label presses or any other sticker manufacturing facility.
The Decade of sixties.
The first self adhesive label produced by an Indian printer also started around the same time in 1965, almost thirty years after Stanton Avery produced the first self adhesive label in Los Angeles, California.
Manohar Lal Bhatia, a screen printer, producing water transfers in his company, Sharat Industries, did pioneering work and produced what was the first self adhesive sticker in India. Using a PVC face stock with pressure sensitive adhesive supplied by Calico and a Polyethylene sheet as a release liner they manufactured their stickers. The reason they did not use paper as face material is that silicon release liners were not available and Polyethylene provided for a very tight release due to which the paper would tear off. Manohar Das Bhatia was later joined by his two sons Shyam and Rattan. They worked hard to make self adhesive stickers under their brand “Sharastick” popular in those days. While Manohar Bhatia is no more, my efforts to trace his son Shyam who probably still produces labels have been futile. I tried to reconfirm if Manohar Bhatia really was the first and got the reply from Badal Hasija, a screen printer with over 45 years of experience. “101 %, he was the first” says Badal and added “I even remember the first label he made was for Gabriel shock absorbers and it left me wondering for days, what Manohar Bhatia had produced”.
Jagdish Zaveri of Preeti Arts has also been one of the earliest of screen printers who produced self adhesive stickers and started around the same time. Other prominent screen printers who did pioneering work in stickers include, Hamid Vasi of Triace, Dinesh Gogari of Diamond Stickers, Vasu Rawal of Prachi Graphics and the list goes on. Their contributions however were more in the early seventies.
As the decade of sixties was coming to an end, a young Suresh Doshi from a family of textile merchants, who had drifted into distribution of PVC and decorative laminates, decided to try his hands at manufacturing of self adhesive Wall Papers. In 1969 he traveled to Germany to visit various machinery producing companies and he finally settled to buy a Kroenert coater for his new venture.
This machine had the capabilities to siliconise and produce self adhesive labelstocks. Little did Suresh Doshi realize that this plant would be the mother equipment for the Indian narrow web label industry.
The Decade of Seventies.
In 1971 the Kroenert coater/ laminator landed in Mumbai. The company Shanti Lal Doshi & Co, the maiden manufacturing venture of the Doshi family was in place to take off. This was a landmark year and I see it as a step that would lead to the birth of the self adhesive label in roll form, made by Indians. In a couple of year’s time the Doshi’s were ready to try producing labelsocks. Metroark Ltd. , which is now Wacker Metroark, was already there to provide the silicone release coatings for making release papers. Solvent based adhesive was provided by BASF and it was time to produce the first labelstock made in India by Indians.
In 1972-73 the commercial production of Labelstock had started.Around the same time that Suresh Doshi left for Germany in 1969, another young man, Jeetubhai Shah, visited the offices of Standard type foundry in Himalaya house in South Mumbai. He was surprised to see a die cut paper label that did not need to be remoistened to make it tacky. It would stick to glass with slight pressure. It was sticky to touch and would remain so even after having touched and peeled off from the hand many times. He kept playing with it for a while. Sticking the label to his hand and removing it. He was so fascinated with the label that he started to make further enquiries. He also got from Standard Type foundry, a catalogue of Iwasaki machine that would make these die cut labels. A few trips later he came to know that Suresh Doshi was about to produce material for this machine. Jeetubhai decided do buy this machine. He joined hands with his income tax consultant and friend P P Bhagat to form a Company called International Trading Company at Kalyandas Industrial Estate in Worli. They applied for grant of an import license, and in those days of difficult foreign exchange regime, getting an import license was a nightmare. With a lot of effort they did manage the license and imported the machine. Jeetubhai fondly remembers that Japan had floated their currency that year and due to this, his machine became cheaper by at least 15%.. The timing of installing the machine was perfect. By the time it was installed, Shantilal Doshi & Co. was ready with labelstocks. There were numerous hurdles that these pioneers faced when they endeavoured on these path breaking efforts, like a whole night he spent at a workshop in the middle of Mumbai’s red light area to get his first Flat bed Die made. With deep sense of nostalgia he remembers the full page advertisement they gave in news papers, “First time in India Self Adhesive Labels, die-cut in any shape.” This was their USP over Johnson and Johnson, who were using expensive rotary dies whereas International Trading Co. had perfected their indigenous flat bed die making process. This advertisement brought in the first big label customer for them, which was Siemens. International Trading company and later along with their sister co. Global graphics were the first roll form customers for Shantilal Doshi and Co., while Sharat Industries was their first sheet form customers. International Trading Co. still exists and is run by Kishore Parekh. The original partners had left the company. Jeetubhai later started a label company called Finearts.
I had asked Suresh Doshi to cite any interesting incident of those days and spontaneously he cited one. Sharat Industries had made full die-cut labels for J K Helene Curtis from their stock and supplied. The users came up with a strange complaint.
The stickers were sticking well during the day but would fall off during the production at night. Not being able to find an answer to this one Mr. Doshi suggested that they use the labels during the day only. The production people at J K Helen Curtis did not agree as they had to run the night shift also. So Suresh Doshi was compelled to visit them during the night. He was shocked to see that the workers were not removing the release paper and thinking these to be remoistenable labels were using only water to stick the labels to the bottles. No wonder the labels were falling off !
The label industry was extended to other parts of India by the shear sincere efforts of the Doshi’s. By 1976, they had already suggested, encouraged and convinced close relatives Bharat Mehta and his brother to setup a label press.
Bharat Mehta bought his first Siki Label press from Ahmedabad where it was being used to produce unsupported wet glue labels. Shifting over from a business in agricultural pumps at the age of 26, Bharat Mehta, settled down perfectly in to his label printing business. He and his company Super Labels is one of the most respected label printers. From a single siki he went on to add a fully loaded Gallus, an EM 280 8 colours, EM 280 6 colours, and an Acquaflex. In the earlier part of the decade of 2000-2010 he lost heavily in a major fire but firm resolve brought him right back in what he liked best, “Producing self adhesive labels”. Other early entrants into the industry in the west during the seventies were, Vidya Mehta of Pressure Tags, The Kapoors of R K Papers, etc.
By end of the decade, the Doshi’s went southwards and encourage yet another relative, Dilip Sutaria to become a label printer. He setup Better Labels to lead the march of self adhesive labels in the south. In North, the Doshi’s appointed an ex-partner of Dilip Sutaria, Mr. P D Khanna and his son Vinod Khanna as their agents in New Delhi. Around the same time in late seventies, Vinayak Sood of Liddles had installed a Norprint from UK and went on to add the first Mark Andy in 1983. The year 1979 saw Narula of Rikki Sales start his label printing operations.
In East the Doshi’s found their first customer in the former national tennis champion and a celebrated player, Premjit Lal. The Doshi’s had completed their reach all over the country and by end of the decade self adhesive label industry was an established fact. According to Suresh Doshi, the biggest boost to the self adhesive label industry was in the year 1975. Starting with the controversial Rae Bareily election of Indira Gandhi, when congress introduced their self adhesive bindis, to the imposition of the law to make minimum retail price marking on consumer packages, compulsory, these decision brought a surge in demand for self adhesive labels . By 1975 another young Gujarati entrepreneur Pravin Patel had setup a polytype coater in Ahmedabad to produce silicone papers and labelstocks. 1978 saw Hari Gupta start his H P Lablette in Delhi with his Japanese coater, and towards the end of the decade PCI in Kolkata, IPW, Veekay papers and Geva in Mumbai and Weldon in Delhi had either started or were about to begin commercial siliconizing operations.
The decade of Eighties
With the start of a new decade more developments came into the self adhesive label industry. Shantilal Doshi had started operations with solvent based adhesive but environment friendly Acrylic emulsion adhesive were now in use for labelstock production. In 1982 Kilaru Prasad of Prasad Accumeter had brought in hotmelt coater from Accumeter in the US where he worked as a Sales Director. Ananth Rao of Stayon paper followed suit with another accumeter coater and Interlabels now perhaps the largest Indian printer also installed their accumeter hot melt coater to support their entry into the label printing industry around that time.
The decade of 80’s saw label printing companies being set up at various places in India. The eastern sector growth was extremely slow due to the lack of industrial infrastructure there. According to Bharat Mehta, the biggest boost to the industry this decade came in 1987 when many pharma companies started their shift rom wet glue labels to automatically dispensed self adhesive labels. This step helped establish a constant growth mode for this industry.
The Decade of NinetiesThe decade of nineties was perhaps the most eventful one. For me personally it was a memorable one as during this time we took the landmark decision to switch over from being a mere commercial siliconizer to a prominent labelstock manufacturer. However for the industry, the biggest event I rate as the entry of the multinational Co, whom I refer to as our big brothers in the industry. Avery Dennison had setup production facilities in India. I have always felt their entry has changed the way people look at this industry. From being a mere sticker maker, the narrow web label printer became a specialty label producer. In the same decade we saw printers grow in stature and capabilities. Seljagat, Wintek, S K Labels in south. Interlabels, Webtech, R K Papers, Mudrika, Icon, Tayabi, etc in the west. Update, Syndicate, Jain transfer, Great Eastern, Prakash Labels, etc in the North. The three brothers at Prakash Labels worked hard in the price marking labels segment to drive in volumes that were unheard of in the industry. Syndicate Printers went Global with operations in The UAE.The new millennium, the first decade of a new centuryAs we crossed the middle of this decade and the world’s eyes were on us. The label summit in early 2006 was a proof. The big time presses started coming in all over the country. You name them they were here, Gallus, Nilpeter, Iwasaki, Gidue, Mark Andy, Rotatek, Focus, Orthotec, the list is endless. The local press manufacturers have also reasons to be proud of. Multiflex, Jandu, RK Machine, webtech and a host of others are reporting installations constantly. The two dyanamic ladies in our industry also emerged as highly successful narrow web label printers in this decade. Amila Singhvi at IPP and Kusum Dunglay at Goodwork. Goodwork took a legendary step by signing up a joint venture with Reynders. Unfortunately they parted ways the following year in 2008. Reyenders continued their operations as an individual entity. Our Industry Leaders Interlabels setup a unit in Africa on one hand and adding more state of art presses at a new and bigger facility. Webtech also expanding with new machines moved to bigger premises. In the earlier part of this decade, over thirty years after making a historical start the Kroenert coater of Shanti Lal Doshi and Company was sold to Gloss Holdings.A proud event for us at Weldon was being the first Indian Labelstock manufacturer ever to have exhibited at Labelexpo Brussels. We are happy to report our exports to Iran, UAE, Ukraine, Lebanon, Turkey, Jordan, Bahrain, UK, France, Italy, Germany, New Caledonia, New Zealand, etc. Another feather in our cap was that my presentation on the Indian market, became a part of the International Cham Symposium at St. Moritz, Switzerland in the year 2003.The India Label show in 2002 opened to a resounding success and repeating the success in 2004 in cooperation with Tarsus at New Delhi. It was also in 2002 that we saw another historic step, the formation of LMAI. This happened due to sincere efforts of Amit Sheth and Industry stalwarts like Surinder Kapoor of R K Papers, Bhavin Kothari of Interlabels, Rajesh Chadha of Update Prints, Kuldeep Goel of Any Graphics, Vivek Kapoor of Creative Prints( At that time he was with Icon Prints), etc.Halfway through the decade we were expecting many more exciting things to happen. More International Companies were waiting to enter, looking for oppurtune time or the right partners. The Industry was on a definite growth path and it was just a matter of time when it became a major market in labels in this part of the world. The years afterThe preceding part of this article I wrote in early 2006 and towards the end of the year I looked back and saw changes coming in rapidly. I would start by adding here that immediately after having made the above presentation at the label summit organised by Tarsus, the owners of Labelexpo, I had a pleasant surprise. Shyam Bhatia, the son of the first label printer was standing in front of me at our stand during the summit. I had tried to trace him without success. I was excited, I gave him a chair, since he had missed the presentation, I gave it to him and asked him to read it and tell me if there was any thing wrong in what I wrote. As he finished reading his eyes were moist and shining, he just kept saying, “it is so true…it is so true” and then he was gone… Rapid developments and changes are happening in the Indian market. More international companies have become extremely active. The Indians are also investing across the country. At least dozens of Chinese hot melt coater laminators have been installed. Label stock manufacturing is going wider, there are a few 1.5 meters coater laminators that have been installed or are in the process of being installed. A whole new set of Offset printers are investing in high-end label presses, indicating a firm shift from wet glue to self adhesive labels. Narrow web label printers are coming up in smaller cities and towns rather then being restricted only to metros. Installations have been reported at Nagpur, Pune, Indore, Hyderabad, Chandigarh, Ahmedabad, Baroda, Baddi, Uttranchal etc. A host of international label Co.s like CCL, Brady’s, etc are already in the process of setting up shop in India. The successful Finat and LMAI sponsored, Euro-India label exchange, held on the sidelines of India Label Show 2006, indicated to setting up of a whole new set of joint ventures in the field of narrow web labels. It surely was interesting to see more and more of European companies registering on the show website. If registrations on the India Label Show website were any indication then surely India is the happening destination for the narrow web label industry. As per my information visitors from over 35 countries had registered. The 2006 India label show happened and it was a great success. So much so that by September 2007 it was taken over by Tarsus. The announcement of India Label show having become a part of the global labelexpo group came at the Labelexpo 2007 at Brussels. The two years following the 2006 show have seen unprecedented growth. The flock of marketing agents of most of the international press manufacturers, had shifted gears and were in an aggressive selling mode. The credit of expanding this market goes to the likes of Gaurav Roy selling all those Mark Andy’s, Ranesh Bajaj selling Rotateks, Lintec, Omega, etc. Amit Sheth selling Focus and Orthotec, Heidelberg selling Gallus machine, Vijay Pareekh offering MPS, Autoprint offering Omet, Riefenhauser selling Gidue and the list could go on. The biggest surprise came from the industry leader worldwide, Nilpeter. In 7 preceeding years they sold just one press and in the last two years they not only sold four new presses but also announced setting up of facility to produce Nilpeter presses in Chennai, India. The credit goes to the forward thinking of Dilip Shah and hard working of Manish Kapoor. The Indian press manufacturers also have made their mark, with R K Machines of Ahmedabad reporting 150 installations and Jandu reporting 26 installations in 2-3 years. There are a whole lot others but the list would become too exhaustive.Two very important happenings that took place in these two years after 2006 were first, the entry of Raflatac with setting up of their slitting facility near Mumbai and second, the expansion of Avery Dennison, with them setting up another coating laminating facilty near Pune. The competition in the labelstock segment became extremely intense. Many local stock producers suffered due to to erosion of margins and unviable credit terms. With raw material prices climbing and wafer thin profits, the time for shakeout and restructuring had arrived. Many have started looking out towards global markets or venturing into new and profitable products with synergy. During these two last years a multitude of presses have arrived in India. The likes of young Chandan Khanna, who diversified from being a sheetfed offset printer to a narrow web label printer has surprised many. In just a few years from his first one waterless offset Iwasaki press, it became three presses and then at the Labelexpo 2006 he surprised all by announcing that he had bought a Nilpeter and an MPS in one go. Prakash labels also reported unprecedented growth with their multi location manufacturing and stock facility in the UAE. Interlabels, the market leader continued to grow not only in India but also in their international operations. In south Gururaj of Wintek in Bangalore and Raveendran of Seljegat in Sivakasi were on a roll reporting fresh investments in the label business. As the inflationary pressure came to hit USA and found its way also to India, label printers who have made huge capital investments in state of art Label presses started to feel the pinch of competition coming from not only international printers but also from their local counterparts, with their relatively cheaper investments in Chinese Label presses. This period also becomes significant because of recognition of Indians in the label industry on a global scale. It was a matter of pride for me for having been chosen as the only Asian to be a member of the Finat committees. At the Finat congress 2008 in Paris, it was heartening to see many Indian faces and creditable that Bharat Mehta of Superlabels of Mumbai and Kamlesh Shah of Letragrafix were recipients of Finat awards for excellence in printing. With LMAI now becoming more active and interactive they are once again parternering Finat for yet another Indo European label exchange hopefully along with the next India Label Show 2008. LMAI is also in the advance stages of conducting a fare and competitive label awards competition, professionally. It is heartwarming that printers from surrounding countries have become or have expressed the desire to be a part of LMAI. As a young India continues to grow at a fast pace, more and more young Indians earn more and spend more, giving a big fillip to the retail industry. As the retail grows, so does the requirement of labels. There may be bad patch or a small pause but for a long time this industry has still to grow, set many landmarks and create history.
The second part written in July 2019 is published in a series of four parts. the first part 2A is available at http://bit.ly/2xOxY1P Written by Harveer Sahni, Managing Director, Weldon Celloplast Limited, New Delhi, leading manufacturers and exporters of self Adhesive Labelstocks. (first written in November-2006 and last updated in September 2008) http://www.weldoncelloplast.com/