The label industry column

The financial year from ane Apr 2015 to 31 March 2022 volition see the installation and induction of approximately eighty to 90 new label presses that tin can exist divided into four categories according to their price, claimed productivity, special technology and automation features

This morning time I accept talked to two sensible Indian label manufacture manufacturers – 1 makes consumables and the other makes equipment. Both take to compete with the domain knowledge and large resources of global manufacturers only what is heartening is that neither of them cryor mutter – they are happy to keep investing and improving their product and to also increase their exports.

I discussed some of the topics which are talked nearly in the Indian label industry with these gentlemen: hypercompetition, superlative line growth and profitability. Both say that information technology is inevitable that as you grow, profitability will come downward. To paraphrase one of them, "Ultimately all of us have to look at top line growth – every bit we become larger we become wholesalers." Some other input was that label printers will have to live with more than realistic rates of profit – this is an inevitable result of growth.

The other betoken made was that if the Indian label industry is growing annually at fifteen% and then information technology will have to  more than double its output in five years. Can this be washed simply by the influx of new entrants or with the incremental growth of the smaller players or will some of the middle level players have to face up the challenges of loftier growth? Volition they be able to generate the profits that can sustain investment in e'er better and bigger presses and technologies? Both superlative line growth and profitability have to address this outcome – how to generate sustainable profits that are sufficient to keep on making on making larger investments even while prices remain competitive?

The problems are structural – growth will be express if y'all practise not modernize your applied science (infrastructure) and also your business organisation processes (superstructure). In other words, label printers will have to modernize their thinking, professionalize successfully and acquire to both add value and to up- sell this increased value. All businesses take to practice this although it may not be like shooting fish in a barrel – they take to run better and faster to survive and grow. One issue in upwardly-selling to brand owners is to build a value proposition into your own solutions. If the solutions to your customer are being provided by the consumable supplier, you increasingly become incidental and replaceable. The label printer is bound to be somewhen reduced to a price-plus supplier.

The label industry is used to fairly high levels of profitability but information technology's time to be more realistic. While some of the bigger players will keep looking at the top line, in that location is still healthy profit and growth in the industry. In the current twelvemonth, liquor labels have seen stiff growth, while FMCG labels take grown nominally. At that place is some expectation that with increased legislation, pharmaceutical labels could become more technology-intensive equally new regulations bring in more track and trace, labels get bigger for improved legibility and maybe booklet labels are introduced to cope with mandatory data and languages.

Update: 85 label presses in FY 2015-sixteen
In our slightly revised estimate, the financial year from i Apr 2015 to 31 March 2022 will meet the installation and induction of approximately 80 to 90 new label presses that can exist divided into iv categories according to their price, claimed productivity, special technology and automation features. The elevation category of highend presses including gear and servo-driven presses with 8 to 10 print units, multiple converting options and some automation (representing a considerable range in cost and complexity) will number approximately 30 installs.

The second category including the improved quality of Indian-made narrow web flexo presses would represent a slightly smaller number close to about 22 installations in India. In addition, the leading Indian label printing manufacturer will as well export almost 7 or viii presses in this financial yr.

The third category of mostly Asian-made presses would include some other 25 to 35 presses. The fourth category, digital label presses, would perhaps add together some other three or iv machines this twelvemonth. The current year has as well seen the installation of a small but meaning number of highly configured characterization presses in other parts of South Asia – that is in Bangladesh, Nepal, Islamic republic of pakistan and Sri Lanka.

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