2013: The year that went by.
With low or almost flat growth in
Indian manufacturing sector and economy estimated to grow just 4.25% according
to IMF forecast, as against the government projection of 5.5%, it is indeed a
trying time for the industry. The year 2013 threw in some thought provoking
challenges to the self adhesive label industry in India.
With low or almost flat growth in
Indian manufacturing sector and economy estimated to grow just 4.25% according
to IMF forecast, as against the government projection of 5.5%, it is indeed a
trying time for the industry. The year 2013 threw in some thought provoking
challenges to the self adhesive label industry in India.
·
Shrink sleeves were continuously taking a significant share of
the label market.
·
With Commercial printing facing a slowdown because of the impact
of internet or electronic publishing, offset printers were diversifying into
labels and packaging thereby creating more competition.
·
The expected market expansion due to FDI, foreign direct
investment, in multi brand retail did not happen.
·
Environmental concerns have been highlighting the adverse impact
of liner waste and pressure sensitive adhesive waste matrix going to landfills.
Alternatives are becoming evident. Initial investments have been made to move
towards linerless materials and labels.
·
The growth rates though still positive have slowed.
·
Raw material prices have risen while selling prices have not
seen any improvement
·
There still is need to cater to an increasing market size so the
capacity enhancement is an imperative that we cannot deny. This appeared to be
the silver lining but the exchange rates making purchases go up by over 15% in
value, became the spoilsport making many a printers put their purchase plans on
hold.
As we move into 2014 things
appear to be crystallizing;
·
Printers have started to invest in label presses with multiple
capabilities to offer labels, shrink sleeves, lamitubes and folding cartons
with the same equipment. They understand the need to expand the range of their
offerings as well as the necessity to have a wider customer base.
·
Printers have started to consider high end equipment to achieve
less wastage, faster production to achieve economy of scale, capabilities to
offer innovation in their products to meet the competition head-on.
·
As we enter the third week of December 2013, the news that FDI
in multi-brand retail is finally here! Tesco has tied up with Tata’s to be an
active player in the ever increasing consumer product retail industry.
·
While they were being shrugged off in the past, environmental
friendly alternatives are now being seriously looked at. The trend will
continue in 2014
·
The general feeling around the country is that economic growth
will return after the general elections.
·
In 2014 I do not see any reduction in raw material prices nor do
I expect any escalation of selling prices in a competitive growing market.
Printers will have to tighten their belts achieve better productivity, reduce
wastages and to top it all. They will have to innovate!
·
The industry has to expand in capacity to cater to the needs of
growth in demand in a country with a huge population. So we can safely expect
more quality investments in the year ahead.
The above opinion of the author has been adapted
& published on line by Labels and labeling UK as a part of their global
coverage on “Voice of people” titled Label
and package printing markets look forward to 2014 for detailed report and views
of other suppliers and printers around the world - See
more at:
Written by Harveer Sahni, Managing Director
Weldon Celloplast Limited New Delhi India. December 2013.
All over the world packaging and printing industries are advancing fast. Modern technologies have made this industry advanced over night. Nowadays pressure sensitive labels and self adhesive labels are most popular.
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