Innovative, sustainable and intelligent labelling solutions

Innovative, sustainable and intelligent labelling solutions
Avery Dennison

Sunday, May 31, 2015

Label printing in India: Digital has to wait a while!

Drupa has been looked upon as the Mecca of printing business. Technologies defining the evolution in print are showcased enabling printers to see for themselves the changes and decide their future in print. Drupa 2012 was held in Dusseldorf, Germany and covered a floor space admeasuring 1,65,000 square meters with 1850 exhibitors from 56 countries. 3000 journalists covered the show and 30000 stand personnel were available to respond to visitor queries. Stand sizes were also gigantic. The single largest stand at the show was that of press manufacturer Heidelberg admeasuring 6300 square meters in Hall No.1  which is more then all of Labelexpo India! This was followed by the HP who have lead the digitalizing of printing process. They were showcasing their products from a 4950 square meter stand. The visitors on recovering from the initial impact of witnessing this massive display were left in awe! For full fourteen days printers, suppliers and other visitors from 130 countries came to the show to peruse what was on display. Out of the 314000 visitors at the show, the second largest contingent after Germans came from India. 15000 Indians inspecting the displayed materials and equipment made up for a visible and emphatic presence. Narrow web label printers, who otherwise have always been a minority at offset oriented print shows made their presence felt. A major part of this show was allocated to advancements in technologies related to digital printing. The label printers forming congregations in the pathways within the stands were discussing the future of digital printing process in the Indian narrow web label printing that is dominated by advances in flexo printing and now indulging into combination printing processes. They did look impressed by the convenience of this technology coupled with showman marketing of Nanography by Benny Landa, the inventor of Indigo presses. Still, the end result for these parleys was unanimous! Digital printing is the future, also acknowledged that it is impacting sheet fed printing but for narrow web label printing, “it will have to wait a while”.

According to the NPES/PRIMIR World Wide Market for Print study, by the Economist Intelligence Unit, “The size of the India’s print market will be US$29.3 billion in 2017 up from US$24.3billion in 2014. Print market growth in India has slowed down since the global financial crisis, but the market will continue to grow over the period through 2017; total print product revenues in India will grow at 6.8% annually through 2017”.

India has been termed as perhaps the fastest growing market for printed products in the world, which includes print packaging and print publishing. Digital printing accounts for15% of all the printed products globally. As for India, given the late start and slower adoption of new and fast changing technologies by the cautious print fraternity, even if we make a moderate estimate, the market size for all the digital printed products should be within 3-4 billion USD. This is my personal estimation but if I take predictions and estimation of industry leaders, it appears to be relatively accurate. Pankaj Kalra of Xerox had stated in 2012, “The size of the digital printing market is estimated at $1.5 billion now and is expected to grow to $2.5 billion by 2012-13” clocking a whopping 70% growth! Packaging and label segment are almost over 40% of the total printed products in India and the segment is growing at 15% as against a global growth rate of 5%. Most of the growth is expected or is coming out of the bulging middle class in India. It is a consumer segment that is turning out a literate and young workforce with disposable income and long residual working life indicating stability. This young workforce is exposed to the internet and wishes to indulge in modern day retail spending, driving amazing demands for consumer products and also for labels and packaging. 

India is a large country having a population with diverse cultures and religions. As one travels from one end of the country to another, the weather, colour of skin, the language, the attire, the food, etc. all undergoes immense changes. Similarly different cultures have different festivals. It is a country that celebrates every festivity, may it be a religious festival, a wedding, a change of season or a national event with indulgence in music, dance, clothes and food. Retail marketing professionals are formulating ways to tap the selling opportunities such occasions offer. It is at this time customized short runs become the need of the hour. The print on demand capabilities of digital printing provides the perfect solution to such requirement. Consumer product companies can offer limited edition packs with regional festival branding. It is one such example of things that are driving that tremendous growth into digital printing in India.

While digital printing has made its impact in the Indian sheet fed printing arena, yet it still does not have many takers in the narrow web label printing. Most of the established offset printers have more or less enabled themselves with digital capabilities for not just proofing but also to cater to their customers who need short run jobs. As otherwise the customers would start looking elsewhere to get short runs done. Customer retention is a very important requisite for successful print firms with large capital investments. They cannot afford their customers to go to other printers for short runs as this way they are liable to lose their bulk business as well. The reason for small digital printing companies for sheeted mushrooming all over the country is that most of the large offset printers are still focused on their high volume customers and they acquire some digital capabilities to address the needs of existing customers. The smaller consumers needing just the short runs, have created a demand whereby to cater to this need, small digital printing outfits have come up in colonies and markets in all big cities in India. I believe sooner or later the bigger players in the organized segment will indulge in tapping this market in an organized manner offering services at the smaller customer’s door step on demand. Obviously these are game changing times and that is what makes the Indian Printing stalwarts go on the defensive. The sheer ever changing and evolving nature of electronic technologies makes them apprehensive. They fear their equipment will become obsolete before they can say they got their return on the investment made.

The Indian label industry is in an undecided stage as regards investment in digital printing equipment. Most of the larger narrow web printers have been toying with the options for the last few years. Some have taken cautious steps into the technology, there are others waiting at the threshold and the rest would like to wait and watch the ones who have indulged. A couple of years ago all or most of the handful who dared to venture into digital for narrow web label printing were tight lipped about the outcome of their big investments. They were not happy! I am aware of some equipments being idle for long, it would be unethical to name anyone in this changing situation. Everything changes with time. Pioneers always go through the difficult phase of initiation. The scenario does seem to be stirring up some interest in all the big label companies tempting them to bite that forbidden apple. This so in light of the fact that leading press manufacturers like Gallus, Omet, Nilpeter, etc are offering digital capabilities on their conventional label presses. At the forthcoming Labelexpo Brussels these press manufacturers will in September showcase their innovations in digital and conventional printing brought together in excellence for the narrow web label industry. Indian label printers have started to feel that it will not be long before they will have to have that capability as well. To be that early bird or not remains a dilemma. To initiate a dialogue on this subject, I spoke to Sanjeev Sondhi of Zircon Technologies. His response motivated me to speak to other printers in the country. According to Sanjeev, “In my opinion, for digital printing in labels, India is still not ready”.  This is so primarily due to the cost of print compared to established technologies and above all, print buyers do not pay anything extra on small runs if it is printed digitally. I believe that to be successful with digital in label or packaging, one has to look for value addition for which customers can pay or indulge in some really out of the box thought process”. To get the Indian Industry feedback I posed a few questions to some of the leading label printers in India. I list below my questions and the responses;

  • Question: Why digital printing has not found large scale acceptance with India label printers so far?




Narendra Paruchuri (PragatiPack Hyderabad): The main problem in getting digital accepted is the client. The purchase officer is buying a 1000 items and we cannot expect that he has knowledge of labels he is buying. The labels printed on Offset/flexo/digital will vary as the technology used is different. This difference has been accepted very well in the west and we will have to explain, teach and make sure that it is acceptable. This is the primary issue. In most of the cases, the knowledge of prepress is very limited. Once you get a digital machine, the amount of data you are crunching is huge. Colour management is a major issue. The learning curve would be steep and time consuming









Gautam Kothari (Skanem Interlabels): The cost of digital printing remains very high. The manpower costs in India is much lower, thereby viability is not there.









Rajesh Nema (Pragati Graphics, Indore):
Less awareness about the technology, costlier per print cost and fast rate of the equipment becoming obsolete.




Amar B. Chhajed (Webtech Labels-Huhtamaki Group): Investing in a good high end digital press is a relatively big investment and when compared with similar investments in a conventional press, the output of the digital press is substantially less. Making the saleable product that much more expensive. Also key to digital business is constant innovation which is not an easy task for anyone.



Vivek Kapoor (Creative Labels): It does not create extra revenue for the printers. The end users are not willing to pay premium on digitally printed labels. They will give a huge run and subsequently expect a small run for granted at the same price.

  • Question: How long do you think it will take for digital to move in India?

Narendra Paruchuri: It will not be very long but all of us should understand that digital will not replace any technology. It will only co-exist. So a part of your business which is short run or with variable data can be serviced by digital and the longer runs with all the bells and whistles could be serviced by the regular Flexo/Offset machines.

Gautam Kothari: It depends on the applications for which it is used. For general printing of labels; three years at least, depending on how fast costs go down






Rajesh Nema: I think it will take two more label expos before the technology starts to get firm footing in India. However, if there are more international label printers in India, it may come faster





Amar B. Chhajed: There can never be a precise timing for anything. It is already happening for some and in general it could happen over next 2-3 years. 

Vivek Kapoor: 5 years

  • Question: What are the conditions that will fuel demand for digital printing?

Narendra Paruchuri: I think my answer for the second question is more or less the answer this too.

Gautam Kothari: Basically runs in India are getting shorter as well; however the crossover to digital is at much lower running meters due to high cost of digital. Therefore only very small runs are viable if at all… Also India has far lower manpower/overheads  costs vis a vis the West making it difficult. Cost per print has to go down and speeds need to improve, only then will digital really take off in India. 

Rajesh Nema: Per print cost on digital presses and converting equipments needs to come down. Press owners need to be re-assured that in case of faster obsoletion of technology, press manufacturers will suitably  compensate by way of buy back of old and replacing with new equipments.

Amar B. Chhajed: Advancements on technology front that bring down the overall cost of printing will be essential to fuel the demand for digital, specially the ink/toner costs which are multiple times higher than conventional costs.





Vivek Kapoor: The day it is able to generate revenue on its own.






I was quite amazed by the similarity of responses from most of the persons who responded. All have expressed that the cost per print in digital and does not prove a viable proposition considering the high cost of the equipment and high ink cost. The undercurrent in all expressions is that digital printing as things stand now will not be the mainstream technology. It will co-exist with existing technologies and will be used for specific demanding needs. As for the time frame before digital printing becomes largely visible and used in label printing in India, varies between 3 to 5 years. So for the time being, “It has to wait a while!”

Written by Harveer Singh Sahni, Managing Director, Weldon Celloplast Limited, New Delhi, India February 2015

Sunday, May 24, 2015

PrintWeek India Awards!



Over the last seven years Printweek Awards have gained immensely in respect, stature and value for delivering recognition to outstanding work in Print. The Printweek team lead by Group Editor Ramu Ramanathan has painstakingly worked to make these, as one of the most prestigious awards in India. The real value comes from selection of an eminent and learned jury; a line-up of big-name print buyers, who not only ensure but also measure the consistency of work submitted. They also check financial performance and business strategy so as to provide inspiration to new and young entrants into Print. Getting dedicated and committed creative printing companies to send in their master creations in print as entries is in itself a gigantic task which the Printweek team accomplishes with hardcore indulgence. The standard of work that has come in as entries for these awards over the years has continuously seen a escalation in quality of print and finishing processes employed by printers who continue to master the latest technologies in printing, converting and finishing.

Ramu Ramanathan
Printweek has been successful in bringing together the printing industry across the Nation through
their publication and driving in, a culture to achieve excellence in print. It is heartening to see them touching base with printers of all size and catering to all segments in printing in remote corners of India. They have created categories that cover almost all technologies like Offset, Flexo, Gravure, Screen, etc and to segments like commercial printing, packaging, POP, advertising and Labels. Bringing together such a large collection of printers under one umbrella is laudable. What is more interesting is that they also honour students who excel, while still learning the skills of high quality printing. They are the future of print! This connect will surely be the long term bridge between those who create masterpieces in print and those who bring appreciation and rewards to printers.
Anygraphics receiving the Printweek 2014 award.
Education, advertising and packaging still rely heavily on the printing quality and innovation. It is at this time an imperative, for those who are making an entry into print or those who are trying to find avenues to profitability and success, to actually dwell on innovative creations.  I would like to suggest to Printweek to institute an award for that one printer in the country who invested in some new technology or developed a new technique or a product that was so far not there, thus creating awareness in need to take the printing industry in India to another level.
PrintWeek India Awards has announced entries open from  1st  May 2015  for its seventh edition of the annual print hunt. The entries are open to all Indian  print companies for jobs printed  from 1st  April, 2014 onwards. Like each year, the awards are categorised as the Performance Awards ( 6 categories) and the Quality Awards (20 categories).

THE PERFORMANCE AWARDS
1.    PrintWeek India Printing Company of the Year
2.    Green Printing Company of the Year
3.    Post-Press Company of the Year
4.    Pre-Press Company of the Year
5.    SME Printing Company of the Year
6.    Student of the Year

THE QUALITY AWARDS
1.    Book Printer of the Year (Academic and Trade)
2.    Book Printer of the Year (Specialty)
3.    Brochure & Catalogue Printer of the Year
4.    Creative Repro Company of the Year
5.    Cross Media Company of the Year
6.    Digital Photo Album Printer of the Year
7.    Digital Printer of the Year
8.    Direct Mail Printer of the Year
9.    Fine Art Printer of the Year
10.  Industrial Product Printer of the Year
11.  Innovative Printer of the Year
12.  Label Printer of the Year
13.  Magazine Printer of the Year
14.  Newspaper Printer of the Year
15.  Packaging Converter of the Year (General)
16.  Packaging Converter of the Year (Luxury)
17.  PUR-Book Maker of the Year
18.  Screen Printer of the Year
19.  Social Stationery Printer of the Year
20.  Wide-Format Printer of the Year

Early Bird Deadline -  30 June 2015.
Early Bird Entry Fee -  Rs 2000 per entry.
Deadline – 31 July 2015
Regular Entry Fee – Rs 2500 per entry.
Latest updates and entry forms will soon be available on the PrintWeek India Awards website.
For further detail write to printweekawards@haymarket.co.in or call 022 43025016

Written by Harveer Singh Sahni, Managing Director, Weldon Celloplast Limited, New Delhi, India May, 2015

The above post maybe reproduced by giving credit to author.