The Indian self-adhesive label
industry has risen from basic grassroot levels, most of the initial entrants
who pioneered to create these labels were first generation small entrepreneurs.
Starting with manual screen-printing process in the 1960s in sheet form, they ventured
forward into flat-bed narrow web label printing and converting. By the 1990s
label printing further evolved to use flexographic printing process and went on
developing continuously to transform into integration of multiple printing
technologies on the same label press
with embellishing and converting in-line in a single pass. Most of the earlier
entrants, the pioneers who provided impetus for the growth and spread of narrow
web self-adhesive label, were either single owner or family-owned small
businesses. These initial front runners were partners to industry in
transforming a major part of the then prominently used wet glue labels to
self-adhesive labels popularly called those days as “stickers”! What were hand
applied labels started to be applied from roll form by automatic label
applicators on packaging lines, ensuring increased usage and demand of self-adhesive
labels. The 1990s saw a lot of growth in label manufacturing and by end of
decade, international interest in the Indian label industry started to surface.
But at this time the Chinese label market started to register rapid growth
attracting the multinational material suppliers and printers turning their
attention to the Growing Chinese market. Many industry experts did caution that
eventually correction will take place and the growth will slowdown. However
still the large population always indicates a robust growth as organized retail
grows. Global investments in label grew. As China, India too has a large
population and on the other hand it continued
to grow in a stable and steady pace. A young English speaking literate population
assured a positive continuous growth of label usage, indicating a stability in continued
growth and evolution. This fact started to sink in and the ownerships in the
industry started transforming.
In the start of the new millennium the
international interest in Indian label industry became evident. Paper products
Limited, established in 1935 in Lahore (Then a part of India), a flexible
packaging company had entered label manufacturing in 1994 and in mid-1999 multinational
Huhtamaki had acquired 50% of the shareholding in Paper Products Ltd. and later
acquiring it wholly. Even though label manufacturing was a small part of their
business yet, this I believe was the point when we saw the start of entry of
multinational companies investing in label manufacturing in India. Other foreign
companies who entered and invested into label manufacturing in India included the
likes of 3M in 1987, Brady’s in 2006, Printcare in 2008 and some others mostly
in garment accessories business. Then we did have those who tried, indulged but
had to shelve their plans. CCL acquired
a stake in Mumbai based Super labels in 2011 but had to stop as the
relationship did not work out, Mikael Dahl of Nordvalls Sweden too invested
with a partner and later quit and then there is Reynders who partnered with Goodwork
company but later they split and both partners went their own way to run their own label companies in India, Reynders have their wholly owned company Reynders
in Chopanki, Rajasthan. As regards material side in labelstock manufacturing, the
world’s largest, Avery Dennison started manufacturing in Gurgaon India in 1997.
 |
| Pranay Goda |
Kaygee Papers Pvt. Ltd. was set
up by Pranay Godha in 1997. It became Kaygee-Loparex, a joint venture in 2001 with
investment from Loparex, the world's leading developer and producer
of specialty paper and film release liners. In 2015, Loparex Group assumed 100%
ownership of the Indian joint venture company, Kaygee-Loparex India Private
Ltd. later renamed Loparex India Private Limited. Meanwhile the founder Pranay
Godha moved on to join IPCA laboratories headed by his father Premchand Godha. Pranay is now the executive
director of this global pharmaceuticals company.
 |
| Gururaj Ballarwad |
The mergers and acquisition
activity in the Indian label industry got a fillip when in February 2012 Gururaj
Ballarwad led Wintek Flexoprints based in Bangalore India, had been acquired by
Hyderabad based ITW Signode, a subsidiary of the multi-billion Dollar fortune
200 global industrial products company ITW, head quartered in Illinois,
USA. Wintek is now a part of Signode India Limited. Gururaj the co-founder
of Wintek after completing his post-handover stint is now enjoying his
retirement. He spent many months with his daughter and grandchildren in the UK
and then some time in USA visiting and attending a wedding in family of a
friend. His sons run their package printing business on their own. He now
relaxes at his home in Bangalore and uses his time reading and researching religious
epics like Bhagwad Gita, Ramayana, Mahabharta, etc. He is also indulging in authoring
some of his findings. However still he is available to his label industry
friends for any advice they need from him.
 |
| Bhavin Kothari |
Two weeks after Wintek was
acquired by ITW, another European multinational label and packaging company
Skanem, acquired India's biggest label printers Interlabels, Mumbai. Headed by
the brothers Bhavin and Gautam Kothari, Interlabels had been in the forefront
of label industry. Bhavin Kothari has been one of the founders of LMAI (Label
Manufacturers Association of India) and later the President of this
association. Post-acquisition Bhavin is now heading a professionally managed
company Qodenext. QodeNext is the merged entity of Mumbai based Intellicon
Private Limited, Bangalore based Essae Technologies Private Limited and Mumbai
based Intercode Solutions Private Limited. QodeNext is a supply chain
traceability technology, consulting and service company providing solutions for
Barcode, RFID, Vision, Cognitive Computing, IoT, Predictive Analysis and
emerging technologies. Bhavin does oversee the business but it is not a 9am to
5pm job, he spends a lot of time pursuing his hobby of playing Golf.
 |
| Gautam Kothari |
Gautam
Kothari also has a startup in which he is actively involved. He invested in an
enterprise started by his ex-employees, “Worldpack Automation
Systems Pvt. Ltd.” manufacturing Automated Labelling Systems. Though
it is a 10 AM to 5PM business that he
attends at least 4 to 5 days a week, but he is happy he does not have the
stress that was prevalent when in label manufacturing. “I have more control
over my time, taking time off for personal family vacation is now easy and
without any stress” says Gautam . He also has a label factory with a partner in
Bangladesh, he does visit some time, but in the last two years did not go there
due to pandemic.
 |
| Sujeev G |
In September 2012, Mumbai based
Positive Packaging Industries Ltd., a leading player in the flexible packaging
space, a part of the international conglomerate, the Enpee Group with
manufacturing facilities in India, Nigeria and UAE, acquired Bangalore based
SGRE Labels Private Limited led by Sujeev G and Subba Reddy. Post-acquisition
Sujeev and Subba Reddy set up SGRE Pack Pvt. Ltd. to manufacture rigid boxes.
 |
| Amar Chhajed |
By end of the year 2012 in
November, controlling stake in Mumbai based Webtech Labels led by Amar Chhajed was acquired by Indian subsidiary of Huhtamäki
Oyj. Later Webtech became an integral part of Huhtamaki and Amar was elevated
to become the president of their labeling division. By March 31, 2022, Amar Chhajed
left Huhtamaki to move on to other avenues. He has invested in real estate
through his new venture Webtech Realty in which he is involved full time. In fact,
he is now a builder and is building two important projects one of which is perhaps
the largest real estate project in Bandra, a suburb of Mumbai. He has also invested in a few other projects to support the
promoters known to him, one of them is Pactech Machinery making label
applicators, but his role is limited to being an investor only. That remains
his only small connect with the packaging industry.
In January 2015 Huhtamaki acquired
Positive Packaging Industries India Ltd. Since label manufacturing company SGRE
had earlier been acquired by Positive Packaging, the label business was addition
to the growing capacity of labels manufacturing for multinational Huhtamaki in
India.
 |
| Chandan Khanna |
With Amar Chhajed at helm as President
of their labeling business Huhtamaki India completed the acquisition of Indian
part of Chandan Khanna’s Ajanta Packaging Private Limited in June 2018. Chandan
was still young to retire and moreover he still had his UAE and Thailand
factories. He initially visualized a sabbatical and fun times ahead using the
geographical location of his factories for vacationing to mix business with
pleasure. His wife Kiran had given up her work to bring up the children and now
when they were grown, the entrepreneur in her surfaced. She suggested to
Chandan that they had done enough business in B2B space, now they should try
their hand at the B2C segment. She decided to let the designer in her to emerge
and with financial support from husband Chandan, she initiated her startup Stylejunkiie
www.stylejunkiie.com offering Apparel
and Clothing for fashion statement makers. They started with online selling and
a store in Mumbai. Chandan does support her as an investor partner and as an
experienced person in managing business, he guides her, otherwise the venture is
totally Kiran’s to run and grow. Surprisingly after selling Indian part of the
business, Chandan and his wife Kiran are buoyant and with renewed energy ready
to grow their fashion apparel business to great heights.
 |
| Swati and Ajay Mehta |
On April 29, 2022, Mumbai
headquartered SMI Coated products Pvt. Ltd. Led by Ajay Mehta was 100% acquired
by Jindal Poly Films’ wholly owned subsidiary - Jindal PolyPack. SMI is the
largest Indian company that manufactures self-adhesive labelstock having
production facility at Ambernath with a slitting and distribution company in
Jebel Ali, UAE. Post divesting his stake in SMI, Ajay and family are taking a sabbatical
for four to six months before deciding their next venture. At this time, they
are relaxed and talking to people exploring options for their next move, but
they are not in a hurry. Meanwhile they have setup an investment company in UAE
to make investments where they deem fit. Pensively Ajay mentions, that with
this he has done the right thing for his team who helped him reach this level,
however it is disturbing that he has got distanced from a lot of friends from
the labels industry for which he did a lot and was always there to support. He
is happy and thankful for the love and respect he has got from his peers in the
label industry. Still positive and not calling it a day, he is ready to indulge
and rise to another level.
Many years ago, when the world was
going through a recession, our European and American friends expressed surprise
when they met their Indian friends, they would say that in the western world
when economically there is meltdown, any would make a face and either say, “surviving!”
or “Not too good.” On the contrary if you meet an Indian and you ask, “How is
business?” pat comes the reply, “GOOD!” It is our heritage and we have been
taught that when questioned “how are you?” The answer in Hindi, our national
language, is “THEEK HAI” means, “Fine.” So, for, all the India entrepreneurs who sold their stakes, did not entirely quit,
it is “theek hai” and now another venture and another success. They, or their
families have either started new ventures or on the verge of investing to keep
moving on!
Written by Harveer Sahni Chairman Weldon Celloplast Limited
New Delhi May 2022. Author https://harveersahni.blogspot.com
and www.labelsandpackagingworld.com
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