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| Skanem Vasai plant |
The author
interviewed Vinod Vazhapulli Managing Director of Skanem India, according to
him Label is a window, through which a brand communicates with customers. It is
the bridge that connects the brand owner with end users of products. In an
evolving scenario, where change is recognised as the only constant, label may
change in converting technologies, types of labels and process of application
on products but yes, labels are there to stay. Without label there is no
identity, it is an absolutely relevant part of all products. In a population
that is young, growing in literacy with a fast-emerging organised retail culture,
Indian consumers now enjoy shopping. They pick and select products, read the
label to assimilate information provided on the label before deciding on the
purchase. So, label is here to stay, it may change in shape, type, and
substrate it is made of. The larger part of labels in India are produced and
converted using analogue printing technologies like letterpress, Flexographic
printing, screen, offset, etc. This is undergoing a transformation and Skanem
is committed to adopt new developments in label converting. Moving forward,
their focus is to build a sustainable future by implementing Industry 4.0 and
Lean Six Sigma, combined with a steady yet aggressive growth plan. Skanem India
aims at moving from being one of the top players to “The Market Leader” in product
decoration solutions in India.
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| Ole Rugland Exec. Chairman |
Skanem India is a renowned organisation with a legacy of over 115 years in the Packaging industry as a part of Skanem AS founded in the Stavanger region of Norway producing from metal cans to labels. In 2012 Skanem invested into the then India’s largest label manufacturers Interlabels Mumbai and in 2014-2015 they acquired it 100%.
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| Skanem Baddi Plant |
They now operate out of four printing sites spread across India having their
mother plant in Mumbai and other factories at Baddi, Delhi and Gauhati, with
250 permanent and one hundred temporary employees. They are equipped to cater
to customers in every part of the country. In 2021 Skanem AS divested, they
sold their eight factories namely- Norway, Sweden, Denmark, Poland, UK, and Thailand
to MCC. They continue to be headquartered in Norway and now have operations in
India Kenya and Europe. Divestment was done to reinvest in diversified businesses
within the packaging arena. It was felt that European markets were somewhat saturated,
and they saw a double-digit growth in India and Africa. In Mumbai, their
investment in HP Indigo label press provides them with digital prowess that enables
their customers to reach new heights with their marketing campaigns. At the
same time, it enables them to fulfil the needs of budding customers (Start-ups)
with shorter runs. Skanem would like to explore possibilities in packaging, by
way of acquisitions or otherwise. they currently plan to use the present set up
for flexible packaging and cartons and consider upgrading existing digital
capabilities. Path breaking innovative products on digital which will bring in
more business and need more investment are a part of future plans. What could
not be done with analogue alone, will be achieved with digital, giving solutions
to try test marketing with shorter runs for which analogue has limitations. Vinod
Vazhapuli, the Skanem India Managing director adds, “Skanem will be hyper aggressive
to expand in big way to increase our portfolio in labels, expand in flexo with
improved, enhanced and technically advanced capabilities. As for digital, we
will invest in more, to offer advanced and innovative solutions. With these
capabilities we will be able to put heart and mind into labels.”
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| Vinod Vazhapulli |
Vinod Vazhapulli
is a qualified Mechanical Engineer with experience of over 23 years in industries
like Automotive; Pharma Engineering; Tooling; Textile Engineering; Printing
& Labelling. He has in the past, handled various international markets like
USA, Canada, Mexico & Central America, Asia Pacific, Australia / New
Zealand, Latin America, Europe. He has held P&L responsibility in the
capacity of a Business Head, then as the CEO of an NSE/BSE Listed Manufacturing
company and the Director of a UK company alongside, for a period of 2 Years and
now the Managing Director of Skanem India. During his professional career, he
has been bestowed with “Exemplary Leadership” award by ABP News, the Thought
leadership & World Quality congress & Yes Bank, for the year 2018 under
the Manufacturing segment; Featured and Ranked 35th & 32nd
in the Power100 List of one hundred Most Influential Leaders in Print &
Packaging Industry in India for the year 2020 & 2021, respectively. He was
awarded, the Indian Achievers Award for excellence, leadership & innovation
in Print & Packaging industry for the year 2021. He was a part of two
Patent submissions in the field of Surface finish and Metallurgy. He was also
the part of National committee for Capital Goods & Engineering of both CII
(Confederation of Indian Industries) & FICCI (Federation of Indian Chambers
of Commerce & Industries), two of the most important and powerful
Industrial associations in India, during the year 2017, as part of his
professional journey. Vinod worked in Skanem for a year in 2016, heading the
machines business (label applicators) as VP and Business head. In between,
after a stint in Indian Card Clothing LTD. as their CEO, he returned to Skanem
in 2019 as the Managing Director.
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| HP Indigo at Skanem |
Commenting
further on Skanem’s digital indulgence Vinod stresses that they are always
abreast with modern technologies and as for now, digital for them is the one that
enables them to produce smart labels. They are convinced that smart labels
educate customers as they possess virtual reality to communicate which the
customers enjoy. In lighter vein Vinod expresses an example, that a whiskey
connoisseur would always like to read the label to find information on labels
as to where the product was distilled and what kind of casks were used to
mature and whether it is a blend or a single malt. Similarly, a wine label
tells all what a wine lover needs to know regarding the types of grapes used,
the region they come from, the year of production and a lot more information.
Digital label printing gives that window of opportunity to cater to such
demanding connect with the end consumer. Digitally printed labels are different
from analogue converted ones which are non-interactive, to being interactive
labels. Such digitalisation, to variably print and communicate is ably provided
by the digital label presses. Skanem was one of the first investors in an HP
Indigo label press, “We were very first HP Customer” says Vinod. With the meaningful
smile he says, “we look forward to HP giving us a good deal for the next HP Indigo.”
Skanem’s experience with HP Indigo label press has been good, it gave them an
edge with print buyers when they explained their enhanced capabilities. They
have the flexo label presses but additionally with HP, it certainly helps to
impress upon the customer about enhanced capabilities like short runs,
customisation, immediate delivery runs, all of this has helped augment their
business.
Cost is a
deterrent but the ability to produce special types of labels does bring better realisation.
They are sure that in coming times the true potential of the HP machine will
become more evident. A specific example is Dettol label campaign, celebrating
the covid warriors, done during the pandemic. Even though there was non-preparedness
and manpower shortage, the job had to be done in specific period. It was
because of digital capabilities they could run three million labels within span
of 10 to 12 days. Without HP, they say, it was not possible. It was a noble
gesture by the brand owners, and Skanem substantiated it by delivering in time
because of digital capabilities. It enhanced the brand owner’s emotional
connect with their customer. Indians are very emotional and the sacrificed
space on labels for a human cause, narrating touching stories was satisfying
and well received by consumers, enhancing brand value. Unprecedented price rise,
shortages, and the war in Ukraine, created an imperative need for just in time
deliveries and customisation plus the generational differences as well, drove
the need for digital presses.
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| Skanem Management |
Skanem
endeavours to educate customers in appealing to the conscience and emotional
quotient of people to deliver to their aspirations. Multinationals want large
volumes, just in time deliveries, along with consistency. They talk about
sustainability, circular economy, and carbon footprints while the start-ups
need support in smaller quantities, they want to add different information,
pictures and motifs with digital capabilities be delivered as per needs. Skanem
as a globally responsible corporate try to add value to the products that they
supply to their digitally printed label customers, both the large and small. The
company has own plans and systems to support them for these important issues.
Digital provides opportunity to produce small run of labels to test market products
before going in for mass production. It complements analogue, when one is
successful with test marketing and volumes increase, they can switch over to
analogue. Typical customer for digital labels, are from industries like tyre,
agro chemicals, dietary supplements, cosmetics, etc.
The Indian
population of 1.5 billion people is largely young, adding up to almost 60% of
them in the productive working age. With change in the joint family system,
more and more young working people are living separate from families and eating
out or trying to have ready to heat and eat meals, a segment that is bound to
grow exponentially. This segment will give a definite fillip to digitally
printed labels demand. Today’s youth have entrepreneurial urges and they are
setting up start-ups that need short runs, they just want to do things
differently, differentiate their products segment wise from giant brands, by
the way they present them, informing users about carbon footprints, organic nature,
and unique packages with short, personalised, and variable runs. Skanem finds
the HP Indigo press as the perfect equipment to support these young
entrepreneurs and provide them the “wings of hope.”
Written by Harveer Sahni Chairman
Weldon Celloplast Limited New Delhi July 2022
