Overview of the packaging industry
Labels as a service industryShree Sai Labels installs 2nd Mark Andy 2200New Delhi-based Shree Sai Labels which installed a 6-color Mark Andy 2200 in 2010, added an 8-colour MA 2200 two months ago to run into the loftier demand for labels. Vikash Kumar, the proprietor of Shree Sai is a veteran who started his career at Interlabels. After working with several large organized label producers, Kumar started out on his own equally he felt there was an opportunity to meliorate customer service. Vikash Kumar of Shree Sai Labels with the MA 2200 printingCustomers demand close interaction
"Some of the top label companies only gave good service to the large multinational brands and neglected the medium range companies who were besides interested to grow and automate operations. As a marketing person I shortly realized that selling labels was more like a service industry instead of a product industry. We needed to piece of work closely with our modest and medium customers at every stage from designing labels to the development and awarding of the last product," says Kumar.
This was clearly something that many characterization companies were unwilling to do as they were structured more than like a product delivery arrangement. Another major issue says Kumar, was that in earlier days, characterization companies mainly located in Western India failed to service the demand of the Delhi NCR region companies that were experiencing phenomenal growth. Sensing the opportunity, in 2007 Kumar set off on his own, and started his firm Shree Sai Labels for trading of labels in New Delhi.
Kumar focussed on the pesticide, pharma and chemical industries initially, with organized players whose business volumes were lower than the FMCG majors who were getting all the attention of the large label companies. "Virtually of our customers like Bayer, Glaxo and Pfizer and smaller companies in these segments were using manually produced labels those days and getting contract workers to paste them. We took the initiative and helped them to develop high quality labels produced in automatic machines that had lesser rejection and more than output per twenty-four hours." As business volumes grew rapidly Kumar began to aggrandize and started coming together the demands of other segments such equally food, beverages, liquor, cosmetics and FMCG.
Manufacture shakeout a possibility
In 2010, when the growth of the characterization manufacture was at its peak, Kumar decided to set his ain flexographic label printing and chose the MA 2200 from Marking Andy with rewinding and slitting machines from RK Machines of Ahmedabad. "We were producing 80,000 to 100,000 square metres of labels each month in those days and the margins were adept with demand far outstripping supply," says Kumar. The subsequent years saw a rapid build-up of label printing chapters across Republic of india and a consequent erosion of margins, says Kumar.
70 percent of the work done at Shree Sai Labels is in the metallized labels segment. Since its customer base is intact and the need for metallized labels is increasing it is putting up a second eight-color MA 2200 label press with an online inspection system, de-lamination and re-lamination, movable common cold stamping and hot stamping, and a print on backside facility. "We hope to raise the production of labels to one.8 lakh square metres each calendar month before the terminate of the year," says Kumar. "The characterization manufacture would run across some shakeout in the most futurity with localized consolidation of capacities," says Kumar. "The label is not a last product and frequently changes to suit the delivery needs of the customer, and so only they will prosper who can meet local demands with a lean hierarchy and quick response times."
Source: https://packagingsouthasia.com/packaging-production/overview-of-the-packaging-industry/
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