Overview of the packaging industry

Labels as a service industryShree Sai Labels installs second Mark Andy 2200New Delhi-based Shree Sai Labels which installed a 6-color Mark Andy 2200 in 2010, added an 8-color MA 2200 ii months agone to meet the loftier need for labels. Vikash Kumar, the proprietor of Shree Sai is a veteran who started his career at Interlabels. Subsequently working with several large organized characterization producers, Kumar started out on his own as he felt in that location was an opportunity to improve client service.  Vikash Kumar of Shree Sai Labels with the MA 2200 pressCustomers need shut interaction
"Some of the top label companies but gave good service to the big multinational brands and neglected the medium range companies who were also interested to abound and automate operations. Equally a marketing person I shortly realized that selling labels was more than like a service industry instead of a production industry. We needed to work closely with our small and medium customers at every stage from designing labels to the development and application of the final product," says Kumar.

This was conspicuously something that many label companies were unwilling to do equally they were structured more like a product commitment organisation. Some other major upshot says Kumar, was that in earlier days, label 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 prepare off on his ain, and started his business firm Shree Sai Labels for trading of labels in New Delhi.

Kumar focussed on the pesticide, pharma and chemic industries initially, with organized players whose business organization volumes were lower than the FMCG majors who were getting all the attention of the big characterization companies. "About 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. Nosotros took the initiative and helped them to develop high quality labels produced in automatic machines that had lesser rejection and more output per day." As business organisation volumes grew quickly Kumar began to expand and started meeting the demands of other segments such as food, beverages, liquor, cosmetics and FMCG.

Industry shakeout a possibility
In 2010, when the growth of the label manufacture was at its peak, Kumar decided to fix his own flexographic label printing and chose the MA 2200 from Mark Andy with rewinding and slitting machines from RK Machines of Ahmedabad. "We were producing eighty,000 to 100,000 square metres of labels each month in those days and the margins were good with demand far outstripping supply," says Kumar. The subsequent years saw a rapid build-up of label printing capacity across Republic of india and a consequent erosion of margins, says Kumar.

Seventy percent of the piece of work done at Shree Sai Labels is in the metallized labels segment. Since its client base is intact and the demand for metallized labels is increasing it is putting upwardly a 2nd 8-colour MA 2200 label press with an online inspection system, de-lamination and re-lamination, movable cold stamping and hot stamping, and a print on behind facility. "We hope to raise the production of labels to one.8 lakh foursquare metres each month earlier the finish of the yr," says Kumar. "The label industry would see some shakeout in the well-nigh futurity with localized consolidation of capacities," says Kumar. "The label is not a final product and oft changes to suit the delivery needs of the client, so but they will prosper who can meet local demands with a lean hierarchy and quick response times."

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