We hear from several industry quarters in India, including suppliers of consumables and mid-sized label converters, that this sector of the industry needs consolidation. They point to approximately half a dozen companies within the country looking to acquire label converters and general interest from global private equity investors in the country’s packaging industry, which includes labels.
The rationale is that there are too many small players, and while most large regional markets have a few large and dominant label companies that are able to maintain quality, technology investment, innovation, and hence prices, margins, and cash flow. While these industry insiders and experts are fully aware that the few acquisitions of Indian label converters by larger global companies have not really worked out too well, they nevertheless envision consolidation as a positive scenario for growth.
It is seen as a way of differentiation in a market with new entrants empowered by the numerous local label press manufacturers, who combine the overall low entry cost with better access to capital. In a market where SKUs and volumes are rising, margins and profits are not. The perception is that scale can drive efficiencies and also help attract and maintain better talent.
Global player MCC in Chapter 11
Indian label converters are, at the same time, aware that US-headquartered Multi-Color Corporation (MCC), with an estimated annual revenue of US$ 3 billion, went into a prepackaged Chapter 11 restructuring in late January 2026 to reduce its debt. Chapter 11 enables a company to continue business while restructuring by giving it some protection from creditors. In this case, MCC has secured US$ 250 million debtor-in-possession financing during the 2026 restructuring process.
MCC has 90 plants in 25 countries, including plants in Asia-Pacific and Southeast Asia, but it has stayed out of India and South Asia. The company is said to have 12,800 employees and is backed by private equity, including Clayton. Having been acquired by private equity in 2021, MCC has lost 14% of its revenue base in the past three years.
Labelsmakers in Australia acquires Perfection Packaging’s assets
Apparently, Perfection Press, the largest independently owned flexo printer in Australia, based in Dandenong South, a suburb of Melbourne, entered voluntary administration in October 2025, and the majority of its assets have since been acquired by Somerton-based Labelmakers. Somerton is north of Melbourne and about 75 kilometers away from Dandenong South.
Labelmakers’ website states that the asset-only acquisition encompasses only machinery with no continuation of business, operations, or employees. The assets include four state-of-the-art flexo presses and gravure applications for varnishes and cold seal adhesives. Labelmakers has entered into a 10-year property lease on 10,000 square meters, with Perfection as well. Apart from all types of labels, Labelmakers produces folding cartons and is reported to have about 500 employees and a turnover in the region of Australian$70 million. It more than half a dozen plants in Australia and New Zealand.
