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Amit Ahuja, chief executive officer, Multitec showcases S1 full servo narrow web flexo press at PrintPack India 2022. Photo PSA

This article was first published in the August 2022 issue of Packaging South Asia in print and online on 8 August 2022. It is being reposted in time for the Labelexpo India India exhibition in Greater Noida from 10 to 14 November 2022. Do come and see us at our stand in Hall 1 near the entrance.

After speaking with some of the label industry suppliers and converters in the country, we have done some back-of-the-envelope calculations. Our estimate is that in the 2021-22 financial year that ended on 31 March 2022, about 40 to 45 narrow web flexo label presses were installed by Indian converters. About 65% of these were built by four Indian manufacturers in the Delhi NCR region. The majority of the India-made presses were from Multitec – the balance coming from UV Technologies, Alliance Printech, and NBG. In addition, there were about half a dozen digital label press installations but we will talk about these in our next issue.

The Indian label presses have improved in quality on the whole and the factors of local service and competitive prices make them compelling to at least look at for those label converters who earlier exclusively purchased narrow web flexo presses from the European, American, and Japanese manufacturers. The four Indian manufacturers also exported narrow web flexo press last year. Multitec, of course, has exported presses for many years and has exhibited at the Labelexpo in Brussels several times. 

Although India is a healthy market for label presses, exports are key to the growth of the Indian label press manufacturers. In the words of one industry veteran, “We sell our presses in India at very competitive prices and we will not survive if we do not export.” All four label press manufacturers exported presses and they expect these numbers to rise. This is in addition to the European manufacturer Nilpeter, with its factory near Chennai, which primarily builds label presses for exports and sells a few in the Indian market.

The current financial year 2022-23

The current financial year, it seems will bring the industry back towards a level of capacity building not seen for many years. We expect on the basis of our conversations with industry suppliers and converters that the number of flexo label press installs will increase from 25% to 30%. 

The five Indian-owned manufacturers will increase their in-country installations by approximately 50% over the previous year. At the same time, the overseas manufacturers are likely to achieve numbers similar to the previous year – or at most increase them by one or two presses. They are feeling the crunch not only from the local manufacturers but also from the supply chain and energy issues in Europe and North America that have increased their prices by 10% to 15%.

The Indian press suppliers are confident about their competitiveness in the local market and optimistic about exports. They are hoping to increase their capacities within the year – to anywhere from 30% to 200%.

Note – This article has been slightly amended on 12.11.22 to read ‘five’ Indian label press manufacturers which refers to the narrow web label press manufacturers. In addition there are two or three narrow web digital label press manufacturers in the country. 

 

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As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are growing similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

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The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans to inspire and mobilize our editorial and advertising teams!

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– Naresh Khanna (25 October 2023)

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Naresh Khanna
Editor of Indian Printer and Publisher since 1979 and Packaging South Asia since 2007. Trained as an offset printer and IBM 360 computer programmer. Active in the movement to implement Indian scripts for computer-aided typesetting. Worked as a consultant and trainer to the Indian print and newspaper industry. Visiting faculty of IDC at IIT Powai in the 1990s. Also founder of IPP Services, Training and Research and has worked as its principal industry researcher since 1999. Author of book: Miracle of Indian Democracy. Elected vice-president of the International Packaging Press Organization in May 2023.

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