“Want to be a Rs 150-crore company in the next five years”

Chennai’s Label Kingdom on major investment drive

KV Prasad, managing director of Label Kingdom

“My aim is to take the company’s turnover to Rs 150 crore in the next five years,” says KV Prasad, managing director of Chennai-based packaging and labels solutions provider Label Kingdom, sitting in his office in the bustling Koyambedu area. In order to achieve its goal, the company has embarked on a massive investment drive. Not only has Label Kingdom added mordern equipment to its kitty but is also close to moving to a much bigger manufacturing unit at Chittoor district in Andhra Pradesh.

The 200,000 sq. ft unit will have all the divisions under one roof barring a few operations, which will remain in Chennai. Currently, Label Kingdom operates from four locations in the city. Space constraint was the sole reason behind the move to a bigger facility with consolidated operations.

“In terms of technology and machines, we are very well equipped. The biggest problem we were facing for the last few years was lack of space. Our facilities in Chennai do not have further space and that is why we were forced to underutilize our machines. Storage is a problem at present and so is logistics,” shares Prasad.

The new unit is expected to be operational in another three to four months, following which the company’s converting capacity is expected to increase three to four times. Plans are also on to have a corrugation setup for mainly E flute, F flute and microflute, which fit well with the company’s current product profile.

Scodix order at drupa 2016

The drupa 2016 was an important one for Prasad as Label Kingdom signed a deal to buy Scodix Ultra Pro Digital Enhancement Press. The machine will most likely be installed by the second half of October. “We are looking to use the Scodix for jobs primarily dedicated to liquor and perfumes segments. We were extremely impressed by what this technology has to offer and are looking to add a Scodix E106 as well in the future,” says Prasad.

Scodix is not the only state-of-the-art technology at Label Kingdom. Last year the company installed Kongsberg V20 sample maker and Esko’s packaging software, which Prasad says have been extremely helpful in bringing in efficiencies by not only simplifying sample making but also by identifying errors at an early stage.

In the press department, the company has two Komori presses, one Heidelberg SM 52, one Heidelberg CD 102 with UV and coater, and one Mitsubishi. Label Kingdom also has three BOBST diecutters. In 2015, it ordered two EMMECI boxmaking machines while another three are expected to be installed very soon. The company has many other machines in its postpress and finishing departments as well. All these machines, which are spread across four locations in Chennai, will be shifted to the new unit in Chittoor. However, the company plans to retain one of the four units in Chennai where it will house its corporate office as well as the Scodix, Esko, prepress and R&D divisions.

Reaching beyond South India

The investment made by Label Kingdom is close to the tune of Rs 100 crore in equipment and new facility during the last one year. Prasad believes the goal of achieving the Rs. 150-crore turnover will be possible only by expanding beyond Tamil Nadu to the rest of India and even abroad. “With all the latest technologies that we have bought and the new facility that is coming up, we will now be looking to reach customers across the country. We are also looking at exports, which currently is not even 1% of our business,” he says.

According to him, China is a market that the company is seriously looking at. Plans are in the pipeline to open a sales and marketing office in the US as well.

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