Compliant brands offer scope for quality growth
VK Seth speaks about consumer product packaging, which is very sensitive in terms of quality and regulatory compliances—and whose volumes require flexible packaging gravure presses to be run at 400 to 450 meters a minute. Major companies such as Coke, Pepsi, Nestle, Britannia, ITC, P&G, and Cadbury are very conscious of the regulatory environment. They are keen to comply and want to ensure that there are no negative list ingredients or products being used for their packaging and that wastage is minimized in the entire process.
Inks and coatings play a vital role in the entire supply chain as packaging volumes and speeds of converting, labeling and filling and sealing machines require more stringent specifications if they are to perform with efficiency. For these packaging supply chains, Sakata can provide a technology-based and cost-effective suite of solutions. New packaging designs with innovative pouching and closures also create special needs of substrates, inks and coatings. Often these new designs require specific or strategic solutions from suppliers, and as Seth says, “Sakata is the first choice for new developments …. We have to demonstrate to customers by repeated trials how we are able to either provide solutions by way of our technology or value for money. So, while we are aware of the volumes, we are also aware of the technology need-gap, which is there on the customer’s side.”
According to Seth, scale will be as crucial for businesses across India just as it is in China. Whether it is Coke, Pepsi, Nestle, P&G, or any other major consumer product company, everybody has tailor-made packaging solutions for their products and especially prices—that are tailor-made for India. In the long run, the small order manufacturers would find it very difficult because the name of the game here is ‘volume.’ Automation, continuous bulk production, the efficiencies of production, wastage reduction, and volumes—these will be the mantras of success.