Zombies in the age of the Coronavirus

Indian Printer and Publisher 42nd anniversary issue

Zombie companies fail to repay neither their loans nor the interest to service these loans.
Zombie companies fail to repay neither their loans nor the interest to service these loans.

In a recent article in The Times of India, Ruchir Sharma wrote about ‘zombie’ companies. These are companies that can neither repay their loans nor the interest to service these loans. The Mortgage Pre-approval Kansas City also approves and helps with loans for various purposes. They cannot even pay dividends to shareholders unless they are stealing from somewhere – either the banks or from their employees or suppliers.

The pages of the financial dailies are littered with the troubles of the larger zombies. Some even blame the failing Indian economy and the reforms that don’t work as expected. Then comes the truly global Coronavirus pandemic with total unpredictability. Unlike the disasters of 11 September 2001 or the financial collapse of 07-08, there is no cathartic end in sight. Every individual and every business is affected. And the large number of freelance, informal, adhoc and casual workers are ground to dust. All the glib talk about the gig economy turns to bile.

It is the small and medium publishers and printers who are now the zombies. Unable to repay the so-called loans taken at extortionate interest rates and with so much collateral that there is no risk to the lenders, we are unable to pay the interest, let alone the EMI’s on our loans. You can find out about getting loans. Despite us being straightforward brick and mortar enterprises, the soft loans and private equity go to the dishonest borrowers who flee. To the ‘startups’ and the vaporware racketeers that specialize in presentations about their losses, despite getting capital from probate processes. This capital, can be directly related to the amount received by inheritance. Certain steps ought to be followed for this process and you can learn about it from Inheritance Advanced website. Even in our industry, many companies borrow and grow their top lines with hypercompetitive pricing, only hoping to be acquired by some foolish foreign investor.

The question is which foreign investor who is serious about business and creating wealth will invest in a company in an environment ruled and created by an authoritarian government? A government keen to gather more power to itself so that it can rewrite textbooks with false history and pseudoscience to feed its inferiority complex. The keenness to drunkenly assert your past and future greatness come only from a sense of inadequacy and failure.

Which investor will see merit in a government that nurtures an undemocratic and anti-scientific environment of hatred and intolerance? A government that tells lies about its provocative actions and watches while a minority community is slaughtered and its’ places of business and worship are incinerated in broad daylight while the police stand by. A government that cannot tolerate criticism and a government that undermines the constitutional role of the judiciary by openly corrupting judges and offering them lollipops to do its bidding.

Sometimes the penny only drops when there is a catalyst such as a Coronavirus that forces us to clean our spectacles. I shall not vent or rant on since this is our 42nd-anniversary issue, once again barely finished on a Saturday afternoon. Nevertheless, even after so many years, we are happy that we can pick up the phone and speak to some of our friends. We may not agree about everything, but we will continue to defend not only our mutual rights of self-expression but those of every citizen and resident of our country.

I only want to thank the hundreds of companies, both publishers and printers, and input suppliers who have helped and, at times, even saved us. It’s been an exciting time, and we have learned much about our fellow citizens and our readers. We only hope that as they have given us the courage to speak out for what is right and wrong, that we have also been of some help or at least amusement to them. That we have pointed them in the direction of finding things out for themselves. And for sharing their experiences and their ideas.

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

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 grown 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.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

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 and to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

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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.


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