Nulith’s Shah: ‘Packaging showing sharp recovery’

Packaging recovery healthy -- commercial and newspaper slow

September 3, 2020

214

L to R: Kaushil Shah, Suresh Shah and Naineel Shah of Nulith

Mumbai-based Nulith has long supplied flexo plates, coating solutions, inks, blankets, and press consumables to the packaging industry. “Due to the essential nature of the packaging business, the industry has been more or less unaffected by the Covid-19 related lockdown in India. Our packaging related business has seen an excellent recovery, and I expect the business to go back to 100% very soon,” says Nulith’s Suresh Shah.

In contrast to both the newspaper and commercial printing sectors, the Indian packaging industry has been relatively unscathed because it plays a role in the supply chain for essential goods such as food and pharma. Although it suffered from various constraints due to the lockdown, especially in April, it has seen a relatively quick recovery in recent months. Shah says his packaging related consumables business has already bounced back to 70-80% of pre-lockdown levels.

Nulith distributes water-based coating solutions from Germany’s Actega and flexo plates from China’s Lucky Graphics. The company is also developing new coating solutions in association with other local players. “The base materials for these coatings will be imported, but all the value addition will happen at our facility in Bhiwandi (near Mumbai). These coatings for flexible and paperboard packaging are expected to hit the Indian market in October,” Shah concludes.

Nulith’s newspaper consumables business at 25% of pre-lockdown

Shah’s newspaper related consumables business is down to 20 to 25% of pre-lockdown levels. The Indian newspaper industry’s recovery will be slow. The industry may not get back to the pre-lockdown levels in the current financial year, he says.

“We have seen a sharp decline in the circulation of newspapers due to the imposition of the lockdown. There is some recovery since June, but the distribution of newspapers remains a challenge. We may see some jump in advertising revenue during the upcoming festival season and recovery in circulation due to more unlocking. However, I feel the industry may not be able to get back to pre-lockdown levels this financial year,” said Shah.

During the early phases of the Covid-19 induced lockdown that came into effect on 25 March, many parts of the metro and non-metro cities did not receive any newspapers. Metro cities with large housing complexes and especially Mumbai and Delhi, which had many active cases, were significantly affected. Since the first phase of unlocking in June, there is an improvement in circulation, but it is still much lower than pre-lockdown levels.

In a survey published in July and reported by us, EY said that only 32% of metro respondents were getting newspapers at home while 65% of non-metro respondents were getting their papers delivered at their doorstep. “Our newspaper related business now is only 20-25% of the pre-lockdown levels. This indicates the damage that the industry has seen due to lower advertising revenue and disruption in circulation. I expect newspaper circulation levels to go back to about 70% in the coming months,” Shah added.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now

As 2023 begins and FY 23-24 unfolds, will you support us?

What lies in store for the packaging industry in India and South Asia this coming year? Inflation, disruption of supply chains or environmental regulation? Or the resumption of high rural demand, continued investment and industry consolidation? Whatever happens, Packaging South Asia will be there, providing clarity and independent technical and business information in India and South Asia and around the world. We are a compact Indian organization bringing a window of fair and rigorous technical and business information that the industry can access this year and beyond. Please support us with your advertising and subscriptions, to keep us going and growing.

Thank you.