10% of the Indian label industry is operational during the lockdown

Labels in the time of Coronavirus

582
industry
Labels for essential goods can be produced during the lockdown

The 21-day lockdown announced by the government which came into effect on 25 March has severely impacted economic activity across sectors. India’s label printing industry has also been impacted despite many companies having received permission to print label that would be used in essential goods such as medicines and hand washes, among others. As per major industry players, currently only about 10% of the Indian label industry is functioning.

“As of now what we have gathered is that only about 10% of the label printing industry is operational. Also, the companies which are working are operating with only 20% staff. Obviously, printers are supplying only those type of label which are used in essential goods,” says Ajay Mehta of SMI Coated Products.

According to Mehta, lot of companies have obtained permission from authorities to start operations but are unable to do so because of lack of transportation and also because workers are unwilling to venture out of their homes because of concerns about their health.

SMI Coated Products is one of India’s leading suppliers of label stock and has its manufacturing base in Ambernath.

Rahul Kapur of Mumbai-based label solutions provider, JK Labels, says label printers are facing some challenges when it comes to starting work. His company is not operational at the moment.

“As a company we are mindful of the gravity of the situation and will only resume once things begin to normalize. Even if one gets permission from local authorities to manufacture labels for essential items during this lockdown, one has to consider various aspects that would create hurdles in running operations at the moment,” Kapur adds.

Kapur says in addition to unavailability of public transport for workers, label printers are finding it difficult to source all the raw materials required for production of goods, as very few vendors are functioning at the moment.

Manish Desai of Mudrika Labels also estimates that about 10% of the industry is functioning at the moment. Vasai-based Mudrika Labels is not operating at present.

“Mudrika Labels is not functioning at present although we have obtained all the necessary clearances required. We will start only if there is some urgent requirement by our customers,” Desai says.

Things will take time to normalize

By all indications the 21-day lockdown is expected to be lifted on 14 April but things in the label printing industry may take some time to get back to normal.

“There will be a lot of issues to deal with once the lockdown is lifted. Quick return of workforce to factories will be a challenge as they may feel hesitant to get back to work so soon given the fear of infection. There will be other financial issues as well. Things will become clearer in the coming weeks,” argues Mehta.

Desai of Mudrika Labels feels cash flow and liquidity will be a big issue for companies after three weeks of shutdown. He feels the industry may take 8-12 months to get back to normal.

Kapur of JK Labels is of the view that sectors such as the pharmaceutical, food and beverage and personal care industry will continue to give steady business. However, sectors such as automobile, that were already going through a rough period prior to the lockdown, will take a long time to recover and give the kind of business it used to give during its prime.

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
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here