Vidhi Labels extremely bullish about the printed label segment

Badlapur-based firm plans Rs 5 crore investment

Sudam Nagare, proprietor of Vidhi Labels (sitting) with his son Amit Nagare. Photo IPP

Vidhi Labels is a small but fast-growing manufacturer of printed labels for garments. Located in Badlapur, in the outskirts of Mumbai, the company supplies printed labels to mostly garment manufacturers based in and around Mumbai. These manufacturers cater to both the export market as well as the Indian market. Vidhi Labels also supplies printed labels to footwear and bag manufacturers, but that is a small part of the business. The company produces about 10 lakh labels per day of size 1 inch x 2 inch. With business growing at a fast rate, Vidhi Labels is on an expansion mode.

“We are soon going to move to a much bigger factory in Badlapur MIDC. This new unit will be ready by year-end and will be about 5,000 square foot in area. We are planning to add more equipment. The total investment in this expansion phase will be about Rs 5 crore,” says Sudam Nagare, proprietor of Vidhi Labels.

At present, Vidhi Labels has six rotary printing machines sourced from China. In addition, it has four cutting and folding machines. In the current expansion phase, apart from a few rotary printing machines, Vidhi Labels will buy a woven label making machine from Jakob Muller, which is a Swiss company.

“Our customers require both printed labels and woven labels. Since we do not have a woven label making machine, we cannot service them now. Our aim is to be a supplier of both types of labels so that we can be a single vendor for our customers. Jakob Muller will be a big investment, but we need it for our growth and expansion,” says Nagare.

Positive about the future

With rising disposable income, Indians are increasingly consuming items like branded clothes and footwear. Nagare believes this trend is going to continue as the Indian economy expands and the consumption boom takes a bigger shape.

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Samples of printed labels application in garments

“Increasing garment exports from India has been a major growth driver for us. But at the same time growth in the Indian market has also helped us. This has been possible because of a rapid growth in the Indian retail industry with even smaller garment manufacturers going in for their own brands, which requires printed labels. Also, a lot of garment makers who were only supplying to global brands have launched their own brands because of the rising popularity of online shopping platforms,” Nagare shares.

He argues that this trend will only continue as Indians get even more prosperous and spend on items like clothes and shoes. “I am very optimistic about the Indian market and we will continue to expand as we move forward,” he concludes.

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