Label press manufacturers all over the world have been buoyed by the success of the recently concluded Labelexpo Brussels which traditionally is the most visited international label exhibition by Indian printers. Most manufacturers had set themselves modest targets for the current financial year as the first two quarters of the current financial year had seen sales along these expectations. But after the Labelexpo, several manufacturers had to revise their targets as there has been a noticeable surge in sales of new narrow web flexo presses.
Last month, December 2013, in Chennai, a Gallus EM280 label press was installed at Best Labels in Arumbakkam. For the launch celebration, Ferdinand Ruesch, owner and vice president of the board at Gallus AG was present along with Samir Patkar and L Lingarajan of Gallus India. Significantly, this is the first Gallus press installation by any label printer in Chennai.
Best Labels is a twelve-year old company which started its operations in Chennai with a flatbed letterpress machine. KPL Chidambaram, director technical of Best Labels, said that it was the market requirement and need which drove the company’s investment in a Gallus. He says, “The overall market seems to be quite bullish but the market in Chennai is not very big. So we have to accommodate all segments available such as FMCG, cosmetics, pharma, automobile and electronics amongst others. The market demands quality and to suit the specific needs of a very particular customer, you can survive and thrive only with the best machines.”
Chidambaram says that they wanted to be the first movers as far as a Gallus press is concerned in Chennai and the newly constructed 10,000 square foot building, which houses all its operations under one roof, has been specifically built so that machines could be systematically upgraded and added if necessary. The EM 280 narrow web flexo label press installed at Best Labels has a maximum printable width of 280 mm and comes equipped with cold foil, diecutting, half and full punching as well as the capability of reverse printing.
at Best Labels in Chennai. Photo: PSA
Samir Patkar, the managing director of Gallus India says, the 2013 financial year has been outstanding for the company. Gallus India is about 24 months old and on an average, Patkar tells us, it is able to install 8 to 9 presses each year. This year, he says the number is already around 13 which makes it one of the most successful years for Gallus India. Patkar says, “35% sales of all the machines sold in India are generated by new customers and sheetfed offset printers.” The technical and knowledge centre of Avery Dennison in association with Gallus India and other manufacturers in Bengaluru is also up and running while the year has been both challenging and satisfactory for Gallus India.
In India, the revolution in labels segment is yet to take place as the number of brands have not significantly increased over the years. Patkar says, “The Indian label revolution is yet to begin.” Home brands are something conspicuously missing from the shelves in an Indian supermarket, he says, which is the reverse in foreign markets. He feels, unless there is growth among the brands for various products, the real revolution cannot happen for label manufacturers. There are various economic and political reasons behind this evolution, he believes, which need to change but cannot be changed overnight. According to him, there has to be a conducive environment for foreign investment otherwise situations cannot improve.
Regarding Indian label press manufacturers, Patkar believes that although there has been noticeable growth there are no reasons to be unduly impressed with their expertise because they are only taking advantage of the designs, advancements and innovations of European manufacturers. He asks, “If I invest in R&D and come up with a technological innovation in my machine only to see it being copied in local machines, what kind of incentive and motivation remains for me to carry on my challenging and expensive efforts?There are various reasons to justify the premium of our machines and it cannot be diluted by the unfair means some of the local manufacturers have adopted.”
The label segment in India is performing fairly well and over the last few years has been achieving a year-on-year growth of more than15%, and thus the market can support all the good manufacturers in the present climate. Patkar says, “Having a good product and being able to deliver a competent service are considered mandatory features today. The unique feature of our company is the organizational soul that we can offer to ourcustomers. We have a special bond with them and they believe in us and that is something which goes beyond the books which cannot be explained.”
