HP’s bullish case for large-format segment - The Noel DCunha Sunday Column

Noel D’Cunha (NMD): What exactly is your role at HP?
Oscar Vidal (OV): Everything that has to do with large-format products. We basically design the product roadmap for all large-format printers, whether for architects, engineers, or print jobs all the way to very high-end graphic producers. We have a global responsibility. So we've had to understand all the different market needs across the globe and try to come up with nice solutions to help our customers become more successful national contenders globally.
 
NMD: What are the trends in large-format printing? How are the applications evolving?
OV: The latest news is that print volumes have exceeded pre-Covid-19 levels on a global scale. We track the market in terms of printed material in dollars and square meters yearly. Currently, the volume of production in the wide-format segment is higher than that of 2018, indicating a growing and active market. According to our internal projections, we anticipate a compound growth of around 5 to 6% in the wide-format segment. Certain applications, especially those focused on aesthetics, are experiencing faster growth, such as wallpaper printing, digital decoration, floor graphics, and more. High-value applications like these are expected to drive significant growth. Our latex products are well-suited to meet the quality demands of this market. Additionally, there is an increasing demand for backlit textiles, particularly in commercial and home use, for enhancing office and home decor.
 
Following Covid-19, companies are investing in redecorating their offices to motivate employees to return, and digital printing is playing a key role in this. Furthermore, traditional applications like vehicle graphics continue to be active and are expected to grow. The use of printed output combined with digital screens is proving effective and impactful.
 
NMD: What is the size of the wide-format industry – worldwide and India?
OV: In 2023, 253,193 units were sold worldwide. Of these, 4% (9,358 units) were sold in India.

NMD: Yeah, so getting back to your role, you have a global responsibility. As you oversee various applications and markets, including those in developing stages, and since you have a global perspective, you also have insights about India. Could you elaborate on how India fits into the global perspective and the opportunities it presents?
OV: India is definitely a priority country for us. It has a lot of growth potential and a rapidly growing economy. Our focus in India is important and will continue to help the market develop. It's crucial to educate print shops about the potential to produce wallpaper digitally, as many are used to traditional methods like offset or silkscreen. India's wallpaper market is large but still very traditional, offering a big opportunity for us to introduce digital and personalized printing. We are already working in this area and see a lot of potential for decor opportunities in India.
 
NMD: What is your opinion on the current status of thermoforming applications? We understand that it is experiencing a growth rate of approximately five to 7%.
OV: We have some fascinating technologies for thermoforming. One benefit of our latex materials is the flexibility of the latex inks we use, making them ideal for thermoforming. Unlike other materials, our latex inks conform well during thermoforming and do not crack. However, thermoforming is a specialized process that requires expertise and specific machinery, so it's not commonly found in small shops. We are actively involved in the thermoforming industry; for example, we have several successful customers in the United States using our latex hybrid devices to print directly on plastic, which is then used in the thermoforming process. While we have not yet penetrated the market in India, we see potential due to the compatibility of our technology. However, we also need to prioritise various opportunities to ensure success.
 
NMD: It’s an interesting market, so you may have challenges from your competitors...
OV: I'd rather not discuss others, but we're performing exceptionally well. Our properties are running as we expected, and our customers tell us that when they try this with other technologies, they experience issues like cracking problems or poor ink conformation. However, some other vendors have also formed a dedicated team for this application, so it's definitely an interesting market.
 
NMD: Are you telling me that there are separate inks for thermoforming applications...
OV: For other technologies, you'd need different inks for different uses. But in our case, we use the same ink for posters, curtains, and even for wrapping cars. That's one of the great things about it – the versatility. You don't need to buy multiple machines and equipment for different purposes. With our latex technology, one piece of equipment allows you to handle various tasks. This is especially helpful for growing markets where capital is limited. I personally find this approach appealing as it allows for progressive investments. This makes a lot of business sense for someone who doesn't have large amounts of initial capital. If the business grows, you can gradually expand, which is a very practical and appealing approach.
 
NMD: Earlier, there were only two or three types of substrates available. Now, there is a wide variety of substrates, ranging from low quality with several types to better quality options. This variety may pose a challenge for customers.
OV: We ensure that we thoroughly test and design all printing capabilities and make necessary adjustments to ensure the quality of our materials. We aim to have a strong connection with countries on a global scale to understand the top materials used in each country. It's important to address any specific local concerns and issues that may arise. We have developed special configurations to ensure compatibility with all available materials. Anticipating the needs of the market, we test all these aspects before launching a product.
 
NMD: Another market where a lot of digital is penetrating or making a mark is the textile sector. There are two types of applications: apparel and clothing produced in bulk, which are produced on behemoth textile printers, and signage on textiles. You don't have a presence in the large digital printing presses for such a market.
OV: Our main focus in the textile industry is on signage rather than apparel. We are not primarily focused on designing printers for apparel production. Instead, we concentrate on textiles for signage such as flags, banners, and light boxes, all essential for effective communication. While we do have some involvement in apparel, our main emphasis is on soft signage, which is a rapidly growing sector. Many people prefer textile banners because they are lightweight and cost-effective to ship and handle. Our Stitchline and our brand of inks, HP Stich, have been successful in the sub-signage segment.
 
NMD: In this sub-signage segment, is it Latex or dye sublimation?
OV: The choice between dye sublimation and latex printing depends on the production volume and the specific applications you want to focus on. If you produce a significant amount of volume, dye sublimation can be very efficient because it is dedicated to the task. However, if you only print one banner a week, it may not justify having both a latex device and a dye-sub device. Consider your volume profile and how often you produce these applications. Dye-sublimation has advantages for textile work, offering a wider range of materials. It depends on how you want to approach a certain application. If you focus on promotional or fashion items due to high volume, dye-sublimation is the answer. However, you can use latex printing if your customers only request an occasional flag. If your volume increases and you want a dedicated machine, then a dedicated dye-sublimation device may become a consideration.
 
NMD: So the key is profitability?
OV: Its flexibility and profitability. Dye-subs can definitely print on more textiles than Latex. If you want to print on five different types of textiles, dye-subs will do a better job. But then, if you want to print on five textiles, it means you have a lot of volume.
 
NMD: Which HP printers can produce dye-sub applications?
OV: We have two machines, the S1000, a 3.2-metre super-wide machine and S500, a 64-inches machine. Both of them can be used to produce dye- sublimation applications.
 
NMD: The other topics are sustainability and tackling wastage.
OV: We take sustainability very seriously. It is one of the three strategic pillars of our business. Our business is built on three pillars: stunning quality, streamline efficiency, and sustainability. Our aim is to ensure high-quality and environmentally friendly products. For instance, our inks are water-based and do not contain harmful chemicals. We also encourage our customers to use recyclable materials with our inks to make the final products more sustainable. We are focused on reducing the environmental impact of our products and helping our customers become more efficient in their production processes.

Additionally, we are working on developing products that can be upgraded over time to minimize waste. Our commitment to sustainability extends from our ink to our hardware design and the materials used in our factories. We take sustainability very seriously and consider it from a 360-degree perspective.
 
NMD: We know that HP collects its cartridges in the packaging segment. Do you have a similar programme for your wide-format segment?
OV: We collect the cartridges and recycle them. So we combine all these cartridges into recycled plastics for another purpose. Yes, we recycle our own cartridges as long as customers send them back to HP.
 
NMD: What about the printed material?
OV: We do not accept printed materials. They are often produced locally, and this presents a challenge for us. We only use our own cartridges because we are familiar with their manufacturing process and know how to recycle them. If someone wants to dispose of printed materials, we consider it a local issue because we aren't sure how they were produced. However, if we know any organisations that can collect this type of waste, we connect them with our customers.
 
NMD: Printheads: Are they the same as the ones used for the HP PageWide presses? How easy are they to maintain?
OV: No, they're not the same for the textile printer. They have a different architecture. We made some small changes inside, so the ink flows differently.
 
As for maintenance, it's much easier than the PageWide printhead because of our simpler machine. Therefore, the replacement of the printhead is very straightforward, taking only about three minutes. The printer then recalibrates itself automatically.
 
NMD: When it comes to the market traction that HP is gaining, which market do you see as crucial for HP as a press manufacturer?
OV: We have several growth opportunities globally. It's hard to pinpoint just one country, but I would say India is among the top five countries with a lot of potential for us. There is significant construction activity in India, and we also sell plotters to print drawings. From a building standpoint, the more buildings and offices are being constructed, the more opportunities there are for digital print to decorate these spaces. India definitely stands out as a big growth market for us, in terms of volume. However, we are closely monitoring other pockets of potential growth as well. Established markets like Western Europe, the US, North America, and Latin America also hold great potential for us. So, we are balancing our focus globally, with India being one of our top priorities.