HP's comprehensive approach to modern packaging solutions

PW: What is new in terms of applications and products?

A Appadurai (AA) Let me give you an overview of Labelexpo. People often ask, "What product are you showcasing?" However, at HP, it's never just about the products; it's about a comprehensive package.

One of the key features at Labelexpo, like every year, is the area known as the Digital Supermarket. This year, approximately 85% of the products displayed there are produced in India by label converters. Currently, the Digital Supermarket primarily features core labels, which is the main focus of the show, but it also goes beyond that.

PW: Please explain.

AA: For those in the label business, it’s essential to understand the natural progression of their work. Historically, due to the lack of available technology, many label printers relied solely on flexo machines that could produce self-adhesive labels. This led to a situation where they became exclusively label printers. However, as brands sought more cost-effective solutions, they began to explore other packaging options like pouches. This shift often arose from challenges related to security and counterfeiting, leading them to in-mold labels (IML).

Previously, if a printer only had a flexo machine, they might miss out on these natural extensions of their business. What we are demonstrating in the Digital Supermarket is the concept of "one investment, multiple revenue options." We emphasise that labels are your primary focus, and we excel in producing a wide variety of labels.

PW: And other than labels? 

AA: In addition to labels, we are showcasing samples cartons, and folding cartons, which represent natural expansions for label printers. We have already ventured into IMLs, labels, and cartons, but we are also introducing something innovative: the lamitube.

It's worth noting that EPL, the largest producer of laminate tubes in the world, now has a significant presence, with a double-digit install base of HP Indigo presses globally. This is an impressive achievement and sets a new standard in the industry for flexible packaging.

The story doesn’t stop there. We are showcasing shrink sleeves, which is one of the fastest-growing markets. Businesses that previously used printed labels now view labels not just as a means of providing product information but as valuable real estate. They question why there should be so much white space on a label—these are empty areas that could impress customers. As a result, companies in the beverage sector are now utilising shrink sleeves that cover the entire bottle.

We are highlighting our shrink sleeve capabilities here. Additionally, we are focusing on one of the fastest-growing segments in the world today, particularly in India: flexible packaging pouches. All of these applications are produced using a single technology: our six-in-one machine. This innovative press can perform all the functions of various types of presses, including flexo, offset, letterpress, gravure, and screen printing.

PW: What’s your message behind these showcases? 

AA: Our demonstration aims to show the wide range of applications possible with the technology. It also provides valuable insights to label converters visiting us. Attendees should expect to learn about cutting-edge technology without simply seeing the machinery itself. They can experience and understand where the industry is heading.

We also aim to cater to those who want to see, feel, and interact with the machines. Furthermore, we are demonstrating advanced technologies focused on security printing and sustainability. Brands are increasingly seeking knowledge about sustainability, and we aim to educate them in this area.

Last but not least, we are showcasing how AI and machine learning are transforming the servicing needs of printing presses. Many industry professionals are aware of the importance of building effective infrastructure for services. Our approach involves using AI to address these technologies.

Attendees will see our engineers using Microsoft HoloLens, which allows them to remotely assist label press operators. This technology enables us to solve 85% of the servicing needs virtually. We also utilise machine learning to implement a predictive risk scale. For instance, if a part in a printing press is likely to fail due to wear and tear in two days, our AI can predict this, allowing us to ship the necessary part to a customer.  

As a result, when the part fails, we can replace it within hours instead of days, reducing downtime and increasing satisfaction for both the client and the operator. In busy cities like Delhi, where travel can be time-consuming, this efficiency is crucial, enabling us to resolve issues quickly.

Our focus is on a comprehensive offering that includes applications, advanced technology, futuristic concepts like security printing and sustainability, and our unique use of machine learning and AI in the industry. This package extends far beyond what people typically associate with machinery.

PW: In today's world, hybrid machines are focused on providing everything in one place. Your views?

AA: I perceive the concept of "all in one" differently than most people. In my view, all our locations operate as a single integrated press. I call it six-in-one press because it can handle every application we've discussed. For me, that is the key aspect that defines "all in one."

For those interested in building a finishing line, I have one important question: if one of your machines goes down, what happens to the others? Take, for example, an integrated finishing line. If my printing press fails, the entire operation halts. By trying to combine everything into one machine, you're introducing inefficiencies into the system. Setting up a printing press or a finishing line requires time, so why should the other components sit idle?

Today, HP has a substantial number of digital label presses in the market — around 2,500, specifically for labels. I would point out that about 99 % of them utilise offline finishing because it's more efficient. The whole notion of hybrid setups, in my opinion, leads to waste — waste of materials, time, and money. This is similar to what happens with hybrid cars. A hybrid vehicle is intended to save resources, so why attempt to combine both electric and conventional technologies? In doing so, you're not achieving significant savings and only creating more bottlenecks.

PW: So, what’s the future?

AA: We believe the industry will move towards more separated systems because it grants greater flexibility in handling jobs. For instance, our customers can achieve job changeovers in five minutes or less. If you're not improving this process, it's crucial to recognise how much our capabilities have advanced.

Most companies are building extensive hybrid lines based on outdated demands from a decade ago, where brands requested jobs of 10,000 linear metres of jobs. However, that's no longer the industry standard; customers now want runs of only 1,000. So, what happens when you need to produce these shorter runs? Running a 500-meter job on a hybrid press is impractical.

In India, there are about 1,50,000 registered startups primarily looking for jobs of five linear meters per job. Additionally, there are five crore registered MSMEs (Micro, Small, and Medium Enterprises) in India, all requiring smaller, more frequent runs. The world is shifting towards these smaller productions. 

PW: In India, many manufacturers, including local and European press manufacturers, are selling flexo presses. Therefore, don't you think we can assume there is a significant demand for long-run jobs?

AA: One of India's biggest advantages, and challenges, is its population, which stands at 1.4 billion today. If I consider entering the flexo printing space, it seems that labour costs are relatively low. People often discuss their experiences with flexo jobs, so I would ask those buying flexo machines about their average run lengths. What were those lengths five years ago, and how have they changed since then?

For those who state they also handle 500 linear meter jobs, I advise them to examine the changeover costs associated with flexo printing on such short runs. When a customer requests a 500 linear meter job, is it even feasible under flexo technology? Smaller brands often find themselves with limited options, but with digital printing, they have alternatives.

It's only a matter of time before more people become aware of the available technologies that can efficiently handle smaller runs, like 500 pouches or 500 labels. Once they do, I believe we will see a shift in the industry that will encourage flexo printers to compete for shorter jobs, such as those of 50 meters.

PW: So, manpower is an issue? 

AA: It's a manpower-driven industry. Technically, you can do 500 jobs again, but if you're still in the offset world, let me ask you: how many offset machines were sold compared to the total number of digital presses sold, including everything from the smallest Konica Minolta to the largest HP? The ratio is about one to ten. That should give you an indication of where the offset market is heading. The flexo world will also, we believe, will reach a similar point.

PW: Can you elaborate?

AA: We're not competing with offset or flexo printing; rather, we are addressing the inefficiencies within your business. It’s about creating a coexistent ecosystem. I want to help you improve profitability by tackling the areas that cause pain in your operations.

For example, if you operate four offset presses, our estimates — backed by general industry input — show that about 30% of their jobs are non-profitable, often due to short runs. By freeing up 30% of your capacity, you’re effectively repositioning your resources.

When you purchase a digital press, it’s as if I’m providing you with an offset machine of your preferred brand at no extra cost. Logically, financially, and commercially, this is a reality. Essentially, every time you invest in a digital press, you are getting one offset machine — and one gravure machine — free of charge.

If the industry can grasp this straightforward logic, we can significantly enhance the printing business as a whole.

PW: Anything else which our readers should know from Durai or HP?

AA: I believe we are on a mission to provide education, acting as evangelists for this cause. Over the past six to eight months, we’ve signed five significant contracts or memoranda of understanding with incubation centres, including the Atal Incubation Centre, which is a leading centre in the country.

PW: So, what does an incubation centre do?

AA: If you are an entrepreneur with a product, we come to you and say, "Okay, you have a brilliant product! We'll provide you with all the knowledge required for marketing. We will assist you in exporting this product and offer you all the necessary support." If you cannot afford to hire a financial accounting professional, we can provide that expertise. We also handle digital marketing and business planning to ensure your business plan is sound.

The government has introduced an initiative called "One District, One Product" (ODOP), which mandates that every district has a product designated for export. They have set up stalls to showcase these products, and the government's focus on supporting startups is increasing. This is a period of transformation, and I firmly believe that India will become the startup capital of the world.

PW: What are you doing with Atal Incubation Centre? 

AA: We have partnered with the Atal Incubation Centre as packaging partners. This means we support small brands that manufacture coffee, tea, or other products. While they excel in their products, they often lack expertise in packaging. We educate them about packaging, covering everything from design to printing to execution.

We are also in advanced discussions for collaboration with the Indian Institute of Packaging (IIP), which will provide design elements. There are many students eager to make a difference, and this represents an excellent opportunity for internships. We are open to collaborating with every printing institute and information centre.

For example, we recently participated in a project with the Coffee Board of India. An entrepreneur in the coffee business, who has a background in the coffee business, realised that while she had an excellent quality product, her brand was not widely recognised. She had never considered branding despite their longstanding production. We stepped in to improve her packaging, helping her create a brand that is now successfully exporting.

She initially hesitated about investing a large sum in inventory, fearing failure. We assured her that there was no Minimum Order Quantity (MOQ) required to start. 

Our efforts are creating something unprecedented, which brings us immense pleasure. For instance, we have transformed a juice manufacturer in Ludhiana that was selling orange juice for 260 rupees but had poor packaging. Now, they are thrilled and eager to compete with major players in India.