What were the new services and technological innovations introduced by your R&D department in the last two years?

Based on the feedback from our existing and future customers and by keeping a close tab on the market trends, our R&D and product development continuously works on enhancing the features of the existing products or work towards bringing a new product to the market that helps the labels and packaging fraternity gain competitive advantage in the highly competitive market. In the past two years, we have enhanced our 1200-dpi N730i digital press by adding new features. These include:

R-Scan: The R-Scan is an automated print quality and variable data check and notify system that provides you with confidence and assurance requiring minimal setup time and supervision. It offers high-definition real-time inspection, monitors colour density and deviations if any, identifies misaligned print, and print registration. 

Domino N730i Integration module: Incorporating all the same cutting-edge technology provided as standard with the N730i reel-to-reel label press, the N730i integration module within a hybrid line, provides the added ability to handle a wider range of applications, achieve higher productivity and meet the diverse demands of our customers with ease.

Domino N610i-R: The product is more suited for the Western market which allows the label converters to add digital printing capability, and extend the life of your existing flexographic press, by transforming it into a cutting-edge digital hybrid printing system with the industry-leading Domino N610i-R engine in a compact, retrofittable solution.

Domino N610i-H: We are bringing this product to the Indian market to help label converters and commercial printers explore the exciting world of digital printing for labels and packaging. The new press offers inline priming and varnishing, along with five-colour (CMYK + white) digital printing, allowing users to complete jobs quickly. Its Esko digital front end makes it easy to operate, colour match and do variable data printing.

UV92 and UV93 Ink set: It is to meet the ever-growing regulatory requirements and to enable our customers to stay relevant in the demanding environment we have released the new ink set for our N6 & N7 series machines. 

The label market in India has grown in recent years because of the increasing demand for labels across various products. The label printing industry in India is valued at USD 2.3-billion and is expected to increase to USD 3.6-billion by 2025, growing at a CAGR of 7.3%. The per capita consumption of labels in India has grown from 0.25-sqm in 2008 to around one-sqm in 2023. What is your prediction for the label industry in 2024 and beyond? 

We expect the per capita consumption of labels in India to keep increasing. However, India still has a way to go compared to Western countries, where people use more packaging. This gap presents a great opportunity for growth.

Looking ahead to 2024 and beyond, it’s an exciting time for the labels and packaging industry. Our focus on digital printing solutions allows us to offer flexible, quick, and customizable labels that meet the needs of a changing market. We are ready to help our customers take advantage of this growth.

The sectors driving growth in labels are food and beverages (55%), cosmetics and personal care (17%), home care (15%), eCommerce (10%), and chemicals (3%). What are the key factors contributing to the significant growth of labels in the food and beverages sector?, How is the label printing industry in India gearing up to meet this growing demand?

In response to your earlier question about the rise in per capita consumption of packaging in India, the reasons for growth are clear and they apply here as well. People now have more money to spend, and they can buy products with just a click. The startup boom in India is also fuelling this trend, bringing many new products to consumers. This means shoppers have plenty of choices — often too many!

Label converters in India are stepping up by adding new machines, whether from European or local manufacturers. When we visit one of the Indian flexo press manufacturers, we see their shop floor is always busy, with machines being built and shipped regularly. This shows that the market is gearing up for the growth we’re discussing.

Label production comprises pressure-sensitive labels (70%), shrink and stretch sleeve labels (12%), wet glue labels (10%), and in-mould labels (8%) and is manufactured by around 700 label printers that run one or more six- to eight-station flexo presses. There are about 1,800 flexo presses, 40 of which were installed in 2023. Similarly, there are 77 digital presses, 37 of which were installed in 2023, and one hybrid press (Gallus Labelfire) installed in 2023. What are the key factors driving the increasing installation of digital and hybrid presses in label production, and how do they compare to the traditional flexo presses in terms of efficiency and quality? 

There are no major barriers to entering the label printing business, so anyone interested can buy a printing press and finishing equipment to start meeting market needs. This is clear from the growing number of new companies entering the market.

The demand for labels is rising, partly due to new startups launching their products. However, with more competition, many label converters are feeling pressure on their profit margins. Some aren’t able to raise prices enough to cover their rising input costs.

In this environment, digital printing is an excellent solution for label converters. It helps them improve efficiency by reducing waste and setup time while producing exactly what their customers need, when they need it. By shifting shorter and medium runs from conventional presses to digital ones, they can increase production capacity and remain competitive.

To help label converters transition to digital printing, we are launching the compact five-colour N610-H digital printing press with two flexo stations at Labelexpo India. This setup allows for inline priming and varnishing in a single pass, making it easier for them to enter the digital space.

Has the pace of new capacity addition been different pre- and post-Covid years?

As a digital printing OEM, I can say that the disruptions caused by COVID-19 have changed how quickly businesses are adopting digital printing solutions. Now, label converters are eager to learn about digital printing and how it can help them maintain and grow their businesses. Even commercial printers are looking into entering the label printing market using digital methods. In short, the demand for digital printing has increased since the pandemic.

When innovative solutions are being implemented, converters require capital investments. Some converters are willing to make this investment only if there is an end-user on the other side prepared to commit to assisting them in justifying the investment. It's a three-party scenario: we possess the technology, we require the brand to generate interest, and then the converters will respond. What strategies can be employed to ensure that both the technology and the brand are effectively aligned to attract and engage converters in the three-party scenario?

Our coding and marking business partners with both big and small brands across the country. We use these strong relationships to promote the benefits of digital printing, helping brands transition to digitally printed labels and packaging. As a result, some brands have started purchasing their smaller volume jobs from our customers. Additionally, brand owners who have invested in our solutions see advantages like reduced inventory and faster turnaround times to meet market demands.

Our straightforward strategy is to maintain open and transparent communication with our customers about our activities. This approach is part of our business development efforts to promote digital printing and connect them with brand owners.

You have interactions with customers from different parts of the world. What are the top challenges the Indian label industry faces?

Intense competition is squeezing profit margins; difficulty in obtaining price increases to offset rising input costs; lengthening credit terms; use of reverse auctions impacting pricing and price undercutting by fellow label converters to win business without considering true costs.

Label converters have increasingly sought automation for different stages of the product life cycle in recent years. With a shortage of labour in the industrial sector, human involvement has become a bottleneck in the production process. Automation and connectivity have shifted from being a cost-saving measure to a crucial requirement for industrial survival. What specific types of automation have label converters been implementing to address the challenges in the production chain?

As a digital printing OEM, we believe that the effective implementation of digital printing solutions can tackle many of the challenges faced by label converters. With digital printing, converters can enhance overall efficiency while reducing reliance on highly skilled labour.

This was particularly evident during the Covid-19 lockdown when conventional machines were halted due to a lack of consumables like plates and restricted movement of personnel. In contrast, label converters with digital printing solutions were able to operate their plants efficiently, often with just one person managing production on the digital press and handling offline converting.

Manufacturing at Domino

How are you addressing the need for faster production speeds in digital label printing?

Our machines can print at speeds of up to 70-m/min using all colours. This speed enables label converters to complete a large number of jobs in each shift while enjoying the advantages of digital printing, including minimal waste, reduced setup time, and the ability to print variable data at full speed.

What innovations are you introducing to expand the range of substrates compatible with digital printing?

We haven't found a substrate that most Indian label converters use that our machine can't handle. We have tested our machines with various materials, including self-adhesive labels, unsupported materials for shrink sleeves, in-mould labels, and laminated tubes.

How are you helping printers seamlessly integrate digital and conventional printing workflows?

Our digital solutions programme (DSP) empowers customers to seamlessly integrate digital and conventional printing workflows. We work closely with our clients, guiding transitioning jobs from conventional to digital printing and aligning their digital presses with existing conventional setups. We assist with colour matching between conventional and digital processes, ensuring consistency. This ongoing support enables our customers to use their digital presses efficiently, maximizing output and achieving a faster return on investment.

Let me ask you about volume growth and competition challenge given that there are lots of Chinese and Western players now offering digital solutions, but still limited mostly to specialised short runs or VDP. When will digital finally be mass market, especially in packaging?

When we say, "Digital Printing is the Future," we mean it’s an exciting time ahead. Competition is part of that excitement, and we welcome it because it keeps us on our toes. It drives us to innovate continuously and deliver new solutions that benefit label converters.

Many label converters adopting digital printing are focused on profitability, not just top-line growth. They pursue profitability for several reasons. Brand owners are now demanding smaller volumes due to shifting market dynamics and increased competition in their sectors.

How do your digital printing machines compare to flexo machines in terms of cost-efficiency for short-run jobs?

Every technology has its ideal application, and UV inkjet is particularly effective for short to medium-run jobs. Many Indian label converters are eager to embrace digital printing but hesitate to make the leap. To help them make informed decisions, we are launching our 5-colour Domino N610i-H digital press for the Indian market. We believe this press offers a strong balance of commercial and technical advantages for label converters.

What materials can your digital printers handle?

We haven't found a substrate that most Indian label converters use that our machine can't handle. We have tested our machines with various materials, including self-adhesive labels, unsupported materials for shrink sleeves, in-mould labels, and laminated tubes.

How do your digital printers ensure colour consistency across different print batches? Can it withstand tests that flexo colours can withstand?

UV inkjet is a non-contact printing technology that applies inks directly onto the substrate without any intermediary processes. This allows for consistent colour reproduction across multiple runs, even over different time frames. The repeatability and reproducibility of UV inkjet are excellent. In our latest generation of presses, we include inline scanners to enhance colour consistency even further.