We at WhatPackaging? saw 500 gravure converters in India achieve 90% of their capacities even during the lockdown. Simultaneously, the major offset carton converters saw 85% of capacity utilisation.

All major ink companies have finished the year at over 80% as compared to last year. The major setback has been with publication inks. Screen inks usage has reduced, too. Meanwhile, flexible packaging has had a good run with 1,20,000 MT, 90% of gravure inks. The rest have maintained the same levels as 2019. For example, sheetfed inks is 30,000 MT, including varnishes.

WhatPackaging? magazine looks at seven ink companies.

DIC/Sun Chemical - USD4.9-Bn
The company is targeting USD9- billion by 2025. Packaging sustained, but the graphics segment sales declined. Sales of food packaging inks increased. Needless to state, the sales of publication inks declined. In August 2019, DIC announced it will acquire BASF’s Colors & Effects (BCE) business, which includes all of its pigment operations. In June 2020, DIC announced that Sun Chemical entered into a definitive agreement to acquire 100% of the shares of Sensient Imaging Technologies, an inkjet ink leader in the textiles and industrial markets. In May 2020, DIC made a move to acquire the packaging ink business from Lioaning Tianqi Technology.

DIC is targeting USD9- billion by 2025

Flint Group - USD2.2-Bn
The second-largest ink manufacturer in the world was led by its packaging ink division. There were shortages in solvents, which were caused by the Covid-19 pandemic, as a result operations in India had to issue a price increase notification.

Flint Group is the second-largest ink manufacturer in the world 

Sakata Inx - USD1.435-Bn
Sakata has been in the news in the Asia Pacific region (the region’s total ink sales are approximately USD 7.7-billion annually) for two reasons. Last year the Japanese ink major announced a new plant construction in Bangladesh and it’s expected to be completed in 2021. In July, there was an announcement of one more packaging ink plant in Ho Chi Minh, Vietnam. Sakata plants in India were not closed due to the lockdown, but still, production as well as sales volume saw a dip due to the lockdown.

But on cue, the packaging demand boosted the volume sales of packaging ink. Also, there was pent up demand because of the Covid-19 work-from-home requirement during August to October. Finally, the consumption and packaging seem to be stabilising near to 2019 level as we entered into 2021. Newspaper and publishing business, which saw the maximum hit, will take a much longer time to recover. According to VK Seth, managing director of Sakata Inx India, 2021 does pose an equal amount of challenge as it was in 2020.

A lot of business segments have shrunk in size. “Until the job losses due to pandemic are recovered and business levels start generating incomes both nationally as well as internationally, ink companies will continue to face serious challenges of survival. Raw materials are seeing an unprecedented spike. Freight costs along with scarce availability of certain raw materials are posing serious issues. It is a nightmare to ask for a steep price increase in the shrinking volume market.”

He adds, “Sakata is focused on sustenance and consistency with a hope that this time will also pass. Our Bangladesh facility along with our new exclusive toluene-free facility in Panoli should be up and running in 2021. Our customers and employees will be our main focus in 2021.”

Sakata's Bangladesh and Panoli facilities should be up and running in 2021

Toyo Ink – USD 1.332-Bn
In India, Toyo started its operation in 2006 selling offset and gravure inks imported from Japan; however, gradually, with product acceptance and increase in business volumes its first manufacturing base at Noida was set up in 2008. Toyo Ink India – a 100% subsidiary of Toyo Ink Japan started catering to Indian customers with advanced Japanese products that are locally produced. With factories in Dahej in Gujarat, Toyo Ink continued to boost the advancement of sales expansion in India.

The Group has been working on a bold leadership target in the country where it hopes to leverage its strengths in food packaging and commercial printing. Recently, Toyo Ink installed a solar power plant at its plant in Dahej. “Our vision is to convert our plant in Gujarat as a model for green manufacturing, and thereby reduce its carbon footprint,” says KS Murthy, deputy managing director, Toyo Ink. “In order to support the growing packaging business, Toyo Ink has initiated plans for expanding operations in India.” With the vision to convert our manufacturing as green manufacturing whereby reducing its carbon footprint, Toyo Ink has installed Solar power plant at its Gujarat factory. In order to support the growing packaging business, Toyo Ink is in the process of expanding operations in India.

Toyo Ink is in the process of expanding its operations in India

The company's aim is to enter the packaging segment and become a complete solution provider. The company has, therefore, started manufacturing UV inks, texture coating and water-based coating at its plants in India. The company has also commenced manufacturing LED inks and coating locally and are in the process of manufacturing locally produced UV flexo inks.

Murthy says, “2021 is going to be a challenging year and Toyo Ink vision is to expand its strong presence in flexible and rigid packaging segment with innovative sustainable products. We will continue to lay emphasis on green manufacturing and producing sustainable packaging product to reduce our carbon footprint and support circular economy at large.” Products: Conventional offset ink, UV ink, LED ink, special offset and UV colours, coating, inkjet ink, flexo ink, gravure ink, solvent-free lamination adhesive, PU resin, masterbatches, and pressure-sensitive adhesive.

Siegwerk Group - USD1.31-Bn
Siegwerk saw an increased demand for ink solutions during the Covid-19. Inks and coatings are essential for the manufacturing of packaging, ensuring the access to critical supplies for food, pharma and hygiene. With packaging print seeing growth in India in recent years, Siegwerk expects the trend to continue. When WhatPackaging? spoke to a senior official of Siegwerk, he said, “Since food and medical packaging and other critical commodities are considered essential during the pandemic, the Indian government supported the availabilities of these items. As a result, we did not see any decline in ink usage.”

Ashish Pradhan, president Asia for Siegwerk is optimistic about 2021. “The markets will bounce back this year and will have a positive impact on the packaging industry. That said, raw material prices have increased substantially and will continue to remain high.

This would mean that margins will be under severe pressure and also result in increase in prices. This year will also see a lot of emphasis on food packaging safety with food brands making the transition from toluene-based inks to toluene-free inks for their packaging. Siegwerk India has always championed the cause of safe packaging and this will be a busy time for us, while we help our customers in the transition process.”

Siegwerk saw an increased demand for ink solutions during the Covid-19 pandemic

Hubergroup - USD863-Mn
Hubergroup claims to be the sixth-largest global supplier of printing inks and the largest ink manufacturer in India. A corporate communication statement from the company based in Vapi said, ". However, newspaper inks and sheetfed commercial printing is declining and the publishing inks scenario does not seem to get better soon."

The packaging segment in offset, UV and liquid inks remained steady in 2020. Hubergroup accrued benefits in the flexo/gravure segment from its Gecko Xperience series, thanks to its novel haptic effects, which boosted creative packaging design.

The MGA Natura (sheetfed offset ink) was another 'wow' product, with its ability for printing organoleptically neutral print products on cardboard and other absorbent substrates. Ashwani Bhardwaj, managing director at Hubergroup India, expects a strong rebound for the packaging industry during 2021 and beyond. “Hubergroup takes pride in leading the initiatives for offering ‘safe inks’ for application in food packaging," said Bhardwaj. "We rely the most on customer feedback, our own technology strengths and the ever evolving regulatory guidelines to develop innovative and print-friendly solutions.

Hubergroup's packaging segment in offset, UV and liquid inks remained steady in 2020