The industry’s innovation obsession; and how to resolve it sustainably - The Noel D'Cunha Sunday Column

Harveer Sahni’s opening remarks: In simpler terms, it means we must give back to mother earth what we draw from it. Take, for example, paper, which extensively uses wood. Cutting trees leads to deforestation, reducing the green cover to impact the environment adversely. Regulations were put in place whereby the paper mills were required to plant more trees than what they cut. For this, there is an FSC certification. FSC stands for Forest Stewardship Council, a forest management agency. Using FSC-certified papers is a sustainable manufacturing process. Over the years, the sustainability definition has expanded to include terms like waste reduction and effective management, recyclability, circular economy, downscaling, and water and energy conservation.

Harveer Sahni: What measures (equipment and different technologies) have been taken by your organisation to produce innovations?
Ankit Gupta of Holostik: Holostik specialises in anti-counterfeiting products. Producing anti-counterfeiting- and security-featured products enable innovation, which is the name of the game. We breed innovation. Every six months we introduce new products.

In that sense, more than anything else, it has to be leadership driven. There have to be the right systems and processes in the organisation where there's a conscious team who's constantly working on innovations and R&D. Because India is a very price-sensitive market, what we realise is not just about the innovation but delivering the innovation at the right price point. So we must ensure that the volumes are such and the technology is affordable for the Indian consumer.

That's a conscious strategy which we work on. As an individual at the helm of this organisation, I'm constantly working out plans. I have a roadmap for the next two-three years already in place, technologies which I will be launching to the market two years down the line.

Harveer Sahni

Hemant Paruchuri of Pragati Pack: Our organisation categorises innovations into four main groups. The first focuses on enhancing configurability, while the second pertains to sustainability. This involves reducing plastic usage and implementing eco-friendly measures. The third group is centred on security, specifically anti-counterfeiting measures. Lastly, we prioritise functional innovations that cater to our customer's needs. We strive to develop and release technological advancements to the market while prioritising customer-driven solutions.

We put our heads around these four measures, understand the customer issues, and try to solve those.

Akshay Datta of Datta Press: In order to drive innovation and move forward effectively, it is crucial to have a clear roadmap for the next few years and the direction of our resource utilisation. As a company that has been manufacturing labels for a significant period of time, we have lacked a defined background or boundary to operate within. However, we can focus on deriving the right base input materials by utilizing materials such as foils, embossing, and embellishments in combination with manufacturing techniques. We have many companies, such as Avery Dennison or Jindal SMI, that can help us in this regard and improve our sustainability efforts by reducing emissions and costs while minimizing waste. Our ultimate goal is to deliver a product that provides great value through embellishments using foils or embossing, and we must continue to push the boundaries of innovation in order to achieve this. Plain Jane printing is no longer sufficient in today's market.

Rajeev Chatwal of Kwality Offset Printers: I would like to add that when it comes to innovation, one has to improve processes. You should consider investing in newer technologies that can combine different methods, such as a combination of flexo and digital using hybrid technology. This approach can help showcase new offerings to customers through human innovation or utilising the latest software technologies. We have successfully reduced the use of foils by utilising software, which enables the creation of special effects through programming languages like Python.

Harveer Sahni: For labels it all starts with label stock. So the innovation has to build right at the initial stage?
Sanjeev Sharma of Avery Dennison South Asia: Avery Dennison has always been focused on innovation since Stan Avery invented the PS labels 85-90 years ago. We have four research and development centres across the world in China, Europe, North America, and India. Our Pune facility, known as ADIDC (Avery Dennison Innovation and Knowledge Centre), has over 30 employees. We have invested crores of rupees to develop the right products for the industry, analyse problems, and bring the new talent. We showcase new technologies at every Labelexpo show by showcasing products with improved efficiency. Recently Avery Dennison has developed a product to protect brands from heat damage. We work backwards from industry problem statements to find solutions and invest in the industry's future through innovation.

Harveer Sahni: Between the label stock and the label press, we need to put vibrancy to the labels being produced?
Upal Roy of Flint Group: Flint's innovation approach focuses on developing products that contribute to a circular economy, in collaboration with our customers and brand owners. Another aspect is designing products that enable customers to conserve energy and reduce greenhouse gas emissions, such as our UV-LED curing systems. Digitisation is also crucial, and we have introduced the Vivo colour solutions that allow for online colour matching to the cloud, reducing physical colour-matching time compared to traditional digital swatches. Additionally, we established a global raw material screening laboratory in India amid the Covid-19 pandemic. Initially, a lab was set up to look at flexible packaging applications, and now it has expanded to paper and board applications. This laboratory is doing work not just for India but for all the Flint subsidiaries worldwide.

Manish Kapoor of Nilpeter: From Nilpeter's perspective, sustainability is fundamental, and we strive to set an example. The first step towards sustainability is to make your business sustainable at its core. As a 104-year-old company, we are proud to be family-owned and operated by the third and fourth generations. This demonstrates that when you adopt a sustainable approach, you can achieve long-lasting progress.

Umesh Kagade of HP Indigo: When it comes to quality, let's break down the printing process from machine manufacturing to the final print. HP Indigo takes care of each segment, starting with the machines. Our machines are manufactured in a carbon-neutral environment, ensuring that any emissions are offset. Our technology produces no residuals, such as ink residuals, that must be thrown away. This is a big deal for the industry. We also offer eco-friendly solutions, such as recycling and compostable-certified materials. We are always working to meet the latest industry standards and demand. These are just a few of our innovations.

(l-r) Manish Kapoor, Umesh Kagade, Sanjeev Sharma and Rajeev Chatwal

Harveer Sahni: Do you indulge in captive creativity and designing or depend on outsourcing?
Hemant Paruchuri of Pragati Pack: As an organisation, Pragati does engineering design for our clients, specifically in the areas of cartons, pouches, and labels. While we do not handle the artwork side though we have established a network of professional designers across different regions in India. When clients require design work, we recommend our panel of designers, who are well-equipped to handle the job. Once the artwork is completed, we work closely with brands to explore ways to improve and enhance the label.

Manish Kapoor of Nilpeter: At Nilpeter, we take pride in manufacturing all of our parts in-house. This allows us to closely monitor the quality and ensure it meets our high standards. We also heavily invest in our sources to guarantee that we can produce parts that meet Nilpeter's requirements.

Rajeev Chatwal of Kwality Offset Printers: We do a lot of digital printing for small start-ups. For those kinds of companies, we have a full set of in-house designers.

Harveer Sahni: Innovation means many things to many companies. What are the priorities for innovation at your company because what you are ultimately putting on the label is not a part of the substrate. It's actually inks and coatings. What are the innovations, or what products do you deliver for creating innovations?

Upal Roy of Flint Group: We are currently considering labels for washable and non-washable products and exploring new UV curing systems expected to emerge in the market within the next year and a half. As we focus on flexible packaging, we prioritise value, given the changes in innovation and packaging aimed at improving recyclability. Specifically, we are looking into monolayers and barrier coatings to ensure that the layers can be recycled without the need for materials like metPet or BOPP laminates, which can create issues. In addition, in the paper and board segment, we are interested in using compostable and biodegradable inks and exploring bio-based resins as raw materials for production. Another area of focus is using recycled tyres to produce black ink, although affordability is a challenge. We understand that innovation and sustainability go hand in hand, and that the value chain must pay for innovation. In this regard, we are committed to finding sustainable solutions that are also economically viable.

Harveer Sahni: Sustainability is the narrative, the need of the hour. Who drives the initiatives – the brand owner or is it the end user? Or do you do it on your own?
Ankit Gupta of Holostik:  It's a combination of everything. The push towards ESG by brand owners is a significant factor in driving sustainability efforts. As converters and manufacturers, we have various stakeholders to consider, and finding the right price point is crucial. While everyone wants value, the willingness to pay for it varies, especially regarding sustainability. Sustainability efforts should also come from within, as exemplified by a personal story. We were exploring how to expand Holostik, sustainability came up as a very strong agenda in the conversation.

But at that time, there was another category of product which we were looking at - plastic in particular. My eight-year-old daughter heard this and said, "Papa, you will not do this". My daughter reminded me of the importance of sustainability, which changed my perspective. It taught me what an eight-year-old today is thinking, who will be an 18-year-old consumer ten years down the line.  As entrepreneurs, we must set up our businesses with a 10-year plan in mind and move towards sustainability.

Harveer Sahni: Umesh, you've interacted with brand owners a lot. What is the take of brand owners when they're talking about development?
Umesh Kagade of HP Indigo: The driving force behind change is the younger generation. Fortunately, India has a population where 65% are aged 35 or younger. Thus, it is likely that these individuals will put pressure on brand owners to make sustainable choices. Many brands are already making efforts to create more sustainable packaging. At HP, we have been educating brands about sustainability, but we see an overall shift in attitudes towards sustainability. When presenting options to brands, a converter has two options. One option is where the cost of packaging is going to be less, but with limited savings on carbon emission.

Then there is another technology which is better for the environment, but will cost a little higher. At least 50% of brands would likely choose the higher-cost option with a lesser environmental impact. This is evidenced by SEBI's guideline for the top 1,000 companies to disclose their ESG score. HP aims to support brands in making sustainable choices.

Harveer Sahni: If sustainability is a prerequisite for print buyers, what are their main demands towards sustainability, especially when they want the labels to be sustainable?
Rajeev Chatwal of Kwality Offset Printers: Many customers are talking about either reducing the use of films or making the size of labels smaller.

Akshay Datta of Datta Press: In our line of work, we've noticed that our clients are interested in sustainable products. When it comes to beverage packaging, the focus is on the materials we use rather than how they are put together. Over time, we expect that clients will start to care about sustainable manufacturing practices, such as reducing waste and emissions. Wash-off labels have been around for a while, and now we're seeing this trend with self-adhesive labels. Eventually, sustainability will become the norm rather than a value. Moving forward, we need to pay more attention to how products are made, which will become increasingly important.

Harveer Sahni: In the case of mono-polymer pouches, 100% recyclability is possible. However, in self-adhesive labels or multi-layer constructions, each component, the facestock, the adhesive, the liner, and the silicone coatings -  all are different. How do you think you could try to achieve sustainability?
Sanjeev Sharma of Avery Dennison South Asia: Since pressure-sensitive (PS) products are a composite of multiple layers, the face and adhesive will go with the product. It will go through the lifecycle of the product. The necessary evil here is the liner which is made of silicone and paper. So we all as an industry need to come together and find out how we can recycle or reuse the liner.

Avery Dennison has already taken the initiative in several ways. You may already know about the AD circular program we launched, which enables us to recycle, reuse, or upcycle spent liners. As a printer, label stock suppliers, and end users, we must work together to reuse this liner. We have partnered with a paper mill that can convert spent liners into usable tissue, such as soft tissues. The industry is constantly improving, and we should not hold onto outdated practices from 20 years ago. We are making progress towards preventing materials from ending up in landfills.

Harveer Sahni: Is the adhesive compostable or recyclable? For example, can the PET bottle, along with the label, be recycled?
Sanjeev Sharma of Avery Dennison South Asia: It's important to note that no adhesives are compostable. However, Avery Dennison uses adhesives with 30% bio-content, made from renewable resources that are byproducts of paper mills. This means that a majority of our raw materials come from waste paper. While our adhesives are not compostable, I do not see a need for it to be compostable.

(l-r) Upal Roy, Akshay Datta, Hemant Paruchuri and Ankit Gupta

Harveer Sahni: What are the challenges Flint is facing as far as sustainability is concerned?
Upal Roy of Flint Group: At Flint, we prioritise sustainability through our Prism framework, which encompasses product, planet, and people. This framework aligns with the ESG (environmental, social, and governance) framework many large brand owners use.

Regarding products, we aim to promote a circular economy by introducing products that can be recycled or innovating sustainable alternatives. Additionally, we help customers reduce their greenhouse impact through curing systems like UV-LED.

We are committed to sourcing sustainable non-CMR raw materials (carcinogenic, mutagenic, and non-toxic) for reproduction.

In terms of the planet, we have set targets to reduce greenhouse gases by 46%, taking 2019 as our baseline, achieve zero waste discharge, and reduce water consumption by 5% by 2030. That's the target that we have taken up as a part of our sustainability commitments.

Safety is a top priority for our employees, and we aim to reduce total accident rates by 10%. As part of our commitment to governance, we require third-party suppliers to sign our code of conduct.

Harveer Sahni: What is the role of printing and converting equipment towards sustainability? We know that you are trying to reduce the waste. Other than that, what is the role of the printing equipment manufacturer?
Manish Kapoor of Nilpeter: Our first goal is to decrease the amount of waste produced during setup and production. However, the machinery's role in achieving sustainability goals extends to energy usage. The most significant innovation needed is reducing the energy consumption during the UV and hot-air drying of water-based inks. The shift from arc lamps to LED technology is a game-changer and is already being implemented. Hopefully, those in the ink industry will follow suit and expedite the process. We must continuously innovate to ensure our machines use less energy while producing more, ultimately reducing our carbon footprint.

Umesh Kagade of HP Indigo: HP Indigo is committed to sustainability and reducing waste. Unlike other printing methods, we don't use hot air dryers or UV-LEDs, which saves a lot of energy. Additionally, digital printing allows us to avoid unnecessary printing, reducing waste and saving energy in recycling. Our ink is also free of harmful chemicals, differentiating us from conventional printing technologies. These efforts demonstrate HP Indigo's commitment to sustainability.

Harveer Sahni: How are you looking towards improving profit margins with raw material costs and operating costs taking a beating?
Ankit Gupta of Holostik: The solution lies in increasing the budget. For instance, while hologram technology has traditionally been done using polyester, we have developed paper holograms that are more sustainable and innovative. This has helped us increase our profit margins, which were previously decreasing. It is important to note that sustainable products' price points may differ from traditional products, but it does not necessarily mean they are less profitable. As innovators and stakeholders, we need to work towards finding the right solutions for sustainability.

Hemant Paruchuri of Pragati Pack: Increasing the value of your product could lead to higher profits. Focusing on improving efficiencies and reducing waste can also contribute to greater profitability.

Upal Roy of Flint Group: I have two examples in mind. Firstly, using the same ink for both conventional and UV-LED helps us reduce inventory for our customers. Secondly, digitalisation, such as our vivo colour matching innovation. It reduces wastage and saves time for our customers. These sustainable innovations also positively impact our bottom line.

Akshay Datta of Datta Press: Investing in technology is the most effective way to ensure efficient product execution and increase margins. By creating value for your product through technology, you can find significant opportunities to improve profit margins. The key is to invest in the right technology for your specific product.

Harveer Sahni: Is linerless the way forward?
Hemant Paruchuri of Pragati Pack: Linerless labels have yet to impact the prime labels industry, but the direct thermal market is ripe for their use.

Sanjeev Sharma of Avery Dennison South Asia: I agree with what Hemanth said though Avery Dennison is working on linerless labels in the prime space. However, as I said, the liner is a necessary evil, but wherever possible, we must eliminate it. Avery's VI (variable Information) label is one such product category where we can do it very quickly.

Harveer Sahni: Your take on downscaling?
Sanjeev Sharma of Avery Dennison South Asia: In the past, some 40 years ago, when the applicators and converting presses were not as advanced as they are today, downsizing and reducing material usage was common practice. Back then, the standard product was often an 80-gsm semi-gloss or 60-micron PP. However, with the development of more advanced equipment, like die-cutters, we are now able to reduce costs and help achieve sustainability goals without negatively impacting performance anywhere in the value chain.

Manish Kapoor of Nilpeter: For Nilpeter, downscaling is being close to its customers. At Nilpeter, we prioritise being close to our customers, even if it's not a tangible benefit. We are proud to have three manufacturing locations, including one in India, which allows us to be as close to our customers as possible. This approach saves time, energy, and resources that would otherwise be required to transport services from a single point or multiple locations around the world. Not only does this benefit sustainability, but it also positively impacts our efficiency and profit margins.

Harveer Sahni’s concluding remark: We recognise the importance of sustainability and strive to reduce waste and conserve energy by using sustainable products that are made from recycled sources. As responsible citizens of this planet, it is imperative that we all contribute towards creating a safe environment for our children to live in.