Ajay Mehta: India will require 513 label presses

Ajay Mehta, director of SMI coated products made a thought provoking postulation on the market trends of the self adhesive labels at the LMAI conference in Goa.

03 Aug 2013 | 2608 Views | By Anand Srinivasan

He started his presentation by citing the advantages of self adhesive labels as a source of information, location for barcodes and other identification devices and promotional and decorational purposes. The self adhesive labels provide versatility and convenience for product development and marketing.

The reported usage of self adhesive labels in the world is 47 billion sq/metres (2011) while the per capita consumption in India is 0.25 sq/metre.

Self adhesive labels are used in the food and beverage industry. Mehta stated that the food and beverage have to gain ascendancy in the Indian market, even though it is strong in the personal care and pharmaceutical segments.

The key trends Mehta saw in the Indian label industry are: mergers and acquisitions; purchasing power of Indian firms; new capabilities for printers; quality standards across the industry; tougher competition for smaller players; double digit growth; implementation of manufacturing processes that maximises throughput and minimises cost and waste; and finally manufacturing excellence plus investment in top equipment.

Self adhesive labels are also manufactured digitally. It is currently in the range of 3-5% per annum. The growth of self adhesive labels can be increased by using conventional raw materials in the digital printers. By doing so it is going to face the challenges of waste-handling.

Mehta stated that recyclability and sustainability have always been an issue when it comes to packaging products. The LMAI perhaps doesn't have a committee dedicated to recycling and sustainability. But the question of how an organisation is handling the waste is prominent.

In India the wastes are being used up for landfills or energy recovery or as cushions or packing materials for glass, metal objects, pottery etc. The approximate waste generated in India is 3,000 tonnes.

Then in the main thrust of his presentation, Mehta looked at the growth numbers in India. He considered a 15 year period for his study to forecast the growth of self adhesive labels. He computed the number of machines India would require to convert label stock at a percent growth of 10%; 15% and 20%.

According to Mehta, if the Indian self adhesive industry grew by 10%, the approximate machines required will be 513 in 15 years, and 34 machines per year.

For a growth of 15%, the total label presses required would be 1,165, which means 78 presses per year; and for a growth of 20% , the total label presses required would be 2,368, which means 158 presses per year.

Mehta's presentation concluded with questions and answers. One thing was clear: The volume of self adhesive labels required will dwarf everything else, but to achieve this, the Indian label industry will need infrastructure and presses that can convert the labels.

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