A year of consolidation, tie-ups and expansions

Whatever else affected print in 2013, the year will always be remembered as a steady influx of new kit, expansion and one dominated by deals and alliances. The announcement of the new entity between Manipal Technologies and Utility Printpack was finally closed: and became a discussion point about the future of the industry.
 

The impact of the move has yet to be truly felt, but one thing is clear: that scale, efficiency and consolidation-or at least collaboration-are likely to play a bigger role as the industry enters a new phase. This is what Supreeth Sudhakaran discusses in his feature (page 36) along with Harveer Sahni’s profile of Manipal’s Gautham Pai (page 22), who is eyeing the Rs 2000-cr mark for his firm. The operations of Uflex, ITW, Paper Products and Huthamaki, Positive Packaging, Skanem Group and Repro India helps us understand how Indian print firms are exporting global work from the region; as well as winning local business.
 

A look at the balance sheet of some these firms indicates there have been encouraging signs of stabilisation; and most print firms have opted for “sensible” new machines which have enabled them to focus on the existing business. This is what we celebrate in The Star Products of 2013 (pages 47 to 81).
 

So what next? The agency ZenithOptimedia forecasts a rise in adspend of 4.5 per cent next year in ‘advanced’ Asian markets excluding Japan, and 11 to 12 per cent in what it terms ‘fast-track Asia-China, India, Indonesia, Malaysia, Pakistan, Taiwan, Thailand and Vietnam.
 

The September quarter saw a rise to 2.2 per cent from 1.6 per cent in the previous three months. Rural India is relatively insulated and expected to drive consumption with better agricultural yield in the coming months, it is not surprising that more than ever before, the focus for brands has expanded to rural markets.
 

This is good news for print. Something we forget is that tier-3 and -4 consumers need to be engaged in an analogue way. And print remains the best bet to reach them.
 

Wishing a profitable and prosperous year ahead to our dear readers. Happy printing.

Noel D’cunha, 

Deputy Editor, PrintWeek India