Kumar Labels and Delta Group announces joint venture, Delta & Kumar Labels

On its first overseas joint-venture Anuj Bhargava, chief executive officer, Kumar Labels, says, “We have been eyeing middle east as a prospective market for a long time know. With all top brands and best product decoration techniques used, it is the dream market for a printer.

While the Indian market is witnessing a string of consolidation and mergers, both Kumar Labels and Delta Group are on an expansion spree. .

The new printing facility is equipped with one eight-colour flexo printing press and complete arrangements of finishing equipment. The new printing facility is spread in an area of 5000 sqft with expansion possibilities of another 5000 square feet.

Delta Group is one of the biggest printing groups in Dubai and has offset, digital, screen, and wide-format under one roof. 

Kabeer Jalaluddin, chairman and managing director, Delta Group, says, “Kumar Labels is an established name in label printing market in India. Flexo was the only technology which we did not have in our stable. Therefore, the joint-venture further strengthens our commitment to the market.”

The more than two decades experienced printing business, Jalaluddin adds, “Delta & Kumar Labels’ next target is to capture the market in Africa continent for labels. We already have established a marketing office in Tanzania, and Bhargava and I will attend Labelexpo Brussels 2013 to see the latest development in label printing industry. Kumar Labels is an exhibitor at the show, and will display its off-line rotary die-cutting machine, under the brand name HassleFree Technologies.”

Delta already has a marketing unit in Tanzania that has been operating in the region from last one year.  Jalaluddin shares that they are expecting to make a breakthrough with a pharmaceutical client in next couple of months. “Both of us will go to Africa continent very soon to explore the opportunities for label printing. Nowadays, African print buyers are considering outsourcing their jobs to India. Indian printers are now meeting international standards because of better infrastructure, manpower availability and quality production. I visited Kenya, Ghana, Uganda, Sudan, and Tanzania and realised that there are ample opportunities for us. We find Africa is very potential market.”

Jalaluddin feels that the partnership will work both the ways. “If Delta is able to secure order from India then we will pass it to Kumar Labels, and vice-versa. For flexo, however, the parent company will be Kumar Labels. We expect an average growth of 25% in Delta group post the announcement of this joint venture”

Adding to Jalaluddin’s comments Bhargava says. “The arrangement will depend on the customers’ need and economics, and how fast can the job be delivered. He further says we are working on costing in Dubai as well as in Indian plant. “The plan is to localise label production,” he adds.

The joint venture is based on the principle of even amounts of sugar and butter. Entire technical support will be provided from Delhi and the marketing operations will be guided from Dubai. Delta Group has a strong marketing team of 30 people but they plan to establish a separate team for Delta and Kumar Labels.

Bhargava says while Dubai label printing market is quite competitive, we have entered with a different strategy and are planning to add few more machines for label printing within next six months. 

Jalaluddin shares that packaging printing and label printing market must be growing around 10 to 12% per annum around the globe. New ideas, new technologies and new quality parameters are coming in the market.

Jalaludin concludes by saying, “We have seen many printing presses closing down in Europe due to recession but yet to see any major impact on Indian market. That’s why most of the equipment manufacturers have lately shifted their focus to Indian market. Demand and quality of production will depend on customers’ demand.”

Govind Bhargava, president, All India Federation of Master Printers, says, “Kumar Labels’s overseas joint venture is a progressive sign for Indian printers and I wish all the best and luck to both the companies.”