At its Guwahati plant, Haryana-based Sai Com Codes Flexoprint recently installed another Nilpeter narrow-web flexo press, an 11-color FB 350. This is Sai Com’s seventh Nilpeter press and the third for its Guwahati plant. The Guwahati plant, located in Rani Industrial Area, already had a 10-color and an 8-color narrow web flexo press from Nilpeter. The fully loaded narrow-web flexo press has 350 mm web width and screen printing capability. The press was installed in March 2022 in just 15 days.
Harish Gupta of Sai Com Codes Flexoprint said, “Technically, it is a 12-color printing press with three screen printing units that can be installed anywhere in the press. The additional screen units are for print embellishment. In addition, the press has a special attachment to produce multi-layer labels. This is the first time we have invested in a press with more than 10-color units to meet our increased demand.”
The plant contributes 35% to the company’s total business. Gupta said that the addition of the new press would increase the plant’s productivity by 40%. The demand from its FMCG clients in Guwahati and the desire to be closer to them and cater to them locally pushed Sai Com Codes to set up a plant in the city, he added. The Guwahati plant currently employs around 100 people.
Sai Com Codes now has label production facilities in North (Sonepat – 4 Nilpeter presses), North-East (Assam – 3 Nilpeter presses), and West India (Vapi – 1 Mark Andy P7 10-color press), all working in tandem to produce high-quality pressure-sensitive labels for various industries, including pharmaceutical, cosmetics, oil, food, liquor, and perfume. In all, the company has seven Nilpeter presses, one Mark Andy P7 press, eight Rotoflex VS1, one Konica Minolta Accurio Label 230, and an HP Indigo 6900. The digital label presses – Konica Minolta AL 230 and HP 6900 – are installed at the company’s new digital label printing plant, Sai Digistik in Rai, Sonepat.
“We strongly believe in providing high-quality, value-added products to our customers. In line with that, we invest in the latest technologies to keep ourselves up to date with the latest market requirements and trends. This helps us fulfill our customer requirements with expected quality and value; simultaneously, we also grow mutually with our customers. Our latest investment in the Nilpeter press in Guwahati is a testament to that. The press will further strengthen our goal of providing high-quality labels to our customers in Assam and its neighboring states,” Gupta said.
Manish Kapoor of Nilpeter India, said, “Sai started its journey with Nilpeter and eventually became our biggest customer in India. I am delighted with our association. Chennai is now the global hub for Nilpeter’s FB series which is being exported to North America, Europe, Asia and Africa. We have a consistent product line – FA, FB & MO – we keep on building these lines by bringing in new technologies and increasing the automation level. We also manufacture our own gravure printing units and flatbed foil stamping units. Press downtime is a major concern in today’s competitive time. Being local, we can supply parts and services to our customers in India in just a matter of hours.”
Uncertainty in the market
“More than decreased volume, uncertainty in the market is now a major concern. Our customers are unwilling to give projections, and in this scenario, how can a label printer invest further? Meanwhile, paper prices are changing every fortnight. But being a label converter, we cannot demand different prices from our customers every fortnight. Long delivery times and extreme price increases in the label supply chain are causing huge problems. Lead time for paper-based label materials is 6 to 7 weeks. I hope the situation will improve in the coming year.”
Word of caution for new entrants
Gupta said, “Volume has come down significantly since Covid. Two years hence, the market is still down by 15-20% compared to the pre-Covid era. There are multiple factors affecting the market – first, it was Covid, now it is the rise in raw material prices. Another threat that is looming in the label industry is predatory pricing. The relatively low entry cost for label production – especially with the local manufacture of label presses – is further eroding the market. The market is now overcrowded with new entrants who are unleashing a game of predatory pricing, forcing us to follow suit and lower the prices.”
While raw material prices have risen, the brand owners are not easy to convince to pay more. The label converters who have been able to get price increases are the mid-segment, technically sound converters with several presses and robust infrastructure. Gupta said, “Increase in raw material price has spared none but the worse hit are the new entrants with limited machinery. If the situation does not improve soon, they may soon have to move towards consolidation, or even worse, sell off their machinery and quit.”