Consumer demand boosts top packaging labels

Unilever CEO Paul Polman said at a Bengaluru press conference this month that the company will generate threequarters of its revenue from developing markets such as India and China by 2020 — almost 20% higher than today. Unilever labels like Kissan, Knorr, Annapurna, Tajmahal,
Bru, Lux, Rin, Ponds, Lakme, Close Up and Sun Silk that have straddled the urban Indian retail marts for decades are now moving to the smaller towns and rural interiors which have become the fastest growing areas for its Indian arm Hindustan Unilever. As per a Nielsen report released last week India’s poorest households with income below M72,000 annually will add US$ 3 billion (around M16,710 crore) to the sales of the consumer packaged goods industry by 2015.

The buoyancy in the FMCG and retail segment of packaged goods is unbelievable despite the fact that the overall economic situation is still to improve, with high fiscal deficit, low government investment spending, and extremely high interest rates prevailing in our country. Nevertheless
the demand surge has improved retail consumer spending significantly and its effect was observed by us at the recently concluded Labelexpo India in New Delhi, where exhibitors were happy and business was brisk. The live demos of narrow web label presses by both foreign and Indian manufacturers like Mark Andy, Gallus, Omet, Nilpeter, Gidue, Weigang, Multitec, RK Machines and several others livened up the atmosphere — creating a happening buzz for the show.

As per our information more than a dozen flexo label presses, digital label presses and other converting and inspection and finishing equipment were presold before the show and several more were finalized both during the show and immediately after. The label stock and associated consumables, accessory automation and software exhibitors did equally brisk business — established buyers and first time walk in visitors were impressed and looked satisfied. Another example of the packaging and label industry’s bouyancy came immediately after the Labelexpo India with the news of Huhtahmaki Paper Products acquiring Webtech. In our special Labelexpo review issue we cover these success stories.

Our article about Tata Elxsi in the Packaging Design and Marketing section reflects the growing awareness by consumer product companies for integrating branding and packaging design. In our packaging production section we cover FMCG packaging giants, Manjushree Technopack and Positive Packaging.

- Sandip Sen, edit1@ippgroup.in

Indian market woos the best of label technology

The demand-centric Indian market is proving that it has the capability to attract the latest global technology and capital to the country in a short time. This month we bring you two  shows in two different parts of the world that will give you an insight into the rapid emergence of the Indian printing and packaging  market and its ability to get the latest machinery and innovative process solutions. A few years ago machines, processes and software displayed in Labelexpo America would reach the Indian shores much later and only after its introduction in other parts of the world. Not any longer. The  Labelexpo Americas 2012 that attracted record audiences of label printing and  packaging professionals at the Stephens Convention Center in Rosemont, Illinois in mid September this year had manufacturers displaying several innovative machines and solutions that will be also showcased at the Labelexpo India exhibition during end October at Pragati Maidan  New Delhi.

                            Creed Engineers at Labelexpo India 2010

Among the major manufacturers who are showcasing similar range of machines in both the American and Indian label shows are Kodak with its print process control solutions, and its new Flexcel NX System range. EFI Electronics a world leader in customer focused digital printing innovation also plans to introduce Jetrion UV digital presses during Labelexpo India and market them through its recently appointed India agent Weldon Celloplast. Tresu, a global supplier of flexo presses and ancillaries for the flexo and offset printing market, plans to showcase its new developments in its chamber doctor blade systems for narrow and midweb flexo at the Labelexpo India. UPM Raflatac will present new solutions to show how labels can be used while Flexo Image Graphics will demonstrate Mark Andy, Xeikon, and Rotoflex machines at the biennial Indian show. Nuova Gidue, a manufacturer of printing and converting machines for the labels and the packaging industry will introduce the latest version of the M1 press for the production of self-adhesive labels and light carton and give a live demonstration of the process. However there are others like the home grown Cosmo that participated in the Chicago exhibition but will skip the Indian meet because they are currently focusing on development of new export markets.

The estimated 200 exhibitors at the New Delhi Labelexpo are twice the number that exhibited at Labelexpo America which included a sizable number of participants from Latin America. This shows the maturing demand and the needs of the modern Indian consumer who must have products in professionally packaged and labeled bottles, cartons or containers. The previous Labelexpo India attracted over 6,000 visitors from 60 nations in 2010 and the latest reports suggest that this year’s figures will be substantially higher. We are happy to inform you that Packaging South Asia is one of the media partners for the event and we will publish a daily email newsletter for all our subscribers and participants at the Labelexpo 2012.

- Sandip Sen
edit1@ippgroup.in

The biggest corruption is silence

Anti-dumping duty — are you happy or just keeping quiet?


The interim findings of the anti-dumping commission of the Ministry of Commerce suggested anti-dumping duties on the import of offset plates from China and Japan and these were notified for a period of six months on 4 June 2012. At the open hearing held by the commission at Udyog Bhavan, lawyers for the plate manufacturers and importers pointed to many flaws in the interim report — there are seemed to be errors in certain tables (called typos) and errors in reasoning such as the application of duty on the basis of square meters rather than weight. There was debate whether CtCP plates were to also be considered digital plates or whether the duties on conventional plates should continue to be applied on these.

Another issue debated was whether TechNova had actually suffered economic injury by Chinese and Japanese manufacturers’ exports of offset plates to India. As was pointed out in the hearing TechNova’s accounts were not available and thus the claim of injury was not convincing. The point made by TechNova that it was a benevolent monopoly was naturally refuted both by the lawyers and by the Kerala Master Printers Association which forthrightly stated that it preferred economic democracy rather than the ‘benevolent monopoly’ of a single supplier of a key technical and business input such as offset plates. Of course the argument against anti-dumping duties is simply that it will drive up the prices of offset plates and also that it could to some extent limit access to new, useful and environmentally friendly technologies such as CtCP.

Several prominent printers wrote to the anti-dumping commission before the open hearing and several more have written to it after the hearing. Although TechNova is treating the interim order as a ‘fait accompli’ — something presumed to be done and which nothing can change — in fact there is a possibility that the commission could do away with the interim duties that it has applied. Printers such as Thomson Press in Faridabad and Adarsh Printers in Bhopal have written strong letters and made representations against anti-dumping duties. The Kerala Master Printers’ Association has again made written arguments which dispute the very argument of injury to TechNova on the basis of financial figures that TechNova’s was subsequently forced to reveal.

In addition, Ranjan Kuthari the current President of the All India Master Printers’ Federation has made a statement that calls for the continued import of offset plates to the tune of 30% of plate consumption in the country. Although the statement claims that 26% of offset plate consumption is already imported we feel that the entire subject requires improved research and auditing which the AIFMP should invest in. In any case, the plea for 30% imported offset plates presumably without anti-dumping duty would imply that more imported plates are needed or desirable than at present.

The printers who have spoken out and sent their views to the anti-dumping commission are the tip of the ice-berg. As is the Kerala Master Printers Association which is fortunate in having a leadership that takes the trouble to seriously look at an issue affecting the entire industry and invests time and money in presenting its views to the government.

More printers need to study the issue (the interim report is available on the Internet at www.commerce.nic.in/writereaddata/traderemedies/adpref_Digital_Offset_Printing_Plates_
ChinaPR_Japan.pdf) and they need to give their views one way or the other. As we have written before, the anti-dumping duty on offset plates is an issue that finally has woken up the printers to an issue of importance and some  have come out openly and given their views. Many others continue to show apathy — either because they are afraid of TechNova or to be noticed by the government.

This is the time for printers to speak up and be counted — and also to ask their associations to speak up. We all lament the growing tide of corruption but the biggest corruption is our incompetence in learning about business issues that directly affect us and our silence even when the government has a commission that invites our views. You can give your views to Satish Kumar, director, telephone number 011- 2306 3642; eMail: satishk@nic.in; or, satprag@gmail.com.

Naresh Khanna 13 August 2012 from the edit-blog page of August issue Indian Printer and Publisher

It’s over but its not over: The summer after drupa

After a pleasant and unexpectedly rainy April and an equally unexpectedly temperate May, June is upon us in New Delhi. Fiercely hot with an occasional dust storm and daytime temperatures touching 44 and 46 degrees centigrade and night time lows above 30, we are now waiting for the rains – the monsoon which hit the Kerala coast on time at the beginning of the month, proceeded up the coast to Mumbai and is expected to reach us by the end of June.

If you were there at drupa, you were there. You made your choice and you saw what you saw and you learnt what you could. You had a good time, met up with printers across town that you haven’t seen for a decade. You saw many others who were totally unfamiliar, a sign of the Indians being the largest foreign contingent at the show. You met up with the sons and daughters of printers – the new breed of highly educated and very polite kids that only printers have. And then you came back to the heat and dust and the grinding work – trying to remember what you saw and trying to digest what it means.

In Delhi this has meant several events by paper manufacturers – itself unusual, but a sign that paper mills and traders are becoming aware of the possibilities of our large market and the necessity of increasing their branding. It’s no longer the sellers’ market that it once was.

Meanwhile we are putting together our drupa experiences for readers in what we hope are meaningful and digestible articles in both our magazines. This itself is a luxury – to have two magazines and one especially for packaging – the most earthy flavour at this drupa notwithstanding the digital raz matazz. There are some review events also, like the drupa impression event in Mumbai on 30 June where I have been invited to give an overview and share my understandings, skepticisms and futurisms on digital print and packaging.

These are generally good events and they reflect the enthusiasm of an industry that is still growing in the traditional ways of print. Often, the leading printers reveal the direction of their thinking and they are generally quite smart – they are part of an industry that is capable of realizing drupa for what it really is – a knowledge event that gets us thinking, debunking, sharing, enacting.

Naresh Khanna editor@ippgroup.in

Finance Industry notifies interim anti-dumping duty on digital offset plates

Naresh Khanna

In a communication received by us on the evening of 5 June 2012, we learnt that the Ministry of Finance of the Government of India has on 4 June 2012 notified the anti-dumping duty basically following the findings and guidelines recommended by the interim findings of the anti-dumping commission of the Ministry of Commerce. The only modification that we notice is a formula to convert the various thicknesses of offset plates taking into account that 1.318 square metres of aluminium offset digital plate is equal to 1 kilogram. This is apparently to take care of the fact that imported CtP plates subject to the anti-dumping duty are imported in varying thicknesses.

The anti-dumping duty is notified on the basis of the US$ prices per square metre as given in the preliminary findings. However the anti-dumping duty imposed under this notification (Notification No. 31/2012-Customs (ADD) New Delhi, the 4^th June, 2012) shall be effective for a period not exceeding six months from the publication of this notification in the Official Gazette and shall be payable in Indian Rupees.
 
Our view:
It is hoped that the final findings that were expected to be delivered by 1 June 2012 will actually be delivered sooner than later and that they will take into account the various anomalies pointed out by the concerned parties during the open hearings and in submissions thereafter by the concerned parties and several medium and large printers across the country. We also hope that the fragmented printed industry will continue to come together to discuss this issue and to make their views known to the anti-dumping commission. Meanwhile all imports of CtP plates are immediately subject to the given rates given in US$ and to be paid in the currently equivalent Indian Rupees.

Anti-dumping on offset plates – final findings delayed?

Like many concerned industry watchers we were expecting the final findings of the anti-dumping commission of the commerce ministry to arrive last week. See our earlier edit-blogs at http://indianprinterpublisher.blogspot.in. Apparently the visits by commission members to the relevant factories of the Chinese and Japanese manufacturers took place in May. Subsequent to the open hearing in which lawyers from TechNova, Kodak, Fuji, Lucky Huaguang Graphics and the Kerala Master Printers Association spoke, written submissions were made by them and other concerned parties. Printers of varying sizes from all over India have written to the commission and met its members to express their objections to the anti-dumping duty on digital offset plates.

While it is too early to say what the final findings will be, one cannot deny that the delay has given hope to many of the printers who have dared to speak out against TechNova’s claim of injury. These include Thomson Press, Pragati Offset, Adarsh Offset, the members of the Kerala Master Printers Association, and several others. As we wrote earlier, the fragmented printing industry mostly consisting of small and medium players is maturing and finally some of the medium and bigger players are finding their voice and speaking out on record. Anti-dumping duty apart, this is the biggest change in the Indian print industry – that they can with some concerted efforts act individually and together (as in the case of the Kerala Master Printers Association) for some worthwhile business objectives beyond their own individual and personal benefit.

The issue of anti-dumping duty on offset plates is important and printers and their state associations, and in deed, the newspaper, magazine and book publishing associations must also look at the issues, enter the discussion and give their views to the anti-dumping commission of the commerce Ministry. They must also communicate to the Finance Ministry that the interim findings not be not be notified until all the questions raised by the concerned parties are answered and taken into account in the final findings.

                                                                                         
          — Naresh Khanna
editor@ippgroup.in

An example of the communication sent to the Anti-dumping Commission of the Ministry of Commerce, Government of India, Udyog Bhavan, New Delhi by Ashish Rajoria of Adarsh Printers in Bhopal, that was shared with us.

Dear Mr. Satish Kumar,

We are Offset printers based out of Bhopal and we wish to register a strong objection to the proposed anti dumping duty on offset plates.

In our views Technova is trying to further strengthen its monopoly in the market. You must be aware that Technova has already either bought or forced the competition to close shop (example Stovec and Neeraj).

There are many small printers who have paid a higher price for a CtCP machine, based on the fact that their variable cost will be lower as they can use conventional offset plates.

We are reminded of the days when automobile industry was averse to the opening of the market to the international players (example Bajaj etc were against opening of the market to international players). It is worth mentioning that even after the opening of the economy, Bajaj has grown and is a market leader. So why does Technova want to have anti dumping duty, they should be satisfied with being a market leader and let fair competition prevail.

It is also note worthy that there are various printers who are exporting print, any such duty will only add to their production cost. Fact remains that Indian printers are barely able to compete with Chinese printers, why should Govt. of India make it impossible to printers to get any export orders at all.

We hope we are heard and justice is done by not imposing anti dumping duty on offset plates.

Thanks and kind regards,

Ashish Rajoria, Director, Aadarsh Pvt. Ltd.

Shikhar Varta, 4, Press Complex, Zone 1, M.P. Nagar

Bhopal 462011 (M.P.), INDIA

Cell.: +91 9893062555, Fax: +91-755-2555449

E-mail: a.rajoria@aadarsh.com

Anti-dumping Commission: Satish Kumar, Director, telephone number 011- 2306 3642; eMail:satishk@nic.in ; or,satprag@gmail.com . You can also download the preliminary findings from www.commerce.nic.in/writereaddata/traderemedies/adpref_Digital_Offset_Printing_Plates_ChinaPR_Japan.pdf

Printers begin to speak out on the anti-dumping duty on offset plates

From license raj to monopoly raj

                               Udyog Bhavan, New Delhi

                       

As we wrote in December and earlier this month, the fragmented printing industry is composed of more than one lakh mostly owner managed plants. For several reasons (both good and bad), these printers rarely speak out or articulate their views on any substantive issue even if it directly affects them or their business. 

However, on the anti-dumping duty sought to be imposed on the import of CtP offset plates, printers are beginning to look at the issue seriously and are speaking out more and more. This is a huge change in the printing industry as the better educated second and third generation owner-promoters are bolder in their thinking, and also more outspoken on issues such as training skilled workers, safety, environment and those of direct business concern such as taxes, imports and competition. These printers are increasingly ready to become visible — they are coming out from under the radar. 

As far as the anti-dumping duty sought to be levied on CtP offset plates, the preliminary findings including the suggested anti-dumping duty rates were distributed by the Directorate of Anti Dumping and Allied Duties of the Department of Commerce and an open oral hearing was held at Udyog Bhavan in Delhi on 10 April 2012. The meeting was attended not only by TechNova which has sought the imposition of the duty and the international plate manufacturers and importers but also by some publishers, printers and printers’ associations. Apparently most of the time was taken up by the lawyers and while TechNova’s lawyer spoke first and last, it seems that the lawyers of Kodak, Fuji and Lucky Huaguang Graphics made several telling points. Reiterating their stand on various issues they disputed the very premise that TechNova has suffered any injury at all, because TechNova’s recent and current financial statements and profit and loss accounts are not available to be seen anywhere, not even by going to the Registrar of Companies (ROC). 

The lawyers also pointed to several places in the preliminary findings where there seem to be typographic errors in the tables of figures which means that there is no way to figure out what is really what — at least not from the numbers and tables given — for an individual printer trying to understand what this means. I suppose that these errors will be examined and explained — and/ or corrected and refuted. At the hearing there was no refutation of these numerical table errors. (Written arguments and refutations have been called for by a date later this month.) Nevertheless, even the computation of the price of imported plates when it actually reaches printers was disputed since these prices are already in many cases the same or higher than TechNova’s. Another significant point was how anti-dumping duty could be applied to plates on a square metre basis rather than by weight, when offset plates are actually supplied in three different thicknesses? How can anti-dumping negate a printer’s efforts to decrease his/her costs by buying and using thinner plates? 

In spite of lobbying with several big printers and newspapers, the only publisher or printer who spoke out clearly in support of TechNova at the open hearing was a representative of the Dainik Jagran newspaper group. One hears that what was not disputed was that since 2008 TechNova has grown by as much as five times and that it enjoys more than 70% market share. In fact TechNova’s own lawyer described it as a benevolent monopoly. It seems that one of the plate manufacturer’s lawyers and the Kerala Master Printers’ Association representative pointed to the obvious dangers of being subject to the benevolence of a monopoly that may see fit to change its mind at any time on any issue. 

Several printers have spoken to me over the past two weeks. A small prepress house in Delhi has even cancelled its CtCP order since CtCP plates would suffer the highest anti-dumping if the preliminary findings are implemented. Another local printer Aman Gulati that I visited, told me that he is completely against the imposition of anti-dumping duties and feels that the owner of TechNova is only trying to make the most of his company in order to sell it off. TechNova of course should get credit and acknowledgement for what it has done to bring modern plate technology to Indian printers. However TechNova is not satisfied with mere praise or market dominance, it wants to own the market in order to monopolise it. This no longer seems possible since the economy has been liberalised and modernised and the printing industry which is slowly getting organised has been one of the biggest gainers. 

To grow further printers will have to invest more than their money, they will have to learn the complexities of business issues and governance that affect them, since many more will arise in coming years, and they will have to learn to speak out. Whatever your views, dare to communicate these to the antidumping commission. This is an important institution — one which is a bedrock of fair play and competition for a modern democracy and for global trade.

– Avinandan Mukherjee

edit8@ippgroup.in

Anti-dumping Commission: Satish Kumar, Director, telephone number 011- 2306 3642; eMail:satishk@nic.in ; or,satprag@gmail.com . You can also download the preliminary findings from www.commerce.nic.in/writereaddata/traderemedies/adpref_Digital_Offset_Printing_Plates_ChinaPR_Japan.pdf

Preliminary findings in TechNova’s CtP offset plate anti-dumping case

Hearing on anti-dumping duties on offset plates on 10 April 2012

In a document (F.No.14/7/2011-DGAD)dated 16 March 2012 from the Directorate General of Anti Dumping & Allied Duties of the Ministry of Commerce of the Government of India, the preliminary findings have been stated on the “Imports of Digital Offset Printing Plates originating in or exported from China PR and Japan.” While the document discusses the issues at some length, essentially the findings propose varying anti-dumping duties against plates imported from Japan and the Peoples Republic of China which will have the effect of increasing the prices of these offset plates. The benchmark price of violet CtP plates has been suggested or indicated at US$6.6; for thermal CtP plates at US$ 5.84; and, for CtCP plates which are also being considered as digital and not ‘conventional’ plates, the benchmark price has been suggested or indicated at US$5.26.

The implications vary from printer to printer and from plate to plate. An approximate calculation which includes a 10% markup for the importer/distributor/channel partner on the net effect of the anti-dumping duty has been made on the basis of one US$ is equal to INR 51.2. The net effect seems to be that violet CtP plates which are currently available around INR 370 per square metre will cost around INR 430 when the anti-dumping duty comes into effect. Thermal CtP plates will go from the current price of INR 320to 360 per square metre to at least INR 380. And, CtCP plates which currently cost about INR 260 per square metre will go up to INR 340.If these anti-dumping duties are affected as suggested by the preliminary findings, the prices of thermal CtP plates will be the least affected and those of CtCP plates will be the most affected.Violet plates will be affected by a value that is in between the other two.

It is ironic that CtCP plates are the most affected, since CtCP devices have also been purchased by printers in smaller cities and towns or by trade houses who supply plates to printers who cannot afford their own CtP of any kind bu tare keen to improve quality. In addition since the manufacture of graphic arts films has been stopped by most manufacturers,increasingly, smaller printers have no choice if they want to improve print quality or compete, but to go to CtCP which they thought was cheaper because it worked on conventional plates that are manufactured by TechNova within India and are also competitively available as imports.

It is true that many of the leading commercial and packaging printers who use thermal CtP plates will be least affected by the price increase since it is likely that they are not buying plates imported from China. However the middle rung printer and the lower-middle rung printers who have bought a used 4-colour press or are thinking of buying one will be the hardest hit whether they buy their own violet computer to plate device or whether they first get their feet wet by buying plates from a trade house which supplies to many printers in the area. Especially hard hit will be the CtCP systems which are becoming more and more popular because there is clear cost saving that brings a film-less quality improving technology based on widely available conventional plates to the smaller towns and cities.

There is a lot of discussion in the preliminary findings about CtCP because TechNova wants to establish that CtCP too is a CtP device and that conventional plates and those especially meant for CtCP are also digital CtP plates. In fact when conventional plates are made especially for CtCP they can be made even more cheaply because the matt layer for vacuum can be dispensed with.

My view is still what it was earlier,that these issues are not meaningfully addressed or discussed by the industry at large because it is so fragmented and inarticulate. It seems that most of the printers associations are also silent if not complicit. The only recourse for printers is to download the preliminary findings and study them and calculate the effect on your business now and going forward. I think that most printers would not like to harm TechNova but would simply like a level playing field in the sourcing and prices of plates so that they can be increasingly competitive and survive.

There is an open oral hearing in Delhi on 10 April 2012 at Udyog Bhavan at which interested parties can attend. I urge printers, publishers and packaging converters to attend and to also ask their associations to try and take a meaningful stand for the community as a whole. You can register by emailing or contacting: Satish Kumar, Director, telephone number 011- 2306 3642; eMail:satishk@nic.in ; or,satprag@gmail.com . You can also download the preliminary findings fromhttp://www.commerce.nic.in/writereaddata/traderemedies/adpref_Digital_Offset_Printing_Plates_ChinaPR_Japan.pdf. We plan to put a poll on our website in which you can also give your views on this matter as well.

Naresh Khanna

editor@ippgroup.in

The smooth TechNova machine and the fragmented printing industry

(This article was first posted on 3-December, 2011)

TechNova has filed an anti-dumping duty case against the import of Computer to Plate (CtP) or what are known as digital plates. This case is directed against both Chinese and Japanese manufactured CtP plates. TechNova essentially says that China is a non-market economy, its currency is undervalued and that it subsidises the plates manufactured not only by Chinese manufacturers in China but also by the three multinational manufacturers in China: Agfa, Fuji and Kodak. However among the multinational manufacturers it only accuses Fuji and Kodak of selling plates at subsidised prices in India and not Agfa which is the technology supplier to TechNova of long standing.

As far as raw material prices being subsidised, this year the Shanghai Metal Exchange prices for aluminium have been considerably higher than the London Metal Exchange rates and the purchases by multinational players such as Fuji and Agfa are not subsidised -- in that sense multinationals in China are part of a market economy. The current aluminium prices are also much higher on the Shanghai Metal Exchange than on the London Metal Exchange. (Aluminium ingot prices in August 2011 – LME US$2,400; SME US$2931 – Source respective websites)
In any case we cannot know at what price TechNova buys litho grade coil from Hindalco or anyone else. Meanwhile the application for safeguard duty on import of aluminium from China has also been withdrawn by the government order of 13 October 2011 which rules the issue as ‘infructuous.’ Thus TechNova can also import aluminium at whatever competitive rates it can find without having to pay any safeguard duty.
By and large offset printers have to their credit upgraded their technologies and taken on many of the infrastructural challenges in spite of being a fragmented collection of smaller companies. In this respect TechNova has always been extremely articulate and has been the opposite of fragmented. It has in fact been able to consolidate or acquire every other organised Indian plate manufacturer over the years – be it Lunar, ATE-Stovec, or Lastra Niraj.
However one cannot criticise TechNova for being articulate or being forceful and effective in putting its case to the government on anti-dumping duties. Nor can one criticise the printers for speaking with several voices or not speaking at all, since no one really wants to take on TechNova or to have less than good relations with what is certainly the largest and most dominant local supplier. Thus the discussion has been muted or non-existent. The AIFMP is supporting TechNova’s case while the only association to speak out against the anti-dumping duty is the Kerala Master Printers’ Association.
“After implementation of anti-dumping duty, the possibility of a monopolistic player calling the shots is a clear obviousity. The argument that the competitors’ plates are being dumped and being cheaply priced is completely false as both Kodak and Fuji plates are priced higher than TechNova,” said the letter written by the Kerala Master Printers’ Association to the Directorate General of Anti Dumping and Allied Duties DGAD. The association also said that it is a common inference that the plates from Fuji and Kodak have superior print quality.
The KMPA resolution states, “We strongly object to the malicious intention of introducing anti-dumping duty by TechNova as it will spell doom to this already fragile print-fraternity and have decided to move the papers to (DGAD) and inform all concerned parties to join this campaign so that a wrong decision is not imposed on the printers of India.”
The fact is that the Indian market is a compelling market for the leading manufacturers of offset plates and the Indian printers must have access to the widest variety of technology and performance. From my point of view Indian printers who want to buy Chinese or Japanese plates should be allowed to do so without having to go through roundabout invoicing techniques to circumvent tariffs or anti-dumping duties. I do not think that the Chinese government is keen to subsidise Indian printers. I also do not think that either the Chinese government or Kodak or Fuji are out to bankrupt TechNova which has continued to dominate the high growth Indian market for offset plates. They only want a fair shot at the compelling Indian market just as the printers want a fair shot at buying whatever plates they find useful or competitive in order to excel or to remain in business. The printers want to continue to compete successfully with Chinese and global printers when and how they choose to do so.

Packaging at drupa 2012

From our several visits to drupa previews we have
gathered that this event is going to be an important
event for both the global as well as the Indian
packaging industry. Exhibitors from all parts of the
world including China and India will be showing a
higher proportion of packaging products. For
instance, equipment manufacturers such as Fuji,
Screen and Kodak will be showing digital flexo
imaging equipment in addition to Esko-DuPont who
have practically had the field for themselves so far.
Epson will be showing a new single pass label press
and there are sure to be many more digital label and
even carton presses at the show.

In fact Fujifilm announced at the preview last month
that it will be demonstrating its inkjet carton press at
drupa 2012. And both Gallus and Omet who are known
for their label presses will be showing narrow web onepass
carton presses at drupa 2012. Goss which normally
talks about its newspaper and commercial presses, will
this time show an innovative development of their
Sunday press for packaging. And one should not forget
that Goss owner Shanghai Electric has a strong product
line of autoplaten die-cutters and folder-gluers.
These are just a few examples to illustrate the fact that
packaging is the strong area not just in India but
worldwide. It’s not just in India that commercial
printers are turning to packaging printing and
converting. And it’s not just in India that converters
are turning to sample-making, short run cartons, and
POP displays for the same packaging customers.

The Indian exhibitors at drupa are also more focussed
on packaging right from the UV curing specialist APL
Machinery, to Proteck, which will show a more
developed and complete offering of its Metamation
software than it showed at the Innovation Park last
time, with several add ons for packaging prepress.
Kohli Industries will be at drupa promoting its gravure
presses and Shilp Gravure will not only sell its special
application engraved cylinders but also further
develop its technology partnerships to strengthen the
packaging industry in the region.

The Chinese exhibitors at drupa also bring a bias for
packaging to this years show. While at drupa 2008 the
Chinese die-cutter and folder gluer manufacturers were
numerous they were shy, while at drupa 2012 they will
be able to point to an already large install base around
the world and not least, in our country. The range of
Chinese suppliers now includes several high-end
manufacturers of automated converting equipment who
will be demonstrating faster equipment with many of
the latest automation features.

We also expect this to be a drupa that is ready for
business networking, alliances and partnerships. There
has already been great consolidation amongst printers
and converters in Europe and we expect that there will
not only be a lot of interest in technology partnerships
for manufacturing in India but a great deal of
discussion between global printers and converters who
are looking to enter the Asian and Indian markets.

As drupa media partners, free visitor tickets were made
available online to our readers from our website. As we
have mentioned, these were snapped up quickly, We
are happy to announce that Hemant Sharma, Anurag
Jain, Jignesh Lapasiya, Jitendra Bhatia, Suresh
Panicker have won free one day tickets to drupa. We
will contact them directly soon and provide them with
the instructions on how to download their free tickets.

The drupa organisers have very generously given our
research company IppStar a slot to present some of
our findings and forecast about the Indian print,
publishing and packaging vertical. We expect a good
turnout of CEOs, senior executives, strategists and
analysts at this event from companies that are looking
for data based on deep domain primary research and
insights and forecasts that point to some of the
challenges and opportunities for our fast growing
industry. At drupa 2012 you can meet me at Hall 9
A39. See you there!

Naresh Khanna
editor@ippgroup.in
+919811172224

Why Indian offset printers are moving to packaging

Diversification from one business to other is something all businesses do once or twice in their lifetime. Printing is an ancient industry and its most popular and recent form lithography, has grown to fully automatic, sensor controlled, giant printing presses.

In the course of this growth, it has seen many technologies -- some that it embraced and others it threw out. In this time the industry evolved to a certain level of standardisation to replace the less technical or craft-like interventions formerly needed to control its process, and this has perhaps made the industry stable to a large extent. As a rule we know that where there is a movement, there is a growth. Printing has seen great movement and change in the past 500 years but in the developed economies it is now threatened by sudden stagnation.

I meet many printers who have moved or are in the process of moving their focus from printing to packaging. Reasons? One is technological stagnancy apart from digital inkjet and new media. In offset there is no major research and development going on and in the past ten years no major revolutionary changes have been incorporated in the process – the improvements in automation are thus far incremental. This and excess capacity in the developed economies, has led to the death of many printing press manufacturers and printers as well. Another reason for the diversification to packaging at least in India, is that packaging is growing at a faster pace than commercial printing and the machinery needed is similar with a few mechanical changes in the post press area from binding to converting. Thus you can start a packaging unit simultaneously while running a commercial printing plant!!

Rashmi Bhate edit3@ippgroup.in

Tracking polymer prices in 2012

First rise after initial dip in January

The prices of polymers, the key input for the flexible packaging industry, have increased possibly because Reliance, the biggest Indian polymer manufacturer, has shut down three of its production units for annual maintenance in the end of January 2012. In the end of December 2011, Haldia Petrochemicals also closed down some of its units for maintenance. Domestic polymer manufacturers increased the prices of polypropylene (PP) and polyethylene (PE) by Rs 3,000 a tonne and Rs 1,000 a tonne, respectively with effect from 9 February 2012.

This is the first rise in polymer prices in the current calendar year although in January 2012, Indian polymer manufacturers twice reduced the price of PVC to match the international price of PVC. In January, the basic variety of PVC was priced at Rs 58,500 a tonne in the domestic market, which was higher than the imported variety of PVC. Thereafter, Indian manufacturers reduced the price of PVC by Rs 3,500 a tonne.

The main reason for raising the prices of PP and PE is capacity reduction not a rise in input prices or a spurt in demand in the domestic market. Polyethylene (PE) and its variants, high-density polyethylene (HDPE), low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE), are extensively used in manufacturing different types of packaging products, such as woven sacks, multi-layer and mono-layer carry bags, tarpaulin, and small, medium and bulk containers for packaging edible oil and processed food, lubricants, detergents, chemicals, pesticides, houseware amongst other products. Polypropylene (PP) and its variant, biaxially oriented polypropylene (BOPP) are widely used in flexible packaging of processed food, pharmaceutical, FMCG and cosmetics and personal care. Therefore, the rise in prices of polyethylene and polypropylene may increase the packaging cost of a variety of consumer products, which in turn may be passed on to end-users.

Apart from the domestic market, the prices of polymer, especially PE, have also increased in the international market in February 2012 by US$ 100 to US$ 120 per tonne to $1400-$1420 per tonne. As per industry experts, this is the outcome of high polymer demand in China, Taiwan and Japan after the Chinese New Year. As a result, Indian imports of polymer also became dearer. Since prices of polymer are increasing and domestic demand is not rising, manufacturers are offering price protection schemes to woo customers. In price protection schemes, manufacturers compensate the customers if the company further reduces prices within that week or month.

Asia Pacific growth mantras — Team India at drupa

Slightly less than 30Indian exhibitors are gearing up to be part of an unprecedented Asia Pacificpresence at drupa. China itself is the biggest exhibitor with more than 11,400square metres of exhibition space and 239 exhibitors! In addition there are 7exhibitors from Hong Kong and 30 from Taiwan. Even the manufacturing powerhouseof Japan comes behind China also we suspect that much of the space and many ofthe exhibitors listed under the United Kingdom are perhaps Japanese companieswith a European base in that country.

Taiwan has the samenumber of exhibitors (thirty) as India and South Korea but occupies more spaceat 2,168 square metres. India and Korea both occupy approximately the sameamount of space of around 1,400 square metres although the Indian exhibitorsspace is marginally higher. Altogether there are eleven Asia Pacific exhibitorsincluding Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia,Philippines, Singapore, South Korea and Taiwan.

Although the Indianprint equipment exports have also suffered from the slowdown of the industry inNorth America and Europe, the exhibitors at drupa are optimistic. The feelingis that the slowdown has mostly affected the bigger western manufacturers, anda country like India with its burgeoning economy and huge demand for educationand print can, as a whole, step up its game. As the the Indian equipmentcompanies absorb new automation components and technologies, their competitiveengineering design and manufacturing are being recognised the world over andthey are focusing on the more vibrant markets of Asia, Africa and LatinAmerica.

There is an overallmaturity amongst the manufacturers all of whom are well established companiesand many have been at several drupas before this one. An added feature at drupaon 9^th May 2012, is IppStar’s presentation of its research and trendforecasts of the Indian print industry. Indian Printer and Publisher and PackagingSouth Asia magazines and IppStar would be present at Hall 9 Stand—A 39along with our Independent Media Alliance partners from Europe, Korea andAustralia.

Indian exhibitors atdrupa 2012

LIST OF THE INDIAN EXHIBITORS AT drupa 2012(in alphabetical order)
Sl. No.	Name of the company	From	Hall & Stand No.
1	ACME Machinery	Mumbai	12 E40
2	APL Machinery	Faridabad	12 B35
3	Chemline India	New Delhi	13 D91
4	Convertech Equipment	New Delhi	12 C39
5	Cosmo Films	Aurangabad, Maharashtra	03 F16
6	DB Engineering	New Delhi	12 E44
7	Diehard Dies	Guntur, Andhra Pradesh	10 B70
8	Ecoaxis Systems	Pune	16 A09
9	Expert Industries	Anekal Taluk, Bangalore	03 C52
10	Garware Polyester	Waluj, Aurangabad	07.1 E25
11	Grafitek International	New Delhi	15 B22
12	Holostik India	Noida, UP	06 D73
13	Indian Printer and Publisher, Packaging South Asia, and IppStar	New Delhi	09 A39
14	Kohli Industries	Thane	03 F88
15	Lineomatic Graphic Industries	Ahmedabad	11 B41
16	Manugraph India	Mumbai	06 E80-1 & 06 E80-2
17	Metamation Software	Chennai	07A E12
18	Mona Equipments	Gautam Budh Nagar, UP	06 D64
19	NBG Printographic Machinery	New Delhi	03 D35
20	Patel Enterprises	Mumbai	15 B14
21	Prakash Webtech	Faridabad, Haryana	15 D55
22	Print-O-Graph Machinery Industries	Navi Mumbai	03 F31
23	Radix Software Services	Ahmedabad	08B C11
24	Ronald Weboffset	Faridabad	15 A08
25	Shilp Gravures	Gandhinagar	05 B40
26	Shree Refrigerations	Karad	03 E91
27	The Printers House	New Delhi	16 C47-1
28	UFlex	Noida, UP	06 A38
29	Zenith Rubber	New Delhi	06 E75

- Avinandan Mukherjee