Digital labels improve Wonder Pac’s profitability

50-R: Minakshi Mittal and Trilok Mittal of Wonder Pac alongside the JETSCI ColorNovo digital label press

Wonder Pac India, the Sonipat-based label printer, earns nearly 35% of its revenue from exports. Apart from its customers across the country, it exports labels mainly to the neighboring Saarc countries. "The export marketplace is slap-up for packaging. Red china is a heavy consumer of labels. But it already has many label converters and is even an exporter of labels to other countries," says Trilok Mittal, managing director of Wonder Pac.

A narrow-web flexo label press user, Wonder Pac, bought a Mark Andy in 2003. It fabricated echo Marking Andy investments in an viii-color, and another 6-color narrow spider web flexo in 2011 and 2012, respectively. The 2012 press replaced its oldest label printing. "Nosotros didn't purchase a conventional flexo press after 2012. We are a significant supplier to cosmetic companies. The SKUs in cosmetics are more than in whatever other industry. However, the run lengths are significantly shorter – we get orders for 10,000 labels at near.

"At that place is a greater demand for embellishments, such as foiling and textured varnishes from cosmetic brands. Hence, such jobs are non viable on a flexo press because of the high relative wastage. The JETSCI ColorNovo label press that nosotros purchased from Monotech Systems comes with additional flexo stations that allow for a flat white on films and embellishments also. The flexo station is followed by an intermittent die-cutting unit, inline slitting, and a rewinding unit. It is a digital hybrid press," Mittal explains.

Mittal visited the Labelexpo Europe 2022 show in Brussels. He says, "The trend this time, shifted from conventional narrow spider web flexo presses to digital presses. With increasing SKUs, it makes sense for a label converter to operate with a combination of flexo and digital presses. Even in the alcobev segment, every visitor has longer runs for only one or ii of its products, and we go demand for shorter run lengths for all other products. Hence, this is the correct time to invest in a hybrid or a digital printing."

"As this segment has just begun to flourish, it was best for us to invest in JETSCI ColorNovo correct now. This printing offers more than flexibility and quality as compared to any other press in this segment and hence nosotros decided to invest in it. We have too made this investment keeping the time to come demand for embellished labels in mind. With short-run work increasing, at that place volition be greater competition in the market, and printing suppliers will then think most offer solutions at a viable price-point," adds Mittal.

Digital is more than assisting

Moreover, Mittal says that compared to narrow web flexo, the turn a profit margins in digital are college. The profit margins for a run of ii,00,000 square meters on a flexo press are slimmer compared to a run of 50,000 square meters on a digital printing. Wonder Pac'south boilerplate monthly turnover stands at Rs one.75 crore. The visitor performed relatively well in the showtime 2 quarters of FY 2022 – xx, but saw a sharp decline in Q3 sales. "Because of this, we look our overall growth not to exceed 10% in the financial year. Our investment in the digital printing paid off well," Mittal concludes.

Short runs assist cash flow

Mittal's wife, Minakshi Mittal, a partner at Wonder Pac Republic of india, says, "Since the terminal one year, we've encountered numerous payment bug. Most of the companies are not able to pay on fourth dimension. All the same, since digital allows us to take some part of the payment in advance, it has helped us in this turbulent time. We usually have 50% of the full amount in advance for whatever curt-run characterization press piece of work. These accelerate payments help us maintain the cash flow. The failure in payments is mainly due to the economical slowdown. It looks like the market will amend towards the end of Q1 in the next financial yr."

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Source: https://packagingsouthasia.com/type-of-packaging/labels/digital-labels-improve-wonder-pacs-profitability/

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