Role of holographic excise adhesive label (HEAL) in securing tax revenue, protecting consumer and curbing illicit liquor trade

1. The Holography Times The Holography Times
Endeavour to protect products and people March 2012 | Volume 6 | Issue 17
Andhra Pradesh
Chhattisgarh
Haryana
Himachal Pradesh
Jharkhand*
Karnataka
Kerala
Madhya Pradesh
Meghalaya
Orissa
Punjab
Rajasthan**
Sikkim
Tamilnadu
Uttrakhand
Uttar Pradesh
Delhi NCR (UT)
Puducherry (UT)
17 States in India
used more than
1500 crore
holographic excise
adeshive label
(HEAL) in 2011.
This has not only
minimized the
hooch tragedies
and duplication,
but has also
substantially
increased the
excise revenue
collection in States.
HoMAI
quarterly newsletter
www.homai.org 1
www.homai.org
Role of
Holographic Excise
Adhesive Label (HEAL)
- Securing tax revenue
- Protecting consumer
- Curbing illicit liquor trade
* Tender fl oated in January 2012
** State excise department has stop
using HEAL since November 2010

2. The Holography Times News Bytes
2 www.homai.org
Note: Products shown here are only for reference

3. The Holography Times
Viewpoint
Dear Readers,
Welcome to the 17th issue of The Holography Times.
Illicit liquor trade poses a serious threat to government,
socially as well economically. Excise duty which is an
important source of revenue is continually under threat
from the practice of illicit trade. Considerable amount of
money which could be used to benefi t the government
services of a country are being diverted to the pockets
of criminals participating in illegal trading. In addition, the
illicit trade in liquor poses a serious threat to consumer
health.
To counteract it, some State governments have
implemented holographic excise adhesive label (HEAL)
as part of their anti-counterfeiting strategy. This has not
only minimized the hooch tragedies and duplication,
but has also substantially increased the excise revenue
collection in States.
This issue brings our cover story on ‘Holographic Excise
Adhesive Label. Apart from this, the issue also covers
article on “Step for a better usage of technologies”,
along with industry updates and much more.
As always we look forward to receive your feedback/
critics. Please e-mail us at info@homai.org.
With Regards,
C S Jeena
In this issue
Holographic excise
adhesive label
(HEAL)
7
Protection against
counterfeiting
By Jean-Michel Loubry
13
News Bytes 4
Counterfeit Seizure Report 16
Global Patents 17
Upcoming Events 18
Latest Tenders 18
www.homai.org 3

4. The Holography Times News Bytes
Liquor bottles in Jharkhand to carry
holograms
It will be 18th state in the country to adopt the practice aimed at increasing
revenue and checking sale of spurious liquor
New Delhi: Jharkhand will be
the 18th State in the country that
will be shortly making a mandate
for all the liquor companies to
use hologram on their bottles to
prevent counterfeiting.
The step will help the Jharkhand
State excise in increasing revenue
as well as in minimizing the
tragedies due to illicit liquor,
a statement from Hologram
Manufacturers’ Association of
India (HOMAI) said.
In India more than 17 States &
UT are already using hologram
on liquor bottles. Mandated
usage of hologram in these
States like Uttar Pradesh, Tamil
Nadu, Uttrakhand, Madhya
Pradesh, Puducherry, Delhi,
Chhattisgarh, Kerala, etc. has not
only minimized the tragedies due
to spurious liquor but have also
substantially increased the excise
revenue collection by more than
25-30 per cent.
For example the state using
holograms are earning more
revenue. In 2010-11 the revenue
earned by Tamil Nadu and Uttar
Pradesh excise was `8,115 crore
and `6,725 respectively, while
States which are similar in
capacity to population and size
such as Maharashtra and West
Bengal only able to peg `5,800
crore and ` 1,770 crore only. ■
Source: www.homai.org
Scriba Nano tecnologie launches
multi-functional labels
Scriba Nanotecnologie, an Italy-based
security technology
company, has introduced EN-TAG
multi-functional labels to enable
pharmaceutical companies to
authenticate their products while
ensuring drugs are kept at correct
temperature conditions.
EN-TAG is an ultra-miniaturized
data matrix technology applied to
a standard holographic feature or
relective surface, such as metallic
foils, hologram strips. The covert
feature offers the highest level
of security combined with high
information content (~30 kB per
cm²). The information content
of a single EN-TAG is 20 to 100
times higher than that offered
by a standard 2D data matrix.
It equips each product with a
counterfeit-proof data carrier
label for authentication and
traceability purposes, and is
designed to enhance an existing
holographic substrate.
The labels can be used to store
digital data such as company
logos, videos, or drug pedigree
information in any language,
including drug name, dosage
form and strength, expiration
date, lot number. EN-TAG can
be used as stand-alone labels or
complemented with other overt
or covert features for additional
layers of security.
EN-TAG has an integrated
authentication technology with a
thermo-sensitive, FDA-approved
polymeric layer. Thermal
monitoring is made possible
by detecting the subtle optical
changes that take place when the
tag is exposed to temperatures
exceeding a pre-set threshold.
Threshold temperatures are
fully customizable to speciic
temperature requirements. The
secure information contained
is not affected if an EN-TAG is
exposed to higher-than-threshold
temperatures.
Dr Claudio Rota, business
development advisor at Scriba
Nanotecnologie, said, ‘One of
the features of this technology is
its ability to offer the industry a
truly unique, low-cost solution
for authenticating their drugs,
as well as ensuring that their
products have been properly
stored during transport. For
temperature-sensitive products
in particular, such as biologics,
food products, and wine, the
technology is a irst-in-class
security feature with a clear-cut
value proposition.’ ■
Source: www.labelsandlabeling.com
4 www.homai.org

5. The Holography Times News Bytes
UAlbany Nanocollege APDN partner on
nanochip anti-counterfeiting program
Collaborative research will advance DNA deposition technologies targeting
over $300B market for ‘nanosecurity’ applications in nanoelectronics,
aerospace and defense
The College of Nanoscale
Science and Engineering
(CNSE) of the University at Albany
and Long Island-based Applied
DNA Sciences, Inc. (OTCBB:APDN)
announced a partnership to
enable nanotechnology-driven
innovations that would play a
critical role in preventing the
counterfeiting of computer
chips – a collaboration in
the groundbreaking area of
“nanosecurity” that initially
targets the $20 billion defense
industry chip market and
has the potential to impact
nanoelectronics and aerospace
markets well in excess of $300
billion.
Research and development will
include the integration of new
methods for DNA deposition
on nanoelectronics wafers and
computer chips both prior to,
and including, inal packaging to
ensure the integrity and security
of processed wafers.
The partnership between CNSE
and APDN will support research,
development and deployment
of authentication protocols and
procedures in established process
lows, including CMOS, MEMS,
photonics, and other device
derivatives, as well as advanced
packaging technologies, such
as 3-dimensional wafer-to-wafer
and die-on-wafer. When
realized, these advances would
enable comprehensive supply
chain protection well into the
foreseeable future.
The collaboration comes on the
heels of the enacting of the 2012
National Defense Authorization
Act. This law will signiicantly
strengthen protections against
the wave of counterfeit electronic
parts coming into the defense
supply system by requiring
that military suppliers and
government agencies create
and implement counterfeit
detection and avoidance systems,
among many other strict anti-counterfeiting
provisions.
These new mandates could be
enabled through a CNSE-APDN
partnership.
The APDN system marks
computer chips with uncopyable
DNA codes, which can then
be used to authenticate the
originality of chips anywhere
along the supply chain. The
APDN technology can not only
enhance inspection, but also
goes much further to forensically
verify originality, using botanical
DNA to create “tags” to mark the
product in a unique way.
As part of the collaboration, CNSE
and APDN intend to establish a
joint technology development
partnership model – engaging
nanoelectronics device
fabricators, leading aerospace
and defense system integration
companies, and state and federal
government agencies – to further
advance the implementation of
counterfeit protection measures.
CNSE recently submitted
a technology development
proposal in partnership with
APDN and other leading
nanoelectronics companies in
response to a Broad Agency
Announcement issued by the
Intelligence Advanced Research
Projects Activity (IARPA), which
invests in technology programs
that have the potential to provide
our nation with an overwhelming
intelligence advantage over
future adversaries. ■
Source: www.cnse.albany.edu
Skanem acquire 51 per cent stake in interlabels
Skanem Group one of Europe’s
largest producers of self-adhesive
labels partners with the
Indian labeling company Interlabels
in order to take part in a growing
market in South Asia. Skanem is
buying 51 per cent of the shares
in Interlabels. Owner and CEO of
Skanem, Ole Rugland, says,“India
is a market with a great potential
and rapid consumption growth.
Through this partnership, we get
access to this exciting market.” The
introduction into India represents
a strategically important step
forward for Skanem Group. This
is Skanem’s irst establishment in
India, but Skanem already has one
factory in Asia, which is located in
Bangkok, Thailand. ■
Source: www.skanem.com
www.homai.org 5

6. The Holography Times News Bytes
Sai security printers secures $7m
funding from aureos capital
Aureos South Asia Fund has
invested $7 million or ` 35 crore
in Sai Security Printers Pvt Ltd
(SSPPL), a paper packaging
company based in Faridabad and
Bangalore. The fund is managed
by Aureos South Asia Managers
Ltd, a subsidiary of the emerging
markets PE fund manager Aureos
Capital, which has $1.3 billion
under management.
“SSPPL will use the funds to build
on its already strong production
and technology capabilities,
and will work towards moving
into new markets, adding new
customers and providing end-to-
end packaging and printing
solutions while increasingly
focusing on high-margin
business,” said Vijay Raghavan,
managing director of SSPPL. The
company started out as a security
printing business and evolved
into a multi-product packaging
company. It manufactures
labels and mono-cartons for
pharmaceutical, food and
beverage and FMCG industries,
and currently employs around
600 people.
“SSPPL has a strong customer
base, marked by high customer
retention. Its strategy for future
development includes expansion
into recession-resilient and
higher-margin products for the
pharmaceutical, beverages and
FMCG sectors,” commented Balaji
Srinivas, Managing Partner of
Aureos India.
Incorporated in 2001, Aureos has
extended its footprint to more
than 50 emerging markets across
Asia, Africa and Latin America by
establishing 17 regional private
equity funds. These funds are
managed through a network of
28 ofices worldwide, by a team of
over 90 investment professionals.
Aureos has recently announced
that it plans to raise $200
million or ` 900 crore for its
new India fund. The Aureos
India Fund II will focus on
investing in companies across
emerging sectors and target tier
II and tier III cities, which remain
below the radar of mainstream
international investors. Its last
deal took place in July 2011 when
it invested in Chennai-based
publishing services provider
Newgen Knowledge Works
Private Limited. ■
Source: www.vccircle.com
6 www.homai.org

7. The Holography Times
Cover Story
Holographic excise
adhesive label (HEAL)
Securing tax revenue, protecting consumer and curbing illicit liquor trade
by C S Jeena
“The liquor industry is a major source of excise revenue for all States in India. In fact, it is the second largest
revenue contributor for many States after sales tax. More than two decade ago, Tamilnadu Government
took the revolutionary step and introduce fi rst holographic excise adhesive label (HEAL) in India. The step
taken by Tamilnadu was appreciated and further adopted by many other States in India. Today, more
than 17 States excise department are using HEAL. This has not only minimized the hooch tragedies
and duplication, but has also substantially increased the excise revenue collection in States. This article
highlights the role of HEAL as an effective anti-counterfeiting solution in securing tax revenue, protecting
consumer and curbing illicit liquor trade.
Globally, tax revenue from excise
duties on the production and sale
of beverage alcohol contribute an
important source of Government
revenue. The inancial revenues
for European governments
arising from the production
and sale of beer, i.e., taxes paid
by breweries, beer consumers
and employees together, total
around € 38 billion a year,
including € 19 billion in VAT and
€ 10.5 billion in excise duties.
This represents more than total
annual government expenditure
of countries such as Finland or
Poland (estimated at around €34
billion).1 In the United States, the
beverage alcohol industry pays
over $ 21 billion in directly to
State and local revenue during
2008.2
Scenario in India
Under the Indian constitution,
liquor is one commodity which
the States are entitled to charge
excise duty (Article 246)3.
Revenue from excise duty is a
signiicant contributor for many
States in India accounting for
more than 10 per cent of their
own tax revenue. In fact, it is the
second largest source of income
for States after sales tax (igure 1
and table 1).4
The only state that does not
depend on alcohol to generate
revenue is Gujarat, which
imposes prohibition in 2000-01.
The major states in which liquor
contributes a major chunk of
their revenue kitty (F.Y. 2010-
11) include Andhra Pradesh (`
9014 cr), Karnataka (` 8345 cr),
Tamilnadu (` 8115 cr), Uttar
Pradesh (` 6725 cr), Maharashtra
( ` 5800 cr), Madhya Pradesh (`
3604 cr), Punjab (` 2461 cr),
Rajasthan (` 2859 cr), Haryana (`
2100 cr) Bihar (` 1542 cr).5
Motor
Vehicle
Tax
5%
Sales Tax
62%
Other
Taxes
9%
Stamps
Registration
11%
State Excise
13%
Figure 1: Composition of State tax revenues
for 2010-114
*Other taxes include income from
agricultural income, land revenue,
electricity duties, entertainment taxes and
other taxes duties
1. Ernst Young, 2005
2. Distilled Spirits Council of the United States, 2008
3. ‘Article 246’ The power of the state government to levy and collect the state excise
duties is derived from Article 246 of the Constitution of India and entry 51 of list II –
State list with seventh schedule thereto.
4. Reserve Bank of India, Study on State Finances Budget, 2010-11
5. Press releases, State excise department
www.homai.org 7

8. The Holography Times Cover Story
Table 1: Budget estimates of States and Union Territories for period 2010-114
State a) Tax revenue b) State own c) State excise d) Percentage of
(` lakh) tax revenue revenue excise revenue in
(` lakh) (` lakh) State own tax
Andhra Pradesh 6150421 4699900 751200 16
Arunachal Pradesh 83037 14400 1700 12
Assam 1257041 497584 25946 5
Bihar 3424412 1064393 140000 13
Chhattisgarh 1231135 750548 132000 18
Goa 277506 221849 11967 5
Haryana 1866300 1646929 210000 13
Himachal Pradesh 459034 295552 54946 19
Jammu Kashmir 641603 350528 28000 8
Jharkhand 1230700 596728 52500 9
Karnataka 4528841 3622832 742500 20
Kerala 2570999 2088423 183621 9
Madhya Pradesh 2971759 1867018 340000 18
Maharashtra 7472155 6383832 580000 9
Manipur 123281 28874 600 2
Meghalaya 131602 46181 10019 22
Mizoram 68132 11826 206 2
Nagaland 86040 20330 362 2
Orissa 2036418 1036001 95050 9
Punjab 1921563 1630800 252000 15
Rajasthan 3127307 1902086 245000 13
Sikkim 71162 21124 5550 26
Tamilnadu 5184001 4143832 750818 18
Tripura 173605 66705 7000 10
Uttrakhand 636890 402430 68693 17
Uttar Pradesh 6696669 3525489 569531 16
West Bengal 3521379 2000773 175978 9
Delhi NCR (UT) 1558250 1558250 168000 11
Puducherry (UT) 131715 131715 47500 36
Prominent Sectors
Based on beverage type the
Indian alcohol industry has three
prominent sectors; a) the IMFL /
Beer / Wine sector, b) the country
liquor sector, and c) the illicit
liquor sector.
a) IMFL / Beer:
Among these the IMFL is
organized centralized in India
and constituted 34 per cent
of alcohol market in India. In
2010, sales volumes of the IMFL
industry were approximately
1,985 million liters or 221 million
cases.
revenue
b) Country Liquor:
In contrast, to the IMFL and
beer sector, the country liquor
industry is more decentralized.
It is regionalised and fragmented
due to high state entry barriers
requiring presence of a distillery
in the state and constituted 37
per cent of market with volumes
of 250 million cases in 2010.
c) Illicit liquor industry:
Parallel to this, the illicit liquor
industry has also seen an
increase in India. A signiicant
proportion of the alcoholic drink
8 www.homai.org

9. Cover Story The Holography Times
in India, is produced illicitly by
the informal sector or consists of
“Second or D Market” (tax evaded
beverages) and therefore remain
undocumented. It has been
speculated that such unrecorded
consumption may be as much as
45 per cent of all use, although
there is very little recent data
available.7
Reports of excise raids on illegal
distilleries and coniscation of
illicit alcohol are also regularly
featured in the media. Alone
in Karnataka (2010-11), the
department conducted 59,124
illicit distillation centres in
State, registered 10,924 cases
and arrested 4,597 persons. The
department has seized 69,984
boxes of IMFL, 116,903 boxes of
beer, 106,071 boxes of molasses
and 107,058 boxes of arrack.8
In 2011, Maharashtra State
excise department has seized
counterfeit and illegal liquor
amounted `16 crore. It was 25
per cent higher than the previous
rate seized amount equivalent to
`12.8 crore in 2010. The trend
continues in 2012, as `1.5 crore
illicit liquor have been seized
by State excise department till
February 2012. The problem
is such severe that State excise
oficer in Maharashtra has
demanded gun for protection of
their enforcement oficer.9
Challenges for State Excise
There are various reasons due to
which illicit liquor / smuggling
increases. It can be prohibition
policy of the state, inter-state
smuggling of alcohol products,
tax duties and lack of proper anti-counterfeiting
strategy.
For example Gujarat is adopting
a complete prohibition policy
in state. Irionically this step
increases the consumption of
illicit liquor and loss of excise
revenue amounted `3000 crore
per annum.10
Rajasthan State excise
department stopped using HEAL
from November 2010 which again
resulted in increased number of
illicit liquor. Recently a factory
has been seized in Bhanipura
(Rajasthan) seizing 1050 litres
illicit spirits.11
The State Government and
Departments faces various
challenges i.e.
• How to protect consumer
from ill effects of illicit liquor?
• How to differentiate fake
liquor bottles from genuine?
• How to combat smuggling of
IMFL Country liquor? How
to ensure fool proof labeling
and supply chain?
• How to avoid reilling /
reusing of genuine liquor
bottle with illicit liquor?
• How to increase excise
revenue?
Global practices to ight against
illicit liquor/ counterfeiting
A solution can be excise adhesive
labels (EALs) or tax stamp
which applied to bottles as self-adhesive
labels. Known by a
variety of names (excise stamps,
excise adhesive label, tax stamps,
tax seals, banderols), these are
the weapon of choice for many
government around the world
to secure the valuable revenue
Industry Breakup Mn cases (2010)6
Beer
197
29%
IMFL
234
34%
IMIL
250
37%
WINE
1
0%
Segment Volume % of IMFL
(Mn cases)
Whisky 137.5 59
Brandy 43.4 19
Rum 43.8 19
Gin 2.2 1
Vodka 7.3 3
Others 0.2 0
Source: IWSR, Industry Company Estimates
6. IWSR, Industry Company Estimates
7. Lal Chand Report
8. Business standard, 29/06/2011
9. Mid Day, 27/11/2011 [excise department demands guns] / CNN, IBN Live,
16/12/2011
10. Rediff.com, Dec 11, 2002[Prohibition- Gujarat worst keep secret] The Times of
India, June 19, 2009 [Gujarat seeks Rs 3000 cr for liquor ban]
11. Rajasthan Patrika, 19/01/2012 [Fake illicit liquor factory seized]
www.homai.org 9

10. The Holography Times Cover Story
Table 2: HEAL used by some countries12
Country Usage of HEAL on Effect in Revenue
Ukraine Alcohol Tax revenue double in 4 years equivalent to USD
3 billion
Latvia Alcohol Increase of USD 21 million in 2 years
Serbia Alcohol Cigarettes 10 times increase in cigarette revenue /
5 times increase in spirits revenue
Hungary Alcohol and Cigarettes NA
derived from customs and excise
duty on alcohol, acting as proof
of originality and authentication
and a barrier to the distribution
of counterfeited products.
Hungary Latvia has been using
HEAL since 1994-95 and have
resulted in phenomenal increases
in tax receipts.12 (See table 2) As
of 2007, 59 countries are using
HEAL for spirits. It is estimated
than 33 billion holographic
stamps were produced in 2007,
making them the highest secure
product produced after bank
notes.13 Although, all these
countries are keep upgrading
their tax stamp with advanced
overt covert features to be
ahead against counterfeiters.
Practices in India
The revolution of irst EALs
was introduced by Tamilnadu
Government in early eighties.
These were on a thin glassine
based paper with a strong
adhesive. Each label was serial
numbered and was given by
Tamilnadu Govt. to companies
that illed IMFL against payment
of tax.14 Then in 1999-2000,
Tamilnadu again take the
initiative and started using India
irst HEAL15, which was followed
by Uttar Pradesh in 2001
Kerala in 2002. Today, more than
17 states are using approximately
15 billion HEAL. 75 per cent of
these are used in form of full
Polyester holographic labels and
25 per cent paper based, with
holographic element.
Integration of digital and non-digital
(Importance of visual
authentication)
Recently, Andhra Pradesh has
become first state to start using
a combination of authentication
and digital technology as it is
going to use advanced HEAL
comprising hologram for
authentication and bar code for
track trace. However, track
and trace technology itself have
vulnerabilities. Physical and
sensory authentication tools
will still be needed both during
and after the development
of track and trace systems
around the world. If we do not
integrate both digital and non-digital
(physical and sensory)
authentication methods into
our approach, then we risk
wasting the major investments
that are about to be made in
track and trace.
Examiner may need to verify
the liquor bottle visually due
to lack of availability of reader,
power failure, network failures
or simple time constraints
at crowded control sites. An
electronic authentication is not
possible everywhere especially
in remote areas so it generate a
12. Reconnaissance international
13. Reconnaissance international
14. PRS Permacel Ltd
15. Holostik India Limited
10 www.homai.org

11. Case Study The Holography Times
Table 3: State and Union Territory (UT) using HEAL with annual capacity (in 2011)16
State/Union Territory Year of Introduction* Annual Volume (crore)
Andhra Pradesh* 2012 2,64
Chattisgarh 2005 72
Haryana* 2009 90
Himachal Pradesh** 2011 7
Jharkand (in process)**** 2012-13 54
Karnataka** 2002 240
Kerala 2002 70
Madhya Pradesh 2007 72
Meghalaya 2009 NA
Orissa 2007 48
Punjab** 2011 50
Rajasthan*** 2005 72
Sikkim 2010 NA
Tamil Nadu 1999 300
Uttrakhand NA 15
Uttar Pradesh 2001 180
Delhi (UT) 2009 36
Puducherry (UT) 2006 12
* State using paper based EAL earlier, now decided to use HEAL;
** State using paper based EAL with or without holographic component;
*** State excise department stopped the usage of HEAL since November 2010;
**** Figure of Jharkhand are for year 2012.
NA Not Available
requirement of an instant visual
authentication like a hologram
with advanced levels of security
features for authentication.
Beneit of using HEAL
The usage of HEAL by these
States has proved the acceptance
and effectiveness of hologram
as authentication device. It
has helped the department in
combating various challenges
such as;
1. Provide visual
authentication:
HEAL plays an important
role for visual authentication
to differentiate fake liquor
bottle from genuine, for both
enforcement authorities and
for individual consumer.
These HEAL are customized
with overt and covert
features, being overt for
a lay man consumer and
covert forensic feature
for enforcement authorities
which can be proof of the
authenticity of bottle.
Further, holograms are be
best overt authentication
feature available, as an
electronic authentication
is not possible everywhere
especially in remote areas
(India).
2. Increased tax revenue:
According to various reports
and HoMAI,17 the mandated
usage of security HEAL in
States such as Uttar Pradesh,
Tamil Nadu, Uttrakhand,
Madhya Pradesh,
Puducherry, Chhattisgarh
etc. have increase revenue
collection. For example Tamil
Nadu and Uttar Pradesh,
excise revenues were `8116
16. Approximate quantity calculated on based of State excise tender document
17. Hologram Manufacturers Association of India
www.homai.org 11

12. The Holography Times Cover Story
Table 4: Comparison of key State with population more than 6 crores18
a) State using excise adhesive labels
State Revenue Revenue Inc in turnover Population
2005-06 2010-11 over last 6 years (2011)
` Crore ` Crore in Crore19
Andhra Pradesh 2685 9014 6329 8.46
Tamilnadu 3177 8116 4939 7.21
Karnataka 3397 8345 4948 6.11
Uttar Pradesh 3089 6726 3637 19.95
Madhya Pradesh 1370 3604 2234 7.25
Rajasthan* 1276 2859 1583 6.86
*State excise department stopped the usage of HEAL since November 2010;
b) State not using any type of excise adhesive labels
State Revenue Revenue Inc in turnover Population
2005-06 2010-11 over last 6 years (2011)
` Crore ` Crore in Crore19
Maharashtra 2824 5800 2976 11.23
West Bengal 743 1770 1026 9.13
Bihar 319 1542 1224 10.3
crores and `6725 crores
respectively in 2010/11. By
contrast, in states similar
in size and population such
as Maharashtra and West
Bengal, excise revenue
was much lower at `5800
crores and `1769 crores
respectively (see table 4 a
b).
3. Prevent Funding of
criminal enterprises:
The people that beneit
most from counterfeiting
are criminals who then use
their proceeds to fund other
criminal activity of to further
their own enterprises.
4. Further the usage of HEAL
enhance the State image/
goodwill, as it create
consumer conidence.
Conclusion
HEALs have become the main tool
now used by the government and
the enforcement to authenticate
sealed IMFL and Beer bottles
sold in the State. Hence the
eficacy of this excise adhesive
labels, as an advanced and true
tamper evident seal, has great
value. This is true regarding other
Indian States also. Counterfeiting
can be curb to a great extent
with proper combination of
high security HEAL and digital
system with proper enforcement
methodology.
Deinitions
1. ‘Alcohol’ means ethyl alcohol of any
strength and purity having the chemical
composition of (C₂H₅OH₂).
2. Help in combating smuggling as it ensure
ful proof labelling.
3. ‘foreign liquor’ means-a)
all liquor (other than country liquor,
rectiied spirit, denatured spirit and
perfumed spirit), imported into India,
on which customs duty is leviable under
the Indian Tariff Act, 1934 (XXXII of
1934) or the Customs Act, 1962 (52 of
1962);
b) all liquor manufactured in India (other
than rectiied spirit, denatured spirit,
and perfumed spirit), on which duty
at a rate higher than levied on Country
liquor is leviable;
c) all beer (including ale, porter and stout)
manufactured in India or abroad, and
d) all sacramental wine prepared from pure
dire grapes by a process or fermentation
only without the addition of alcohol or
any other ingredient.
4. ‘Liquor’ means intoxicating liquor and
includes lahan and all liquid consisting
of or containing alcohol; also any
substance which the State government
may by notiication declare to be liquor
for the purposes of this Act.
18. State excise department
19. Census 2011
12 www.homai.org

13. The Holography Times
Expert Insight
Protection against counterfeiting:
a new step for a better usage of technologies
By Jean-Michel Loubry
Author is a specialist of traceability solutions and Chairman of ISO / Project
Committee 246 “Anti-Counterfeiting Tools” and a technical traceability expert
on authentication standards. He is an electronics engineer and graduate in
strategic management, and has made his career in major hi-tech companies
of the telecommunication sector, starting in research and development, then
pre-sales manager for export markets, and product marketing manager. He
managed the French national traceability center from 2006 to 2011. He can be
contacted at +33 (0)6 42 47 58 56 or by email at jmloubry@gmail.com.
Increasing dramatically each
year, counterfeiting is not
inevitable. ISO/PC246 brings
its contribution to combat
counterfeiting of material
goods by facilitating the
selection of authentication
technologies.
Counterfeiting: a real risk for
organizations
Counterfeiting is a worldwide
issue, impacting all markets, not
only luxury. Estimations say that
counterfeiting may reach up to
10 per cent of the worldwide
commercial exchanges. However
no reliable igures exist to
quote the size of the counterfeit
business, but depending
on markets and countries
estimations vary form a few
percent to more than 80 per cent.
Many of counterfeit products can
be dangerous for populations
and counterfeiting impacts the
proitability of the organizations
through IPR infringement. The
risks are important for companies
facing counterfeiting: loss of
turnover, hacking of knowhow,
loss of jobs and risk to be sued if
the fake products cause accidents
and if there is no way to prove
it is a counterfeit. Costs, if these
risks occurred may be important,
impacting the durability of a
company.
Counterfeiters are more and
more “professionals” and the
quality of the copies (i.e. the
level of likeness) is increasing,
making the detection of fakes
dificult even for trained people.
Protecting the products and even
all kind of material goods is a
necessity, especially when the
economical context demands to
take care of all % of proitability.
Fake material goods may impact
the health and the security of
consumers, patients or citizens
and therefore are a risk for
companies, are the material
goods protected by IPR or not.
To be able to differentiate fake
from authentic is the purpose of
anticounterfeiting solutions.
Anticounterfeiting solutions:
ISO 12931 helps to select
Choosing a solution using secured
technologies may be complicate
for companies as many anti-counterfeiting
solutions exist, but
www.homai.org 13

14. The Holography Times
few information are available on
references and on effectiveness.
Facilitating the choice, the
implementation and the usage
of anticounterfeiting solutions
with a standard was required
either by brand owners,
suppliers and authorities. All
these parties have been involved
in the workgroup which issued
the NWIP presented by France
in 2008. The resulting ISO
Project Committee (ISO/PC246)
started its job in the early
months of 2009. ISO/PC246 is
composed of 17 P-Members and
13 O-Members coming from all
over the world. This worldwide
collaboration and the willingness
to succeed in this project is a
good sign toward material goods
users or providers.
ISO/PC246 has created a standard
that deines the « Performance
criteria for authentication used
to combat counterfeiting of
material goods » (ISO 12931),
that is applicable for any solution
whatever the technology. It is
planned to be published as an
International Standard (IS)
beginning of 2012.
ISO 12931 speciies performance
criteria and evaluation
methodology for authentication
solutions used to establish
material good authenticity
throughout the entire material
good lifecycle. It does not specify
how technical solutions achieve
these performance criteria.
ISO 12931 is intended to
contribute to an organization’s
understanding of its
authentication needs, possible
strategies, and challenges. It is
intended to give the organization
a set of criteria to analyses, specify
and implement its authentication
solutions.
The organization will determine
the level of security assurance
required for the selected
authentication solution. The
Expert Insight
authentication solution provider
is expected to comply with the
risk and security requirements of
the organization.
ISO 12931 is intended for all
types and sizes of organizations
that require the ability to
validate the authenticity of
material goods. It is intended to
guide such organizations in the
determination of the categories
of authentication elements they
need to combat those risks,
and the criteria for selection of
authentication elements which
provide those categories, having
undertaken a counterfeiting risk
analysis. Such authentication
elements may be part of the
material good itself and/or its
packaging. The criteria will
apply to the material good and/
or its packaging. Authentication
elements may be added or
intrinsic to material good and/or
its packaging.
This International Standard
is not intended to constrain
the organization’s choice of
authentication technologies.
The veriication processes
of authentication elements
deployed in these solutions
require the ability to read,
capture and sometimes perform
sampling using human senses or
tools. These tools will either offer
a local on the-spot response or
will call, in real-time, into a secure
information system, or possibly
rechannel the data, sample, or
material good towards a structure
offering expert analysis for an off-line
diagnosis.
Thus, in relation with the
speciication of the material good
protection, an authentication
solution is the result of a
creation process followed by a
veriication process. The creation
process consists of deining,
generating and manufacturing
the authentication elements
and integrating them with the
ISO 12931 is intended
to contribute to an
organization’s understanding
of its authentication needs,
possible strategies, and
challenges. It is intended
to give the organization a
set of criteria to analyses,
specify and implement its
authentication solutions.
14 www.homai.org

15. The Holography Times
Expert Insight
material good or its packaging.
The veriication process consists
of checking the authentication
elements along the distribution
chain by trained people using
human senses, tools or references.
There are 3 main categories of
solutions using overt, covert or
forensic authentication elements
which require respectively
human senses, tools or forensic
analysis to be checked.
Overt authentication can be
directly performed by an
informed inspector and does not
require any additional equipment
to allow a feature to be veriied as
genuine.
Covert authentication elements
are not instantly recognizable
or interpretable by the
human senses. They require
authentication tools and/or
specialized knowledge to verify
their presence and validity.
Forensic analysis involves the
use of knowledge and dedicated
scientiic methods to validate
the authentication elements or
intrinsic attributes of a material
good.
According to the organization’s
protection strategy, knowledge
about the presence and
the method to verify the
authentication elements will be
made public or restricted.
General audience will make any
consumer aware of authentication
elements available for him to act
as an inspector. This make also
the counterfeiter know what to
focus on to deceive the consumer
who, by deinition, is not an
expert.
Restricted audience is dedicated
to professional inspectors like
custom agents or any expert
appointed by a right owner.
ISO 12931 gives a list of
performance criteria to be
considered when choosing an
authentication solution, assuming
(again) that a risk analysis has been
performed irst. Based upon these
criteria the authentication solution
speciier may determine what
class or combination of categories
of solutions meets the needs and
Authentication solutions are
a key means for detecting
counterfeits and therefore
support investigation
and enforcement against
counterfeiting and provide
increased corroborative
evidence.
requirements of the user.
These criteria are addressing
the different steps of the
material good lifecycle. The main
categories of criteria are:
- The physical characteristics
of the authentication
elements that will determine
the capability of those
elements to be added or used
with the material good and/
or its packaging, to resist to
manufacturing and logistics
processes so they remain
readable when required
- The attack resistance of the
authentication solution,
either on the authentication
elements side than on the
tools side, will determine
the complexity for a
counterfeiter to copy and/
or access to secrets to be
able to imitate or reproduce
the authentication
element or circumvent the
authentication tool
- The implement ability of
the authentication solution
considering all practical
criteria that will make the
authentication process
work in the ield such as
environmental conditions
or telecommunication
networks requirements…
The performance of an
authentication solution depends
upon a proper risk analysis and
criteria analysis that establish a
set of compliance speciications.
ISO 12931 also describe
effectiveness assessment as a
means to evaluate that a solution
is complying with the established
standard and if the solution is
providing a measurable result. In
addition to the overall solution
effectiveness assessment
should be established based
on the speciication for each
of the criteria categories.
Authentication solutions are a key
means for detecting counterfeits
and therefore support
investigation and enforcement
against counterfeiting and
provide increased corroborative
evidence. Monitoring the
behavior of an authentication
solution in the ield is the best
way to react and better to prevent
the penetration of fakes.
Conclusion
Fighting against fake is a
strategy involving legal and
technical approaches. In both
cases, the capability to ight
is a key issue. Therefore the
strategy has to be adapted to
the organization’shuman and
inancial means. Are sophisticated
solutions better than simple
ones? Not sure. Pragmatism is a
good way to consider the combat
against counterfeiting.
ISO 12931 brings a full list of
“need to be considered” criteria to
be sure to go through all necessary
characteristics or features that
an organization’s authentication
solution may require.
ISO 12931 is also a frame to be
extended for market sectors facing
speciic issues or regulations.
ISO/IS 12931 is planned to be
published soon and is perhaps
already published when you will
read these lines.
www.homai.org 15

16. The Holography Times
Industry Updates
Counterfeit Seizure Report
The HOMAI counterfeit report displays all of the counterfeiting seizures reported in Indian newspaper for period
January 2012 – February 2012.
D/M/Y News Reported Sector Reported in Media
03/01/12 6 Nigerians arrested in fake lottery scam, Mumbai (Maharashtra) Fake Document Free Press Journal
04/01/12 Fake certiicate racket busted in Navi Mumbai (Maharashtra) Certiicate Free Press Journal
06/01/12 Fake notes seized in Old Delhi, two held (Delhi) Bank Notes Times of India
06/01/12 Factory seized making spurious Ghee, Jabalpur (Madhya Pradesh) FMCG Nai Duniya
09/01/12 Man arrested for smuggling foreign liquor (Delhi) Liquor Tribune
10/01/12 70 yr old grandson held for bootlegging (Delhi) Liquor Hindustan Times
09/01/12 Liquor seized (Rajasthan) Liquor Rajasthan Patrika
12/01/12 Fake ration card in Sonia name found (Maharashtra) Identity Document Times of India
12/01/12 Cops probe sale of fake tickets worth Rs 1 crore at Auto Expo (Delhi) Entry Tickets Times of India
14/01/12 Airport employee held for smuggling (Delhi) Memory Card Hindustan Times
14/01/12 Fake 3 crore ration card seized (India) Identity Document Dainik Jagran
17/01/12 Fake certiicates probe widens (Delhi) Identity Document Times of India
17/01/12 Fake drugs seized worth Rs 30 lakh (Uttar Pradesh) Pharmaceutical Dainik Jagran
18/01/12 Fake Footwear seized (Delhi) Footwear Hindu
18/01/12 120 fake driving licenses, SIM card seized (Jammu and Kashmir) Driving Licences Daily Excelsior
18/01/12 Liquor tragedy, 6 percent died (Assam) Liquor Assam Tribune
20/01/12 Fake Indian currency seized, one arrested (Puducherry) Bank Note Hindu
24/01/12 2 held for selling illegal weapons, 200 forged DLs seized (Haryana) Driving Licences Pioneer
24/01/12 Fake homeopathic drug found (Delhi) Pharmaceutical Navbharat Times
04/02/12 Ramjas detects 12th Class fake mark sheet (Delhi) Mark-Sheet Asian Age
08/02/12 Oficials found involved in faking property paper (Delhi) Fake Document Pioneer
08/02/12 Five teachers caught with fake degrees (Maharashtra) Degree DNA
16/02/12 Fake ilters racket busted; 7 nabbed (Jammu and Kashmir) Diesel Kashmir Times
17/02/12 Illicit liquor worth Rs 1.5 crore seized (Maharashtra) Illicit Liquor DNA
18/02/12 They faked US dollars, forged passports (Delhi) Currency Times of India
19/02/12 Fake illicit liquor factory seized (Rajasthan) Illicit liquor Rajasthan Patrika
For detailed, subscribe to HoMAI press monitor or e-mail at info@homai.org
16 www.homai.org

17. Industry Updates The Holography Times
Global Patents
Publication Title Int. Application Applicant
DD.MM.YYYY Class Number
02.02.2012 WO/2012/016105–Complex Holograms, G03H1/00 PCT/US2011/045824 SABIC INNOVATIVE
method of making and using PLASTICS IP B.V /
complex hologram TAKEMORI, Michael
Brief Abstract: A method of making a hologram (10) includes recording a hologram in a holographic recording medium (14)
at a irst deformation ration, changing the irst deformation ratio to a second deformation ration that is different from the irst
deformation ration; and recording a second hologram in the holographic recording medium (14) at the second deformation
ration to form a recorded holographic medium.
26.01.2012 WO/2012/010665 –Combination of a B41M3/14 PCT/EP2011/062552 SONY DADC AUSTRIA
luminescence substance with AG / EBERT, Dieter
a hologram
Brief Abstract:The invention relates to a combination or composition for marking products, comprising a luminescence
substance on the basis of oxides, oxide sulphides and/or oxide luorides of lanthanide ions and a holographic substrate for
receiving or reconstructing a volume hologram. The luminescence substance has a characteristic emission spectrum and, in
combination with the volume hologram, can be used to authenticate and/or identify products such as substances or substance
mixtures.
19.01.2012 WO/2012/007120- Security Element B42D15/00 PCT/EP/2011/003345 GIESECKE DEVRIENT
comprising hologram structures GMBH / KELLER,
Mario
Brief Abstract: The invention relates to a security element for security papers, valuable documents and other data carriers,
comprising a surface hologram structure and a volume hologram structure. In this case, the invention provides for the volume
hologram structure to be swollen up in partial regions and thereby to form additional information in the form of a two- or multi-coloured
motif and in the form of a microstructure.
12.01.2012 WO/2012/003592–Security Document B42D 15/10 PCT/CH2010/000175 ORELL FÜSSLI SICHER
with holographic foil and printed HEITSDRUCK AG /
machine-readable markings EICHENBERGER,
Martin
Brief Abstract:A security document has a substrate (1) with a foil element (6) applied to it. The foil element (6) comprises a
security feature, such as a diffractive structure (12), for example a hologram. To easily detect a removal of the foil element (6)
using conventional detection devices, markings (4, 14, 15) intersecting with the foil element (6) are printed onto the top surface
(7) of the foil element (6), the bottom surface (8) of the foil element (6), or onto the substrate (1), thus that they are removed
together with the foil element (6).
12.01.2012 WO/2012/004016–Beam Divergence G03H 1/22 PCT/EP2011/055593 SEEREAL TECHNOLO
and various collimators for GIES S.A. /
holographic or stereoscopic displays FÜTTERER, Gerald
Brief Abstract: The invention relates to a holographic display comprising a lighting device, a magnifying unit (VE) and a light
modulator (SLM), wherein the lighting device comprises at least one light source and a collimation unit (LCU), wherein the
collimation unit (LCU) is designed such that it collimates the light of the at least one light source and generates a light wave
ield of the light of the light source with a pre-determinable plane wave spectrum, wherein the magnifying unit (VE) is arranged
downstream of the collimation unit (LCU) in the light propagation direction, wherein the magnifying unit (VE) comprises a
trans missive volume hologram (VH) that is arranged and designed such that, on the basis of a trans missive interaction of the
light wave ield with the volume hologram (VH), an anamorphic divergence of the light wave ield can be achieved, and wherein
the light modulator (SLM) is arranged in the light propagation direction either upstream or downstream of the anamorphic
magnifying unit (VE).
For more visit at www.wipo.int/patentscope/search
www.homai.org 17

18. The Holography Times
Upcoming Events
The 9th Pan European High Security Printing Conference
Mar 27-29, 2012, St Petersburg, Russia, Web: www.cross-conferences.com
Cartes in Asia
Mar 28-29, 2012, Hong Kong, Web: www.cartes-asia.com
IP Protect Expo 2012: Brand Protection in Action
Mar 28-29, 2012, London, United Kingdom, Web: www.ip-protectexpo.com
1st international forensic technology fair
Mar 28-30, 2012, Warsaw, Poland, Web: www.crimelab.pl
Pharmaceutical Anti-Counterfeiting
April 24-25, 2012, London, United Kingdom, Web: www.appelconsulting.co.uk
3rd Annual Anti-Counterfeiting for Pharmaceutical and
Medical Devices Summit
April 30-May 1, 2012, Philadelphia, PA
Web: www.anticounterfeitingpharma.com
DRUPA
May 3-16, 2012, Dusseldorf, Germany, Web: www.drupa.com
Security Document World 2012
May 21-23, 2012, London, United Kingdom, Web: www.sdw2012.com
Rosupak 2012
June 18-22, 2012, Moscow, Russia, Web: www.rosupack.com
Latin American High Security Printing Conference
July 2-4, 2012, Rio De Janeiro, Brazil, Web: www.cross-conferences.com
Pack Plus South 2012
July 6-9, 2012, Hyderabad, India, Web: www.packplus.in
2nd International Banknote Designers Conference
Sep 2-6, 2012, Stockholm, Sweden,
Web: www.banknotedesignersconference.com
PABS – Product Authentication and Brand Security Conferences 2012
Sep 11-12, 2012, Chicago, IL, UA, Web: www.awa-bv.com
7th Security Document Summit
Sep 12-14, 2012, Beijing, China, Web: www.cids.com.cn
11th Asian, Middle East African High Security Printing Conference
Sep 24-26, 2012, Dubai, UAE, Web: www.cross-conferences.com
Eco Print 2012
Sep 26-27, 2012, Berlin, Germany, Web: www.ecoprintshow.com
Security Printer’s Conference Exhibition,
Oct 17-19, 2012, Bordeaux, France, Web: www.intergraf.eu
Holopack Holoprint 2012
Oct 28-30, 2012, Vienna, Austria, Web: www.holopack-holoprint.com
Industry Updates
Latest Tenders
Security Printing Hologram tender
that have been notiied in past month
include;
· India - Hologram excise adhesive
label, Uttrakhand, deadline-
20/03/2012
· United States - Printing of Cigarette
Tax Stamps, deadline- 19/03/2012.
· Macedonia - Applied holographic
stripe for printing excise stamps
for labeling tobacco products and
alcoholic beverages, deadline –
03/04/2012
· Belgium - Development and
purchase of the matrix in the form of
holograms sticker to include in the
access cards to buildings of the EU
Council, deadline – 16/03/2012
For more information or enquiry, email
us at info@homai.org.
About HoMAI
The Hologram Manufacturers
Association of India (HoMAI) is the
world’s 2nd and Asia only association
representing hologram industry.
Published by:
Hologram Manufacturer Association of India
(HoMAI)
Issue Editor:
C S Jeena
The Holography Times is a quarterly newsletter
published by HOMAI with an aim to provide
latest developments, research, articles, patents
and industry news to a wide audience related to
Holography in Indian and World.
The editorial team welcomes your news,
contributions and comments. Please send your
product updates, press releases, conference
announcements or other contributions to HoMAI:
21-Ground Floor, Devika Tower 6
Nehru Place, New Delhi 110019, India
Telfax: +91 (11) 41617369
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Despite due diligence the source data may contain occasional
errors. In such instances, HoMAI would not be responsible
for such errors.
18 www.homai.org

19. The Holography Times
www.homai.org 19

20. The Holography Times Holographic Solutions for
Excise Revenue Protection
KANTA S Track-Pack India Ltd.
20 www.homai.org