The document discusses the label industry in India. It notes that the Indian label industry is growing at 20% annually and is expected to reach $0.5 billion in size. The industry currently has a 3% market share of the overall packaging industry in India. Key end users of labels in India include pharmaceuticals, apparel, food and beverages, and FMCG. The label industry in India is fragmented with opportunities for consolidation and collaboration with international companies. Growth of the middle class is driving increased demand for labeled products in India.

1. INDIAN LABEL INDUSTRY
Shoaib Akhter
Business Development Manager

2.  Country Overview
 Industry Overview
 Global
 India
 Labels
 Market share
 End User Segment shares
 Recent Emerging Trends
 SWOT Analysis
 Opportunities- Label Industry
 Challenges
 India – At Advantage
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3. India Growth Story –
 2nd fastest growing economy in the world ( Value : US$ 1.43 trillion in
2010)
 GDP > 8% over the past four years
 India’s share in world GDP steadily increasing, expected to reach
6.28% in 2015
Reasons
 High Investment in Infrastructure
 Investment in capacity expansions
 Policy Reforms
2 INDIAN LABEL INDUSTRY

4.  Huge middle class population
(households with annual
Incomes of US$4762 to
US$23,810) grown from 25
million people in 1996 to 153
million people in 2010
 Growing economy and rising
literacy rate to result into a
third of population (34%) to
join middle class
 Higher purchasing power to
afford quality products due to
increase in disposable income
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5. GLOBAL
 Industry Size :
 In Value : US$ 73 Billion
 In Sq Mtr : 42billion sqmtr
 Growth Rate : 8%
 No. of Converters : Around 30, 000
Expected Industry growth @ CAGR
10% over next 5 years globally.
INDIA
Industry Size :
In Value : US$ 0.5
Billion
In Sq Mtr: 1.0 billion
sqmtr
Growth Rate : 20%
Expected Industry growth @
CAGR 15-20% over next 5 years
in India
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6. Current Market share of
Labels Industry : 3 % of
entire Packaging
Label,
3%
Flexible,
22%
Rigid
Plastics,
18%
Printed
Carton,
17%
Cap &
Closures
Metal
Can, 10%
Glass
Bottles,
12%
, 6%
Others,
12%
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7. Glue-applied
labels,
57%
Sleeve
Labels,
6%
In mould
Label,
1%
Pressure
Sensitive
, 31%
Others,
4%
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8. 32.50%
4.40%
4.20%
*Textiles – including exports
3.70%
32.60%
17.60%
1.40%
3.60%
Pharma
Apparel & Textiles
Food & Beverage, Tobacco & other
FMCG
Jewellery, watches & gift articles
Automotive components, electrical
appliances
Industrial Lubricants & Paints
Computer Labels, Floppy, CD, S/w
Others
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9.  Collaboration with International Companies and
consolidation
 Shift from simple wet glue to more sophisticated product
as self adhesive labels and shrink sleeves
 High end printing machines & pre - press equipments
 Indian businessman willing to invest in latest
technologies
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10.  Higher GDP growth leading to higher disposable
income
 Cost Competitiveness – large volume Players
 Low cost, skilled, English speaking labour
 Entrepreneurial family owned businesses with
strong appetite to grow
 Strong Judiciary system
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11.  Fast growing Indian middle class- high disposable
income – driving demand
 Increase in penetration in non metro markets
 New market segment for specialised products
 Investments and capacity expansion by MNCs
 JV and alliances with Indian companies
 Public private partnership for strengthening infrastructure
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12.  Low Margin Pressure
 Inadequate investment in R & D – Limited technologies
 Short term vision - lack of focus on exports
 Poor all round infrastructure
 Lack of data protection
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13.  Volatile Raw Material Cost
 Global Competition from emerging economies
 Trade Policy
 Currency Fluctuation
 Skilled labour shortage leading to attrition and wage
Inflation
 Counterfeiting leading to loss in revenue
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14.  Rapid growth in disposable products
 Increase in exports (Developing markets)
 Growth in FDI & organized retail sector
 Increased application in logistics & Transport sectors
 GST implementation will lead to efficiency in economy and
overhaul in supply chain
 Growth in various sectors like -
 Pharmaceuticals
 FMCG
 Food & Beverages
 Liquor
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15. Sector Products Companies / Products
PHARMA API/Bulk Drugs Numerous/ Drum Labels
GENERAL Agro Chemical/Con.
Chemical/Seeds
Numerous/Paper/ Filmic
DURABLES Glass – Float/Auto Numerous/ Filmic
DURABLES Engineering Goods Numerous/ Security
Label
FOOD Jam/Ketch Up/ Tinned
Food
Numerous/ Paper/ Filmic
BEVERAGES Health Drinks/ Milks/
Sharbat
Numerous/ Paper
HPC 2nd rung Personal Care
Products
Numerous/Paper/Filmic
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16. 15 INDIAN LABEL INDUSTRY

17.  Highly fragmented & disorganized Industry
 Continuing high costs of key materials like substrate,
adhesives & chemicals
 Environmental & Sustainability issues
 Delay in reforms
 Alternative label & decoration technology
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18. WHAT INDIA CAN OFFER WHAT INDIA CAN GAIN
 Low cost high volume player
 Quality Consistency
 Ability to add new plants at low
cost
 Ability to absorb overseas
opportunities
 Technology up gradation and R
& D for new products
 Fast capacity expansion
 Higher production efficiency
 Access to better systems
 Entry into International Market
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