1. India Witnesses First-Ever
International
Authentication
Forum
Empowering Industry,
Government &
Consumers to
Fight Fakes
The Official newsletter of Authentication Solution Provider' Association (ASPA) March 2017 | Volume 12 | Issue 31
Diverse technologies, common goal.

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3. ISSUE 31Index
Viewpoint
DearReader,
Welcometothe31theditionofTheAuthenticationTimes.
Empowerment of Industry, Government and Consumers is the key
against counterfeiting. With this theme, in a strong move against
counterfeiting and enabling the “Make-Sure-India” movement in the
country, India's first two-day authentication conference cum exhibition –
The Authentication Forum 2017, opened on February 8, 2017 at The Taj
MahalHotel,ManSinghRoad,New Delhi.
This forum was organised by Authentication Solutions Providers
Association (ASPA) and Messe Frankfurt India (MFI) jointly. The event
was well attended by more than 230 delegates and eminent experts,along
with many other industry veterans who came together to participate and
encourage us in our fight against counterfeiting. It also received an
overwhelming support from prominent industry associations such as
Automotive Component Manufacturers Association, FICCI CASCADE,
Indian BeverageAssociation, Organisation of Pharmaceutical Producers of
India (OPPI), Indian Cellular Association, and International Hologram
Manufacturers Association in our fight against counterfeiting. (For a
detailedstory, doreadourspecialreporton (AuthenticationForum 2017.)
In addition to this, the current issue also covers stories on How FMCG
brands are gearing up against counterfeiting and the need of authentication
solutions for SME sectors, interview of our new members alongwith
regular columns such as reports from FICCI CASCADE, news bytes and
upcomingevents.
We thank you for your continual support and look forward to receive your
feedback.
Sincerely,
Chander S Jeena
Editor, The Authentication Times
In this issue
3
PUBLISHED BY Authentication Solution Providers’Assciation (ASPA)
EDITORIAL TEAM Issue Editor: C S Jeena
Principal Correspondent: Sanjiv Singh
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Upcoming Event's
19-21 June 2017
High Security Printing – Latin America
https://www.reconnaissance.net/hsp-
latinamerica/
26-28 June 2017
Security Document World QEII Centre,
London, UK
http://www.sdwexpo.com/
4-6 July, 2017
Watermark Conference
Yekaterinburg,
Russia
https://watermark-conference.com/en/
FMGC Companies
Gear Up Against
Counterfeit Products
ASPA Byte
Cover Story
India Witnesses First-
Ever International
Authentication Forum
Interview Kezzler
FICCI Cascade
The Need for
authentication
solutions for MSMEs’
6
11
12
15
1

4. d d r e s s i n g t h e i m p a c t o f
Acounterfeiting in India, FMCG
companies are gearing up to fight
against counterfeiting. Lately, big FMCG
brands have announced adoption of
authentication solutions to empower
consumersagainstfightingfakes.
Recently, Cargill Foods India has
introduced new-age anti-counterfeiting
technology in its one of popular regional
brand - Gemini Cooking Oil. This anti-
counterfeiting technology has a unique
feature with a two-way process to check the
authenticity of the Tin SKU. This process
includes a 3D Hologram of Cargill Foods
India, which signifies the authenticity of the
product. On looking at this hologram using
a phone's torch light, one can spot '1865'
written on it – the year of foundation of
Cargill Foods India's operations. Besides,
the customer can download an app called
'Mojo Tags' to scan the batch code of the
product and receive reassurance about the
genuinenessoftheproduct.
According to a study by KPMG-FICCI,
about 80 per cent of the consumers are
victims of deceptive counterfeiting, i.e.
they buy fake goods in the belief of buying
genuine ones. While consumers end up
paying excessively for low-quality
products that could possibly have health
and safety risks, producers risk damage to
brand image. FICCI CASCADE report,
Illicit Markets - A threat to our national
interests, based on grey market estimation,
pointed out the losses to the government
annually to the tune of INR 4,646 crore in
personal care and INR 5,660 crore in the
packagedgoods.
According to Neelima Burra, Chief
Marketing Officer, Cargill Foods India,
“Counterfeiting in India is rising at an
alarming rate, especially in the FMCG
sector. A report by FICCI-KPMG suggests
that out of the total counterfeit market, 65
per cent is from this sector. Edible oil
industry is one of the most unorganised
sector in terms of distribution in India;
hence, it holds a larger risk of duplicity.
Therefore, ensuring that the right product
reaches the consumer becomes utmost
important. Purchasing a fake product brings
loss to the business as well as may be a
potential health hazard for the consumer.
Counterfeiting is something Cargill Foods
India takes very seriously as a fake product
implies losing consumers' trust. Educating
the consumers and our wholesalers is a must
to beat this menace. With Gemini Cooking
Oil, we start our first step towards
addressing this major issue of counterfeit
goods. To begin with, the initiative against
counterfeiting has been launched on this
brand. In the commodity business, where
brands play a vital role of defining the
product differentiation, a counterfeit
tarnishesthefaithof acustomer.”
Another Company, GEF India used a
solution, in the form of a 3D holographic
stamp, for its Freedom brand of refined
sunflower oil. A 3D holographic stamp,
sandwiched between two transparent
isotropic polyester layers, makes the pack
counterfeit-proof and assures the end-users
of a product that upholds utmost standards
of quality. The sandwiched holographic
stamp is not susceptible to any rupture by
scratching or rough handling in the supply
chain. The end-result is a product that
would be almost impossible for a
counterfeitertore-create.
In a similar move, few months back, Nestle
introduced a security seal designed to
FMCG Companies Gear Up Against
Counterfeit Products
ISSUE 31 ASPA News
Table: Estimated Tax & Sales Loss to the Government & Industry
Direct Loss (INR Crore) Indirect Loss (INR Crore) Total Loss to the exchequer (INR Crore) Loss of Sales
FMCG (Personal Goods) 867 3776 4646 21957
FMCG (Packaged Goods) 552 5108 5660 19243
Total 1419 8884 10306 41200
Source: FICCI CASCADE (Loss calculated for the year 2013)
1

5. ISSUE 31ASPS News
2
protect its Nescafe Coffee brand from
counterfeiting in India. The Seal of
Authenticity as a tamper-proof brand
protection/anti-counterfeiting solution that
does not affect the retail price of the product
- in this case, Nescafe Classic brand. The
seal (in picture below) includes a 3D
reflective lens image applied using transfer
technology as well as other security
features.
In India, consumer goods sectors that are
relatively more prone to counterfeit trading
are alcohol, consumer packaged goods,
personal care products, tobacco, mobiles
and mobile components, automobile
components and computer hardware and
software.
With increased incidents of counterfeiting
activity in the FMCG industry, secured
anti-counterfeiting packaging (ACP) has
become the first line of defence against un-
authorised attempts to steal, replace or
modify products of all types. Prominent
FMCG brands like Patanjali, AMUL,
Mother Dairy, Milkfed, ANIK Ghee etc.,
are also using various authentication
solutions to safeguard their brand and
products. Usage of authentication
technologies like UV protected film,
colour-changing film and holographic film
for secondary product packaging not only
helps companies protect the products from
being duplicated but also helps in
marketing and sales promotion. These
solutions in combination with IoTsolutions
canbemediumfor consumerengagement.

6. The Bureau of Internal Revenue
(BIR) vowed to capitalise on new
technologies and improve the
security features on its excise-stamp tax to
stop the widespread use of fake stamps that
rob the government of up to P15 billion
eachyear.
Fake excise stamps are particularly
rampant in cigarette manufacturing,
in part because the machines that
print them, while government-
owned, are commercially available
everywhere and therefore quite easy
for anyone to simulate and make
moneyfor themselves.
BIR Deputy Commissioner Jesus
Clint O. Aranas said the government
needs to step up the security features
on its excise-tax stamps and upgrade their
printing machines so that counterfeiters are
unabletocopythem.
“Well, the presumption is the fake tax
stamps do not come from APO Production
Unit Inc. They are printed outside. That is
why we are trying to improve the security
features because the printers APO is using
are not secure. They are available on the
commercial market and many others have
this kind of commercial printing
machines,”Aranas toldfinancialreporters.
When or how the agency only belatedly
realised that their printing machines are
unsafe have not been adequately explained,
but Aranas acknowledged the adoption of
technological advancements will help
secure the excise-tax stamps going
forward.
This means changing the ink, as well as the
tap guns used for the printing of the excise-
taxstamps,amongothercountermeasures.
“We have to improve the kind of printing
that we are producing, the ink that we are
using, and the tag guns that we are using.
There is so much [new] technology already
inthemarket,”hesaid.
The BIR also said it is looking into
the apparent breach in the printing
process that Aranas said originated
from the lack of enforcement
measures at the bureau and to the
lackinmanpower, aswell.
“We need to revisit it. Obviously, we
have a problem with the fake stamps
[and] that means our security has
been breached somehow, and that
enforcement is lacking. Of course,
we lack the manpower also,” Aranas
said.
Improving the security features on the tax
stamps is a priority at the BIR so as not to
allow counterfeiters to defeat the changes
thatwillbemade.
BIR Philippines to Upgrade Tax Stamp Security Features
he Drug Commission of German
TP h a r m a c i s t s ( A M K -
Arzneimittelkommission)
regularly informs about batch recalls which
are - for example - due to quality defects.
Now, there have been more and more
reports about batch recalls due to
counterfeit medicines. According to a
report of the German newspaper "Deutsche
Apotheker Zeitung" edition 5/2017, the
company axicorp Pharma is facing such a
counterfeits case. Actually, the company
has alreadyhadsimilarcasesinthepast.
According to the AMK, axicorp asked for
the following announcement: We have
information that with regard to the batch
mentioned, falsified packages have been
identified. For this reason, the batches of
Votrient 400 mg (Pazopanib), 60 film-
coated tablets are being recalled.
Pharmacists are required to check their
stocks and to inform their patients
immediately if the packages affected have
been delivered. The batch numbers are:
JN5W,MY2A, andP64U.
This case of counterfeit medicines reaching
patients through the legal supply chain to
the pharmacy shows how essential the
mandatory requirements on serialisation
(2D Matrix Code) are: they will start
applying as of February 2019. Some
companies have already established the
systems. Yet, others are still unprepared or
not sufficiently prepared. Beside the
necessary investments in technical
infrastructure, enormous organisational
tasks have to be solved. Experts say that a
12-month test phase will be necessary after
the complete technical implementation to
ensure a smooth "Track & Trace" process.
In particular the connection to the so-called
hubs for the transmission of the
serialisation data raises a wide range of
challenges. Therefore, companies should
have completed all the required
implementation measures by the end of this
year at the latest to be able to supply the
marketas of February2019.
As per the 2015 Customs Press Conference,
almost four million pills were seized by
German customs in 2015, four times as
manyas inthepreviousyear.
Falsified Cancer Drugs Found in Germany
ISSUE 31 ASPA Byte
3

7. ome 353,000 counterfeit
Seuro banknotes were
withdrawn from circulation
in the second half of 2016, a slight
increase compared with the first
half of 2016 and 20.7per cent fewer
than in the second half of 2015, the
European Central Bank (ECB)
announced today. The number of
counterfeits remains very low in
comparison with the increasing
number of genuine banknotes in
circulation (over 19 billion during
thesecondhalfof 2016).
Ever since the first euro series was
issued, the Eurosystem – i.e. the
ECB and the 19 national central
banks of the euro area – has urged
people to stay vigilant when
receiving banknotes. Genuine
banknotes can be recognised using
the simple “feel, look and tilt”
method described on the euro pages
of the ECB's website and the
websites of the Eurosystem national
centralbanks.
Euro
Counterfeiting
Remains Low in
Second Half of
2016
Only registered pharmacists will
soon be able to deal with the
supply and storage of medicine
for distribution to retail pharmacy outlets.
The union health ministry has issued a draft
notification to amend the Drugs &
Cosmetic Rules 1945 to stop unqualified
'pharmacists' from dealing in wholesale and
distribution of drugs. Officials in the drug
control department said the move had been
a long time coming and was taken as the
government had received several
complaints of spurious, adulterated and
misbranded medicines being supplied by
distributorstothechemistshops.
Taking cognizance of the complaints, the
union health ministry will change the rules
to allow only a registered pharmacist to be
in charge of supply. Currently, a matriculate
or intermediate or graduate person with one
to four years of experience in dealing with
drugs is eligible to store and supply
medicine.
Health Ministry Drafts New Pharmacy
Rules to Control Sale of Counterfeit
Medicines
Diesel launched scan for authenticity
iesel is set to roll out a new
Dmobile authentication tool which
aims to authenticate its jeans in
its fight against counterfeiting by the end of
theyear.
By the end of this year, all Diesel denim
wear will display the Certilogo code on a
heat-printed label in the waistband along
with the writing 'Scan for Authenticity' to
let consumers verify the authenticity of a
pairof Dieseldenim,beforepurchasingit.
“In a new consumer landscape driven by
appreciation for high quality, we embrace
the trust of our consumers, creating a direct
dialogue with them. With Certilogo, we
will empower Diesel fans to authenticate
the unique identity of our denim, making
sure they shop our original products in a
safe and secure way,” said Alessandro
Bogliolo,chiefexecutiveofficerof Diesel.
“This is a smart move on Diesel's part. The
relationship between brands and
consumers has changed in the digital age. It
is not acceptable to say, 'Buyer beware and
good luck' about fakes when every one of us
has the technology in our pocket to stop it,”
saidMicheleCasucci,CEOof Certilogo.
4
ISSUE 31ASPA Byte

8. The International Hologram
Manufacturers Association
(IHMA), which represents the
global hologram industry, has appointed its
firstchairmanfromAsia.
The appointment
of Manoj Kochar,
f o u n d e r a n d
director of India-
based Holoflex,
comes in the face
o f c o n t i n u i n g
d e m a n d f o r
authentication and brand protection
holograms, which provide effective
security devices to counter global threats.
The Asia region is seeing a significant
amount of hologram industry activity and
growth, with China still the major source of
counterfeitandpiratedconsumergoods.
The IHMA, a not-for-profit organisation
that promotes authentication and security
holograms worldwide, has also confirmed
its Board for 2017. Manoj Kochar will join
current Board members XiaoDong Liu,
founder and CEO of Henan Province
Wellking Technologies Co. Ltd, in China;
and Nuray Yilmaz of Turkey's MTM
Bilisim Arge Yazilim ve Guvenlik
TeknolojileriSanTicaret.A.S.
Rohit Mistry of Holographic Security
Marking Systems will remain as the
IHMA's Asia regional representative while
Diana Newcombe of Pacific Holographics
and Umendra Gupta of Holostik will cover
the North America and the ASPA regions
respectively.
The EU and European Free Trade
Association (EFTA) will be represented by
OpSec Security Group's Paul Dunn, and
Corinne Murcia Giudcelli from SURYS.
System Intelligence Products' Goran
Milinovic remains as the Eastern
Europe/Former Soviet Union and CIS
representative.Source:www.ihma.org
New Asia voice
for International
Holography Body
Manoj Kochar has been appointed as the
new chairman of the International Hologram
Manufacturers Association
The world's largest and heaviest nut,
the coco de mer, is getting an
upgraded anti-counterfeiting
system. Found on just two islands of the
Seychelles archipelago in the Indian
Ocean, the coco de mer palm has seeds or
nuts that reach half a metre in diameter and
canweighas muchas 25kilograms.
The outer shell is popular as a tourist
souvenir while the edible inner kernel is
desirable in Asian countries, where it is
believed to have aphrodisiac properties.
The seed's rarity and popularity make it a
targetfor poachersandfraudsters.
The coco de mer already featured an anti-
counterfeiting tag system but the
Seychelles Ministry of Environment,
Energy and Climate Change found this
original tag was easily falsified. "Our coco
de mer need to have better protection," said
Alain de Comarmond, principal secretary
in the Ministry of Environment, Energy and
Climate Change. "Due to thefts and
falsification of the old tag, the ministry had
toinvestinnew securitymeasures."
An investment of around $10,000 has
resulted in a new modern tag with
holographic security features and permit
system, which will make it more difficult to
counterfeit, de Comarmond said. The
holographic system includes visible
security features when held up to the light
and at a certain angle. An inviolability
system is also included, which makes the
coco de mer illegal should the tag be
removed. "The new tag and permit system
will improve the way the coco de mer is
being produced, the way it is managed and
traded. The system will assist us to further
fight poaching and other violations that
threaten the endemic species," de
Comarmond said. The transition to the new
tagwilltakeplacegraduallyovertheyear.
The coco de mer is listed as a threatened
species, is internationally protected and
there are strict laws governing the
possession, distribution and export of nuts.
While the plant grows naturally in the
UNESCO world heritage Vallee de Mai
nature reserve on the Seychelle island
Praslin, poaching and the illegal sale of the
nuts is a big problem, and appears to be on
the increase. Mature nuts can be sold for
between $450 and $750 per kilogram. A
two-year survey in 2014 found that
poaching was harming the plant's
population, which is already low due to
naturally slow growth rates of 20-30 years
before the first nuts are produced. Out of
6,500 trees on the island of Curieuse, there
were only 272 nuts, the survey found.
Research is currently being undertaken to
understand the life cycle of the plant,
including pollination, fertilisation and nut
production.
Source:https://www.securingindustry.com
5
ISSUE 31 ASPA Byte
World Largest
Nut gets new
Holographic
tag

9. The Indian manufacturing sector
witnessed a first-of-its-kind event
t o i m p a c t t h e p r e v a i l i n g
counterfeiting menace. In a strong move
against counterfeiting and enabling the
“Make-Sure-India” movement in the
country, India's first two-day conference
authentication conference cum exhibition –
The Authentication Forum 2017 opened on
February 8, 2017 at The Taj Mahal Hotel,
Man Singh Road, New Delhi. This forum
was organised by Authentication Solutions
Providers Association (ASPA) and Messe
FrankfurtIndia(MFI) jointly.
A high-profile panel of experts including
government authorities and technology
specialists have come together in New
Delhi to mark the launch of this important
platform which was inaugurated by Mr. B
K Prasad (IAS), Member – Secretary,
National Commission for Denotified,
Nomadic & Semi-Nomadic Tribes,
M i n i s t r y o f S o c i a l J u s t i c e a n d
Empowerment along-with Mr. P. V. Rama
Sastry, Joint Secretary – Department of
Consumer Affairs, Ministry of Consumer
Affairs, Food & Public Distribution, Govt.
of India, and Mr ChandrashekharRanga,
Dy Drugs Controller (India), Central Drugs
StandardControlOrganisation.
At the occasion, Mr. B K Prasad (IAS),
Member – Secretary, National Commission
for Denotified, Nomadic & Semi-Nomadic
Tribes, Ministry of Social Justice and
Empowerment said, “I am happy that the
industry has come together to deliberate on
this important issue.This is a major concern
which affects industries, government and
the public at large and I am happy to be here
at the Authentication Forum which can
bringforward implementablesolutions.”
In its opening remarks, Mr. Nakul Pasricha,
V i c e - P r e s i d e n t , A S P A s a i d ,
“,Counterfeiting is an important subject.
The loss of value to industry and to
consumers, the loss of tax revenue to
government, and the loss of innocent life,
make this a scourge we must come together
to eliminate. He suggested a three-pronged
approach:First, we must acknowledge the
problem.There is nothing to be gained by
sweeping it under the rug, or downplaying
the extent of it. We would only be helping
take the heat off counterfeiters and lulling
India Witnesses First-Ever International
Authentication Forum
Empowering Industry, Government & Consumers to fight fakes
A recent FICCI
report indicates
that illegal
market in seven
select
manufacturing
sectors led to a
loss of INR 39,239
crore during
2014.
ISSUE 31ASPA News
6

10. ISSUE 31 ASPA News
7

11. ISSUE 31ASPA News
8

12. ISSUE 31 ASPA News
consumers into a false sense of
security.Second, we must have a
comprehensive approach to tackling the
problem, involving strict regulations and
punitive measures against counterfeiters,
widespread adoption of solutions, and a
healthy industry with cutting-edge
capabilities to support brand owners in their
fight.Third, we must educate and empower
consumers to be aware of the extent of the
problem, and how they can take steps to
ensure their and their families' safety. Here
again, government and industry can both
playavitalrole.
Counterfeiting is increasing 3 per cent per
annum globally. In India, the problem is
more severe, it is growing with an alarming
rate of almost 44 per cent per year. As per
industry body FICCI-CASCADE, from the
counterfeiting activity the Government of
India incurred a loss of INR 26,190 crores
in fiscal year 2011-12, which has increased
to INR 39,239 crores in 2013-14, a growth
of49.8 percentintwoyears.
The first day of the forum started with a
panel discussion on reviewing the
counterfeiting menace in Indiabefore
u n d e r s t a n d i n g t h e p r o b l e m s o f
counterfeiting across various sectors,
including medicines, FMCG, auto parts,
liquor,mobilephones andothers.
Speaking at the occasion, Mr. P. V. Rama
Sastry, Joint Secretary – Department of
Consumer Affairs, Ministry of Consumer
Affairs, Food & Public Distribution, Govt.
of India said, “Even as industry revenues
take a major hit by counterfeits, the biggest
loss is to the consumer. All of us need to
work together to address this growing
concern and the panel discussion with
various cross-sector stakeholders at this
importantforum,willservethispurpose.”
While discussing issues of counterfeiting in
the automotive sector, Gajanana M
Gokhale, brand protection manager,
AutomotiveAftermarket, Bosch, said, “Old
auto parts get reconditioned and are being
sold as genuine new products. We have
started getting some products back to our
factory and destroying them, but we can't
possibly get all products from across the
country. Another problem is lookalike
names that fool customers. Some products,
such as HID kits, shock absorbers and
clutch plates, being sold in the market with
Bosch branding are not even manufactured
by the company. We don't have registration
for these products but they are available
with our branding in Delhi and Mumbai.”
To tackle this, Bosch is introducing new
packaging for its products with 13 overt and
covert features. The company aims to
change the packaging of all its products by
2018. “Changing packaging of some
products in the initial phase has helped the
business grow inthegroup,”saidGokhale.
At the occasion, A K Datta, packaging
expert and former head, packaging at
Jubilant Life Services, said, “Of the 800
billion USD global pharmaceutical
industry, approximately 10 per cent is
believed to be counterfeit.' Sumantra
Mukherjee, director, Forensics Practice at
KPMG, pointed out that the FMCG market
in India was valued at 49 billion USD in
India in 2016 and is expected to reach 104
billion USD by 2020. Addressing the
concerns of FMCG counterfeiting, he said,
“Counterfeit products are growing at a
staggering rate of 44 per cent, as opposed to
30 per cent a couple of years back.” The
increase, he said, was due to online
business where it is easy for counterfeiters
to sell fake products and dupe customers. It
is, therefore, important to locate the real
source of the product before making a
purchase. Brands lose up to 20 per cent of
market share and companies face roughly
10 per cent losses on revenue and profit due
tocounterfeitproductsinIndia.
The second half of the day covered the role
of global standards (ISO 12931), and
perspectives of legal and law enforcement
agencies in anti-counterfeiting strategies.
Pradeep Shroff, anti-counterfeiting expert
and former ASPA president, suggested that
brands look at counterfeiters as
competitors, do a SWOT analysis and
understand their strategy. “Make a business
plan against counterfeiters and measure lost
sales and business opportunity to act
againstthem,”hesaid.
Day two of forum provided insight
todelegates about authentication solutions
andtrends from global experts through a
seriesof sessions on anti-counterfeiting
strategiesbeyond solutions, giving a 360
degree integrated approach against
counterfeiting.There were presentations
from BlueSphere Health, Holoflex,
Holostik, De LaRue, IHMA and Oak
Analytics, the lattershowcasing a new
authentication handheld Raman
spectrometer. The role and importance of
standards,and how strategic and tactical
consultingfrom Price Waterhouse Coopers
can helpreduce counterfeiting, was also
presented,prior to a panel discussion on the
selectionand integration of authentication
solutionsbycustomers.
The IHMA General Secretary Dr
MarkDeakes presented 'An Insight into
New Generation OVDs', which covered the
latestinnovations in this sector and included
thelatest developments in banknote, ID,
brandprotection, tax stamps and packaging.
Dr Deakes said 'this was an excellent forum
with insightful discussions and papers and
showcased the increasing importance that
the Indian government now places on
reducingcounterfeiting.'
‘With global counterfeiting estimated to
rise in the future, there is an increasing need
for technology and technology solution
providers, including hologram suppliers, in
helping to combat the menace of
counterfeiting.''Holograms, when part of an
integrated anti-counterfeiting strategy,
remain a robust authentication solution
which can help people live safe and healthy
lives.’
At the occasion, Mr. U.K. Gupta, President,
ASPA, said, “Our Governments seem
committed to fight against black money and
terrorism and we welcome the initiative of
Government of India and the campaign
“Made in India”. Today, “Made in India”
products have great opportunity in India
and the overseas market. However, with the
increase of counterfeiting in various
sectors, there is a constant need to ensure
that these “Made in India” label products
are of highest quality, genuine and secured
9

13. ISSUE 31ASPA News
till it is delivered to the end consumer. We
offer various authentication solutions
which will ensure that “Made in India”
label product are of highest quality and can
be easily identified as genuine products by
brand owners, Government authorities and
consumer by large with the help of IT and
digital solutions such as mobile app, SMS
and web based applications. This summit
will have positive step on our existing
Honourable Prime Minister Narendra
Modi's dream country campaign “Make in
India” & ASPA's campaign “Make Sure
India”.
ASPA's General Secretary, Arun Agarwal
said, “We have been actively working
towards brand owners' awareness against
counterfeiting, for long. Since last year, we
had extended this program to next level by
e n g a g i n g c o n s u m e r s a n d o t h e r
stakeholders in this the fight against
counterfeiting.We are thankful to industry
association such as Automotive
Component Manufacturers Association,
FICCI CASCADE, Indian Beverage
A s s o c i a t i o n , O r g a n i s a t i o n o f
Pharmaceutical Producers of India (OPPI),
Indian Cellular Association, International
Hologram Manufacturers Association and
other industry veterans in our fight against
counterfeiting. We aim to explore the
existing scenario and find practical
solutions. Consumer awareness is key to
thisinitiative.”
The event was attended by more than 230
delegates and eminent experts including,
Mr. Arvind Gupta, National President
(Convener) – IT Cell, BhartiyaJanta Party
(BJP), Mr. Anil Rajput, Senior Chair –
Federation of Indian Chambers of
Commerce & Industry – Committee
Against Smuggling and Counterfeiting
Activities Destroying the Economy (FICCI
CASCADE) & Vice President - Corporate
Affairs, ITC Ltd, Mr. Rama Shankar
Pandey, Co-Chairman, Consumer Affairs
& Anti – Counterfeit Committee,
Automotive Component Manufacturers'
Association of India (ACMA) & Managing
Director, Hella India, Mr. Vivek
Padgaonkar, Director – Project & Policy,
Organization of Pharmaceutical Producers
of India (OPPI), Mr. Pradeep Shroff, Noted
Anti-Counterfeiting Expert, Author,
Former President, ASPA & Former
Managing Director – PRS PermacelPvt.
Ltd and many more shared their insights on
this vital issues aimed at mitigating
counterfeitingconcerns.
10

14. Interview Kezzler
Q1: Please brief us a bit about Kezzlerand
yourself
Kezzler is based in Oslo, Norway, and the
company's main product is a proven
technology platform for brand protection,
track-and-trace and mass consumer
engagement. The company's vision is to
change global business practices by
providing a secure, unique and interactive
code on EVERY single product item. This
does not only allow real time brand
protection, but also individualized real time
consumer engagement propelled by the
uniquecodeontheproductitemitself.
Q2: What solutions does Kezzler offer for
authenticationand packagingsector?
Our primary product offering includes brand
protection, track-and-trace and mass
consumer engagement. Kezzler's cloud
platform enables serialization on a mass
scale giving every product a unique identity
in the connected world. We can link brand
owners with their products so they can find
out information about these products, all the
way from the point of manufacture right
throughtothefinalconsumer.
Q3: How are Kezzler solutions different
or unique from other players in the
market?
A technology platform that empowers
companies to meet customer demand for full
valuechaintransparencyby:
 Providing mass-scale individual unit
packageserializationatverylowcost
 Digitizing every package to create an
“Internet of Packaging” that works across
the entire value chain, turning products
into information and interaction channels
for all stakeholders in the digital consumer
goods ecosystem
 Connecting any consumer who has a
smartphone with a company-tailored,
interactive database that meets its
customers'transparencydemands
 Enabling commercial value chain
participants to track and trace ingredients
and finished products in real time with no
more than a smartphone and an Internet
connection
Q4: What are the milestones of your
company tilldate?
Kezzler has reached many milestones,
including securing a global partnership with
the leading flexible packaging company in
the world, AMCOR; with Roche India, we
virtually eliminated counterfeits of their key
oncology drugs, Avastin and Herceptin,
rolling out brand protection program in
support of Reckitt Benckiser's Durex
condoms, expanding our organization in
India,AsiaandtheUSA, tomentionafew.
Q5: What kind of challenges your
company faced in initial stages and what is
thescenarionow?
PASS
Q6:You have been into the packaging and
consumer goods industries from a long
decade, how do you see adoption of
authentication solutions in packaging and
theirimportance?
We believe there is tremendous momentum
in the field of serialization, both at a local and
global level. Through pending and new
legislations (i.e. Pharma, tobacco and food)
along with consumers' demand for full
transparency, brands and companies are
investing tremendous resources to find new
and improved technology solutions that can
dothefollowingatmassscale:
 Full transparency about where products
comesfromandhow itismade
 Assurances of authenticity and immediate
traceability of products up the value chain
to the origin of finished products and
ingredients
 Real-time connectivity and two-way
communicationwithcompanies
Q 7: What are the key factors which make
Kezzler enter the Indian market? How do
you seethis market?
The market for serialisation, Track & Trace
and Consumer Engagement is steadily
growing. It was important that we have our
own operations to meet new market trends
and closer coordinates with our clients and
partners.
The India market is at an inflection point
with multiple players across various level of
technical capability trying to meet the huge
opportunities. The client as such needs to be
cautious in selecting a provider capable of
providing services which are extremely
secured, extremely scalable and extremely
responsive.
Q 8: Kindly let us know about the
company expansion plan across the globe
and kind of investment company planning
todo inIndia inupcoming years?
Kezzler is currently experienced rapid
growth and significant momentum through
partners and current and new customers. We
are expanding our sales and project
management staff and opening a new office
inBostonandAsia.
We expect 2017 in India to be a big year for
us. We are boosting our sales and technical
capabilities by hiring the right mix of
manpower. We are investing more on
building relations with the right bodies like
'Authentication Solution Providers of India'
and 'Norwegian Business Association of
India'
Q9: What are Kezzler solutions and how
they work? What are the steps to
implementation? How easily can these
solutions be integrated with packaging
lines?
(alreadyansweredthefirstpart)
The beauty of Kezzler's technology solution
is its simplicity, security and scalability. We
work very closely with our partners,
customers and suppliers to minimize
operationalburden.
Our production line solutions are completely
integrated with most of the top hardware
providers and work across printer
technologies. The consumer engagement
platform has been developed keeping
scalability and operational ease in mind. A
client cannot only use the multitude of
existing options to digitally engage with
consumers, but also create their own. The
Track and Trace functionality is developed
and implemented is such a manner that it can
be seamlessly integrated into a clients'
existing ERP systems. The patented
algorithm for generating codes and then
validating them is backbone to ensure that all
Kezzler solution work in sync with each
other and deliver results at lightening
speeds!
Brand Protection Track & Trace Consumer Engagement
Thomas Kormendi CEO Kezzler AS
11
ISSUE 31 ASPA News

15. 12
cross the globe, illicit networks
Aare infiltrating and corrupting
legitimate business markets,
reducing productivity, and dis-
incentivising investments in research and
d e v e l o p m e n t — n o t t o m e n t i o n ,
jeopardising public health, emaciating
communities' human capital, and eroding
the security of our institutions and
governments. FICCI's Committee Against
Smuggling and Counterfeiting Activities
Destroying the Economy [CASCADE] has
been over the years concertedly addressing
this issue through its various Pan India
awarness generation activities, building
capacities of law enforcement officials and
undertaking ground breaking research
abouttheextentandimpactof themenace.
In furtherance of its mandate, CASCADE
organised its 3rd edition of its International
Conference titled - Cross Border Illicit
Trade in Goods: Impact on Economy and
Consumers in collaboration with the
Department of Consumer Affairs, Govt. of
India on December 08, 2016 in New Delhi.
The conference was organised with an aim
to ensure that national and international
stakeholders can dialogue with policy
makers to identify opportunities for joint
action between governments and the
private sector to combat illicit cross border
trade.
Inaugurating the conference, Shri Hem
Kumar Pande, Secretary, Department of
Consumer Affairs, Govt. of India, said,
“Operations in illicit cross border trade, is a
global problem of enormous scale,
impacting virtually every product sector
and every country. The illicit market for
fake or counterfeit or smuggled products is
also one of the biggest challenges faced by
Indian industry, which is impacting 'Brand
India' globally. Given the key role of
technology, invention, and innovation in
India's current economic development, the
value of “Indian made” products where
legitimate business owners' rights are
safeguarded is a key to sustain the country's
growth strategy. Addressing these issues
cannot be done in isolation; it is a joint
responsibility of consumers, enforcement
a g e n c i e s , t h e i n d u s t r y a n d t h e
government.”
Dr. A. Didar Singh, Secretary General
FICCI in his welcome address stated that
“India today has the potential to become a
global manufacturing hub. However,
widespread smuggling and counterfeiting,
can act as a dampener in achieving this
goal. It is time that we, as a nation and as a
part of the global economy, call for stern
and resolute counterstrike force against
such activities. This has several elements,
starting with greater vigil at the borders.
Enforcement mechanisms at the borders
are critical in combating cross border
Fighting the Invisible Enemy:
Smuggled Goods, a Threat to India's Interests
Mr. Anil Rajput, Chairman, FICCI CASCADE
ISSUE 31FICCI Cascade

16. 13
Seizure of Smuggled Goods (Rs. Crore)
Product / Commodity 2014-15 2015-16 %age Increase / Decrease
Cigarettes 90.75 162 78.5%
Fabric / Silk Yarn 24.03 41.78 73.8%
Gold 692.35 1119.11 61.6%
Machinery Parts 563.18 447.1 - 20.6%
Electronic Items 37.85 17.98 - 52.5%
illegal trading activities. On one hand,
while open borders facilitate travel and
trade, they also make border control more
challenging due to the emerging new forms
of cross border crimes. Hence, it becomes
vital that the border-managing enforcement
agencies borders are prepared to identify
possible suspects and their victims in such
ill-intentionedcrimes.”
Mr. Najib Shah, Chairman, Central
Board of Excise and Customs (CBEC)
stated that“illegal trade is a growing
menace and the need of the hour is
collaboration among stakeholders to tackle
it. Growth of illicit trade through e-
commerce is a new challenge, which also
needs urgent attention. Unchecked, it will
continue to multiply. We also need to lay
equal emphasis on the rights of legitimate
businesses, which are greatly impacted by
illegaltrade.”
Mr. Anil Rajput, Chairman FICCI
CASCADE in his address said,
“Transnational smuggling through
international channels, involving outright
s m u g g l i n g o f p r o d u c t s o r m i s -
declaring/under invoicing of values is a
common and rapidly growing problem in
India as in most other parts of the world.
Robust regulations, prioritising
enforcement activity and providing
sufficient enforcement rights to the
agencies are the need of the hour. Increased
vigil on our porous borders, especially in
the backdrop of our relations with our
neighbours should also be treated as a
priority.” He further added that illicit trade
remains a formidable adversary for the
nation. The root cause of this is sometimes
a policy framework that incentivises
unscrupulous elements to take advantage
and make inroads in the system. This
encourages anti-social elements to dictate
terms to the supply chain and create havoc
for thepublicatlarge.
On this occasion, a report – 'Invisible
Enemy –AThreat to Our National Interests'
– focusing on the negative impact of
smuggled goods on the Indian economy
and businesses was also released.
According to the report, there are five
goods where the seizures by DRI have been
the highest in the past few years. These five
goods are:
1.Gold
2.Cigarettes
3.MachineryParts
4.Fabric/Silkyarn
5.Electronicitems
The report findings highlight that
smugglers are now switching over to
cigarettes and fabric/silk yarn as they are
low-risk, high-reward goods. As per the
report, in the last one year, the DRI seizures
of smuggled cigarettes has increased by 78
per cent (from INR 90.75 crores in 2014-15
to INR 162 crore in 2015-16) followed by
fabric/silk yarn, where the increase is by 73
per cent (from INR 24.03 crores in 2014-15
to INR 41.78 crore in 2015-16). The
seizures of gold have witnessed an increase
of 61 per cent (from INR 692.35 crore in
2014-15 to INR 1119.11 crore in 2015-16).
While the DRI seizures of machinery parts
andelectronicitemshaveseenadecline.
The primary reason for the rise of smuggled
cigarettes into India is the high taxes.
Cigarettes smuggling is a low-risk, high-
reward criminal activity because high taxes
on cigarettes induce great financial
incentive for smugglers to earn huge
profits. Persistently increasing taxes on
cigarettes provide a lucrative opportunity
for tax evasion due to tax arbitrage between
the country of exports and in the importing
country.
On the other hand, the smuggling in
fabrics/silk and yarn is primarily driven by
the demand-supply gap and the dependence
on imports. The Indian textiles industry
faces acute shortage of raw materials in the
form of cotton and raw silk. While India is
the second biggest producer of silk, it is
ISSUE 31 FICCI Cascade

17. also the second biggest importer of silk in
the world (India's share in 12 per cent of the
total world imports) after Italy. India's
dependence on imports of silk and yarn has
seen a consistent increase over the last five
years, having grown from 0.8 per cent to
1.12 per cent of the total imports. This
clearly indicates that domestic production
is highly insufficient to meet the growing
domestic demand, in turn fueling
smugglinginthesector.
The international conference highlighted
and deliberated on issues such as
Implications of Illicit Cross Border Trade
on the Global Economy, Strengthening
Border Management System for Effective
Enforcement and An Interdisciplinary
Approach to Sharing Market Intelligence
on illicit cross border trade. The
deliberations explored the socio-economic
consequences of cross border illicit trade
and the policies needed to deter this
activity. The discussions contributed to an
integrated vision of national security and
p u b l i c s a f e t y , p r o v i d i n g a n
interdisciplinary dialogue, which will
attract industry regulators, customs
authorities, law enforcement, major
producers of consumer goods, consumer
associations and NGOs. With an
underlying objective to deepen
understanding of illicit trading activities
across borders, effective strategies to
dismantle such illegal business practices by
thepublicandprivatesectorsweresought.
The conference saw a host of notable
speakers, national and international from
World Customs Organisation, Delegation
of the European Union to India,
Department of Homeland Security-
Homeland Security Investigations, USA,
Unilever, Sanofi, United IPR etc. It was
also addressed by notable dignitaries
including Mr. P. C. Jha, Advisor, FICCI
CASCADE & Former Chairman, CBEC,
Mr. Deep Chand, Advisor, FICCI
C A S C A D E a n d f o r m e r S p e c i a l
commissioner of Police, New Delhi, Mr. D.
P. Dash, Principal Additional Director
General, Directorate of Revenue
Intelligence, Mr. Rajeev Krishna, IPS
Inspector General (OPS) Border Security
Force, Mr. Gaurav Tyagi, Commandant &
Joint DirectorAnti-Smuggling & Narcotics
Control, Coast Guard, Mr. A K Gautam,
Deputy Inspector General, Indo-Tibetan
Border Police and Mr. Binod Nayak, Dy.
InspectorGeneral,SashastraSeemaBal.
India has a committed border protection
force plus enforcement agencies that is not
only safeguarding the long national borders
against trans-border criminals including
smugglers and terrorists but also ensures
prevention of smuggling and enforcement
of anti-smuggling & anti-counterfeiting
laws. FICCI CASCADE acknowledges the
efforts put in by the officers who show high
standards of rigour and intelligence in
p r e v e n t i o n o f s m u g g l i n g a n d
administration of related matters which
impact Indian business and economy. To
encourage and acknowledge the work of
our law enforcement agencies FICCI
CASCADE also felicitated the best
performingofficersfor theperiod2015-16.
Thewinners wereasfollows:
1. Mr. A K Parayil, Deputy Inspector
General- Commanding Officer, Indian
Coast Guard Ship Sangram
2. Mr. Sanjeev Kumar Singh,
Commandant, Indo-Tibetan Border Police
3. Mr. S. N. Dubey, Deputy
Commandant, FGT, Ferozpur, Border
Security Force, Ministry of Home Affairs
4. Mr. Dinesh Kumar, Deputy
Commandant, BIAAT (Dehradun), Border
Security Force, Ministry of Home Affairs
5. Mr. S Sathianarayanan, Deputy
Commissioner, Chennai III Customs
6. Ms. Mandeep Sangha, Deputy
Director, Directorate of Revenue
Intelligence (DRI), New Delhi
7. Mr. Yogendra Kumar, Sub Inspector,
Economic Offences Wing, Delhi Police
14
ISSUE 31FICCI Cascade

18. 18
It is estimated that more than 95 per
cent of enterprises across the world are
SMEs, accounting for approximately
60 per cent of private sector employment
(Ayyagari et al. 2011). Japan has the highest
p r o p o r t i o n o f S M E s a m o n g t h e
industrialised countries, for more than 99
per cent of total enterprises (EIU 2010). In
India, Micro, Small and Medium
Enterprises (MSME) contribute nearly
eight per cent of the country's GDP, 45 per
cent of the manufacturing output and 40 per
cent of the exports. They are the nurseries
for entrepreneurship and innovation. They
are widely dispersed across the country and
produce a diverse range of products and
services to meet the needs of the local
markets, the global market and the national
and international value chains. However,
the figures are not as impressive. The share
of India MSME in exports having declined
from 406.2 per cent in 2009-10 to 43 per
centin2012-13.
NeedofSecurePackaging
It's critical for MSMEs to step up their
innovation drive to gain a larger share of the
global markets and become more
responsive to the emerging global market
trends. For this, they need to understand the
value of Intellectual Property Rights (IPR)
and brand protection. The reasons are as
follows:
1. Protection of Innovation/
Importance of IPR
By nature most of the MSMEs are
entrepreneurs and innovators. Almost
every MSME has a trade name or one or
more trademarks, however, they almost
never protect their IPR as a preventive
measure, and there are ample chances that
their products/ideas can be cloned or
duplicated by unscrupulous elements.They
need to understand that brands are their
biggest assets. Without Intellectual
Property Protection there is a strong risk
that investments in R&D, product
differentiation and marketing efforts might
get stolen or copied. IPR enable SMEs to
have exclusivity over the exploitation of
their innovative, new or original products,
theircreativedesigns andtheirbrands.
2. Globalisation and Risk of
Counterfeiting
Globalisation and trade liberalisation has
made it crucial for most enterprises,
including SMEs, to become internationally
competitive even when operating wholly in
the domestic market. The globalisation has
also increased the chances of counterfeiting
inthesupplychain.
For example, in a recent case, the Nigerian
Government Drug Regulatory Authority
(NAFDAC) has reported about the
detention of a large consignment of fake
anti-malarial generic pharmaceuticals
labelled 'Made in India' but produced,
packed and shipped in China. This was a
classical example to malign India's name
and to destroy the export market for Indian
pharmaceutical companies that has
acquired a strong position as a producer and
exporter of inexpensive generic medicines,
which can treat with efficacy and safety at
par with their patented alternatives, but at a
very reasonable cost. Subsequently, the
Government of India advised all
pharmaceutical manufacturers to adopt
authentication /tracking solutions in order
toavoidsimilarincidents.
3. Importance of Packaging in
Marketing
The Government of India is already
sensitising exporters on this issue.
Packaging is no more considered only for
protection and preservation of products.
These days, with the increasing market
competitiveness, companies are adopting
different packaging techniques. Usage of
authentication technologies like colour
changing features, holographic images,
tamper evident seals, track and trace etc.,
for primary and secondary product
packaging not only helps companies in
protecting the products from being
duplicated, but also acts as a potent
marketingandsalespromotiontool.
4. Adoption of ISO Standards
- Commitment to Quality
The Honourable Prime Minister of India
has recently announced 'Make in India'
initiative with the intention to make India a
m a n u f a c t u r i n g h u b . T h e I n d i a n
Government is helping the MSME through
various programs to increase their quality.
The MSME can adopt ISO: 12931 to
protect their goods against counterfeiting.
Perhaps, the government of India can also
consider announcing initiatives to MSME
that adopt this standard. This will set an
example for the international fraternity
about their commitment to quality and
productauthentication.
In conclusion, it is safe to say that
protection of brand and Intellectual
Property must be considered to be a pre-
requisite in the process of building a
business, and an MSME business definitely
has a greater chance of success when it
adopts the old adage – Prevention is better
thancure.
The Need for authentication solutions for MSMEs'
15
ISSUE 31 ASPA News