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 $0.5 billion in size. The industry currently has a 3% market share of the overall packaging industry in India. Key end users of labels in India include pharmaceuticals, apparel, food and beverages, and FMCG. The label industry in India is fragmented with opportunities for consolidation and collaboration with international companies. Growth of the middle class is driving increased demand for labeled products in India.
2. Country Overview
Industry Overview
Global
India
Labels
Market share
End User Segment shares
Recent Emerging Trends
SWOT Analysis
Opportunities- Label Industry
Challenges
India – At Advantage
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3. India Growth Story –
2nd fastest growing economy in the world ( Value : US$ 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
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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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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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