Does the process to gain something have to be painful? Especially, if gains are either not visible or the end of the tunnel to get to “gains” is way too far; leaving you wondering whether you’ll reach there in a (mental, physical and financial) condition to rejoice! Of course, you end up questioning if the journey is worth it? Well, that is the mood I sense all around me. Most people across economic strata and backgrounds (leaving the few select aside) are shaken up and in daze; not knowing where they are headed and what policy / govt. announcement is going to hit them next. Also how hard the hit is going to be!
The whole exercise of Demonetization and then GST, all in the garb of Economic reforms for better economy, has indeed been a painful one in terms of cash flow disruptions, filing frequent returns, and much more. The dwindling Raj of corruption and mafia styles to wrench money from a peace loving Indian janta is still seen in open abundance, atleast in good old Mumbai and surroundings. I am sure my friends and colleagues from other parts of the country would agree with me. With the inflation burgeoning and increasing taxes in the name of rationalizing them; leading to increasing raw material prices and overheads, be it wages or other variable expenses has taken its toll on the profits.
GST for printing inks is reduced from 18 to 12% from 15th November 2017. However, the Sin Tax of 28% on varnishes and reducers being clubbed with cigarettes, liquor and luxury goods is baffling. So how reducing GST on printing Inks is going to help if the consumer is still going to pay more; leading to concern on consumption! Linking varnishes and reducers meant for doctoring inks applied by sophisticated, precision Printing machines, to give ease of printing applications, in extreme weather condition in India, goes to show the government departments’ lack of ground realities and what needs to be honed for its make in India. The HSN classification needs an urgent review to be relevant and to correct the half-hearted efforts by the Govt. of India.
To address requirements in ever changing business and financial environment, a THINK TANK has been formed for MSME members. THINK TANK is expected to consult and guide MSME members w.r.t. their futuristic business with value add to the printers. It shall comprise of members from the top global players to mid and SME companies. It is a sincere effort to bring about a theme "SURVIVAL FOR ALL" in Make-in India a reality. The final names of the team would be announced in Chennai on 9th December 2017, at the GRT Grand, followed by seminar, cocktail and dinner.
Before we end this year, its time we sincerely ponder on how to tackle the oil price increase affecting our input raw material prices. Up-grading of formulation technology to be in sync with the Global environment. Considering our printer friends would have to take atleast 2 slabs of price increases, one immediate averaging 5 to 7%, and the other in early quarter of 2018 of a similar amount. This is very important if your current futuristic Ink business has to be sustained.
To help you get better insights and individual views point of colleagues from our and associated industries, we have interesting, informative and thought provoking articles lined up in this issue of Ink News.
An article on Smart UV for wide format printing on the Indian horizon should give inputs on modifications in vogue along with articles on offset printing and web inks, etc. Do look for an article to know about the impact of Inks on the environment. Rudolf Wallas (an Ex. Of) Inks India –Mumbai sends his thoughts all the way from USA on the Inks Industry in USA. It will be interesting to get insights into how Inks Industry in USA is faring and coping with volatile global economy. And that’s not all…. But Space allocated to editorial does not allow me to list the wonderful articles, write-ups, news, views and much more that this issue of Ink-News has in store for you.
So read on, learn, and do let us know what you think about them. Suggestions and articles on our dynamic website and InkNews are solicited to make it informative and interactive, not only in terms of knowledge, but also raw material availability through advertisements and happenings at different levels.
Do drop in to have a look over a cup tea at the new dashing AIPIMA office in Mumbai, depicting a look of art gallery and a nursery for you to visit to meet the New Office Team, headed by AIPIMA Manager Mrs. Sneha J.
Let us thank the outgoing President Mr. Vimal Mehra and his TEAM for a successful one year tenure and hosting the Asia Coat + Ink Show and International seminar in Mumbai.
It is time to welcome President Mr. B B Sen and his TEAM, working hard to settle GEN- Y in the AIPIMA as future office bearers.
It is time to also celebrate the completion of over 1 year with IPCA (Indian Paint and Coating Association) on joint understanding of helping to strengthen the two industries on self-sufficiency for GLOBAL MAKE in India.
Bye for now with a promise to meet soon.
Dear Industry Colleagues
I express my gratitude to the members for AIPIMA for choosing me as the President of the association. While business as a whole are going through difficult times due to various local as well as international factors, I too have a difficult task to shape the organisation for future as we prepare for younger generation taking over the administration of the association in near future with an objective to make the association more relevant to its members. We have already redesigned our vision and mission statement which is given in the newly designed website. Our magazine “Ink news” is now coming with lots of new features to involve all members closely to association activities. We have decided to introduce a ‘THINKTANK’ to help MSME manufacturers in the areas of their expertise with long valued experience of the top brass of the largest Ink Manufacturers in India . In addition, we are likely to introduce a page dedicated to all MSME Industries for sharing their experiences an entrepreneur describing their journey , objectives & growth plans. We are also providing the Raw material prices on the websites on a regular basis now.
Let me share my views on business environment in a nutshell :
Factors affecting current business:
Global: Globalisation itself has taken a hit due to rising nationalism with examples of USA, UK , France and Germany . While Business world likes an integrated borderless society for ease of transaction, displacement for jobs of local people due to local companies losing out, becomes an issue. In addition, a fast pace technological change apart from digitization, change in lifestyle etc are some of the most influential factors affecting business. We see a trend of shift in entrepreneurial emphasis from product to platform based ideas. All these affects the Printing business directly or indirectly to a great extent .
In addition, anything happening to a large economy like US or China affects global business quickly. Current antipollution measures in China have pushed particularly the chemical raw material market upwards.
In our domestic market, we see a continuous technological upgradation in printing technology bringing in demand for faster speed, lower migration, environment friendly products with improved rheology & higher pigmentation. Advancement in water base, UV and digital technology will bring the changes faster. We need to remember the customer wants “low wastage now” with high print quality at high speed & low odour.
There is a concern about unhealthy competition bringing undue pressure on profitability. A transparent dialogue between all established manufacturers could be the solution to provide some relief from the factors stated above.