AP: One of the reasons may be due to the simplicity of GST credit mechanism. Pre GST any such differential rate of duty had an impact on landed cost as CENVAT credit was allowed, based on a number of conditions, but post GST, this credit mechanism is more simple. Further, varnish and reducer transaction is between B2B mainly and the higher rate does not impact the overall landed cost of raw material.
As far as we know AIPIMA has not made any representation for 28% GST on varnishes and reducer to the GST Council.
AP: This script has played out on expected lines for the industry and also for Siegwerk. Our 2017 results have been lower than our trajectory in the past few years.
AP: With its global expertise and experience, Siegwerk is ideally placed to help the converters gradually move their short-run jobs from gravure to flexo to add to the versatility and cost-effectiveness. Talent availability to manage the CI flexo operation is scarce and here Siegwerk actively supports the printing community by training these resources with the help of its highly specialised and experienced flexo onsite consultants.
AP: Low migration inks are currently being used only when asked for by the end customers – mainly exports to regulated markets. Over a period of time, with regulatory changes, we should see an increase in usage.
AP: Currently, the usage is at a very nascent stage. Their time will undoubtedly come, but gradually, as product safety awareness spreads.
AP: In the absence of strong regulations, brand owners have still not woken up to the need to use LMLO inks. LMLO inks are a very small percentage of UV-consumption, and limited only to certain pharmaceutical labels which are exported mainly to the US. Once strong regulations are in place, the brands will then automatically move towards LMLO inks.
AP: The CAGR is in line with the global markets.
AP: UV-inks as a product-portfolio is expected to continue to grow robustly, increasingly replacing water-based inks in the labelling industry. Also, it is making deep inroads into the offset printing industry, replacing oil-based conventional paste-inks.
AP: In labelling it is on account of advantages of technical superiority in terms of press-performance, print-quality, instant curing, robust scuff and product-resistance, no clean-up during press-idling, to name a few. And in the case of offset printing, we have seen UV replacing conventional inks in mono-carton printing where metallised high-end cartons have become very popular. Recently, sheetfed converters have been increasingly using UV for regular cartons too, as it lends itself immediately to post-printing operations, thereby reducing work-in-progress (WIP) on the shopfloor.
PVG's flexo ink lab being inaugurated by Ashish Pradhan