ITC Packaging’s 92-year old journey began in Munger, Bihar to cater only to their tobacco packaging requirement. The company now with factories in Chennai and Haridwar are leaders and by far in premium packaging cartons and continue to strengthen the position of being heavyweight packaging frontrunners with pioneering investment in flexibles in 2008, labels in 2014 and now in corrugation, flexo and rigid boxes.
The Print week India team spent two days at the ITC Limited - Packaging and Printing Division in Chennai. It is clear that your Company is doing many things : from cigarette packaging to food and personal care and rigid boxes. The thing that is fascinating is, to see that beyond the big business, the ITC team is creating new packaging products that are built specifically for the India market. Your views on these innovations?
Industries across the spectrum of consumer packaged goods industry consider packaging to be a key differentiator for their brands. We now see even traditional segments like incense sticks, herbal cosmetics, ghee etc use packaging extensively to help provide this differentiation. Value added packaging is no longer restricted to segments like alcoholic beverages or high-end personal care. Whatever be the end use industry, there is a continuous focus on innovations in packaging which could be two fold – one at a higher end involving R&D in materials/alternative forms of packaging and another which is low cost innovation for quick hit results using value addition.
Your perspective about the Indian packaging industry and the potential for growth? The market data suggests: processed food packaging represents 48% of the total pie, personal care packaging is 27%, pharma is 6%, plus there is tobacco and liquor. How should a packaging firm invest? Create a market and invest; or invest and then create a market? Should one create or follow?
Both routes are relevant depending on the context. For traditional segments like cartons & flexibles you need to keep investing, creating capacity and target aggressive growth. However for segments which have future potential for growth say like packaging for agricultural produce, fresh fruits, ready to shelf packaging etc, you may need to invest ahead of time and grow the market.
A raft of high-end offset machines ensure quality carton production
One of the things that impressed me, was the "people strength" at ITC. What kind of HR policy does ITC possess to motivate your task force?
ITC is known for its holistic approach to Human Resource management. We look at hiring people from technical and packaging institutes and give them responsibilities early in their careers. We provide opportunities for cross functional experience and job rotation. We offer high quality work environment, competitive salary and benefits that outweighs competition. We follow our core values of trusteeship, Customer Focus, Respect for people, Innovation, Excellence and Nation Orientation in everything that we do and that keeps employees aligned to the business.
ITC invested significantly in building two state-of-the-art manufacturing locations. There is a tremendous amount of technology momentum. How do you juggle between upgradation of technology and return on investment?
ITC has always believed in investing in state of the art technology keeping a long term perspective and providing the customer with superior solutions with technology and quality. Our choice of technology has always been with a futuristic outlook and benefitting customers.
How have you harmonized the process between your manufacturing locations?
We induct the technology in one plant and replicate the same in other plants. We have multiple technology platforms across plants integrated by common systems and processes.
A battery of Bobst Novacut die-cutters at ITC's Chennai plant
Today there are a lot of options for a printing company in terms of choices. On the one side there are the traditional German, Swiss and Japanese heavyweights and on the other side, the influence of China plus new territories countries like Taiwan and Brazil. How do you pick and choose?
Investment in technology is for the long term. Hence we prefer to look at solutions which are at the forefront of technology. For e.g. we were the first to invest in the Bobst Asitrade inline microfluting equipment though the same could have been done via lower cost Asian alternatives using multiple processes. This helped us cater large volumes with consistent quality & shorter lead times.
What about small ops?
For small value add machines and some niche areas we do look at lower cost technology options as may be appropriate.
You have an interesting concept in place with the packaging design studio. This is a consumer-oriented approach. How has your small and nimble team reaped dividends for you?
Creating a studio which showcases products and technology enabled us to create an environment where customers can engage extensively with our team and work on creative designs & packaging concepts. Ultimately packaging development is about anticipating customer needs well and a small nimble and efficient team servicing the customer can enable speedy development by aligning all the processes to deliver customer delight
The role of Product Introduction Process (PIP) in ITC?
Product Introduction Process (PIP) team pioneers packaging innovations. The cross functional team uses a unique process to pilot the client's packaging requirements through its manufacturing system. This process has helped enhance the look and feel of many leading brands. The centralized team operating from Chennai integrates design & development needs of all the units to ensure seamless knowledge transfer required for executing right first time.
How did you create your QC lab? Especially since you are dealing with multi substrates and thousands of products?
Our in-house labs are equipped with testing equipment for measuring key attributes of the products that we manufacture. In addition, we leverage our state-of-the-art multi product testing facilities at ITC’s Life Sciences & Technology Center at Bengaluru which serves as a comprehensive R&D center for testing and research facilities.
ITC has deployed Rotomec rotogravure presses to print flexible laminates
Amongst the various guidelines e.g. US Food and Drug Administration (FDA); the British Retail Consortium (BRC); and with especial reference to print, the European Printing Ink Association (EuPIA) and tried and tested ISO, What are the certifications a firm should opt for?
Certifications are a means of reassurance of the standards in place. We are compliant to integrated management systems that encompasses quality and EHS. Our units are further certified for Social Accountability (SA 8000) & BRC –IoP, Sedex amongst others.
How must a packaging firm look at paperboard? The importance of grain direction, bendability, stiffness etc.
Knowledge of technical characteristics of substrates & materials is critical in packaging development. An understanding of processes at our plants as well as in customer’s machines is an integral part of the skill base in packaging design. Hence this forms an important role in a packaging company.
How do you handle shorter runs? Especially, smaller sizes and special sizes?
Whether in offset or gravure we offer flexible manufacturing platforms which can cater to small runs and unique sizes. Of course a smaller run ends up being more expensive to the customer. However we do offer customers the flexibility they need in run sizes.
Very few factories look at cutting edge quality. You follow the principle of direct printing with pre-cut board sizes; plus use superior tools and die cuts. Your comments on this.
The right quality parameters like cutting quality & crease stiffness are vital to ensure good runnability on customer’s packing lines. Our customers have also been upgrading and investing in state-of-the-art high speed packing lines thus increasing the demand with respect to the performance of the packaging material.
One of your colleagues mentioned you worked on lean journey. Can you tell us some more?
The nature of our business depends on generating internal efficiencies so as to remain competitive in the market while offering quality products. Some of the key initiatives using the lean methodology include - 5S, Quick Changeovers and reduction of Waste.
Can you tell us some more about the 5S impact?
5S has helped us keep our factories clean and progress to high hygiene standards & efficiency. Quick Changeovers have helped to increase machine utilization, thereby offer small volume SKUs competitively to customers
How about reduction of waste?
Our Waste reduction initiatives look at waste from a holistic perspective covering many areas like reduction of motion waste, process waste, duplication of effort etc, thus making our processes more robust, sharper and efficient.
ITC's Haridwar plant
Your factory is dust-free. How does one reduce dust in the factory; especially in areas like die cutting which are prone to high dust levels?
The physical infrastructure created and the quality of tooling & substrates used ensure minimum dust on the shop floor. The investment in the inline waste extraction systems and employee involvement in 5S help comply to product safety and hygiene standards.
One of the things you have aimed to do at your factory is mistake proofing. How can a SME packaging firm achieve zero error?
Fool proofing through technology across processes, zero defect campaigns and. various continuous improvement initiatives are in place.
Which software are de facto, now? What do the brands insist on during their audits?
Customers look for integrity of design files since printed packaging carries branding, legal & statutory text. While customers do not insist on any specific software, it is always safer to stay with an integrated software solution that works across platforms. It is also pertinent to have good archival & retrieval systems to handle design files.
Specific product requirements and compliance are just two elements that are crucial for a brand. A pharmaceutical customer will want to see a factory full of similar pharma-type work. The question for you is, should one keep production lines separate because the use of a substance that is suitable on, say, a bottle label might not be appropriate in a food label factory because of issues such as migration? Or it can be a mix and match?
We have been able to manage the complexity through the modular concept and yet retaining focus on each of the product lines within the same factory.
Some converters in Europe are running digital presses or end of line finishing in the packer/filler sites. Will this scenario be replicated in India, too?
Yes we do see a rise in the usage of end of the line single color digital print for coding, serialization etc. for statutory requirements & consumer promotions.
How do you view digital printing and converting in folding carton as the way forward in the near future?
Packaging Companies have started experimenting with digital technology to create customized / personalized packs that connect with changing consumer preferences. The technology has evolved over the years and is gradually becoming affordable for the packaging segment. In the near future we see this platform increasing in use, however the mainstay technology will continue to be the conventional platforms.
What kind of automation in printing and post-press would a company like ITC opt for?
ITC has looked at automation primarily as a tool for enabling quality of the product & enhancing safety standards for operations.
How do you select your suppliers (Ink, Machinery, Software)?
We work with leading suppliers who are reliable and are able to work with us in meeting current requirements and future market needs. We believe that our suppliers are critical partners in our journey of growth and success.
ITC Packaging follows the culture of innovation in packaging. How has this made your company a market leader?
In an increasingly competitive environment of capturing shelf space and consumer engagement, ITC Packaging made an early start and worked with customers to introduce features like tactile feel and other special effects across processes.
ITC continuously provides value addition options and anti-counterfeit solutions to customers?
There are numerous instances of innovative solutions given to customers & these have been recognized with several national & international packaging awards.
The Smithers Pira packaging consultant Dominic Cakebread has said paper and board is “an unloved backwater of packaging”, adding that much of the focus of R&D goes on plastic and “not so much on paper”. You have tried to counter some of this through glow in the dark packaging or XY and Z–axis packaging. What has been the response from the market?
The response from the market has been very positive and encouraging as it has helped our customers enhance their brand value.
Finally, where do you see ITC Limited - Packaging and Printing Division over the next 10 years?
ITC will continue to track customer needs and future market opportunities and invest ahead of the curve. We will engage in new product development, deploy cutting edge technology, focus on operational efficiencies & provide innovations through science based R&D for future growth. In an increasingly environment conscious world, another area of focus will be sustainable & recyclable solutions in packaging. ITC will endeavor to be the market leader in our chosen segments in packaging.