Neovation Graphics: Betting on Lombardi Synchroline to boost its packaging business

Raman Anandchahl is the founder and CEO of packaging startup, Neovation Graphics, and has an ambition in the packaging market. He has just completed his first phase of investment, and is happy with the returns. A tete-e-tete with Anandchahl

31 May 2017 | By Noel D'Cunha

Why did you opt for Lombardi Synchroline 430? What are the key features that tilted the decision on this buy?

We are a specialist packaging company and have a set of jobs which require good print quality and especially, inline finishing processes. We wanted to boost our label producing capacity. In the Lombardi Synchroline, we found a print system that met most of our needs and found that the machine can give us the desired return on investment. 

The eight-colour fully servo UV Synchroline press is equipped with movable cold foil, chiller, two die-cutting stations with easy waste, slitter, turn-bar, re-lam, de-lam, sheeter, conveyor and lamination.

You have also invested in a Vinsak LSR 330 and Vinsak TIJ (thermal inkjet system)?

Yes, the LSR 330 is for finishing of labels while the TIJ will print personalised data like barcodes, text and numbers on labels. The LSR is operated via integrated control panel and runs up to a speed of 300 meters/minute.


A major investment for you, is there more coming, and why?

These three machines are the first in a series of investments we are looking at. The aim is to move from being a packaging products provider to bringing more and more jobs in-house. 

You said that your company is a premium packaging producer with a select list of large corporate clients across industry verticals of FMCG, aviation, cosmetic and pharma. How has the Synchroline helped in satisfying the needs of your clients?

The Synchroline’s ability to print jobs on an extensive range of substrates ranging from 12-micron film to 450gsm boards will provide an extra edge to us to deliver value-added solutions to our customers. Besides, our capacities and capabilities have been enhanced which will ensure that our clients will be served better in the future. 

Can you elaborate on the capacities and capabilities?

Our earlier capacity was only to print on paper and paper boards and deliver in sheets or finished products. We now have the capability of printing on a wide range of substrates including films, aluminium blister and lamitubes to name a few. Also, our ability to deliver in rolls or continuous folded products enables us to approach new markets to tags and tickets and aviation stationary.

What were the key challenges in getting this investment through?

As we scaled up, the usual challenges were site selection, government approvals, and capital financing. We are happy that we have been able to resolve them within a reasonable time frame with no cost overruns. The current strength of the Indian rupee is helping as well.

Some facts of productivity improvements/features of the investment which helped?

A number of products that we do were requiring multiple processes in a sheetfed environment. Moving to a web base has reduced wastage, delivery times and promised better finished products with less manual handling. Also, less manual intervention means the end product looks cleaner and more consistent. Customer delight has really improved. 

Can you give an example?

To take a typical example of one of our tag jobs, we had a total of six processes which have since been reduced to two and our overall gross wastage has dropped from 18% to 4%. This is based on actual widths and substrate sizes being optimised, gripper margins avoided and multiple steps combined. 

How is the label segment shaping up?

The self-adhesive labels segment, we feel is flattening. New areas like using innovative substrates, new finishing and application techniques are the future. We look forward to leveraging the capabilities of our equipment to meet these new and niche markets to deliver us the ROI. 

We also find that the government policies on manufacturing are clear and consistent. Business should continue to see a healthy growth over the next three years and we do not see any such challenges. 

Your thoughts on the GST?

We think it is too early to comment on this. It is a game changer but it will come with its own set of intricacies and complications. It is important for the government machinery to tweak the policy as it goes along and iron-out the glitches in a timely and effective manner. That will show the success of the transition to this new indirect tax regime.

What is the present turnover, and with this investment, what kind of a growth are you looking at?

Since the last year was the first year our base was only Rs 4-crore. In the coming year, our target is to quadruple it to Rs 12-crore, if not more.