Four print CEOs hold up a mirror to Sivakasi

Labour and power are deterrents for the Rs 1,500-cr Sivakasi print industry. Printers combat these challenges with a newer outlook. Leading print heads give a lowdown on the road ahead.

28 Nov 2013 | By PrintWeek India






Chandra Mouli,
Orient Color Art Printers
The Sivakasi Print Industry 
“Sivakasi is famous for its fireworks industry but a lesser known fact is that the city’s renowned printing business has been around for a longer period of time. The majority of print needs of India were met here. It has been famous for its skill and craftsmanship regarding print matter. But over the years, the industry has faced stiff competition since clients were forced to turn to local printers to meet their immediate needs. Even so, the printers of Sivakasi have managed to hold their own; since they continue to cater to a large clientele from all over India in addition to the burgeoning export market.
Latest Trends
We have zeroed in on an exciting new trend where we combine the flexo and offset technologies to create a hybrid, which enhances the value of the product. Another trend is to focus on increasingly attractive packaging and existing products which are printed on different and a variety of substrates.
The growth trajectory among 450 print firms in Sivakasi was doing well – and there were 30 new presses installed. This year the print turnover projection isn’t positive. Even bankers took to warning printers to stay away from expansion or investment. Sales have taken a hit and the printing industry has been feeling the pinch. Consequently the number of machine installs are also very low. By my estimate there would have been about 12 installs. So there is a de-growth in the industry.
Key Issues
Labour is a major hurdle today. The problem is finding adequate skilled labour. We at Orient Color Art Printers have turned increasingly to automated equipment since we were faced with labour scarcity five years ago but with this kind of technology skilled operators have become the need of the hour but unfortunately even as the demand keeps rising, we continue to be hard pressed to find suitable personnel.”
Salaries have doubled over the past three years but the increasing lack of discipline among labourers, escalating levels of absenteeism which may be attributed to the welfare schemes implemented by the Government have not done the industry any favours. 
Newer Avenues
The face of printing in Sivakasi is being revitalised and revamped. Publishing, packaging, as well as revolutionary printing techniques have been introduced in Sivakasi. Metallised effects, a host of post processing methods, lenticular printing and digital printing are being carried out. It is the dawn of the digital era and many would say it is the wave of the future. In keeping with this principle, print sectors in the city have invested in digital technology. Conversely, offset owners are expanding laterally with digital technology.
Any job can be done in a cost-effective way as compared to other places, due to low overheads. The industrial spirit of Sivakasi is well known and its moniker ‘Mini Japan’ given by Jawaharlal Nehru is well deserved. Clients are always in safe hands in Sivakasi.

 





A Marirajan, Chima Notebooks,  and president of Sivakasi Master Printers  Association
The Sivakasi Print Industry 
The forties saw the genesis of the printing industry in lithography in the printing annals of Sivakasi. The growth in the fireworks and matches industries in Sivakasi gave a major impetus to the printing industry. 
Making forays into the calendars, diaries, trade labels and packing materials in the national levels, the Sivakasi printing industry enjoyed a major share in the Indian print market. That was an era when the experienced and dextrous operators and artists were able to coax the machines to produce good jobs. 
Latest Trends
The print market and the machinery manufacturers in the western countries have been experiencing difficult times since 2005. But, Sivakasi witnessed robust growth in the print and packaging market till now. In the press segment, instead of going for new machines of high cost, Sivakasi was flooded with rebuilt CPC four-colour machines. In the pre-press, the CTPs and CTCPs have almost eradicated the retouching and platemaking artists. In the last year, the addition of new presses in Sivakasi is few, totalling just four machines. There were 20 new CTP and CTCP machines installed last year. The Sivakasi print industry handles daily an average of 500 to 600 tonnes of paper/boards.
Key Issues
The biggest and the life-threatening problem the industry faces is the power scenario. In Tamil Nadu, it has forced the closure of many micro and small scale industries. The past 18 months have been the darkest period of the print industry of Sivakasi.
The growth in the print industry in Sivakasi and the print jobs handled this year leave much to be desired. There are many external factors that are beyond our control. Even in our press, the pricing module and the market demand projections have gone haywire because of the steep increase in the price of paper and the government policy intervention.
Newer Avenues
Sivakasi is perhaps the first print centre to get a printing cluster in India. It is a government funded MSME–CDP programme to help the local industries to bring in new technologies and machineries in line with global trends. The work is in full swing and the unit is expected to go become functional by November or December 2013.
MPA has launched the MSE Cluster Development Programme and a Common Facility Center for print. The project, which has been approved by the Government of India and the Government of Tamil Nadu, will help the print fraternity by providing governmental financial support. Not many new hands are coming into the industry. Without the migrant workers from Assam, Bihar and Orissa, the situation would have been far worse.

 





Abilash Dhanasekaran, Palaniyappa Print N Pack
The Sivakasi Print Industry 
As of now the Sivakasi print industry is branded as cheap and best for volume printing. Most of the companies are equipped for large volume jobs. You tend to see similar jobs run at a point of time. For example, December to April is a season for notebook wrappers, school books, charts etc. And then from July to November it is calendars, diary, fireworks packaging, and so on. The wedding cards, packaging products, are a year long project and fill the gaps.
Latest Trends
Every printer is moving towards creating their own product-line like calendars, wedding cards, notebook, school charts. In addition, there is a new kit for UV printing, non-woven bags for printing etc.
There was a sudden boom in CTP, CTCP plate-makers. In the past two years at least 15-20 new players have installed a CTP system for commercial purpose. Due to the electricity problem in Sivakasi there was no addition of a new press in the past two years. Post-press also suffered due to the power deficiency plus lack of skilled labour.
Key Issues
Labour is a sore point of Sivakasi. The scarcity of labour, and their attitude, is detrimental to the print industry. Hard work, loyalty of the workers has changed from previous days.
Ours is a traditionally old company and most of the clients have been printing with us for a long period of time. We are in good relationship with them. Client relationship and service has helped us manage our margins well.
Newer Avenues
The best thing about Sivakasi is that it is one of the biggest print hubs with abundant labour and opportunity to outsource any job.  

 




A Balasubramanian,
Champion Litho Press
The Sivakasi Print Industry 
Sivakasi is famous for printing for all sort of jobs and is especially famous in Tamil Nadu for government textbook printing as well as few jobs from Andhra Pradesh. Every printer has created a niche for themselves in segments like notebooks, calendars, greeting cards among other. Almost 30-40% of carton packaging and match boxes are catered to by the Sivakasi industry. Also, around 10,000 people of Sivakasi are employed in printing and allied industries.
Latest Trends
Publishing segment is growing as there is growth in demand for growth in demand in volume of export of books. The packaging segment has taken a hit as the turn around time for delivery is very short and time taken for transportation is high and cost factor involved goes up too.
The growth in Sivakasi has slowed down considerably. A decade ago, print industry was growing at 30-40% but presently the growth rate is below 10%. There has been around 10-15 CTP and CTCP systems installed. Also most printers in Sivakasi prefer investing in secondhand machines.
Key Issues
In the present generation, a majority of the labour has migrated to metropolitan and there is scarcity of labour nowadays.
I feel that in the next ten years this will be one of the major issues. Also, the abrupt hike in paper prices is our immediate and major concern. Due to this, it is very difficult to participate in government tenders as it becomes difficult to cope up with the changes in the rates.
The pricing of print jobs is cheaper as compared to other cities as a majority of the printers own the premises and machine and do not have any loans attached to it. Also, most of them use second hand presses and the quality consistency of printed jobs is at par with that of the jobs printed internationally.
Newer Avenues
The worst thing about the print industry in Sivakasi is the growing labour issues, and the scarcity of electricity which is a prevailing issue. Intervention is required by the Tamil Nadu government to solve these issues. 
The best thing about Sivakasi is that whatever the volume and the type of jobs required, be it labour intensive or automated high end jobs, Sivakasi can cater to the needs.