Sangam Khanna: Keep liquidity high as a business will need money to grow

PrintWeek (PW): What are your sales numbers in the last 12 months?
Sangam Khanna (SK): We count our sales based on handover and not shipment. This year, our shipments may be more but we are targeting the handover of around 40 machines.

PW: A little ahead, we have the big shows — Interpack, Labelexpo Europe 2023, Drupa 2024. Would your company be part of these shows?
SK: Komori will be in Drupa 24. It’s too early for us to share the details but our wish will be to have visitors and customers to pre-Covid-19 levels. However, with the geo-political scenario, we will have to wait closer to the end of November and early December to get a clear picture.

PW: Do we have the data and trends that can prove packaging business is an industry well worth exploring?
SK: This is an area in offset printing that is opening up as more and more customers are demanding larger sizes to cater to larger size formats for corrugated boxes. However, we are yet to see any installation in this vertical.

PW: Can you share an example of a customer of yours diversifying packaging after seeing your kit in action?
SK: We have a customer, Arunodaya Packaging, one of the leading label manufacturers based in Hyderabad. The company did a linear integration in the vertical of mono cartons, supplying liquor and pharma packaging. To the best of my understanding, the company has utilised the machine we installed from day one.

PW: Producing good quality products is of the essence… could share some pointers for those looking to diversify?
SK: The mindset of commercial, packaging and publishing customers is completely different. Packaging customers will be a bit easy to address as their work is based on consistency and standardisation set by the customer. So, there is no choice for them but to align with customers. Their customers are demanding in terms of delivery schedule, quality of the packaging of the product, quality of finish appearance, quality of consistency of print, and the paper and pre-press inputs, and last but not least, a regular update on the job process. It’s a value-based sale every time. However, commercial and publishing fields are known to be price-sensitive with cutthroat competition, and thus, few print converters use value sales. The industry is based on price sales and the relationship one carries with the buyer.

PW: Is social media having an effect on the print industry?
SK: To the best of my understanding both the media will co-exist. Nevertheless, social media is set to grow more. But print too is transforming and good growth in this is certainly fanning out, as we all experience the same in our daily lives.  

PW: Most of the CEO’s energy is focused on taxes. How does one find the time to focus on business?
SK: It may be true that some of the CEO energy is drained on issues other than the businesses. However, in Komori, one is supposed to allocate judicious time to all the departments of revenue generation, especially HR and the welfare of the employees.

PW: Most print-packaging companies PrintWeek/WhatPackaging? meet say that it’s essential to keep the machines running with wafer-thin or no-margin jobs. Isn’t it a risky strategy?
SK: As per a report I read just a few days back, Indian packaging is estimated to touch USD 125-billion in FY 2023 and the projection for 2025 is set to hit a target of USD 180 to 200-billion. This speaks volumes. Now, when there is a gap between demand and supply, I am certain that wafer-thin margins are unsustainable. With the retail eCommerce and other verticals of packaging on paper and board, India seems to be on the growth path for some more years.

PW: The number of levels in a factory almost always directly correlates to more bottlenecks. One simple step that everyone should follow in their factory?
SK: To be honest, in my opinion, there is no way out. Unless one is running a mama-papa shop. Yes, processes can be set up for a quick approval system with good ERPs running, which map a timeline to every job. I know of many mid-size and large companies that are efficiently running them.

PW: There’s a spike in the cost of spares. It has become a cause for concern. How would you explain these hikes?
SK: Please do understand that spare and service rates have been stagnant for a long period of time. There is pressure on manufacturers to procure raw materials and this has a direct impact on the output. When it comes to India, the forex too has gone up against the rupee by over 6% compounding year-on-year added to the cost of labour, which was stagnant for over a decade and the organisation were bleeding. This price increase is a forced measure for all the manufacturers globally.

PW: Sustainability initiatives are on the rise. How do the technologies and manufacturing you deploy come closer to meeting the lofty sustainability goals?
SK: Sustainability is a serious concern for the environment and Komori is committed to working on this. Komori is an eco-friendly machine and we achieved this in 2012. Now, Komori is working on the same project to define new levels of sustainability. We shall announce this once we are ready to roll out. Packaging material constitutes over 80% of the finished product. We support working with materials which are sustainable and recyclable. Komori is committed to doing our best with like-minded suppliers globally to work as associates for a cause.

Digital will certainly have a big role to play in this as the amount of paper wasted is much less. But every technology comes with good and bad points. What makes digital printing technologies come closer to meeting lofty sustainability goals is less waste, reuse and such, than their conventional predecessors.

PW: How is your company better placed than its competitors?
SK: Komori tied up with Landa, and we too have transformed with digital machines of our own — the IS 29 and NS 40. We have the technology from Komori which is set to have a big impact on our customers. We have installed the first two NS 40 machines and customers seem to be very happy with them. To the best of my understanding, there are not many suppliers who can boost to have a NS 40-like competition at the cost of print which this will have.  

RK: And finally, the market is changing. Commercial print runs have declined, but it still offers better margins…
SK: Yes, the efficiency levels too have improved and the margins too are better than pre-Covid levels. As I was speaking to a commercial printer in Delhi, he told me that the commercial printers in the area got together to brainstorm why they are working below cost. Most agreed not to work below their cost. God forbid, if another Covid-like situation comes up, they will be forced to shut shop.

PW: How should the print and packaging industry prepare itself for 2023 and the foreseeable future?
SK: My advice will be to keep liquidity high as a business will need money to grow, and lease out equipment. When deciding on an expansion, look for automation to reduce costs. Retain manpower as much as possible and encourage them to do one more job, which is out of their core competency. Last but not least, incorporate training in your staff as it will drive efficiency.