Demonetisation and GST have adversely affected the demand for printing and packaging machinery industry. In this interaction, S Dayaker Reddy, President of Indian Printing, Packaging and Allied Machinery Manufacturers’ Association (IPAMA), and Director, Sai Enterprises, highlights the challenges of this industry and probable solutions. 

 

How is the demand for printing, packaging and allied machinery in India?

 

The printing, packaging and allied machinery manufacturing industry is poised for good growth and has great potential to contribute to the growth of our nation. As part of nation building efforts of the government, demonetisation in November last year and implementation of GST this year have considerably slowed down the economy and the industries are operating in low key. We hope this is temporary and the government will come out with some realistic and encouraging incentives and benefits to the industry to recover, grow and contribute to the national growth.

Specifically, our industry has huge domestic market to cater to and also has great potential for exports in the Gulf and African regions.

 

What are key challenges before this industry?

 

In the present scenario, GST has posed a grave situation in acquiring the required raw materials for manufacturing the equipment and machinery for sale. While we are forced to buy materials with GST at 18-28 percent payable upfront, we have to wait for at least 4-5 months to sell our manufactured machinery and equipment.

 

Second challenge is high incidence of wastage in manufacturing. Lack of proper training and absence of emerging production techniques are not only increasing the costs abnormally but also reducing the profits considerably. Thus, on both counts, our industry is suffering.

Presently, while we are highly import intensive with a lob sided import-export ratio of 5:1, our efforts to significantly increase the exports remain a big challenge. This is a big gap and needs to be bridged consciously by our industry.

 

What are the latest trends in printing, packaging and allied machinery industry?

 

IPAMA members are mostly engaged in web offset, post press machinery and equipment manufacturing activity. Post press manufacturing scenario is changing drastically with cold foiling and UV technology and will continue to evolve further. This is an encouraging trend which will help our industry immensely along with our continued worldwide leadership in web offset machinery and equipment manufacturing.

 

What steps the government should take to give a boost to this industry?

 

Our sincere endeavour will be to periodically meet and convince the government to give incentives in manufacturing and exports to our industry for better performance and contribution to the national growth. GST upfront payment remains a big hurdle for industry profitability and needs to be supported through mitigating benefits. Simplifying the procedures, speedy disposal of files, atmosphere for ease of doing business and growth oriented government policies are the need of the hour, especially when the economy is in slow growth mode. 

 

What is the outlook for this industry?

 

Printing, packaging and allied machinery manufacturing industry has great promise for further growth and contribution to national GDP. We are world leaders in web offset manufacturing and post-press manufacturing is also growing at faster speed. Technology upgradation is enthusiastically adopted with emphasis on exports growth. While web offset exports is done to more than 100 countries, other segment like post-press exports also should increase.

 

Research and development is another area where industry has to invest for fast growth prospects. IPAMA will help ensure to sustain this growth oriented outlook of our industry on a continuing basis. Likewise, government also should do its share in supporting and supplementing our efforts through grant of incentives, providing benefits, creating conducive environment for growth and investment in R&D.