It is now common procedure to have liquids, aerosols and gels packed in tamper-proof packaging before you board an aircraft to avoid any terrorist-related incident. The packaging used here is of a unique kind and the one company that makes it in India is Dynaflex. Huned Contractor interviews the company's chairman to find out more.

In the year 2006, terrorism, always a potent threat in the aviation sector, took a new turn when the British police discovered a plot to detonate liquid explosives carried on board at least ten airliners travelling from the United Kingdom to the United States and Canada. What this resulted in is unprecedented security measures that clamped restrictions on the carrying of liquids, aerosols and gels (LAGs) aboard any aircraft. Though these were gradually relaxed in the following weeks, the ability of passengers to carry liquids on commercial aircrafts remains limited. That same year new screening technologies were installed at various airports to detect hazardous substances within the LAGs.

Following this, security tamper-evident bags (STEBs) were developed to allow an exemption to volumetric controls for liquids purchased at airport retailers or on board aircraft and carried by transfer passengers. The ICAO (International Civil Aviation Organisation) has laid down norms for the secure transport of LAGs under which once purchased by passengers from duty-free shops after passing through security or on board the aircraft are placed into an STEB for safe-keeping. Interestingly, there is a company, and perhaps the only one of its kind, in India that makes these STEBs. In this interview, Niranjan Vora, Chairman of Dynaflex Private Limited, elaborates about these unique products it makes and the company's other line of business:

How did Dynaflex come into being?

After having done my post graduation in mechanical engineering from the US in the 60s, I started working with the multinational Union Carbide but left it after a few years when they wanted me to shift to Japan. I returned to India with a dream to become an entrepreneur. In 1971 I put in all my savings and took a government loan available for technocrats to start a printed packaging company with German machinery in Vadodara, thereby becoming instrumental in ushering in printed packaging instead of plain packaging for national brands like Nirma washing powder, Tata salt, etc. In 1985 I set up Dynaflex Private Limited to take up the new challenge of making printed carry bags and this gradually led us to the technology of making security tamper-evident bags.

Is making STEBs a very niche product line?

Globally not more than a handful of reputed companies manufacture high security tamper-evident bags and envelopes as the infrastructure required to assure reliability is difficult in terms of machinery, standards, people and technology. Dynaflex is the one and only ICAO-approved STEB manufacturer in India and while along with making aviation security bags used for duty-free liquids, we also make bags tamper-proof bags for evidence collection, forensic use, diplomatic pouches, etc. We now export our products to more than 35 countries.

Do you have a parallel product line also?

We also make tear-free security envelopes. This kind of packaging ensures that an envelope carrying important documents cannot be opened without damaging or tearing the envelope. An ordinary envelope can be opened and then sealed again without leaving any evidence. Tamper-evident security envelopes leave a clear and indelible mark to any attempt of unauthorised opening, thereby providing maximum confidentiality.

We also specialise in making cash bags that can be used for keeping cash collected per shift at retail stores, restaurants, toll booths, ticket counters, etc. Once sealed in this permanent closable bag and signed by the shift in-charge, it avoids dispute about its content when opened in front of the relevant authority. Any fraud is caught right away.

Are these used only for documents?

The use of such packaging is finding increasing use among e-retailers who have to send products to customers who have selected them online without any physical examination. For an emerging industry like that of e-commerce it is critical to gain repeat customers. Such a repeat purchase or loyalty is determined by the usefulness, trust, satisfaction and perceived value of the product. Looking at the condition of goods when received, the customer builds a perception about the product and its supplier. If the condition of the delivered product is not as what was promised online, this can shatter the customer's faith in the company. Therefore, the e-commerce retailer has to deliver the product, safe and secure, in the hands of the right person. This is where the tear-free envelope also works as an important branding tool. This is standard practice in most of the developed countries and India is catching up fast.

Do you think this has a big market potential in the future?

According to a recent survey conducted by ASSOCHAM, the online retail industry in India is likely to be worth Rs 7,000 crore by 2015. The Census Guide 2011 by eBay, which observes key trends in online buying, importing, selling and export, indicates that e-commerce is catching up real fast with Indians not only living in the metros but also the rural areas. Consumers are buying not only low-involvement products but are also buying luxury high-end cosmetics, jewellery, watches, fashion clothing, electronic gadgets and fitness equipment online. The demand is high from reputed online retailers such as Flipkart, YehBhi, eBay, Zoomin, etc.

What about production capacities and investments?

We have been working on ramping up our production capacity from 75 million pieces to 300 million per annum to meet the rising demand. The company is also aiming to become a Rs 100-crore annual turnover entity. We are in the process of making a planned investment of USD 3 million because the security and tamper-evident products business is growing at a rate of 50 per cent. There is huge potential in capturing markets in the Middle East, Europe and Russia.

What next?

Our team is actively working with different industries like civil aviation, pharmaceutical, banking, security, engineering, defense, etc., to develop high-security solutions in packaging and shipping. As each solution is customised, it gives Dynaflex an edge over the others. Also, the business aspect is now being looked after by Gaurav Vora who is now the director of the company. Gaurav has more than 15 years of experience in specialty packaging and security products' industry.

A visionary, he developed the tamper-evident line in India by supplying 1 crore such high-security envelopes, against global competition, for the launch of Dhirubhai Ambani's pioneer scheme where mobile phones were delivered across India by courier services. He has taken extensive training in specialty packaging from Europe and has worked in similar global leading companies in Scotland, Germany, Italy and Spain. Meanwhile, I am using my experience in my role as the president of the Indian Flexographic Technological Association to promote better quality of printing in the industry using flexographic printing technology.