The Labels Manufacturers Association of India (LMAI) organized a panel discussion on label buyers’ challenges with quality, sustainability and innovation on 2 May 2025 at Radisson Blu, New Delhi. Attended by leading label printers and suppliers, the event marked the beginning of the silver jubilee celebrations of LMAI. The panel discussion was moderated by Harveer Sahni, chairman Weldon Celloplast and a member of the board of directors of LMAI.
Swati Gupta, PMP Packing technologist, Amway, said several parameters need to be kept in mind while selecting label stock to maintain the quality of labels. These include gloss, look and feel and consistency as well as specific needs of the customer with respect to opacity, substrates, ink, varnish and color, among others.
Naveen Stuart, cluster packaging manager, Reckitt Benckiser, added that one needs to identify the label on the basis of what’s required. Every product requirement is different, he said, adding that all kinds of packaging, such as PE bottles, HDPE bottles, require different label substrates.
Sahni asked the panelists about the vendor selection process criteria – whether the brands opt to view the label processing equipment installed at a specific vendor’s manufacturing facility or prefer to view the samples of the portfolio of labels printed by them.
Sanjay Ghoshal, head of packaging, Diageo India, explained that vendor selection is a long process involving a lot of steps. Today, brands not only want to look at the samples previously printed by a label supplier for existing customers but also want to be aware of their quality management system, financial soundness, and reputation in the market during the audit process. The qualification audits are planned with formats and specification sheets shared with the label vendors beforehand, he said.
According to Arijit Mondal, packaging design and development head, Nestle India, the product requirement, or where the product is going to be used, is of prime importance in the vendor selection process. The strength and durability of the label need to be tested during qualification, he said. “Labeling software plays a key role when applying the labels to the finished packs. However, in the end the quality of the label comes from the consumer lens. Maintaining parameters for label quality is a collaborative effort between the brand and the label supplier and this partnership is what makes a brand’s labels win,” he said.
Stuart said the performance of a label on the shelf over a period of time demonstrates its quality. “Though a label is a piece of decoration that gives out the language of the brand and creates a certain image, no brand wants it to be spoiled before or during its use. Aesthetics is of prime importance in the FMCG category and Pantone colors and embellishments need to be in place,” he said.
Gupta said that if brand essence is maintained, quality falls in place on its own. Mondal said the awareness of consumers has changed over the last two decades. Customers, today, want the contents of the products listed on the pack in a crystal clear, correct and legible manner. New regulations on the front of packaging will come into place very soon, he said.
Ghoshal said alcobev is a media dark market, where decartonization has been happening on a large scale in the last few years. Hence, labels have a major role to play for SKUs as they create the first impression on the consumer. The label is considered as the ‘silent salesman’ for the brand. A good label in the alcobev industry not only speaks the language of the brand but also delivers the right mandates.
The discussion delved into the topic of reverse auctions. Sidharth Sharma, DGM – purchase at Dabur India, said reverse auctions have both pros and cons. While they give benefit to the buyers in terms of cost and transparency, it is a well-known fact that margins are shrinking with label converters with lesser and lesser funds being allocated to innovations and R&D. Thus, label suppliers are opting for feasible costing instead of abrupt costing and not playing in terms of substrates or ink.
Mondal said reverse auctions have evolved over time and nowadays, bids don’t go in favor of label suppliers quoting the lowest price. Ghoshal said that continuous value manufacturing, the right set of skills in people and machine excellence, is required in order to be ready for the next set of challenges.
He said the liquor industry has the maximum number of counterfeit products in the market. The response to various security features is different for different sets of customers, he said, adding a one-size-fits-all approach doesn’t suit the alcobev industry. There needs to be a unique set of security features for different demographics.
The discussion moved to the topic of digital printing. Stuart said customers are spoilt for choice these days and hence, short runs are becoming all the more important as they help control inventory and reduce turnaround time.
Ghoshal said we are trying to see a balance in volume versus cost. Deep personalization is catching up in the brand space, he said, citing Coca-Cola’s recent brand promotion where they had personalized every can with the customer’s name.
He said alternative options such as recycled substrates, water-based inks and adhesives are being explored to make labels more sustainable. The vendor’s environment management system is also extremely important from the point of selection of vendors.
