Maharshi diversifies existing label operations

The company has installed a HCI sleeving machine from Taiwan and a sleeve cutting machine from Gujarat-based XL Baroda.

With a total investment of 70 lac INR (approximately 11,000 USD) in this diversification, the company has invested in the best equipment with proven technology. We are successfully printing high quality sleeves with added value for a niche market on our existing flexo presses, says Jigesh Dani, marketing director at Maharshi Group. We are offering low volumes but high quality sleeves with a lot of added value using special inks and foil stamping.

The company also prints pressure-sensitive and in-mold labels in its label division. It mainly caters to distillery, food, pharmaceutical and cosmetics industries.

Known primarily for manufacturing label applicators in India, Maharshi Group today enjoys 75 percent market share in the segment and has installed more than 15,000 machines in India.  

The company was started in 1980 by Rajesh Shah, the chairman of the company. He started manufacturing label applicators when a company called Core Pharmaceuticals approached him with a need for automatic label applicators on their packaging lines. The company found imported label applicators were too expensive. Shah took the challenge and in a matter of six months made the first label applicator with indigenous technology for pressure-sensitive labels. Core Pharmaceuticals went on to install 50 label applicators from Maharshi over a period of time.

The challenge 35 years ago, however, was that pressure-sensitive labeling was just beginning in the country and there were very few label printers. International players hadn't entered India and there was no consistency in quality of labelstock supplied.The labels, therefore, did not always perform well on the applicators. 'The label printers were suffering and felt they made a mistake shifting to pressure-sensitive. We were left with no alternative but to look for a good quality printer to partner with to prove the capability of our applicators, recalls Dani. The company started trading pressure-sensitive labels in roll form to its customers who bought applicators from them.

After the Indian economy opened up, Maharshi invested in a Japanese flatbed Onda label printing press in 1995, followed by two more presses. An understanding was made with the trading company that Maharshi would run its presses only after his machines were running full capacity. In turn, he handled Maharshi's press floor. In 1997, the company considered investing in a rotary press and bought 10-inch web width, 6-color water-based Aquaflex press. There has been no looking back for label business ever since.

'We supplied first self-adhesive label to our customer who brought the first labeler from us. The relationship kept building and we continued to grow with our customers,' says Dani. Today, Maharshi houses five Bobst label printing presses. The latest was a servo press brought in 2013.

Maharshi Labels
For its label division, Maharshi is looking at investing in a combination press which it seeks to evaluate at Labelexpo Europe 2017. Using this press, we are looking at targeting the carton industry as well. We see a lot of profitability in converting cartons and want to start with low volume, high quality niche products,' Dani says.

Further, the company invested in an inspection machine from Intergraphics and is looking at another one in this financial year.

In the last year, Maharshi also installed inkjet heads on its flexo presses to cater to the growing market of security label printing. The company has started making scratch labels with variable data at its factory.

With these expansions in the last year, Maharshi Labels is now offering flexibles, specialized labels, shrink sleeves, conventional labels and in-mold labels. The company runs its label division from a built-up area of 30,000 sq ft (2,800sqm). A forward-thinking company, it has invested in space adjacent to its factories for further expansion.

The company's machine manufacturing factory is spread across an area of 100,000 sq ft (9,300sqm). Other than label applicators, the company makes a plethora of packaging machines including missing label detection, bottle neck inspection and automatic segregation, ancillary equipment and fabrication of tanks.

Maharshi has also partnered with Cognex to offer automation services to Indian clients. 'The Cognex vision technology and ID systems helps manufacturing facilities eliminate defects, verify assembly and track and capture information at every stage of production, thus minimizing errors. We are supplying automation services to various industries including pharmaceutical, food and beverage, and automobiles,' says Dani.  

Exports
Maharshi Group exports 20 percent of its approximately 500 label applicators to Africa, the Middle East and Southeast Asia, as well as some to Europe and America.

Talking of the African market, Dani adds, 'People in this market have burned their hands on Chinese machines. They demand well-priced quality equipment, so it's a good market for us. We have installed 20 to 30 machines in Nairobi and do a lot of business in Nigeria, Uganda and South Africa.' Maharshi has installed more than 100 label applicators in Kenya and Uganda alone.

The company has local agents in South Africa, Nigeria and Uganda. It is now evaluating a subsidiary in Nairobi for its label applicators. 'We see good business in East Africa because the government here is helping in opening more factories for juice packaging, water bottles and other industries. They all need more label applicators,' Dani adds.

Maharshi Group clocked the turnover of Rs 80 crore (12.4 million USD) in 2016-17 financial year and is growing at 12.5 percent year-on-year. Dani says that machine manufacturing is growing at 60 percent annually, of which 80 percent is contributed by label applicators.

'My principal business is label applicators. We are a preferred label supplier to some companies to whom we supply applicators. Therefore, no printer is a competitor to me,' Dani concludes indicating a good balancing act between printing labels and selling machines.