Delta Printing Press has ended its joint venture with India’s Kumar Labels to set up Delta Labels, its own label printing arm, the Dubai-based printer has revealed.
Group CEO Sujit Vaidya told Packaging MEA that Delta had invested in two presses and has plans to buy two more.
“Initially we tried testing ourselves by investing in a 10-colour narrow web, which did build our confidence for going in for further investment in a 9-colour Gallus ECS 340 narrow web flexo press with screen print along with Grafotronic SR series inspection, slitter-rewinder applications designed to produce commodity label manufacturing,” he said.
“Entering in a new industry we have taken a conscious approach by investing about $1.5m to begin with, with an expansion plan of increasing our capacity by another two machines by next year.”
He added that Delta is embarking on the venture after diversifying into packaging following the downturn in commercial print.
“The successful switch over to packaging along with commercial during the tough times has prompted us at trying our hand even in the label industry,” said Vaidya.
Amid intensifying competition in the label sector, he highlighted Africa as the venture’s key market.
“The label business is highly competitive but there is still room for label printers who are able to deliver quality and are ready to experiment,” he said.
“Our existing packaging clients have bolstered our confidence of getting business and the main focus lies on the African market. Our Tanzania marketing office has received a good response from the local clients and customers from the neighbouring countries.”
He said that Delta’s “prime USP” is an “aggressive approach towards business”.
“Quality and service has been the topmost priority for Delta,” he said.
“Impossible deadlines is something which we love working with. We love the pressure as it really brings out the character in us.”
Delta sets up its new labelling wing after pulling out of a joint venture with Kumar Labels announced in August 2013.
Under its agreement with the New Delhi-based narrow label printer, Delta Printing Press was to have set up label production facilities in Dubai with a narrow web flexo printer with inline coldfoil and die-cutting capabilities with allied slitting and other converting machinery.
Kumar Labels’ owner, Anuj Bhargava, told Packaging MEA that “a difference in ideologies” had led the two companies “to part ways”.
But he added that he wished Delta Group “all success” with its new unit.
He added that the MEA label market is very lucrative and that his company aims to re-establish a presence “in the near future”.
Bhargava has also ventured into specialty label stock and converting machinery with his new business HassleFree Technologies, which he also plans to launch in the MEA region.
Earlier, when discussing the joint venture with Packaging MEA last year, Bhargava said his firm had seen the UAE labelling market as lacking in innovation.
“Although the market here in Dubai and the GCC is very mature with state-of-the-art machinery, we found that the products produced were very monotonous and mediocre in innovation,” he said.
“For example, we could not find any printer with different inline effects whilst no one was doing anything offline. Innovation was limited and so was the price range as well.”