In a struggle for survival, Indian printers come together to combat ‘shut down’
Mumbai, April 13, 2017: In a last ditch effort to survive, the country’s oldest and largest industrial employers, the Paper Printing and Packaging industry, has come together to combat rising prices and avoid a complete ‘shut down’. The national and local association of the printers today announced in a press briefing that it was forced to raise the prices of its services across the board in order to stay afloat. 80 percent of the printers across the country are facing a shut down due to rising prices of paper and other raw materials.
The printand packaging industry has been struggling for the last one year – especiallylast 2 months – fighting the dilemma of an unprecedented price hike in the keycomponent of their products i.e. paper, which constitutes more than 60%of the total selling price of the printed product. On the other hand, thebuyers have largely been unwilling to raise their purchase price thereby puttingimmense pressure on the survival of the printers.
Said Mr.Mehul A Desai, President of BMPA, “Mumbai and the apex body of AIFMP (All IndiaFederation of Master Printers) have come together to apprise the industry ofthe severity of the situation and how critical our survival has become. If wedo not mitigate the situation now, most of the printers will either run intolosses or simply shut down. In this regard, we are soliciting the support ofthe buyers across the country in revising the cost by at least 15 percent,without which most of us cannot survive.”
Theconsistent influence of the recent price hike, sometimes as high as 30% in somecases coupled with extended credit period to the buyers has added to their onusof trying to make both ends meet. The printers have never found themselves insuch dire straits before and increasing their prices by a margin of 15% wouldspell doomsday to the entire financial system.
Theaftermath of an increase in the PMT (Paper Machinery Technology) in global papermills across USA, China and even Europe, a global increase in freight, increasein pulp prices, overhead costs and an increase in labour costs, has triggeredhorrific repercussions on the cost structure of printers.
The BombayMaster’s Printers Association (BMPA) and the Mumbai Mudrak Sangh (MMS) thatrepresents more than 800 print and packaging associations from across Mumbaicity, and the All India Federation Of Master Printers (AIFMP), the Apex body ofpan-India printers associations have appealed to public in general andcorporates buyers in specific to allow a price revision of 15 percent.
“This pricerevision will make the printers barely profitable, and will save close to 2.5lakh printing presses employing 4 – 5 million people and their families fromshutting shop,” added Mr. Tushar V Dhote, President, MMS.