Avery Den­ni­son – in the core of graph­ics busi­ness

Graph­ics busi­ness at Avery Den­ni­son is go­ing through ma­jor change. So far, Avery Den­ni­son fo­cus has been on la­bel busi­ness. Avery Den­ni­son has picked up three ma­jor port­fo­lios lately – Graph­ics So­lu­tions, Spe­cial­ity films and Durables. These three busines

VM&RD - - Material Matters -

Please ex­plain your ac­qui­si­tion of Mac­tac along with your fur­ther plans with the merger. Avery Den­ni­son has ac­quired the busi­ness Europe and Asia pa­cific op­er­a­tions of Mac­tac. Though Mac­tac is now a part of Avery Den­ni­son Den­ni­son, we have de­cided to con­tinue the brand’s op­er­a­tions and mar­ket­ing in its or­ganic name. It’s a dual brand strat­egy that we are go­ing ahead with with­out chang­ing or di­lut­ing the brand eq­uity that Mac­tac al­ready has in the mar­ket. How­ever, as far as the brand po­si­tion­ing goes, we are plan­ning to keep Avery Den­ni­son’s po­si­tion at a pre­mium level while mar­ket­ing of Mac­tac will be at more eco­nomic level. More­over, the fo­cus will be on Mac­tac com­ple­ment­ing the Avery Den­ni­son port­fo­lio. We are not mar­ket­ing the whole range of Mac­tac but will choose those prod­ucts that com­pli­ment Avery Den­ni­son port­fo­lio so that both the brands don’t have to com­pete in the mar­ket.

Tell us about Mac­tac’s of­fer­ing in re­tail mar­ket, in terms of store de­sign and in­store graph­ics.

If you look at Mac­tac port­fo­lio, in terms of vari­a­tions and ranges, Mac­tac the widest range of Poly­meric and spe­cial­ity prod­ucts. The lat­ter va­ri­ety is tailor-made for re­tail ap­pli­ca­tions. Glass fa­cades are used hugely in most of the re­tail spa­ces to­day. Mac­tac has a pro­jec­tion film that can con­vert a glass façade into an in­ter­ac­tive screen, which can di­rectly project the brand’s ad­ver­tis­ing/ com­mu­ni­ca­tion etc. Tex­tured film is an­other vari­a­tion from Mac­tac which is of­ten used in re­tail en­vi­ron­ments to of­fer vi­brant and lu­cra­tive brand­ing op­tions.

What kind of strength does this merger bring to­gether?

The big­gest strength that this ac­qui­si­tion is bring­ing is that the merger will of­fer the big­gest port­fo­lio of in-store graphic in the coun­try. You name an ap­pli­ca­tion and you have the prod­uct. Se­condly, there are cer­tain prod­ucts like Mac­tac Poly­meric range and oth­ers which will of­fer ex­tended dura­bil­ity. Third is the price point. We will have the right com­mer­cial propo­si­tion, where we will of­fer world-class prod­ucts at com­pet­i­tive prices.

Tell us about your ac­qui­si­tion of Hanita Coat­ings.

Post the merger, the en­tity will be known as Avery Den­ni­son Hanita. Hanita has been known for their prod­uct of­fer­ings in win­dow films. Some of our or­ganic prod­uct ranges will be criss-cross­ing with the prod­ucts by Hanita but largely, it will be a new arena of busi­ness for us. There are broadly three types of win­dow films that we will be cater­ing for - Sun Con­trol, En­ergy Sav­ing and Safety and Se­cu­rity. Sun Con­trol va­ri­ety does not have lot of rel­e­vance in our coun­try ex­cept for cor­po­rate build­ings and res­i­den­tial com­plexes. As green­com­pli­ant es­tab­lish­ments are get­ting pop­u­lar, we ex­pect the sec­ond cat­e­gory to gain pop­u­lar­ity soon. The last cat­e­gory will largely cater to Govern­ment build­ings, air­ports, ho­tels etc.

Vinyl is largely a frag­mented busi­ness in In­dia and in­un­dated with Chi­nese prod­ucts. Does Avery Den­ni­son have an an­swer to that?

The frag­mented mar­kets ex­ist in al­most all busi­nesses. If you look at the Vinyl busi­ness in par­tic­u­lar, what is get­ting im­ported from China is the Mono­cal films. We have di­vided our graph­ics port­fo­lio into three folds de­pend­ing upon du­ra­tions - 5+ years ones are called Cast, 3+ years one is called Poly­cal and 1 year one is known as Mono­cals. Chi­nese prod­ucts have no ex­is­tence in the first two cat­e­gories. In most

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