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
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