Luxul focuses on developing markets

Luxul, a Canadian owned and operated UV ink manufacturer based in the UAE, sells more than one metric tonne of ink every month in the Indian market, which represents less than five percent of the company’s total volume produced.

The company, a manufacturer of UV cure inks for narrow web labels and three dimensional rigid plastic containers, has been selling in India since September 2014 through its distributor Sunrise Graphics.

Zia Ahmed, founder and chief executive officer at Luxul, says, ‘We entered the Indian market with a special UV opaque white ink developed for Essel Propack over four years ago. My UK-based technical partner Alex Stevenson has been visiting India since 1986 and has seen many technical and economic developments since then.’

Luxul has serviced the UAE since 2005 and more than 20 countries since 2009. The company focuses on developing markets including the Middle East, South Asia and Africa, as well as the developed US market. Ahmed says: ‘The Middle East is our biggest market – mainly Iran, Saudi Arabia and the UAE. East Africa is growing and we plan to set up a blending facility there by the third quarter of 2016. We plan to service north and west Africa from the new unit. We see Africa as a growing market with several Indian, Chinese and European printers operating in the country.’ Other export markets include Turkey, Pakistan and Sri Lanka. While the 60 percent of the company’s products are exported, 40 percent is consumed in the UAE.

Ahmed says that narrow web flexo to print on folding cartons and flexible packaging is on the rise. ‘We see investment in combination presses that include flexo, gravure and offset units, but most printers still opt for narrow web flexo. Printers are moving to digital technology as well. UV continues to grow and is no longer being regarded as a new technology.’

A difference between the presses installed in the Indian and UAE markets is in their speed. Stevenson explains, ‘Press speed is a lot lower in India, probably because UAE is a comparatively a younger market with narrow web installations being based on newly developed and faster running presses.’

As for LED technology, he says, ‘It was widely discussed during my visit to India in May 2016 and I expect no less on my next visit. On my first visit in 1986, I was told in forceful terms that “UV will never come to India” – and again in 1993. Luckily some pioneers such as Rajesh Nema from Pragati Graphics in Indore didn’t agree. I hope LED to meet similar fate.’

Customization

Ahmed points out that customization is one of the company’s key differentiating factors. ‘Most companies produce for the mass market with very little or no customization. Luxul, on the other hand, produces for individual customer requirements. Fitting into a niche means adopting a niche profile – the large multinationals are not flexible enough to adapt to these small and inaccessible niches. Their bureaucratic administration often renders their supply  chain ineffective in reaching into difficult corners.’

Talking of research and development, Stevenson says, ‘Improvements in our ink formulation technology help enhance press speed and further processing options. Our formulations are ahead of the market so we are never catching up with improvements or advancements. All our formulations and production strategies are developed in-house with the assistance and input of highly experienced and qualified international formulators and technicians.’

He further assures that none of the company’s current narrow web UV inks contain ITX or Benzophenone. ‘We continuously upgrade our formulas with lower migrating materials in line with international standards,’ he says.

After years of supplying UV inks in markets where temperatures reach well above 45 degree Celsius, Stevenson is confident that Luxul inks will work well in the Indian climate. ‘With stable, well-constructed formulations, our UV inks withstand some of the harshest environmental conditions,’ he says. The company is also working on developing digital inks. ‘We are already working on this technology and will be ready when our time comes.’

Stevenson says that it is hugely in India’s interest to promote the use of low migration UV inks for labels on food and beverage products. ‘What will Indian printers do when European and international brand managers no longer wish to procure their packaging supplies – or are no longer allowed to do so – from non-compliant countries and non-compliant label and carton suppliers? Secondly, why should an Indian consumer be less protected from the issue of food migration than global consumers?’

Luxul is a first time exhibitor at Labelexpo India 2016, to be held November 17-20 in Greater Noida (Delhi-NCR). The company participated in Labelexpo Europe in 2015 and has re-booked its space for the 2017 show.

Luxul clocked a turnover of 2 million USD last year, with growth of 10 percent year-on-year.