Indian Holography Market

Characterizing the Indian Holography Market

How it started
•1991: Holography started in India with 2 or 3 companies
•1998: Industry Association HOMAI was formed by 9 members and industry
size of US $ 13 million
•2008: HOMAI President Mr. U K Gupta received the Brian Monaghan Award by
International Association for business innovation in Indian holography
•2010: An industry size of US $ 100 million
•2010: HOMAI Hologram Image Registration was merged with IHMA Hologram
Roster
•2011: HOMAI developed first of its kind hologram security standards with TUV
Rheinland India

Indian Holography Industry
•Holographic solution is one of the main weapons used against counterfeiting of
products and documents
•India, where counterfeiting is widespread, the opportunities available for holographic
industry are abundant
•Noida is home to two of the biggest holography players in the industry namely UFlex
Limited and Holostic
•The main reason for growth is the spread of awareness about the role of holograms
•Although holograms are used in almost all sectors, the biggest client for this industry
is still the government

Annual % Growth Rate (2005-2009)

Current scenario
•The hologram market in India currently estimated at Rs 4.5 billion is projected to grow at a 15%
CAGR for the next 5 years, driven by the increasing need for enhanced security and protection of
consumers from counterfeit products
•According to UFlex, which started its holography division in 2004, the industry has been growing
comfortably by around 15 to 20 percent
•Players say that there are not many deterrents against counterfeiting in place in India which has
led to huge losses to Indian industries due to duplicate products being sold
•One of the players said that the ban on gutka has dented the holographic films business. "For us,
gutka and khaini players contribute 90 percent to the business of holographic films," said DS Gupta
of Shivam Holopack

Problem areas
•For Holographic industry, the main issue is duplicity
•Even in this industry, main threat comes from Chinese manufacturers
•The law enforcement is not very strict in China because of which one can find duplicates of
almost all products
•There are huge imports of duplicate holograms coming to India that has huge impact on the
perception of the people about the effectiveness of holograms
•Another challenge that the companies have to face is the constant up gradation in their products
to stay one step ahead of the people who are copying the hologram
•According to players, although a hologram master can never be copied, a similar hologram can be
created which could be distinguished only by an expert
•Thus, dynamism in the hologram is another way of keeping a tab on illegal usage

Main players
•Holostick
•Uflex
•Holoflex

Holostick

About Holostick
•Established in the year 1991, Holostik India Ltd. is an ISO 9001: 2008 certified
company engaged in manufacturing and exporting Security Holograms.
•Today, company enjoys more than 50% of the total market share of Security
Holograms by catering specific industry requirements
•Holostik India Ltd. offers an extensive range of Holographic Products keeping the
diversified requirement of the end customer in mind
•Products: Security Holograms, Holographic Strips, Holographic Transparent
Laminates, Holographic Hot Stamping Foils, Tax Stamps, Holographic Wads,
Holographic Scratch Labels, Holographic Shrink Sleeves, Holographic Paper Labels,
Holographic Aluminum Foils, Holographic Tagger Foils, Holographic Wide Web
Films, Holographic Board, Holographic Breakable Vinyls, 3D Promotional Stickers

Findings
•Holostik India is the undisputed market leader having the largest number of customers and enjoys
more than 50% of the market share for Security Holograms in India
•Trying to increase their presence in the international market
•Wants to manufacture maximum number of holograms in the world catering to a wider range of
products
•Main focus is to expand their export markets
•Planning to intake various new technological advancements
•They have won 3 awards from the International Hologram Manufacturers Association (IHMA) for their
contribution to the hologram industry
•More than 500 new customers joined them in 2004 – 2005
•First manufacturing company in the world to possess the 12000 DPI (Master Origination
Facility) technology
•Export products to 17 countries, holding more than 50% market share

UFlex

About UFlex
Uflex’s Holography division has a world class setup for manufacturing high class
holography products for three products segments:
•Security
•Textiles
•Packaging

HOLOFLEX

Company Profile
•Established in: 1991
•Business type: Exporter, Manufacturer
•Exporter & Manufacturer of: Hologram Originations, Security
Hologram Labels, Holographic Packaging Materials, Shrink sleeves,
Induction Sealing Wads, Stamping Foil, Security Seals, Holographic
Strip Transfer, Automatic Identification & Data Capturing

About Holofex
•HOLOFLEX LIMITED was incorporated in 1991 and has since then been in the
business of holograms and allied holographic products
•Today Holoflex ranks as one of the frontrunners in the business of providing anti-
counterfeiting solutions including security hologram
•Holoflex Limited with its state of the art facility located at Kolkata ensures stringent
security measures to provide quality products to its customers
•Sustained Research and Development by a qualified team of professionals
supported by well-equipped facilities, helps Holoflex in keeping abreast of the latest
technology and pioneer new products and applications

Challenges faced in International
business
COST – The overall cost of the final products seems higher as compare to the competitor’s rate
FREIGHT – The overall freight seems to be much higher as compare to the basic product. The company
mainly concern with air freight with respect to the sea and this is because of the quick delivery of the
products
LOGISTICS – In case of logistics’, the company have international tie – up with some major logistics
company like DHL, Fedex and Blue Dart where the cost of each shipment seems more than higher which
intern increase the final price. Competitors challenge Holoflex by concerning tie upping with the small or
new logistics companies who price same services to them where cost of the final product remain same
with same services
COMPETITIONS– There are more than 200 packaging companies in India and among them 180
companies are in international business and export of their products which acts as basic challenges for
Holoflex limited. Beside these, South-East Asian countries like China, Korea are being considered as a
market master in packaging industries which acts as major threat for Holoflex in International market
INTERNATIONAL RELATION– The company cant export their products to the countries like Russia,
Pakistan where the country to country relation was concerned and according to the government of India
(GOI, 2007), exporting of products with this countries is highly restricted

Findings
•Holograms have been slowly yet steadily accepted by marketers in India and abroad
•Indian marketers are largely inclined towards the Hologram price aspect rather than the quality and
secure-proof of the product
•Indeed most of the Indian customers are still unaware of the fact that the holograms are the most
effective fraud preventive technique that they can exercise for securing their products and documents
•In short, it is extremely important to educate the Indian marketers that holograming their products
would not only increase their profits but would also help them evoke trustworthiness and brand image
in the market
•Foreign clients understand the importance of security due to which it is easy to convince them to use
varied kinds of Holograms for protecting their products, etc.

Conclusion
•Even though Holoflex considered as one of the giant packaging company in India but still it seems the
company facing lot of challenges in international business as well as in case of export which includes
the challenges in freight, logistics, website development and finally effect the business growth of the
company
•As per various surveys, about 10% of Soft Drinks and FMCG products, 20% of liquor and
pharmaceuticals, 30% of cosmetics and music CDs and Videos, 40% of fans and 45% of automotive
spares sold in India are counterfeit which cause not only revenue loss to the genuine manufacturers but
also have harmful effects on consumers
•Holograms can help in prevention of the same and assure secure and genuine products to the
consumers
•Currently 50% of the hologram market is contributed by liquor excise followed by Pharmaceuticals (
20%), FMCG ( 8%) and Auto components ( 3% )
•This presents an excellent business opportunity for hologram manufacturers
•Hope the business plan or proposal being executed and applied in current year will burst will fruitful
business and the company will show their growth in current year

http://www.indiacatalog.com/web_directory/wd_detail.php?id=6729
http://www.bizzduniya.com/member/18850/index
https://www.scribd.com/doc/153131150/Holoflex-International-Business-Proposal-2012
http://www.researchandmarkets.com/reports/1266167/indian_hologram_market_2010
http://articles.economictimes.indiatimes.com/2012-11-29/news/35432905_1_holograms-
holographic-products
http://www.homai.org/newshomai.aspx?pid=7&subid=48
http://holoflex.com/
http://www.uflexholography.com/
SOURCE