The move by multinational entity Ceylon Tobacco Company (CTC) PLC to localise its printing and packaging demands has resulted in a Rs. 250 million development drive by a local printing company.

Local printing company Printcare PLC entered into a partnership with CTC to provide all packaging supplies for their range of brands in 2007.

After the signing of the agreement between the two businesses, Printcare has now improved its functions to align itself with international standards required by CTC in its package printing. The company had to commission a plant and the necessary equipment as required by CTC, and these were facilitated in a newly updated section of their Kadawatha Factory. Printcare invested over Rs. 250 million to upgrade equipment to the required standards. CTC also assisted through sharing knowledge of British American Tobacco’s (BAT) survey methodologies, which help pinpoint areas for continuous improvement in the printing and packaging process. Following Printcare’s efforts, other printing companies have also lifted quality standards and now offer more variety in order to attract business from customers who demand more.

"It is well known that tobacco packaging is subjected to the most exacting quality standards. High precision and perfect quality are pre-requisites that are uncompromisingly demanded," K.R. Ravindran, Managing Director, Printcare PLC, said. "It was therefore a matter of pride to us and a testimony to our ability and reputation when CTC selected us for their supplies. CTC is well known for its finely tuned management and offers to us many ‘Best practices’, which will help us immensely in our continuous effort to upgrade skills, productivity and quality from which both our work force and our other customers will benefit."

CTC’s operations have also been greatly helped due to localising its printing. The company, which spends Rs. 20 million monthly on printing and packaging under the new partnership with Printcare, now enjoys a level of flexibility and speed of delivery in comparison to when printing was outsourced abroad.

"Now we have the option of changing aspects of design and even experimenting with packaging because we don’t have to worry about the time taken when dealing with suppliers abroad," said Gerson Pessoa, Supply Chain Director, CTC. "It’s really sped up the process and gives us space to be innovative."

Mustanser Ali Khan, Managing Director & CEO of CTC, also believes that the partnership benefits the country as a whole.