A dynamic sector with potential for growth via the African market and diversification

In 2022, the Global Digital Printing Market was estimated to be worth USD 27.54 Bn. It is projected to grow at a rate of 6 to 7 per cent and reach USD 37.8 Bn by 2027. The printing, packaging and related activities sector covers a very diversified catalogue of products, from the traditional mass printing of newspapers and books to biodegradable plastic bags or the infinitely small instructions manuals or labels.

The variety in shape, content, design, weight and purpose calls for multiple types of investment whether it is in state-of-the-art machinery, software, logistics, inks and raw materials. Furthermore, it is a sector of high precision with a host of staff and expertise needed, either for the technical aspect, or the content creation and design aspects. Automation of activities, despite requiring initial investment, allows the industry to respond to customers’ needs in a timely manner via a variety of delivery modes (air freight, sea freight, land transport).

The Printing, packaging and related activities sector in Mauritius is incredibly di- verse. It comprises locally-owned companies, but also branches of international groups. Customer-wise, some companies are focused on the local market with traditional products while others have an international clientele.

Year 2022 is a year marked by growth in turnover, a welcome 33 per cent increase, from Rs 3 Bn to Rs 4 Bn. However, in terms of profit, the results remained highly uneven as companies juggled with skyrocketing sea freight costs, supply chain delays and the depreciation of the rupee with regards to international currencies. However, with the post Covid-19 recovery, with smart adaptation to customers’ new behaviours and needs, the sector offers room for growth and expansion over the years to come.

Dakri Cartons tops the ranking of the sector with a 49 per cent increase in turnover to reach Rs 570 M. An ISO 9001:2015 certified company, it delivers custom packaging solutions with more than 30 years of experience in the carton industry and is recognised as a foremost producer of corrugate carton in Mauritius.

Following close up is Caractère Ltée, with a 14 per cent increase in turnover rea- ching Rs 441 M in year 2022. This company forming part of media group La Sentinelle is faced with the transition from traditional printed press to digital printing. However, backed by content creators and expert designers and availability of high-end printing technologies, Caractère Ltée is able to respond to the needs of a variety of industries. Over the years, it has developed expertise in delivering products such as books to the African continent. Caractère Ltée can offer competitive prices to its international clients as it benefits from the group’s vertical integration strategy which includes a Freight segment.

In terms of Profit Before Tax, the main performers have been Standard Labels Limited with a Rs 52 M result, Edition du Printemps Ltée with Rs 44 M, Perfomance Plastics Limited with Rs 40 M and Mauriflex with a result of Rs 31 M. Diversification towards international clientele, offer of sustainable products, diversification of product catalogue and niche market targeting during the pandemic are the main factors which have contributed to the positive results of these companies.