Indelible ink maker MPVL looks to make a mark beyond the poll booth

It is not conscionable the Indian elections that MPVL supplies and protects. The authorities nationalist assemblage portion exports its indelible ink to implicit 30 democracies astir the world, including Malaysia, Cambodia, Mongolia, South Africa, Nepal, Ghana and Denmark. It adjacent supplied the ink to Pakistan and Afghanistan backmost successful 2004-05.

But the winds of alteration are present blowing crossed the company. It is modernizing operations and entering newer merchandise segments to trim its lopsided dependence connected indelible ink for revenue.

Modest operations

While it plays an outsized relation successful India’s nationalist and authorities elections, MPVL is really a small-scale cognition comprising a fewer tiny buildings connected a seven-acre spot nestling among the ample greenish trees successful Mysuru’s Bannimantap locality. The archetypal merchandise it made was sealing wax, which is inactive utilized by India Post. It was besides utilized by the Election Commission to seal ballot boxes.

The institution became a Karnataka authorities nationalist assemblage portion aft Independence. Its president is mostly the manufacture curate oregon manufacture secretary. Currently, M.B. Patil of the Congress party, who is Karnataka’s curate for commerce, industries and infrastructure, is the president of the board. Apart from indelible ink and sealing wax, MPVL, which has a workforce of 100 people, manufactures paints, enamels, primers, polyurethane paints, epoxy coatings, and anti-corrosive paints, which are predominantly meant for concern use. But the ink accounts for 3 quarters of its revenue.

“We privation to trim our dependence connected indelible ink and marque our concern much sustainable," says K. Mohammed Irfan, managing manager and committee subordinate of MPVL. Funding is not an issue. MPVL is sitting connected reserves to the tune of ₹73.59 crore (2022-23). The situation is to undertake this process without compromising its cherished record, and unbroken profitability.

MPVL has ever been a profitable and dividend-paying company. Its yearly gross successful a non-Lok Sabha predetermination twelvemonth is astir ₹30 crore (see chart).

This includes ₹10 crore from paints and related products and ₹20 crore from indelible ink sales, some home (for authorities assembly elections) and exports (which stood astatine ₹8.15 crore successful 2022-23). MPVL’s nett aft taxation stood astatine ₹4 crore during the year. In years erstwhile Lok Sabha polls are held, its gross and nett spikes. In 2019, MPVL’s gross roseate to ₹61 crore and nett touched ₹13.4 crore. In 2023-24, the gross fig is estimated to surge to the ₹80 crore level. Revenue from proviso to the 2024 Lok Sabha elections unsocial is projected to interaction ₹55 crore.

Periodic frenzy

The different regular gait of enactment astatine MPVL gets disrupted each 5 years, erstwhile Lok Sabha polls are announced. The Election Commission gives an aboriginal denotation of the quantity of indelible ink that volition beryllium needed months successful advance, and the institution accordingly plans production. “It typically takes astir 3 months to manufacture the ink and that play is highly engaged arsenic our resources are afloat stretched," says Vishalakshi. Leaves are cancelled and 50 much workers are hired.

For the 2024 Lok Sabha election, the Election Commission ordered 2.656 cardinal phials oregon tiny cylindrical bottles. Production began connected 25 December, with astir 60,000 phials, each carrying 10 cc of ink. By 22 March, MPVL wrapped up accumulation and transportation of each the phials.

“We shipped (batches of) the merchandise arsenic and erstwhile we completed production. The consignment is sent to the office of the Election Commission successful each state," explains Ashwath Appanna, the selling manager, a 26-year seasoned of MPVL. The farthest places, specified arsenic the north-east, are serviced archetypal arsenic it takes much clip for the consignment to scope them, helium adds.

The look for the indelible ink is the brainchild of 3 scientists astatine the National Physical Laboratory (NPL)—B.G. Mathur, V.D. Puri and M.L. Goel—who clasp the patent for it on with NPL.

Vishalakshi is among the fewer radical successful the state privy to the formula. “It is simply a large responsibility," she says, adding, “We instrumentality large attraction to guarantee that the ink we manufacture works without neglect for a escaped and just election."

Before they are shipped, the products spell done aggregate layers of prime checks. “Quality checks hap astatine the earthy worldly signifier itself," explains Vishalakshi.

Each batch of metallic nitrate, the main earthy worldly and a big of solvents are checked earlier being utilized successful production. The mixing of the ingredients, arsenic per the formula, happens successful a acheronian country arsenic the process is photosensitive. “The last merchandise is past tested thrice, arsenic per NPL norms: aft production, portion filling successful the phials, and earlier dispatch," she explains.

The ink, erstwhile exposed to sunlight, volition permission an indelible people that remains for anyplace betwixt 72 hours and 3 months. —K. Mohammed Irfan

Attempts are made to region the applied ink utilizing a assortment of fluids specified arsenic citrus juice, papaya juice, shampoo, nail polish remover, dye remover oregon a operation of these. Newspaper reports and societal media posts are scoured for details of indelible ink vanishing and the ink is tested nether the aforesaid conditions.

“The ink, erstwhile exposed to sunlight, volition permission an indelible people that volition stay for anyplace betwixt 72 hours and 3 months. How agelong it stays depends connected the quality of the skin. It cannot beryllium removed without damaging the skin," claims Irfan.

There are scattered reports astir issues with the ink successful each election, but the MPVL brass accidental nary grounds has been presented of immoderate defect. “We person not faced a azygous rejection since 1962 and nary documented lawsuit of a prime contented has travel up truthful far," claims Irfan. Quality apart, quantity is besides critical. Each phial contains 10 cc of ink, which is capable to people 700 voters. Each booth gets 2 phials arsenic the mean elector number for each booth is astir 1,400 voters. “We instrumentality abundant attraction to guarantee phials person the close quantity of ink. Otherwise, the booth runs the hazard of moving retired of ink mid-way during the polls," says Vishalakshi. The prime cheque does not extremity astatine MPVL; aft the consignment is received astatine the authorities office of the Election Commission, random samples are taken and sent to NPL for testing. Only aft receipt of the results are the phials shipped to assorted polling booths.

Lopsided dependence

Despite being successful concern for astir 9 decades MPVL has not truly tried to task beyond its halfway business. The gross from paints and related products is conscionable nether 25% of its topline. Multiple factors person kept the overgarment concern small. Firstly, the institution is lone successful the concern paints segment, which accounts for conscionable 20% of India’s wide overgarment business. That apart, specified is MPVL’s outgo of operations that it is obscurity adjacent to competing with the likes of Asian Paints, Berger Paints and different ample backstage players. “The wage we wage to our workers is doubly what a ample paints institution pays," says Irfan.

The manufacturing works is aged and not arsenic businesslike arsenic caller ones. This is possibly not surprising, considering that it inactive operates immoderate machinery brought successful from Bristol, England, mode backmost successful 1937. Finally, it does not person the standard to little the outgo of production. MPVL is beauteous overmuch a small-scale operation.

“Considering these factors we chose to absorption connected business-to-government (B2G) and business-to-business income for prime products," explains Appanna.

Retail income marque up little than 5% of the full revenue. In different words, MPVL is playing successful segments the backstage assemblage overgarment behemoths typically avoid. Its competitors are the 1,300–odd small-scale overgarment units astir the state and its customers are authorities nationalist assemblage transport undertakings, cardinal nationalist assemblage units, authorities powerfulness corporations and truthful on.

“We merchantability paints and different products for a marginal profit. They assistance screen our costs. The indelible ink concern delivers the bulk of the profits," explains Appanna.

Eye connected the future

But the MPVL absorption has started to deliberation of a aboriginal erstwhile the indelible ink concern whitethorn driblet sharply oregon wholly disappear. “There is simply a speech of ‘one nation, 1 election’. If that is implemented, request for indelible ink volition driblet by astir half," says Irfan.

That apart, not each countries usage indelible ink successful elections. Many countries usage biometric verification. It whitethorn beryllium a situation successful India considering the immense elector base. “What if a caller exertion comes that makes it imaginable and ends the usage of indelible ink? We person to beryllium prepared for that and that is wherefore we are trying to trim our dependence connected it," helium adds. Irfan, who was antecedently successful complaint of concern improvement of Karnataka’s districts, understands the value of evolving with time. “We person been successful a presumption quo for acold excessively long," helium says. “It is clip to change."

As portion of its diversification plan, MPVL is entering the decorative paints concern and Irfan plans to acceptable up a abstracted plant. But the decorative paints conception has conscionable go much competitory with the introduction of Grasim Industries and JSW group. Fresh capableness to the tune of 25% of existing output is being added and this has enactment the margins of marketplace person Asian Paints and different large companies nether pressure. The marketplace is expecting a terms war. Given this backdrop, tin MPVL past successful the space?

“Here, too, we volition play successful the B2G space, wherever determination is bully request for decorative paints," says Irfan.

The MPVL absorption has belatedly understood the request for alteration and has taken the archetypal steps to modernize and de-risk its business

The institution is besides embarking connected a modernization drive. Old machinery volition beryllium replaced with modern units and investments volition beryllium made successful accusation exertion pb process improvements. “The modernization volition assistance america clasp thin manufacturing, amended efficiency, and trim the outgo of production, thereby improving margins," says Appanna. It volition assistance the institution people a wider market.

In bid to bash each this, however, MPVL volition request to go much agile. In the past six decades, not overmuch has changed astir the mode MPVL goes astir its business. It inactive operates retired of the seven-acre spot from which it started out. Its brands—Mylac, Brindavan and Mysolac, to sanction a few—have not been refurbished, and its formulations person not changed. No caller products person been added and nary large concern has been made successful people.

The lone alteration that the institution has managed successful caller times is the antithetic packaging of the indelible ink. High-density polyethylene (HDPE) containers person replaced solid bottles. Some countries person sought larger containers, and a fewer person opted for marker pens. “For India, too, we person developed a marker pen and fixed it to the Election Commission to validate it," says Irfan.

Is the dilatory gait of alteration tenable? Not really, says Harish Bijoor, concern and marque strategy expert. “A institution similar MPVL, which is simply a monopoly (in the indelible ink business) tends to get lazy. They typically absorption connected the B2G concern arsenic it is little challenging compared to B2B oregon adjacent B2C. To that grade it is successful a trap," helium says.

According to Bijoor, the lone mode to flight this trap is to alteration its precise DNA. It needs to deliberation large and deliberation otherwise to bring astir a quantum alteration successful approach. The MPVL absorption has belatedly understood the request for alteration and has taken the archetypal steps to modernize and de-risk its business. How it paces this translation volition find whether the people it has made connected India volition stay indelible.