Nido’s advocacy for automation as packaging volumes rise

First things first. Nido Group is a manufacturer, system integrator and solutions provider focusing on intralogistics mechanisation and automation solutions. The company hopes to notch a revenue target of Rs 700-crore by 2028. 

The vision: To be an Rs 50-billion group providing a 360-degree solution in the industrial equipment industry. To achieve this founder Nirav Doshi hopes to maximise the Group’s potential in three verticals - Nido Machineries; Nido Automation; and Nidobots.

Born in 2010, Nido boasts a 1,00,000-sqft facility, with headquarters in Mumbai. It has a service centre and warehouse at Bhiwandi, a manufacturing unit and experience centre in Nashik, and a satellite office in Gurgaon.

With a background in industrial and operations engineering, Nirav Doshi has a solid foundation in engineering principles, which he has effectively applied in machinery, automation, and robotics, further aiding him in his entrepreneurial endeavours.

Doshi told the WhatPackaging? team, “Robotics is no longer a new concept to us. Artificial intelligence is spearheading the development phase in the packaging industry. It encompasses everything from manufacturing and packaging to distribution.” In this, Nido caters to applications such as eCommerce operations, pharmaceutical/retail fulfilment centres, courier, 3PL and logistics, warehousing, retail, FMCG, and automotive among many others.

Obviously, the Group is doing something right. Today, Nido’s customers include Reliance Industries, JioMart, DTDC, BlueDart, BigBasket, Blinkit and Swiggy.

In addition, the Group’s clientele comprises Delhivery, Flipkart, Maruti Courier, DMart, Zepto, DHL, Xpressbees, Purplle, Skechers, Colgate, HUL, and Goldiee Masala.

When asked what is the secret sauce in the Nido recipe, Doshi says, “Over the 4-5 years, there has been a massive change for MNCs and SMEs, with surge in volume, say direct-to-consumer sales.”

Nirav adds, “Nido’s focus is secondary, tertiary packaging. And, decreased pilferage and damage can be achieved with trained labour and increased automation.”

Artificial intelligence is spearheading the development phase in the packaging industry.

Nido Group’s discrete type of customers comprises 90-percent in the tier-one geography and 10-percent in tier-two and -three which includes SMEs. Nirav Doshi is eyeing the 10-percent segment because he sees 'a huge potential'. When we probed further and enquired if the task is onerous for an SME firm owner who thinks automation is expensive, Doshi replied, “Not at all. The Covid-pandemic months taught us the importance of maintaining constant and regular supplies even if there is a shortage of labour.” So, converters including those in the SME sector can install Nido equipment to automate their workflow. Nido will guide them with customised Capex and Opex analysis. 

Doshi says, “We have been extending help to understand and evaluate the pain points in this segment and suggest innovative solutions.” That’s how a firm in Moradabad can manufacture and deliver a global product.”

The Group believes that if priority is given to Opex, over Capex, it will preserve capital and offer financial flexibility to a company. Doshi says, “There must remain a balance between raw materials and machine installations, say investing in films or tapes over machine features.” 

When we asked about the relevance of Industry 4.0 for the packaging industry in the global south, Nirav Doshi crunched some numbers. “The global Industry 4.0 is projected to reach USD 89.2-bn this fiscal year and will scale up to USD 484.5-bn by 2033 at a CAGR of 18.4%,” according to a Future Market Insights report.

He added, “Industry 4.0 is the answer. I feel, automation has changed the landscape - and made it sturdy and reliable. Moreover, it allows for recovering the cost of training, and materials.” 

Packaging automation has simplified manpower. The choice may resort to unmanned vehicles over the cost of the operator. And, one should keep in mind that ‘cheaper automation does not mean cheaper machine or product’.

Nido follows a simple mantra: 'Make it happen'. Solving any problem requires thorough assessment and analysis. This is made possible by breaking the problem down into smaller chunks, and step-by-step reaching the root cause.

However, Niray says the Indian industry lags in terms of such technological advancements by seven to eight years, as opposed to China. The problem is collective industry adoption and scale of operations. The solution is partnering with countries such as the US, Germany, Italy and Sweden to recreate the mechanisation.

The packaging perspective is clear. With the boom in eCommerce, automation in packaging will ace efficiency; and leverage to support secondary- and tertiary-level packaging as the numbers rise. 
Nido seeks growth with its local-driven solutions plus foster partnerships.