Sky Labels expands operations with new factory and advanced machinery

KENYA – Nairobi-based Sky Labels is undergoing a major transformation as it prepares to move into a significantly larger, purpose-built facility to support its growing footprint in East Africa’s labeling market.

With its current facility no longer meeting the demands of its expanding business, Sky Labels is investing in a new 30,000-square-foot factory—up from its current 15,000–20,000-square-foot space. Construction began in February 2025, following all necessary approvals.

“This new factory is designed with lean manufacturing principles in mind, which is crucial for staying competitive,” said Chairman NT Mehta.

“We consistently invest in the latest machinery, and the entire production team is involved in decision-making when it comes to equipment upgrades.”

Sky Labels already boasts a robust machinery portfolio, including Konica Minolta’s AccurioLabel 230—the first of its kind installed in East Africa in 2023—and 8-color and 6-color Multitec flexo presses.

A new 6-color press is also expected soon. The company operates two letterpress machines and offers digital printing for short-run and fast-turnaround jobs.

Plans are also underway to bring platemaking in-house, further enhancing production efficiency.

Meeting market demands

East Africa’s labeling sector is experiencing rapid growth, driven by a rising demand for value-added, customized solutions.

“We focus largely on cosmetics and beverage labels, where brands often prefer bold designs and unique shapes,” said Palak Dave, Operations Director.

“Materials like semi-gloss, polypropylene (PP), and tamper-evident substrates are in high demand. However, uptake of sustainable options remains low due to high costs and the dominance of small brands.”

Customers now expect labels within two to three days—and at most, a week. To meet these expectations, Sky Labels runs 24/7 operations supported by advanced machinery and a collaborative team structure.

“Our model allows us to deliver exceptional print quality, value pricing, and the fastest lead times—with sustainability at the forefront. That’s how printing should be,” said Chintan N. Mehta, Head of Business Development.

The company is also expanding its anti-counterfeiting capabilities, sourcing tamper-evident void-material labels from Avery Dennison.

Navigating challenges

As East Africa’s packaging industry grows, competition is intensifying. Over 35 label converters operate in Nairobi alone, many entering the market with lower-cost equipment.

This has sparked price wars and customer poaching, forcing many players to diversify into new segments such as stand-up pouches with zippers to maintain profitability.

Exporting to neighboring countries has also increased, adding regional pressure. Meanwhile, talent retention remains a challenge, as skilled workers often leave for better opportunities.

Sky Labels addresses this by investing in training, internal promotions, and a mix of experienced professionals.

Although sustainability adoption is slow, Sky Labels remains committed to greener practices. The company uses solar power and is exploring UV LED inks—but regional suppliers have yet to meet demand.

Dave predicts full market readiness for sustainable materials may take another five to ten years.

With its expanded facility, investment in advanced machinery, and diversification into flexible packaging, Sky Labels is well-positioned to thrive in a competitive and evolving market.

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