Corrugated box manufacturers in the country are modernising their units so as to meet the growing demand and also to withstand the increasing competition and cost pressures.
“The industry is going through a metamorphosis,” according to ML Agarwal, chairman of the ensuing Corrupack 2010, an annual conference of the Federation of Corrugated Box Manufacturers of India.
After the industry was de-reserved from the small-scale sector five years ago, nearly 70 modern manufacturing units with a capacity of 10,000-25,000 tonnes per annum (tpa) have come up in the country. “We expect 150 more such units to come up by next year,” he said adding that the industry would attract an annual investment about Rs 3,000 crore over a period of next five years.
At present, Agarwal said, there were around 10,000 corrugated box manufacturers in the country. Of this, just 70 units have modernised and some of them are working with 50-60-year-old technology. In future, many of these units would be unable to withstand competition if they do not adopt modern technology.
The other area of concern for the industry was the rising cost of raw material (kraft paper). Agarwal said that price of kraft paper had increased nearly 50 per cent from Rs 14-18 a kg last year to Rs 26-27 a kg at present. “The paper mills are increasing the price every two months and I expect the trend to continue for six more months,” he said.
Nevertheless, the demand for corrugated boxes is increasing at a rate of 12-15 per cent annually in the light of rapid growth of the economy, increasing income levels of the people and changing lifestyles. The demand for packaging material in the country at present stands at 3.5 million tonnes a year.
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Major users of corrugated boxes are the producers of electronic goods, liquor, beverages, edible oils and fruits. The manufacturers expect that soon vegetable vendors would become their major customers.
Explaining about Corrupack 2010, Agarwal said the three-day conference to be held in the city from December 10 would explore new concepts needed to be successful in the changed business environment. Around 1,000 delegates, including 100 from abroad, are expected to take part in the event.
On the occasion of Corrupack, an exhibition of packaging machinery and other suppliers would be held. Spread over an area of 40,000 sft, it would have 100 exhibitors.