The Corrugation Industry

Corrugation started in the year 1950 Kolkatta and Mumbai were the first destinatiions for corrugation Ajmera group in Kolkatta and Jayant group in Mumbai pioneered corrugation in the country Corrugation Machinery imported from Japan

Current Status of Indian Corrugation Industry

Approx. 5500 Units are in existance Approx 15 Units across India have adopted Automatic 3/5 Ply plants and rest are having Semi Automatic Machines Biggest corrugators have operation size of 1500 M.T. to 3000 M.T. per Month Industry is still under Un-organized Sector

Current Operating Capacity

Total Paper Consumption is about 1.50 Million Tons per annum Approx 5.00 Lacs Ton High Burst Kraft Paper is used in Corrugation Approx 10.00 Lacs Ton Semi-Kraft and Low BF Paper is consumed annually Overall Capacity Utilization is only 70%

Current Demand of Corrugation Packaging

The Current demand of Corrugation packaging is in line with the industrial growth. Presently corrugation industry is growing at the rate of 10% per annum and is expected to grow at 12% per annum in near future.

Drivers Of Growth
Increasing Demand of Consumer Durables Increasing Demand in Agri Packaging Increasing Demand in Pharma Industry Increasing Demand in Electronics and Automobile Sector Increasing demand due to change in Life Stryle, Fast Food and Mall Culture Restriction to use wooden Packaging Demand due to Exports

Future of Corrugation Industry

The future of Automatic Corrugation Line is very bright By 2010 At least 50% corrugation business will be through Automatic Plants Chineese Machinery will have edge over Indian and European Machineries due to low investment cost and higher performance Semi Automatic plants will face difficult time and their future is BLEAK E-flute Cartons will have great demand due to their edge for high quality printing and greater performance

Emerging Demand by Manufacturing Sector

High quality moisture proof quality boxes needed for Agri Products packaging High quality Top surface coated boxes are required for packaging of Garments, Electronic Goods, Kitchen Appliances, Processed Food etc. High quality strong boxes are required for the packaging of Automobiles, Defence and Export consignments Spurt Growth in Fast Food industry.

Global Scenario
Most of the plants are fully Automatic and have minimum capacity of 100 TPD Quality produced by them is much Superior compared to Indian Boxes due to their automatic processing for printing, slotting, creasing and case making Quality of Liner Boards is much consistent and superior compared to Indian Kraft Liner Boards

Competition and Threat

Currently No Threat from Global Competition due to Logistics, and Small quantities required by domestic manufacturers After implementation of Asian and Saarc agreement, Indian Corrugation Industry may face competition due to NIL Import duties.

* Awareness for quality packaging has increased * Packaging Industry is growing @ 10% per

Indian Packaging Industry

annum and is expected to grow at this rate for at least two decades
* Jakko - Porry consulting has made a study for

ministry of industry department of I P & P. It stated that there will be spur in demand of packaging paper by 2015
* All the players of manufacturing packaging

paper, Duplex board and Kraft paper are fully booked and doing good business.

Papers
* Base paper for coated paper * Base paper for laminates * Base paper for match sticks * Base paper for lamination /

metalizing

* Base paper for label stocks

Boards
* Kraft Liner Board * White Kraft Liner Board * Kraft Carrier Board * Liquid Packaging Board * Duplex Board * Folding Box Board * Deep Colour Kraft Papers

Kraft Liner Board

Application Corrugated Boxes

White Kraft Liner Board

Application - Electronics Items

Kraft Carrier Board

Application - Beer Boxes, Pepsi Boxes Beverages etc.

Liquid Packaging Board

Application - Milk Carton, Curd, Juice Boxes etc.

Duplex Board
Application - Pharmaceuticals, Mono Carton etc.

Folding Box Board

Application- Readymade Garments

Deep Colour Kraft Papers

Application- Gift items