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.

Indian Packaging Industry

* Awareness for quality packaging has increased

* Packaging Industry is growing @ 10% per 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

* White Kraft Liner Board

* Kraft Carrier Board

* Liquid Packaging Board

* Duplex Board

* Folding Box Board

* Deep Colour Kraft Papers

Boards

* Kraft Liner Board

Kraft Liner BoardApplication – Corrugated Boxes

White Kraft Liner BoardApplication - Electronics Items

Kraft Carrier BoardApplication - Beer Boxes, Pepsi Boxes

Beverages etc.

Liquid Packaging BoardApplication - Milk Carton, Curd,

Juice Boxes etc.

Duplex BoardApplication - Pharmaceuticals, Mono Carton etc.

Folding Box Board

Application- Readymade Garments

Deep Colour Kraft PapersApplication- Gift items