How
Corrugated Box Market Is Positioned in India?
India corrugated box market is at its growth
stage. Though, the craft paper prices are increasing but the demand for
sustainable and safe packaging of goods is also increasing. The sale of
corrugated box has increased from INR ~ crore in FY’2012 to INR ~ crore in
FY’2018 growing at a CAGR of ~%.
Factors such as increasing demand from fresh
food and beverages, home & personal care goods, electronic goods
industries, logistics application, increasing consumer awareness towards
sustainable packaging and growth of the e-commerce industry have propelled the
growth of the Indian Corrugated Boxes Market.
The demon of demonetization, had hit the industry
badly, led to fall in demand for corrugated boxes. As a result, of slow
movement of FMCG & other consumer goods from the retail counters, led to
retrenchment of work force & financial losses for the industry.
Many corrugators have adopted latest technology
machines which they have either imported from different countries such as
China, Taiwan, Japan, South Korea, America and Germany.
During the year FY’2015-FY’2016, the average
raw material price raised by ~% with the price of craft paper which consists ~%
of overall raw material raised by 17% to INR ~ per kg from INR ~ per kg.
Similarly, price of adhesive (glue) raised from INR ~ per kg to INR ~ per kg.
Also, stitching wire became costlier from INR ~ per kg to INR ~ per kg during
FY’2015-FY’2016. This price hike led to shut down of many corrugated box
manufacturers and also affected the nation as a whole.
The industry in FY’2015-FY’2016, introduced
new heavyweight products such as billerud flute semi-chemical fluting.
Primarily, targeted at replacing wooden packaging, this product is also able to
replace double-walled board with an overall lighter weight single wall
substitute.
In order to increase the market growth the
Indian Corrugated Case Manufacturers Association (ICCMA) and Automatic Board
Plants &Western India Corrugators Box Manufacturers’ Association (WICMA)
supported to grant a minimum of 12% price increase on boxes so that the Box
industry is able to cover supplies of Craft Paper well in time to avoid any
disruptions in the
Which End
User is Generating more Demand For Corrugated Boxes In India?
In FY’2018, FMCG segment has dominated the
India market. FMCG segment has contributed a share of ~% in terms of sales
volume accounting to ~ thousand tons in FY’2018. The FMCG sector has grown from INR ~ crore
in FY’2011 to INR ~ crore in FY’2016. The sector is further expected to grow at
a Compound Annual Growth Rate (CAGR) of ~% to reach INR ~ crore by FY’2020.FMCG
sector mainly uses 3 ply types of boxes as they are cheap and moreover FMCG
products are not very heavy.
In FY’2018, automotive end user has the second
largest sales volume contribution of ~% in India corrugated box market
accounting to ~ thousand tons.
Automotive sector mainly uses 5 ply types of boxes.
Textile and electronics & appliances
industry contributed a share of ~% and ~% respectively in terms of sales volume
accounting to ~ thousand tons and ~ thousand tons respectively. In FY’2018,
other end user such as paints, pesticides, distillery products, E-Commerce has
least sales volume contribution of ~% in India corrugated box market.
Electronics & appliances sector mainly uses 5 ply and 7 ply types of boxes.
Which State
is generating Higher Demand for Corrugated Boxes In India?
In FY’2018, Gujarat has dominated the market
with domestic revenue contribution of ~% in India corrugated box market
accounting to INR ~ crore. Gujarat dominated because of better infrastructure
development and road connectivity by the government in the state different
types of industries such as FMCG and pharmaceuticals are growing in different
regions of Gujarat therefore increasing the demand of corrugated boxes. Morbi,
Vapi, Ahmedabad, Gandhinagar and Saurashtra are the major areas in Gujarat
which are popular for the procurement of raw material
In FY’2018, Maharashtra has the second largest
revenue contribution of ~% accounting to INR ~ crore in India corrugated box
market.
Himachal, Tamil Nadu, West Bengal and UP
contributed a share of ~%, ~% ~% and ~% respectively in terms of revenue in
FY’2018. Other states such as Delhi, Madhya Pradesh, Karnataka, Rajasthan,
Punjab, Andhra Pradesh, Haryana and Bihar contributed 20.6% in India corrugated
box market accounting to INR 4,854.9 crore in FY’2018.
Which Type
of Ply/Box is Majorly Used in India?
In FY’2018, 5 Ply type of box has dominated
the market. 5 ply type of box has contributed a share of ~% in terms of sales
volume accounting to ~ thousand tons in FY’2018. 5 Ply type of box has
dominated the market as these boxes are now manufactured through fully
automatic machines which increases the strength of the box and can be used in
place of 7 ply and 9 ply type of boxes. These 5 ply boxes are capable of
carrying 20 to 45 Kgs. of weigh depending on the size and shape of the 5-ply
carton.
In FY’2018, 3 ply box has the second largest
sales volume contribution of ~% in India corrugated box market accounting to ~
thousand tons. 3 ply boxes are light weight corrugated paper boxes that are a
cost effective way to pack, store and ship the products. Depending on the size
of the packing carton, a 3 ply corrugated box can hold 4 to 15 Kgs. Generally,
3 ply box are manufactured using 25 edge crush test (ECT) corrugated material.
In FY’2018, 7 ply and 9 ply boxes contribute a
share of ~% and ~% respectively in terms of sales volume in India corrugated
box market. Depending on the size of the packing carton, a 7 ply corrugated box
can hold 40 to 100+ kgs.
How
UN-Organized and Organized Players Performing IN India corrugated box Market?
In FY’2018, unorganized players contribute a
market share of ~% in India corrugated box market. Organized players use
different types of automatic as well as semi-automatic machines such as
automatic high speed strapping machine, automatic 4 color Flexo Printer,
automatic 3 color Flexo Printer Slotter Rotary Die Cut, semi automatic
stitching machines and others. Organized players are Worth Peripherals, TGI
Packaging Pvt. Ltd., Horizon Packs Pvt. Ltd., Jayaraj Fortune Packaging Pvt.
Ltd., OJI India Packaging Pvt. Ltd., Supack Industries Pvt. Ltd. End users for
organized players are Processed Food, Electronic Goods, Textiles, Consumer
Durables, E-Commerce and others
In FY’2018, unorganized players contribute a
market share of ~% in India corrugated box market. Unorganized players use semi automatic
machines and they are more focused on manual production and rely on labor work.
Un-organized players are Allwyn Paper Box, Durable Corrugating, Packman,
Shanti, Parth Packaging, A to Z Janta Packaging Spruce Impex Pvt. Ltd.
What is
COmpetitive Scenario in India Corrugated Box Market?
India corrugated box market is highly
fragmented with the presence of around 18,000 organized and un-organized
players. There are no regulations in the market regarding the entry of the
players and since it is a low capital intensive business (~ lakhs) so a lot of
new players are entering in the market.
The leading company in India corrugated box
market is Horizon Packs Pvt. Ltd. Other leading companies are Worth Peripherals
Ltd., TGI Packaging Pvt. Ltd., OJI India Packaging Pvt. Ltd., Jayaraj Fortune
Packaging Pvt. Ltd., Supack Industries Pvt. Ltd., BL Containers Pvt. Ltd.,
Chaitanya Packaging Pvt. Ltd., CEL Packaging, Wadpack Pvt. Ltd., Hariwansh
Packaging Pvt. Ltd., CJ Corporation and Paper Containers India Pvt. Ltd.
In 2017, Horizon Packs Pvt. Ltd. imported
different latest technology machines such as conveyor board handling systems to
enable efficient handling, auto folder gluers for perfect flap pasting and auto
box strapping with roller conveyors to facilitate.
Corrugated box manufacturers compete with each
other on the basis of different parameters such as product offered,
manufacturing facilities, production capacity, main end users, clients, raw
material used, types of machines & their procurement.
Future competitive edge in the market will be
based on the growth of the end users segment. The use of strong corrugated
boxes as a substitute of wooden packs that brings about significant weight
reduction, improves logistics & handling as well as providing cushioning
for sensitive heavy products drive India corrugated box market.
How is the
Future Outlook for Corrugated Box Market in India?
India corrugated industry is expected to
increase at a CAGR of ~% in between the FY’2019 and FY’2023 in terms of revenue
due to the elevating demand from the end user segment in order to store and
transport their end products. Increasing the demand of safe and cushioned
packaging of the product will augment the growth of India Corrugated box
market.
The growth in the use of the internet for shopping,
stimulated by the growing use of smart phones as well as the increasing
proportion of tech-savvy consumers, has a very positive effect on corrugated
demand.
Retail ready packaging is also increasing
driven by the influence of supermarkets over the retail landscape and supported
by their growing share of the retail market will also drive the corrugated box
market in future.
The procurement of latest technology machines
from China, Taiwan and other Asian countries by manufacturers in order to make
production fast and accurate will also drive the future of India corrugated box
industry. The emergence of E-commerce industry in India the demand of
corrugated boxes will also increase.
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