How to set up a corrugated box manufacturing unit

India is growing economy and GDP growth is more the 7% per year. Packaging industries is growing day by day and have very good opportunity for the new businesses. Current market size of packaging industry is USD 14.5 billion and growing 15% per year.

If you want to set up a new corrugating box manufacturing unit then following point need to be considered for the planning process.

1.   Legal Requirement

2.   Market Trends

3.   Location of Factory

4.   Customer Need Identification (Box Type)

5.   Output Of Plant

6.   Type of Plant

7.   Land required

8.   Labor Requirement

9.   Transportation


1.   Legal Requirement- 

First of all you need to know the legal requirement of this business. You need to set up a company with the help of CA and type of legal company will be eligible for the business. You can register any type of company (Private Limited,  Partnership, Limited Liability Partnership, Public Limited Company, Sole Proprietorship). If you are going with automatic plant then you need to get pollution certificate from respective authority.

2. Market Trends- 

Do a proper analysis of your market. You need to know about your competitors and market reports. There are so many companies which provide packaging industries news. You can go to different packaging associations for the same. You should have proper information about your local market and type of box your competitor making.

3.   Location of Factory- 

This is the one of the most important step for plant set up the process. You need to select factory location near to your target customer factory location or you can plan location in the industrial area. Do proper research on your purposed factory location. You need to think about the connectivity to road and transportation facility available in this area. Your factory location should have proper electricity supply if proper electricity is not available the cost of production can increase.

4.   Customer Need Identification (Box Type) –

Different industries use different size of the box. There is small size of box (Mono Cartons), Standards size of box, and big size of box. You need to know about the size of the box of your targeted customer. You also need to know about the different type of box. Box is available in 2,3,5,7 ply. Different industries use the different type of corrugated box type. Machine requirement change with the change in the layer of the box.

5.   The output of Plant- 

You need to plan your daily and monthly output of the plant according to your customer requirement and expansion plan. If you are starting with small seal then you can go with the 4ton to 5 ton per day or if your target customer requirement if high then you can go for the 20 to 50 ton per day. Cost, Type of plant and cost of the operations change according to the output.

6.   Type of Plant- 

We have Semi-Automatic box making Plant and Fully Automatic box making the plant. If you want to start with small scale then you need to go with the Semi-Automatic plant, Output of semi-automatic plant start from 4 to 5 ton per day and minimum investment required for semi-automatic plant machinery is INR 2000000/-. If you want to start with big scale production then you need to go with fully automatic pant, minimum investment required for automatic plant machinery is INR 25000000/- and can increase according to pant speed and level of automation.

7.   Land required – 

For semi-automatic pant, you need to have minimum 5000 SQFT area and for automatic plant required minimum 30000 SQFT area. Area requirement in the automatic plant can be changed according to the length of the plant. If you are going for automatic then take proper consultant from then industries expert. You can book your consultation with us by calling on 91-9899375497.

8.    Labor Requirement- 

In semi-automatic plant minimum 12 to15 men power required for operation. In Fully Automatic plant men power depend on the speed and level of automation of plant.

9.    Transportation- 

Your factory location should be optimized for transportation cost. If your factory is far from your customer factory location then cost of the product can increase and your competitors can take advantage of that. There should be proper road connectivity.

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