MANUFACTURING OF PLASTER BOARD LINERS
(HEAVY DUTY PAPERS)
[CODE NO.4320]
The Paper industry in India is expected to grow at a CAGR of 5.5% during the forecast period of 2021-2026. During the COVID-19 pandemic, the Indian e-commerce industry witnessed significant growth in the volume of online orders due to the restrictions imposed on the movement of people and the shutdown of physical stores. People across the country are increasingly buying online groceries, food items, and daily essentials while also purchasing merchandise online. Such trends are expected to boost the demand for sustainable packaging solutions, as the e-commerce and retail industry is one of the major adopters of paper and paperboard solutions in the country.
• This market is growing rapidly owing to the higher growth of food and beverages, cosmetics, and other industries in India. Moreover, different government initiatives to reduce plastic wastes are also influencing the growth of this market.
• As per the data of Associated Chambers of Commerce and Industry India, the market size of Organized food is expected to reach INR 780 million in 2020. Hence, raising awareness of consumers and the growth of the organized food sector in India is influencing the growth of the market.
• According to the Indian Paper Manufacturers Association (IPMA), the market size of the Indian Paper and paperboard market is 16.1 million tones in 2019. Moreover, the packaging consumption in India increased by 200% from the previous year, and it has risen from 4.3 kg per person per annum (pppa) to 8.6 kg pppa.
The demand for fruit pulp, juices, and other concentrates, along with sauces or bottles of ketchup, is increasing the demand for paper and paperboard packaging in India. Moreover, as per the data of Banco do Nordeste, the alcohol consumption in India was 6.23 billion liters in FY 2019. The consumption is expected to reach 6.53 billion liters in FY 2020. This trend will influence the demand for this market.
• The ongoing recycling rate and improving logistical efficiency are the major trends of this market due to its lightweight, biodegradable, and recyclable features. According to the All India Plastics Manufacturing Association, India will eliminate single-use plastics by 2022. However, the high cost of production and technological obsolescence are the major market restraints for this market.
• Furthermore, the lack of packaging machinery manufacturing ecosystems is one of the major restraints for this market. This limited manufacturing environment has led to the very high import of machinery from countries like China, Taiwan, Germany, Italy, the United States, and Switzerland. However, in 2020 the government limits the investment capability of small and medium enterprises to 5 cores, thereby restricting any possibility of these setups developing their in-house machinery manufacturing capabilities. Hence this limited investment opportunity can influence the growth of this market.
KEY MARKET TRENDS
Folding Cartons will hold the Significant Market Share
• Carton boards or paperboards are primarily used for folding cartons due to their stiffness, rigidity, and toughness, providing compression strength to protect products during transportation. According to the Indian Paper Manufacturers Association (IPMA), packaging paper and paperboard production reached 8.710 million metric tons, growing at 8.37% year on year.
• Folding carton packaging is witnessing significant demand from food and beverage, pharmaceuticals, and retail, among others. According to the India Folding Carton Association, the Indian consumer packaging market is expected to reach 1,500 billion by 2021 due to the widespread adoption of organized retail.
• Additionally, Emami Paper Mills is also investing USD 285 million to set up a 4,50,000 metric ton per annum multi-layer coated paper and packaging board manufacturing plant at Bharuch in Gujarat to cater to the market potential of this untapped market.
• These Folded carton boards are mostly used in the e-commerce, food, and beverages industry. Moreover, owing to the COVID 19 pandemic, the retail sales of essential and staple foods have increased significantly.
• Additionally, different food delivery centers have increased the contactless food delivery service for their customers. Hence this ongoing trend is stimulating the growth of this market.
• Moreover, the significant local and international players in this market are focusing on building new capacities and expanding their existing capabilities to meet the massive demand for Folding carton products. For instance, Nine Dragons Paper of China invested USD 630 million to establish a paper and paperboard-making plant in Maharashtra.
• SafePack Solutions provides packaging solutions for moist or greasy food items, whether fresh, dried, chilled, or frozen, such as ice cream, pizza, and cakes. It provides a variety of boards, such as white-lined chipboard, unlined chipboard, and solid bleached sulfate board, and it offers cost-effective packaging materials without compromising on quality.
• As the demand for packaging is growing in India, the usage of different types of carton boards is increasing in various end-user applications. Various majorly used carton board types are white lined chipboard, folding boxboard, solid bleached sulfate board (SBS), and solid unbleached sulfate board (SUS).
Growing Food Industries in India will drive the Growth of this Market
• The Food and Beverages sector in India is growing owing to the growing awareness, convenient access, and changing lifestyles, fuelling the growth of this sector in India. According to Agriculture and Agri-food Canada, packaged food sales in India are expected to register a CAGR of 18% during the forecast period.
• The Indian food and grocery market is the sixth-largest globally, with retail contributing around 70% of the sales. Moreover, food products are also one of the largest segments in the country's retail sector, which was valued at USD 490 billion in 2013, and it reached INR 61 lakh crore (USD 894.98 billion) by 2020. With such demand, the growth of carton board packaging is increasing in this country.
• Additionally, the Indian e-commerce industry valued at USD 200 billion is driving the growth of food packaging in the country. It has led to the entry of major players, like Amazon and Flipkart, entering the e-commerce space in food. Amazon has invested USD 35 million to enter this space. Flipkart has planned to invest USD 258 million to enter the retail food space.
• The FMCG industry is one of the largest end-user in this market. According to IBEF, India is one of the largest manufacturers of food and beverages in the world, and it is contributed to 70% of global sales.
• However, the rise of rural consumption is driving the growth of FMCG sectors in India. India's agricultural use provides around 36 % of the overall FMCG spending, which is fuelling the growth of the paperboard and folding carton market in India.
• Moreover, different Government regulations are also influencing the growth of these products in this region. In 2019 the Government of India's Ministry of Textiles extended the limit for high-density polyethylene (HDPE), polypropylene(PP) bags to cover current issues of packaging food grains. It will help the growth of paper and paperboard packaging in India.
• SafePack Solutions provides packaging solutions for moist or greasy food items, whether they are fresh, dried, chilled, or frozen, such as ice cream, pizza, and cakes. It provides a variety of boards, such as white-lined chipboard, unlined chipboard, and solid bleached sulfate board, and it offers cost-effective packaging materials without compromising on quality.
Competitive Landscape
The market has many players in this region and is highly fragmented. Hence the market concentration of this market is low. With the rising demand for packaging applications, many companies are expanding their market presence by increasing their production facility and product portfolio. The major vendors of this market are WestRock India, Trident Paper Box Industries, TGI Packaging Pvt. Ltd, Kapco Packaging, Avon Pacfo Services LLP, etc.
COST ESTIMATION
Plant Capacity 150 Ton/Day
Land & Building (5 Acres) Rs. 5.45 Cr
Plant & Machinery Rs. 51.44 Cr
Working Capital for 2 Months Rs. 39.04 Cr
Total Capital Investment Rs. 96.67 Cr
Rate of Return 33%
Break Even Point 44%
CONTENTS
INDUSTRY OVERVIEW
KEY MARKET TRENDS
FOLDING CARTONS WILL HOLD THE SIGNIFICANT MARKET SHARE
GROWING FOOD INDUSTRIES IN INDIA WILL DRIVE THE GROWTH OF THIS MARKET
COMPETITIVE LANDSCAPE
MAJOR PLAYERS
PRODUCTION CAPACITY (TPA)
TURNOVER (IN CORES)
ACTUAL PRODUCTION (TPA)
LIST OF MANUFACTURING COMPANIES
MANUFACTURING PROCESS
KRAFT PAPER UNIT
FIBER PREPARATION:
STOCK PREPARATION
APPROACH FLOW
HEAD BOX
PRESS AND DRYER SECTION
D.C. DRIVE
FINISHING
REWINDER
SHEET CUTTER
QUALITY CONTROL
WASTE PAPER
WATER
AIR
EFFLUENT TREATMENT
THE PROCESS COMPRISES OF THE FOLLOWING STAGES:-
COMPANIES IN SOUTH INDIAN MARKET
APPLICATION & USES
LICENSES REQUIRED
LIST OF DOCUMENTS:
PRINCIPLES OF PLANT LAYOUT
SOME OF THE FACTORS IN RAIL-TRACK PLANNING ARE:
MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
DEPRECIATION:
FIXED ASSETS:
WORKING CAPITAL:
BREAK-EVEN POINT:
OTHER FIXED EXPENSES:
MARGIN MONEY:
TERM LOANS:
TOTAL LOAD:
LAND AREA/MAN POWER RATIO:
PAPER MANUFACTURERS
INDIAN SUPPLIERS OF PLANT AND MACHINERY
OVERSEAS SUPPLIERS OF PLANT AND MACHINERY
SUPPLIERS OF RAW MATERIALS
DRYERS
MACHINERY PHOTOGRAPHS
MANPOWER
GENERAL
BASIS OF ESTIMATION
CLASSIFIED FIELDS OF MANAGERIAL AND EXECUTIVE ACTIVITIES:
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
WATER
WATER QUALITY PARAMETERS FOR PROCESSED WATER:
STEAM
POWER
EFFLUENT TREATMENT AND DISPOSAL
TOLERANCE LIMITS FOR INDUSTRIAL EFFLUENT DISCHARGE
WASTE TREATMENT
PRIMARY TREATMENT
ANAEROBIC TREATMENT
ANAEROBIC TREATMENT HAS THE ADVANTAGES OF
SECONDARY TREATMENT
TERTIARY TREATMENT
SOLIDS CONCENTRATION
TYPICAL WASTE SOLIDS CHARACTERISTICS
EQUIPMENT REQUIREMENTS
QUALITY CONTROL
TEST LINER/KRAFT PAPER
USES:
TEST LINER/KRAFT PAPER TECHNICAL SPECIFICATION
MOISTURE IS MEASURED ON OVEN DRY METHOD
SWOL ANALYSIS
STRENGTHS
OPPORTUNITIES
WEAKNESS
LIMITATIONS
ADDRESSES OF RELEVANT GOVERNMENT OFFICES
ADDRESSES OF FINANCIAL INSTITUTIONS
ORGANIZATION CHART
PLANT LATOUT
TURNKEY CONSULTANT
WATER BALANCE DIAGRAM
EFFLUENT TREATMENT PLANT UNITS
FLOW DIAGRAM OF EFFLUENT TREATMENT PLANT
DETAILS OF ESP
WORKING OF ESP
SCHEMATIC DIAGRAM OF ESP
OCCUPATIONAL HEALTH & SAFETY MANAGEMENT
SAFETY MANAGEMENT
THE FOLLOWING KEY SAFETY MEASURES SHALL BE IMPLEMENTED IN THE PROPOSED PROJECT:
OCCUPATIONAL HEALTH
IMPLEMENTATION SCHEDULE
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
