2. Introduction
• The packing material of the items depends on the products nature
and its usage. Corrugated Kraft Paper Board Box, technically called
Corrugated Fibre Board Box is the most popular shipping container,
now-a-days. Today, about 80% of all shipments in the world are
being made in fibre board boxes. In India, about 60% of the
packaging is being done with corrugated fibre board boxes.
• An important factor for successful undertaking of corrugated paper
board/boxes is the capacity to procure orders from bulk users on
contract basis. Only large and regular orders will ensure stability to
the unit.
3. About the Product
• Corrugated fibre board consists of a flat layer of paper sheet (liner) glued on
one or both sides of a corrugated paper. The corrugated board is made by
passing two layers of Kraft paper through corrugating machine. One layer of
paper becomes corrugated after being passed through the heated rolls and other
is brought into contact with it after the former having glued at tips.
• When only one liner is used, the product is known as "Single face" or "two ply"
board. This board is flexible in one direction. When the corrugated medium is
combined on both sides with flat sheets, it is known as double faced or "3-ply
board".
4. Advantages of Corrugated Fibre
Board Boxes
• Light in weight (freight advantage)
• Cellular structure with high compressive strength, resiliency & shock
resistance
• Can be stored conveniently in folded condition when not in use, thus saving
storage space.
• Can be attractively printed, thus advertising advantage.
• By lining, lamination or coating, they can be made water resistant and
resistant to other adverse conditions.
• Easy to fabricate.
• These boxes are Re-usable
5. Applications
• Corrugated fibre board boxes are being used for the packing of industrial
as well as consumer goods. They are used for packing of chemicals, drugs,
tobacco, engineering goods, canned and bottled goods confectionary,
textiles, fruits, vegetables, potteries, footwear, glassware, medical
instruments, photographic equipments and a number of other products.
22%
22%
11%
9%
6%
3%
2%
25%
Chemicals and drugs
Engineering goods
Canned and bottles goods
LIght Engg. products and lamps
Electrical products
Confectionery
Textiles
Other (including fruits, potteries etc;)
Distribution of corrugated
packaging in India
6. Technical Aspects
• Manufacturing Process Flow
Flat Sheet
Single face
corrugating M/c
2-ply corrugated
board
Board cutting
M/c
Gluing, pasting
& sheet pressing
3-ply corrugated
board
Slitting &
creasing
Box stitching
Corrugated box
Manufacture Of
Corrugated Sheet
Manufacture
Of Boxes
7. Technical Aspects
Type of
Board
Max. Mass of
contents
Max. combined
Dim. L+W+D
Min. Burst
strength
Kg mm Kg/cm2
Single walled
5 635 6
8 750 8
10 1025 9
•Detailed system
•Quality Standards
As per IS: 2771 (PART I) – 1977 SPECIFICATION FOR FIBREBOARD BOXES
2-ply corrugated board 3-ply corrugated board
8. Raw Material Study
• Kraft Paper (100,120gsm)
• Adhesives (starch based corrugation glue)
• Water
• Stitching wire (Galvanized steel AISI 304)
• Adhesive Tape
• Binding Cloth
9. Raw Material Study
• Kraft Paper suppliers (100,120 gsm, B/F 10)
R. A Kraft Paper PVT. LTD. Madhyadesh Papers Limited
502 Suryakiran Complex Nava Baharat Bhavan, Chhatrapati
1, Bajaj Nagar Nagpur-440010 Sq, Wardha Road Nagpur-440015
• Stitching Wire
Precision alloys Private Ltd.
301, Siddhachal Sabkuchh, Link Road
Mumbai-440064
• Adhesives (Starch corrugation glue)
M/s Maitreya Enterprises
C-21, MIDC, Wadi, Tah. Hingna
Nagpur-440023
10. Demand Study
• The market for Corrugated fibre board boxes is both local and
global. Though we are focussing on mainly regional
perspectives. Nagpur is a big market having number of large
industrial consumers like Mahindra logistics, Haldiram’s,
Indo-Rama synthetics and a large number of retailers.
• In view of other regional competitors the Annual production
capacity is set as 240 MTs of corrugated boxes
11. Location Study
Availability of Land
2800 Sq.Feet industrial shop available on rent
with basic amenities
Transportation
Rented vehicles for transportation and supply
are easily available
Approach to site Good network of Rail and Road transport.
Water
Personal Bore water of land Owner is available
for drinking water and daily needs. Municipal
Corporation supply is also available
Power Electricity is available with 24*7 from MSEB
Proximity of supplier Raw material suppliers are located in the town.
Proximity of market
Many Customers have their plants in the MIDC
Industrial zone.
12. Implementation Schedule
SR.
No.
Activity Estimated Period
1 Preparation of Project Report
2 Registration under MSME Act 0 – 1 Month
3 Preparation of Scheme 0 –1 Month
4 Sanction of Loan 1 – 5 Month
5 Placement of Order for Plant & Machinery 5 – 6 Month
6 Power & Water Connection 5 – 6 Month
7 Erection of Machinery 6 – 7 Month
8 Procurement of Raw material & Trial Run 7 – 8 Month
9 Commercial Production 8th Month
onwards
13. Economics of the Project
• Basis and presumptions
1. Finished Product(s) : Corrugated Fibre Board Boxes
2. No. of working days/year : 300
3. No. of shifts/day : 1 No. of working hours/shift : 8
4. Annual Installed Capacity : 240 tons of corrugated boxes
• Financial Aspects
1. LAND AND BUILDING
Rented building at M.I.D.C.Hingna
Description Area (Sq.ft) Amount (Rs)
Work 1500
Store & Office 1300
Total Area 2800 8,000/- per
month
14. 2. MACHINERY AND EQUIPMENTS
Unit Description Qty Amount (Rs)
Corrugating
unit
Single Face Corrugating M/c, 52” 1 5,65,000
Box making
unit
Board Cutter, 62” x 62” 1 90,000
Sheet Pasting Machine 1 1,10,000
Sheet Pressing M/c 1 1,40,000
Box Stitching M/c 1 60,000
Testing
Equipment
Bursting Strength Factor Tester 1 30,000
Grammage Tester 1 5,000
Compression Strength Tester 1 150,000
Puncture Resistance Strength M/c 1 30,000
Subtotal 11,80,000
Cost of installation, erection, commissioning
Taxes, Freight Insurance etc. 10%
1,18,000
Total 12,98,000
Economics of the Project
15. 3. MISCELLANEOUS EQUIPMENTS
Sr. No. Description Amount (Rs)
1
Electrification Expenses and
Electrical Equipments
30,000
2 Weighing Machine 15,000
3
Maintenance Tools &
Equipment
5,000
4 Office Furniture & Equipment 40,000
5
Fire Fighting & Other Safety
Equipments
25,000
Total 1,15,000
Economics of the Project
16. 4. COST OF RAW MATERIALS, CONSUMABLES & PACKAGING
MATERIALS PER MONTH
Sr. No. Description Qty. Unit Amount
(Rs)
1 Kraft Paper
@ Rs. 20/kg
20 MT. 4,00,000/-
2 Stitching Wire 130 Kg 6,500/-
3
Adhesive
@ Rs. 30/kg
1.5 MT. 45,000/-
4
Misc. Consumable
Stores
5,000/-
Total 4,56,500/-
Economics of the Project
17. 5. STAFF & LABOUR REQUIREMENTS & MONTHLY SALARY/WAGES
Sr. No. Description Nos. Amount (Rs)
1 Manager Self
2 Supervisor 1 10,000/-
3 Accountant 1 5000/-
4 Skilled Workers 3 12,000/-
5 Unskilled Workers 2 5,000/-
6 Watchman 1 4,000/-
Total 36,000/-
(+) Perquisites @ 15% of salaries 5,400/-
Total 41,400/-
Economics of the Project
18. 6. COST OF UTILITIES PER MONTH
Sr. No. Description Qty. Amount (Rs)
1 Rent --- 8,000/-
2
Power @ Rs 8.4
per unit
10 HP 10,000/-
3 Water and fuel --- 3,000/-
Total 21,000/-
Economics of the Project
19. 7. OTHER MISC. EXPENSES PER MONTH
Sr. No. Description Amount (Rs)
1 Telephone Expenses 1,000/-
2 Postage & Stationery 1,000/-
3
Marketing & Traveling
Expenses
5000/-
Total 7,000/-
Economics of the Project
20. FIXED COST WORKING CAPITAL PER MONTH
Sr.
No.
Description Amount (Rs)
1
Raw materials,
consumables
4,56,500/-
2 Monthly salary/wages 41,400/-
3 Cost of utilities 21,000/-
4 Other misc. Expenses 7,000/-
Total 5,25,900/-
Economics of the Project
Sr.
No.
Description Amount (Rs)
1
Machinery and
equipments 12,98,000/-
2
Miscellaneous
equipments 1,15,000/-
Total 14,13,000/-
21. TOTAL CAPITAL INVESTMENT
Economics of the Project
Sr. No. Description Amount (Rs)
1 Fixed Cost 14,13,000/-
2
Working capital for 2
months
10,51,800/-
Total
24,64,800/-
Say 25,00,000/-
22. Means of Financing of the Project
It is proposed to finance the project as follows
• Term Loan from State Bank of India : 20,00,000 /-
Rate of Interest 12.5% for 10 years
• Promoters’ Contribution : 05,00,000/-
Total 25,00,000/-
Economics of the Project
23. Cost of production per annum
Financial Analysis
Sr. No. Description Amount ( Rs.)
1. Raw Materials & consumables 54,78,000/-
2. Salary & Wages 4,96,800/-
3. Utilities 2,52,000/-
4. Other Misc. Expenses 84,000 /-
5. Annual Instalment paid 3,51,000/-
6. Depreciation on Machinery &
Equipment @ 10 % p.a.
1,00,000 /-
Total 67,61,800/-
24. Financial Analysis
TURNOVER PER ANNUM
By sale of 220MT (Annual production with 8% scrap) of corrugated box
@ Rs.34,500/ton
= Rs. 75,90,000/-
PROFIT PER ANNUM
= Turnover – Cost of production
= 75,90,000 – 67,61,800
= Rs. 8,28,200/-
