11:43 AM SME corrugated box units battling against closure |
The packaging industry in India has been battling severe problems following the rise in input costs faced by SME corrugated box manufacturing units. A large number of small-scale corrugated box manufacturers are facing the imminent threat of closure as they struggle to meet the hike in prices of essential raw materials. Large-scale closure of SME corrugated box manufacturing units is anticipated to hamper the growth prospects of the domestic packaging sector. “Steady increase in the price of kraft paper is leading to huge losses for corrugated box manufacturers. It is also resulting in the erosion of competitiveness of the SME corrugated box makers as they are struggling to keep their prices low in view of the rising overall manufacturing costs,” said D Shah, proprietor of Bhagirath Boxes Private Ltd, a small-sized corrugated box maker in Ahmedabad. Besides the sharp hike in the prices of kraft paper, price of other inputs such as starch and galvanized wire have also increased manifold. Furthermore, the collective shutdown of plants by the paper mills is also affecting the SME corrugated box manufacturing units. “The double whammy of high input costs and shutdown of plants by mills producing kraft paper have compounded the problems faced by SME corrugated box manufacturing companies,” said Sunil Kumar, proprietor of Alok Packaging Industries, a small-sized corrugated box manufacturer in Hyderabad. SME corrugated box makers fear that they will be compelled to stall their operations, if this situation prevails for some more time. For more detail on SME Success Stories log on to http://www.bizxchange.in/ David Parks is a well known author and has written articles on Jewellery Manufacturers and Electrical Equipment Suppliers, suppliers, Manufactures and many other subjects. |
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