INDUTRAIL ANALYSIS REPORT

CORRUGATED BOXES

Corrugated boxes are a very common type of carton, or box, in which a wavy, or corrugated,
sheet of cardboard is placed in between two sheets of flat cardboard. This design provides
rigidity and additional cushioning to protect fragile and easily-damaged goods during transit.
They are also used when the shipping or transportation medium is subject to hazards such as
sudden shocks, vibrations or moisture. Because corrugated boxes are designed for added
protection, they are most often used for glass items or food items such as pizza. However, they
may also be used for other purposes where sturdiness is a key concern.

INTRODUCTION

Most items at your favorite supermarket, discount store, or shopping mall were safely delivered
in boxes made of corrugated cardboard, and many are displayed in the same boxes, which were
manufactured so they could be opened and used for this purpose. Other items may arrive in their
own corrugated or un-corrugated paperboard boxes. Because corrugated cardboard is such a
versatile packaging material, millions of tons are used each year to protect and display products.
During 1992, more than 25 million tons of corrugated cardboard were produced in the United
States. Another 6 million tons of un-corrugated boxboard or paperboard were also produced for
use in folding cartons.

Corrugated cardboard is a stiff, strong, and light-weight material made up of three layers of
brown kraft paper. In 1884, Swedish chemist, Carl F. Dahl, developed a process for pulping
wood chips into a strong paper that resists tearing, splitting, and bursting. He named it the kraft
process because it produces a strong paper that resists tearing, splitting, and bursting.

From the paper mill, rolls of kraft paper are transported to a corrugating, or converting, plant. At
the plant, layers of kraft paper are crimped and glued to form corrugated cardboard, which is then
cut, printed, folded, and glued to make boxes. At the beginning of this process, Kraft rolls from
the paper mill are loaded into a huge machine called a corrugators. A typical corrugators is as
long as a football field—300 feet (91.44 meters). Some rolls of Kraft paper are used as the
corrugating medium, and others are used as liners, the layers of Kraft paper glued on each side of

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the medium. After the corrugators has heated, glued, and pressed the Kraft paper to form
corrugated cardboard, the continuous sheet of cardboard is cut into wide box blanks that then go
to other machines for printing, cutting, and gluing. Finally, batches of finished boxes are banded
together for shipping to the food processor, toy maker, automobile parts distributor, or any of the
thousands of businesses that depend on corrugated cardboard packaging

HISTORY

In the mid-19th century, an ingenious concept enabled flimsy sheets of paper to be transformed
into a rigid, stackable and cushioning form of packaging for delicate goods in transit

Corrugated (also called pleated) paper was patented in England in 1856, and used as a liner for
tall hats, but corrugated boxboard was not patented and used as a shipping material until
December 20, 1871. The patent was issued to Albert Jones of New York City for single-sided
(single-face) corrugated board. Jones used the corrugated board for wrapping bottles and glass
lantern chimneys. The first machine for producing large quantities of corrugated board was built
in 1874 by G. Smyth, and in the same year Oliver Long improved upon Jones' design by
inventing corrugated board with liner sheets on both sides. This was corrugated board as we
know it today.

The Scottish-born Robert Gair invented the pre-cut paperboard box in 1890 – flat pieces
manufactured in bulk that folded into boxes. Gair's invention came about as a result of an
accident: he was a Brooklyn printer and paper-bag maker during the 1870s, and one day, while
he was printing an order of seed bags, a metal ruler normally used to crease bags shifted in
position and cut them. Gair discovered that by cutting and creasing in one operation he could
make prefabricated paperboard boxes. Applying this idea to corrugated boxboard was a
straightforward development when the material became available in the early twentieth century.

The corrugated box was initially used for packaging glass and pottery containers. Later, the case
enabled fruit and produce to be brought from the farm to the retailer without bruising, improving
the return to the producers.

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SWOT ANALYSIS OF CORRUGATED INDUSTRY

Before making the decision, whether to invest in the corrugated packaging business or not,one
should carefully analyze the associated risk factors. A SWOT analysis can help in analyzing
these factors which can play important role in making the decision.
Strengths
• Corrugated packages provide efficient and convenient unit for marketing of the product.
• They allow weighing of produce as well as handling and transport to be accomplished in
fewer steps.
• When compared with wooden crates, corrugated boxes are light to carry and are preferred
by air freight companies.
• They are recyclable unlike non-recyclable packaging that has to be burnt at the end of its
life.
Weaknesses
• Corrugated packages are not reusable.
• They cannot be produced economically on a small scale. Cost of labour for each batch
and cost of overheads keep on decreasing with the increasing production.
• They are easily damaged by water and rough handling unless impregnated with wax at
extra cost.
• They offer most practical and economic choice for packaging but availability of suitable
designs at the right price remains the greatest challenge to improvements.
Opportunities
• Corrugated packages allow for easy printing of labels and can be manufactured to a wide
range of sizes, shapes and strength specifications.
• Manufacturing sector of Pakistan showed a record growth of 12.6% in the year 2003-
2004, which in turn increases the demand for packaging facilities as well.
Threats

Innovations in the packing industry like plastic crates, plastic bags etc. may affect the market
demand for corrugated packages opening up export markets.

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PRODUCT SPECIFICATIONS

When a box specification is set there are normal working tolerances that need to be considered.
These relate to actual size and board weight. Manufactured box's can have a variation of + or -
5mm so it is important to judge final size in the light of this. Board grades may vary in paper
weight e.g. 150 GSM Kraft, may actually be 140 GSM again it is important to see how critical
these tolerances are in relation to your actual specification. The size tolerance factor can be
improved if the box can be Die-Cut.

Quantity:
When a quotation is requested it is important to understand that a price for 1000 lots is the price
for an order of 1000. If you only require 250 lots the price will almost certainly go up. It is also
true that if you ask for 1000 price and you then need to order 2000 lots you could expect to get a
lower price. When an order is placed for specially produced box's there is a risk of 10% variation
on the actual quantity ordered.

Another important factor that can impact on volume is the storage space needed to store
corrugated, be sure that you are aware of the volume of space needed to store the corrugated
box's that you order.

Origination: Costs:

When a box is Die Cut, A cutting forme is required. This is usually charged as a once only
charge. Cost of formes can vary from under £100 up to £1500 depending on the size and
complexity of the job.

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When a job is printed even 1 colour reference print there is usually a small stereo cost and as the
print becomes more complex there would be an artwork and stereo costs. Stereo cost is nearly
always quoted subject to sight of customer artwork.

Printing on packaging:

There are various benefits of having your box printed, branding, quality, and product
identification, bar code etc. However there are some legal requirements for printing on box's for
the packaging of hazardous goods and chemicals. It is important that you check the actual
requirements for your product.

Samples:
Samples are generally provided to confirm the size of a new job. It is very important that this
sample is checked with the full content of the actual goods. It is important to point out that
samples are generally hand made sample either hand cut, cad cut or laser cut. The actual sample
produced will appear to vary slightly in board thickness from factory production because of the
effect of pressure on the flutes on boxes produced through the factory.
Prices quoted are generally valid for 30 days unless agreed otherwise. Allow for possible
variation in unit packaging cost if you are using a price quoted for some tender that may be many
monthsahead.
The colour of the corrugated board liner may change slightly either between runs or even during
one production run. This can be due to many factors, commonly it is due to the fact that the
origins of the actual liner may be different, however the actual specification of the paper would
be unchanged and it is purely a visual difference and performance would not be effected by a
slightly different colour.

MAJOR PLAYERS

Major players and their locations are:

Factories Locations

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Packages limited Bulle-e-Shah Lahore

Century paper Mills Bhaipheru near okara

Roshan Packages Sunder Raiwand road Lahore

Abbas packages Karachi

Al Faisal packages Karachi

M-H Packages Karachi

Al-sheikh packages Lahore

Suitable Locations:
City Location
Lahore Kot Lakhpat, Bund Road, Multan Road, Sheikhupura Road, Kasur Road,Raiwand Road
Rawalpindi Peshawar Road, Peer wadhai
Karachi Korangi Industrial Area, Landhi Industrial Area
Faisalabad Sargodha Road, Jharanwala Road
Sargodha Bhalwal-Kotmomon Road,

PRODUCTION CAPACITY AND ITS UTILIZATION

Company name Production capacity Utilization

Packages Limited 42000 tons 87.5%
Century paper Mills 2400 tons 90%
Industry Production capacity Utilization
900000 tons 55%

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TYPES OF CORRUGATED BOXES

1. Plain Corrugated Boxes:

We offer plain corrugated boxes that are highly efficient in

holding materials and are designed as per clients’
specifications. Fabricated from fragile sheets of paper,
these are widely used in different industries for firm,
stackable and cushion form of packaging and enables
complete safety of the materials during transportation.

Besides the use in shipping larger goods, our plain

corrugated boxes are used for the packaging of:

• Groceries
• Small consumer goods
• Glassware and
• Earthenware items

The attractive features of our corrugated boxes are as

follows:

• Light weight
• Clean and hygienic
• User friendly
• Durable
• Reliable

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2. Kraft Corrugated Boxes:

The kraft corrugated boxes exported by us are widely

demanded in the market owing to their durability, quality
and flawlessness. Designed to perfection, these kraft
corrugated boxes are manufactured as per the requirements
and specifications of our esteemed clients. Further, these
are available in various different sizes, shapes and colors
and offered in market leading prices.

The highlighting attributes of our exclusive array of kraft

corrugated boxes are as follows:

• User friendly,
• Durable
• Cost effective.
• Reduced weight
• Easy to carry
• OEM orders accepted

3. Hardened Corrugated Boxes:

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Widely used in different industries and storage needs, our

comprehensive range of waxed corrugated boxes are high
in performance and are extremely durable. These waxed
corrugated boxes are widely appreciated all across the
globe and are available in various shapes and sizes.
Besides, these are also manufactured as per the designs and
requirements of our valuable clients. Since decades our
fruitful efforts in satisfying our clients has helped us in
achieving their reliance and broad client stand all across
the globe. Following are some of the essential traits of our
qualitative gamut:

• Customized solutions
• Economical
• Lightweight
• Highly durable
• Competitive prices

4. White Corrugated Boxes:

Available with us are white corrugated boxes that are

adequately designed and reflect the true workmanship of
our adroit craftsmen. Widely used for shipping delicate
products, these white corrugated boxes are offered in
market leading prices and are available in single and
double walled forms. Further, these are also fabricated in
customized ranges and printed as per the client
requirements.

The unique features of our white corrugated boxes:

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• Highly durable
• Sturdy
• Superior endurance
• Excellent finishing

• Environmentally sa

REQUIREMENTS OF RAW MATERIAL

Following raw material are used in corrugated packages.

1. Kraft paper
2. Flutter paper (Plain)
3. Flutter paper (Liner)
4. Pasting fluid (Silicate)

Raw material used for each size of box and their costing is shown in the table below:

Raw Material Costing for 24”x24”x8”

Raw Material Used No. of Papers Quantity Rs./Kg Total
Required (Kg.) Cost (Rs.)
Liner Paper 2 0.53 55 29.15
Flutter Paper (Plain) 2 0.51 15 7.65
Corrugated Flutter 3 1.1 15 16.5
Total 7 5 3.3

SOURCES OF RAW MATERIAL

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Fast-growing pine trees provide the primary raw material used to make corrugated cardboard.
The largest packaging companies own thousands of acres of land where trees are matured,
harvested, and replaced with seedlings. After the trees are harvested, they are stripped of their
limbs; only the trunks will be shipped by truck to a pulp mill. The largest packaging companies
also own the mills where trees are converted to kraft paper. At the mill, the harvested tree trunks
are subjected to the kraft process, also known as the sulfate process because of the chemicals
used to break down wood chips into fibrous pulp. After pulping and other processing, the fibers
are sent directly to the paper machine where they are formed, pressed, dried, and rolled into the
wide, heavy rolls of kraft paper sent to corrugating plants to be made into cardboard.

At the corrugating plant, only a few other raw materials are needed to make a finished box. Corn
starch glue is used to bond the corrugated medium to the liner sheets. Because so much glue is
used, rail cars or large tanker trucks deliver it as a dry powder that will be stored in huge silos at
the corrugating plant until it is needed. Drawn from the silo, the dry corn starch is mixed with
water and other chemicals and pumped into the corrugator to be spread on the corrugated
medium as the layers of liner are added. Other raw materials are used to finish the corrugated
cardboard after production. Waxes made from paraffin or vegetable oils can be applied to make a
water- or grease-resistant container for food products. Brightly colored inks are also applied to
create bold graphic designs for self-supporting displays featuring product name, information, and
company name and logo. Teams of salespeople and designers work together to create the
manufacturing and printing patterns, called dies, that are used to cut and print a specific box
design. The dies are created in a pattern shop and transferred to the rotary die-cutting equipment
and printers that finish the box blanks.

THE MANUFACTURING PROCESS

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Pulping the pine chips

• Manufacturing a corrugated cardboard box begins with the pulping of wood chips in the
kraft (sulfate) process. First, tree trunks are stripped of bark and torn into small chips.
Next, these chips are placed in a large, high-pressure tank called a batch digester, where
they are cooked in a solution, or liquor, made of sodium hydroxide (NaOH) and several
other ionic compounds such as sulfates, sulfides, and sulfites. These strongly alkaline
chemicals dissolve the lignin, the glue-like substance that holds the individual wood
fibers together in a tree trunk.
• When the pressure is released after several hours, the wood chips explode like popcorn
into fluffy masses of fiber.

Making Kraft paper

After additional cleaning and refining steps, consistent slurry of wood pulp is pumped to the
paper-making machine, also known as a Fourdrinier machine. Gigantic, square structures
up to 600 feet long (182.88 meters), these machines contain a wire mesh in which the
paper is initially formed. Next, the paper is fed into massive, steam-heated rollers and
wide felt blankets that remove the water. At the end, the finished medium, or liner, is
rolled for shipment.

Shipping and storing the kraft paper

• Rolls of kraft paper for corrugating are available in many sizes to fit the production
equipment at different corrugating plants. The most common roll sizes are 67 inches
(170.18 centimeters) wide and 87 inches (220.98 centimeters) wide. An 87-inch roll of
heavier paper can weigh up to 6,000 pounds (2,724 kilograms). As many as 22 rolls of
87-inch paper can be loaded into one railroad boxcar for shipment to a corrugating plant.
• At the plant, the kraft paper is separated into different grades, which will be used for the
medium and the liner. These different grades of corrugated cardboard can be made by
combining different grades of kraft paper. A knowledgeable packaging specialist works
with a customer to determine the strength required for the corrugated cardboard container
being planned. Then, when a plant receives an order for containers, a product engineer

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specifies the combination of medium and liner to produce a cardboard to match the
customer's requirement.

Corrugating the cardboard

• Using powerful fork-lifts, skilled equipment operators select, move, and load rolls of
kraft paper at one end of the corrugator.
• Corrugated cardboard manufacture includes two key steps: making kraft paper and
corrugating the cardboard. Kraft paper involves pulping wood chips and then feeding the
resulting paper substance through massive steam rollers that remove the water.
Corrugating is also done in a machine that utilizes heavy rollers. One roll of cardboard is
corrugated and then glued between two other layers (liners) by the same machine. The
glue is then cured by passing the cardboard over heated rolls.

• One roll of medium is loaded to run through the corrugating rolls, and a roll of liner is fed
into the corrugator to be joined with the corrugated medium. Liner from another roll
travels up over the corrugating rolls along a flat structure called the bridge. This liner will
be glued to the corrugated medium later in the process.

• For a large production run, additional rolls are loaded into automatic splicers. Sensitive
detectors check the rolls of paper feeding into the corrugator. When a roll is nearly
empty, the corrugator control system starts a splicer, and paper from the new roll is joined
to the end of the paper going through the machine. Thus, production of corrugated
cardboard is continuous, and no production speed is lost.

• The medium to be corrugated is fed into the giant, electrically driven rollers of the
corrugator, first through the preheating rollers and then into the corrugating rolls. Steam
at 175 to 180 pounds of pressure per square inch (psi) is forced through both sets of
rollers, and, as the paper passes through them, temperatures reach 350 to 365 degrees
Fahrenheit (177 to 185 degrees Celsius).

• 10 The corrugating rolls are covered with I O flutes —horizontal, parallel ridges like the
teeth of massively wide gears. When the hot paper passes between the corrugating rolls,
the flutes trap and bend it, forming the middle part of a sheet of corrugated cardboard.

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Each corrugating machine has interchangeable corrugating rolls featuring different flute
sizes.

• A finished piece of corrugated cardboard consists of a single corrugated layer sandwiched

between two liner layers. Flute size in the corrugator changes the width of the corrugated
medium.

The medium travels next to a set of rollers called the single-facer glue station. Here, one
layer of liner is glued to the medium. Starch glue is carefully applied to the
corrugated edges of the medium, and the first layer of liner is added. From the
single-facer, the medium and liner go to the double-backer glue station where the
other layer of liner from the bridge is added following the same procedure.
Continuing through the corrugator, the cardboard passes over steam-heated plates
that cure the glue.

Forming the blanks into boxes

• At the end of corrugator, a slitter-scorer trims the cardboard and cuts it into large sheets
called box blanks. Box blanks pop out of the slitter-scorer like wide slices of toast and
slide into an automatic stacker that loads them onto a large, rolling platform. From here,
they will be transported to the other machines that will convert them into finished
containers. Skilled production workers use a computer terminal and printer to prepare a
job ticket for each stack of box blanks produced by the corrugator. With the job ticket,
workers can route the stack to the right fabrication machines, called flexos (the name is
short for flexographic machine). A flexo is a wide, flat machine that processes box
blanks.
• Printing dies and die-cutting patterns I 3 are prepared in a pattern shop on large, flexible
sheets of rubber or tin. The dies and patterns are loaded onto the large rollers in the flexo,
and the box blanks are automatically fed through it. As each blank passes through the
rollers of the flexo, it is trimmed, printed, cut, scored, and, in a printer-folder-gluer,
folded and glued to form a box. From the flexo, the finished boxes are automatically

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stacked and sent to a banding machine to be wrapped for shipping. Other equipment in a
corrugating plant includes stand-alone die-cutters, die-cutters with print stations, and
machines known as curtain coaters that apply a wax coating to fruit, vegetable, and meat
containers. Box blanks requiring only simple, one-color printing and die-cutting can be
run through a stand-alone die-cutter, print station, and curtain coater to produce water- or
grease-resistant containers.

QUALITY CONTROL

Quality control begins with the suppliers of the Kraft paper used to make corrugated cardboard.
Kraft paper must be smooth and strong. After the paper passes through the corrugators and is
made into box blanks, individual blanks are pulled from a stack and tested. The Cobb test
measures moisture in the liner and medium. Glue strength, bursting strength, compression, and
highly accurate dimensional tests determine the quality of the manufacturing process. A warp test
determines the flatness of the box blank, insuring that each blank will travel smoothly through
the flexo machines. As skilled workers run batches of box blanks through the flexo machines,
individual boxes are pulled and inspected. Trimming, cutting, and scoring must be correct. No
damage to the cardboard is allowed. Also, the different layers of colored ink used in color
printing must be perfectly aligned.

TECHNOLOGY
In Pakistan, there are several manufacturers of corrugated packaging machines. There are around
10 suppliers in Lahore i.e. Muhammad Hussain in Misree Shah, Mr. Shafiq in Shah Jamal,
almost 42 suppliers in Karachi and 2 suppliers are in Islamabad. These machines can also be
imported from the following countries. However, the cost of imported machinery is too high as
compared to local machinery.
• German
• Brazil
• Sweden
• USA
• Taiwan
• China

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• Korea

The locally manufactured machinery is comparable to the imported machinery in terms of

production and quality of the output, whereas price wise, local machinery has an edge over
imported machinery. Some of the corrugation machinery manufacturers are listed below:
• Chughtai Engineering Works, Lahore
• Prime Tech International, Lahore
• Sama Engineering works, Karachi
The above mentioned suppliers also export the corrugated packaging machinery to Tashkent and
South Africa, which proves the fact that local machinery is comparable to international
standards.
SALES PRICE
It is generally observed in the corrugated packages business that the sales price is fixed 25%
above the cost of raw material consumed for the proposed box size. This 25% includes the profit
margins, cost of pasting fluids and printing costs. On the other hand, cost of printing is
approximately Rs.1 per box and pasting fluids are available at the rate of Rs.6 per kilogram.
Consumption of pasting fluids depends upon the size of the box.
This particular pre-feasibility assumes that the sales prices are 25% above the cost of raw
material which include the costs of printing and pasting fluids.

Box sizes Sales price (Rs)

24”x24”x8" 67
14.54”x10.5”x6.25 19
19.69”x17.72”x13.78 8
Others(Avg) 67

TARGET CUSTOMERS

As mentioned above, the target customers are manufacturers and suppliers of all types of goods.
Following are some of the target clients for a manufacturer of corrugated packaging.
• Pharmaceutical Industry
• Textile Industry
• Home Appliances
• Garments

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• Confectionary
• Fruits and Vegetables
• Shoes
• Cosmetics

PRODUCT MIX
Different sizes of boxes are produced for various target industries. They are as follows:
Table 7-1 Product Range
Sizes Measurements Target Industry
A 24” x 24” x 8” Textile Sector
B 14.54” x 10.5” x 6.25” Pharmaceutical Sector
C 19.69”x17.72” x13.78” (50cm x 45cm x 35cm) Multi purpose
D Others Fridge, Electronic products

Production capacity varies with the size of the box. Production for each size of box will be taking
one batch of two hours. Proposed production for each size at 100% capacity will be as under:

Table 7-2 Product Mix

Box Sizes Per Day Production Per Annum Production
24”x24”x8" 750 225,000
14.54”x10.5”x6.25 1,000 300,000
19.69”x17.72”x13.78” 750 225,000
Others(avg.) 500 150,000
Total 3,000 900,000

TRADE ANALYSIS OF INDUSTRY OF CORRUGATED BOXES:

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Following are the Names of the raw materials which come in corrugated industry:

CODE Raw Material Names

6416 Paper, Paperbrd, corrg,etc

64211 Cartons, etc.corrg.paper

Following are the exports of Pakistan of five years to world from 2004 to 2008 in quantity
(in thousand):

CODE Product Names 2004 2005 2006 2007 2008 Sum of Total
exports

6416 Paper, Paperbrd, 89 342 307 599 1036 2373

corrg,etc

64211 Cartons, 161 443 694 824 441 2563

etc.corrg.paper

Following are the five importers from Pakistan of Paper, Paperbrd, corrg,etc and their five
years sum of values and quantities (in thousand):

Country name Value(000) Quantity(000)

Afganistan 2120 1675

Sri Lanka 421 233

United Arab EM. 277 232

Oman 50 38

Following are the five importers from Pakistan of Cartons, etc.corrg.paper and their five
years sum of values and quantities (in thousand):

Country name Value(000) Quantity(000)

United Arab EM. 991 544

Afghanistan 945 670

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United Kingdom 508 322

USA, PR, USVI 348 160

Iran Islam. REP 246 1717

Uzbekistan 117 77

South Africa 105 84

Belgium 104 50

Egypt 93 76

Saudi Arabia 87 66

Following are the imports of Pakistan of five years to world from 2004 to 2008 in quantity
in (in thousand):

CODE Product Names 2004 2005 2006 2007 2008 Sum of Total
exports

6416 Paper, Paperbrd, 1181 1329 1346 2707 1435 7998

corrg,etc

64211 Cartons, 3877 3830 6387 6397 6819 27310

etc.corrg.paper

Trend of trade of Paper, Paperbrd, corrg,etc (in thousands):

Pakistan export this raw material to four countries in the world and we see an increasing trend in
exports of Pakistan to the world from 2004 to 2008 which is 89 tons to 1036 tons in quantities
which that the Pakistan trade industry of corrugated boxes grow rapidly as the world demand of
corrugated boxes increases. When we see the imports of Pakistan of this raw material we see that
Pakistan import from 13 countries of the world and we see an increasing trend from 2004 to 2008
which 1181 tons to 1435 tons.

Trend of trade of Cartons, etc.corrg.paper (in thousand):

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Pakistan export this raw material to ten countries in the world and we see an instable trend in
exports of Pakistan to the world from 2004 to 2008 which is 161 tons to 441 in quantities which
that the Pakistan trade industry of corrugated boxes do not grow rapidly as the world demand of
corrugated boxes increases. When we see the imports of Pakistan of this raw material we see that
Pakistan import from 18 countries of the world and we see instability in the trend that from 2004
to 2005 the imports deceases which 3877 tons to 3830 tons but from 2006 to 2008 imports show
an increasing trend which is 6387 to 6819.

Balance of trade of Paper, Paperbrd, corrg,etc and Cartons, etc.corrg.paper (in thousand):

The exports of Pakistan of Paper, Paperbrd, corrg,etc is 3069 us dollars and imports are 8438 us
dollars so Pakistan having trade deficit of 5369 us dollars.

The exports of Pakistan of Cartons, etc.corrg.paper is 4062 us dollars and imports are 25632 us
dollars so Pakistan having trade deficit of 21570 us dollars.

POTENTIAL OF TRADE IN CORRUGATED BOXES INDUSTRY:

Five major importers of world of Paper, Paperbrd, corrg,etc and their five years sum of
values and quantities (in thousand):

Countries name Value (000) Quantity(000)

Germany 1838043 1186617

USA, PR, USVI 1582271 1375114

United Kingdom 1369321 967380

France 1225753 859616

Mexico 1219806 1116370

Five major importers of world Cartons, etc.corrg.paper their five years sum of values and
quantities (in thousand):

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Countries name Value (000) Quantity(000)

Mexico 3752660 3939171

France 1918662 1441382

Germany 1713236 1082989

Netherlands 1555585 1180740

USA, PR, USVI 1324600 681279

Five major exporters of world of Paper, Paperbrd, corrg,etc and their five years sum of
values and quantities (in thousand):

Countries name Value (000) Quantity(000)

Germany 2340659 1575287

USA, PR, USVI 2191736 2151042

Italy 1748205 1336650

France 1538138 1029985

Sweden 1223427 657547

Five major exporters of world Cartons, etc.corrg.paper their five years sum of values and
quantities (in thousand):

Countries name Value (000) Quantity(000)

USA, PR, USVI 5109983 3917953

Germany 3416075 2413710

Belgium 1479985 1148651

Austria 1259413 892101

Italy 1172000 874746

Pakistan trade potential for Paper, Paperbrd, corrg,etc:

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Pakistan does not export to the world’s biggest importers of Paper, Paperbrd, corrg,etc so
Pakistan is not utilizing its full potential by not accessing to the biggest markets of the world and
Pakistan also do not comes in the list of five biggest exporters of the world.

Pakistan trade potential for Cartons, etc.corrg.paper:

Pakistan only export to one of thebiggest importer which is USA, PR, USVI and Pakistan does
not export to the remaining four world’s biggest importers of Paper, Paperbrd, corrg,etc so
Pakistan is not utilizing its full potential by not accessing to all of the biggest markets of the
world and Pakistan also do not comes in the list of five biggest exporters of the world.

PROBLEMS OF THIS INDUSTRY

• Economic crisis

• Mechanical problems

• Demand Problems

• Pricing Issues

• Transportation problem

• Energy Crises

GOVERNMENT POLICY

Government is applying the 16 % sales tax on the corrugated Boxes. Other than this Government
has not any other appropriate policy for this industry and do not give any incentive to this
industry.

WTO IMPACT

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• Pulp and Paper sector will face stiff completion with regional economies having
comparative advantage and proximity to Pakistan market like China, India, Korea,
Indonesia, Thailand and Taiwan under WTO Regime.

• Various products would become economic Pakistani producers.

• Implementation of TRIPS (Trade Related Intellectual Property Rights) and TRIMS

(Trade Related Investment Measures) may have a negative impact.

PROBLEMS
• Lack of competitive infrastructure and technological base.
• Economies of Scale.
• Non-availability of raw and auxiliary materials at competitive prices.
• Restrictive local demand and competitive factors for export market.
• Tariff and local duties irregularity.
• Dumping of cheap products.

RECOMMENDATIONS
• The government should enhance competitiveness by bringing the prices low down to
International prices.

• Duty should be reduced on the imported raw material (including wood pulp, chemicals,
waste paper, plant and machinery).

• Development Institutions should be made at macro level for the Pulp and Paper industry.

• An incentive package should be introduced revitalize the projects in difficulties.

• Arrangements should make for proper procurement, storage and supply of the agricultural
crop waste to the industry at reasonable rates as these can be used as raw materials.

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• Efforts should be made to attain optimum capacity utilization by up-gradation of

technology and availability of raw materials at competitive rates.

FUTURE PROSPECTS

Future corrugated containers will be manufactured using kraft paper produced from recycled
packaging rather than trees. Recycling and other environmentally friendly processes will
continue to grow in importance in the future of corrugated cardboard. Today, inks based on
soybean oil and biodegradable waxes and other coatings are beginning to be used in container
manufacturing. Leading packaging companies are already operating paper mills that make fresh,
clean kraft paper by de-inking and pulping used containers.

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REFERENCES

• http://www.watermanswebworld.com/code/need.html

• http://www.dnapackagingsolutions.com/corrugated-boxes.html

• http://www.scribd.com/doc/23204983/Paper-Board-Industry

• Small and medium enterprise development authority government of Pakistan

(www.smeda.org.pk).

• http://en.wikipedia.org/wiki/Cardboard_box

• We took information from packages limited and HM packages.

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