These are testing times for the corrugated box manufacturing industry. High input costs and a steep rise in labour charges have resulted in a 50% increase in production costs for the local industry that makes packing boxes for user industries such as pharmaceuticals, consumer durables, movers and packers and other industries.
The user sectors are feeling the heat of rising costs for the past six months. "Each month corrugated box manufacturers come to us to increase the price. Price of the boxes has gone up by 50% in just six months. We can absorb this cost to some extent, but now it is beyond our ability, so much so that, our complete product cost has increased by 4% due to packaging," said Paresh Mehta, managing director of Kilitch Drugs.
The industry generates a total revenue of about Rs 10,000 crore annually. Another industry affected by the corrugated box prices, is the logistics and the packers and movers sector. According to Chandresh Bhanushali of Alliance International Packers & Movers, their business is dependent on various packing materials.