Do you want to start a corrugated carton cardboard box manufacturing business? If yes, this article will help you in getting a basic guide to starting the business. The post includes a business plan guide, with market potential, necessary permissions, machinery, raw materials, and production process.
Actually, cardboard boxes come under the packaging solution segment. And in most cases, product manufacturers use these boxes as outer packaging solutions. Generally, these boxes are available in various shapes and sizes.
It provides proper support even in bulk packaging and during transportation. These boxes are the preferred means of packaging as they possess high durability, light-weightiness, high strength, appealing aesthetic value, cost-effectiveness, and recyclability. Corrugated boxes are majorly used for shipping goods.
With a moderate startup investment, any individual can start this business. Also, initiating this business doesn’t demand any specific educational background. However, it needs proper planning, sound investment capacity, and networking skill. And definitely, it is a B2B business. Hence, your customers are other business organizations.
Here are the 7 Steps to Follow to Start Cardboard Box Manufacturing Business
1. Is Cardboard Box Manufacturing Business Profitable?
Generally, the corrugated box industry is an inevitable part of the manufacturing sector. And it heavily relies on ample corrugated packaging for finished goods transportation and handling.
Rapid industrialization, particularly in emerging economies such as China, Brazil, and India, is expected to increase trade activities in this region. The Asia Pacific accounted for the maximum demand share in the global market. Also, the booming eCommerce industry accounts for a major buyer of cardboard boxes.
Hence, the growth of these sectors is expected to fuel the demand for the corrugated boxes market over the next few years. Some of the major segments that use corrugated cardboard boxes are
- Food and beverage products
- Electronic Goods
- Household appliances
- Personal and household care goods
- Glassware and ceramics
- Paper products
- Automobile components
- Rubber & rubber products
- Textile goods
- Tobacco products
- Other nondurable goods
2. Understand the Advantages
First of all, Cardboards have good printing and graphics holding capability. Therefore, enterprises in order to attract consumer groups embed their logo, company name, and other promotional details on their packaging.
Secondly, cardboard containers are the cheapest form of packaging. Also, it helps in reducing the final product price on account of bundling with packaging. And in turn, it is expected to increase its demand for packaging purposes in several industries.
Thirdly, cardboard boxes are biodegradable and recyclable and pose the least impact on the environment. So, an environment-friendly nature increases their preference for alternatives which include plastics and polymers.
Fourthly, cardboard can be easily folded and stacked when not in use, thus occupying less space.
Fifthly, these types of boxes do not undergo any chemical reaction with food and beverages as compared to metal containers.
Finally, corrugated cardboard boxes are light in weight and are very convenient to handle during loading and unloading.
3. Licenses and Permissions
First of all, initiating a production company demands business registration. So, according to the investment ratio and management pattern, you will need to select the right form of business organization. And then register the business with the ROC of your state.
However, you can also consider initiating the business as a proprietorship or partnership company. Also, you can consider MSME Udyog Aadhaar online registration. It will help you in getting Government grants and subsidies.
Generally, this type of small-scale operation doesn’t demand any major licenses. However, you will need a factory license. Also, apply for a NOC from the regional Pollution Control Board. Apply for GST Number for tax filing.
4. Arrange for Funds
You need startup capital to start this manufacturing business. If you are looking for funds from banks and financial institutions, create a business project plan report taking help professionals. Because every funding agency will ask for your business plan before deciding on investing.
Nowadays, there are many financial apps that help you in securing funds. You can also apply by visiting them online.
Read: Best Loan Apps in India for Instant Cash
Also, apply for a credit card for meeting short-term small financial expenses.
5. Cardboard Box Manufacturing Unit Establishment & Machinery
For establishing the unit, you will need to have a covered area. It is better to start in an industrial zone. Generally, the specific area required depends on the unit size and expected production output. However, you can start a small-scale operation with a 2000 Sq Ft covered area. Ensure that the space has an industrial electric connection and adequate water supply for general use.
After securing the space, you will need to procure the machinery. Talk to the different machine manufacturing companies and get the quotation. Check the warranty period and customer feedback. It is better to procure the machinery from a reputed and established company. Some of the major required machines are
- Single Face Corrugating
- Sheet cutter
- Board Cutter
- Sheet Pasting Machine
- Rotary Cutting & Creasing Machine
- Eccentric Slotter
- Stitching Machine
- Pressing machine
- Flexo Printing Machine
- Variable frequency drive
- Generator set
6. Cardboard Box Making Process, & Raw Materials
Generally, the process of manufacturing corrugated fibreboard & boxes is quite simple. The unit mainly comprises two sections viz. corrugated board making and box making section.
a) Corrugated Board
First of all, you will need to produce a corrugated board from the corrugated paper sheet. Apply the glue to the facings of flat paper. Then employ a corrugating machine for the corrugation of flat sheets and preparation of corrugated flexible 2 plyboards.
One layer of paper becomes corrugated after passing through the heated fluted rolls. Now, the other is brought in contact with the former having been glued at the tips. These two sheets get pasted together and are wound in rolls. Then, the resulting roll comes as a single-face or 2-ply corrugated board.
Then cut this roll with a board cutter machine. Apply the glue on the corrugated side of the pasting machine. And finally, press the 3rd ply of paper over it. Now, you get the double face or 3-ply corrugated board. Similarly, you can paste from board to board to form thicker boards i.e. 5-ply, 7-ply, and 9-ply boards.
b) Cardboard Box
Now, you can produce the box from those sheets. First of all, dry those sheets. And process further to produce corrugated boxes.
Always, the size of a box depends on the inside dimensions. The longer dimension (length) of the opening is given first followed by width and depth.
The most economical box for a given cubic content has the proportions of 2:1:2 (L: W:D). However, you can also use another proportion. Also, you can produce printed boxes as per the client’s specifications. Finally, you must pay careful attention to the quality specification of the product.
7. Create a Marketing Plan
All said and done, if you do not have a plan to market your card boxes, the business will not attain the desired success. Hence having a marketing plan is mandatory.
Do not forget to create a website as going online is a must for reaching customers presently. Furthermore, develop a distribution network by recruiting effective distributors and dealers.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.