Corrugated Box Manufacturing in Kerala Seeking Growth Funding

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Start-up
  • Investment size: $150,000 / min. $50,000
  • Type of investment: Debt, Equity
Corrugated Box Manufacture Our firm will provide a one-step-solution for the packaging needs of any product and client. Image courtesy: Emiliano, 2006, Flickr CC.

Investment Opportunity

We design and manufacture packaging solutins according to the product specifications. Our focus is in the manufacture of corrugated boxes.

The Indian Packaging Industry is estimated at approximately $14.7 B and is expected to be growing at 15 percent annually. The per capita consumption of packaging in India is approximately $15 against a world average of around $100. Another factor, which has provided substantial stimulus to the packaging industry is, the rapid growth of exports, which require superior packaging standards for the international market industry growth rate > 18%. More than 5500 automatic lines are in use today. With the “Make in India” campaign of our Prime Minister, Hon. Narendra Modi, the growing exports are driving demand for high quality boxes of international standard. Increasing investments by both domestic and foreign companies in the Indian Food Processing Sector, especially in beverages, dairy products, processed food, edible oil, and marine products, have expanded the market for high-end packaging.

The packaging industry is highly fragmented in India. We intend to unify all the necessities of packaging such as packaging design, protective packaging, corrugated sheets, etc. under one roof. With highly experienced designers from the prestigious National Institute of Design, these tasks are simplified. Our firm will provide a one-step-solution for the packaging needs of any product specified.

Our break-even analysis shows maximum 2 years until break even.

Competitive Advantage

The competition in India is very low. The industry is largely dominated by traditional manufacturers who can produce a maximum of 500 tonnes/year, whereas our plant can produce 1200 tonnes/year. The industries are yet to recognize the huge potential of the packaging sector.

Moreover, the National Design Business Incubator has agreed to provide excellent product designers for the packaging design.

Rationale for the deal

We are open to debt or equity. The calculated breakeven period is one and a half years. As a partner, you can expect a share of profit from that period onwards. If you are willing to provide us a loan, the terms can be negotiated.

This is a high growth industry as India is moving towards the consumer culture.

Use of financing

The financing will be used to purchase machinery and meet working capital requirements.

Machinery cost - Rs. 50 lakhs
Working Capital (6 months) - Rs. 30 lakhs

Opportunity for the investor

The investor is assured of high returns after the break even period, i.e. one and a half years. Within 3 years, we can guarantee at least twice the invested sum.

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