ppt-corrupack sumit2010

7/31/2019 PPT-CorruPack Sumit2010

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Evolving Business Paradigm

Independent Integrated

Presented by

Mahesh Gandhi


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Introduction

In today's dynamic and highly competitive

environment, market leadership has changed

from :-

Just Ability to supply

product

Ability to supply product :-

With Best Quality

At Competitive Prices

On Time Delivery To Create enhanced Value


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This situation prompts us to think beyond set

norms/procedures/ideas. We need to evolve

newer business strategies.

Hence the theme

Evolving Business Paradigm


THEME


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APPLYING THE THEME OF


IN

CORRUGATED BOX MANUFACTURING (CBM)


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Types of Corrugated Box Manufacturer (CBM)

CBM

Independent CBM:-

Who buys paper from

outside for converting into

Boxes

Integrated CBM:-

Who produces more than 50%

of paper required internally to

convert into Boxes


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Independent Corrugated Box ManufacturingSOURCE TO END VALUE CHAIN

Waste

Paper

Paper MillConverting

Plant

End

Consumer

End-of-Life

RecyclingChemicals, Power

and Fuel

Chemicals, Power

and Fuel

Emissions to Air,

Water and SoilLandfill

Incineration

Emissions to Air,

Water and Soil


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Independent Corrugated Box Manufacturing

SOURCE TO END VALUE CHAIN

IMPORTANT STEPS

Paper Manufacturing at Paper Mill

Shipping to CBM

Converting at CBM

Waste shipping back from CBM to Paper Mill

Independent Operations


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Changing Scenario for Corrugated Box Manufacturing

Demand for quality corrugated boxes has steadily increasedthrough out last decade i.e., from 2000 to 2010. At present

the market size is 4mn tpy. Estimated to grow at CAGR 12% for

period 2010-2015

This increase in demand can be attributed to:-

Increased demand for consumer durables

Growth in organized retail

Increasing consumption of Packaged food andBeverages

Increased consumption of Alcoholic drinks

Increased Exports


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LAY OUT OF A TYPICAL

3 Ply Automatic Corrugator


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Advantages of Integrated Corrugated

Box Manufacturing

A. Sharing of infrastructure

Boiler

Power Generation

Material Handling Equipments


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Advantages of Integrated Corrugated

Box Manufacturing

B. Supply Chain Management

Flexible & Effective Production Planning & Control

Increased Productivity and Effciencies in thesystem

Single Point Inventory Management

Reduced & Simple Logistics Management Savings in freight costs of paper and waste paper


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Advantages of Integrated

Corrugated Box Manufacturing

C. OVERHEADS & OTHERS

Synergy of overheads at different levels

Best Utilisation of 3Ms (Man, Machine & Money)

Better working capital management

Effective planning and utilisation of Manpower


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Advantages of Integrated

Corrugated Box Manufacturing

D. STRATEGIC

Competitive Advantage due to various savings as

noted above

Backward Integration insulating from business

cycles including ups and downs

Opportunity to convert backward integration intoa business model any time

Better image in the overall market


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Integrated Manufacturing- Global Scenario

North America

International Paper 27% of American Corrugated Product Market

Operates in North & South America, Europe,

Middle East & Africa

More than 600 paper manufacturing and

converting facilities world over

Smurfit Stone Container Corporation (SSCG)

17% of American Corrugated Product Market

12 Paper Mills & 96 Converting Facilities through

out The USA


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Europe

Smurfit Kappa Group (SKG)

20% of European Corrugated Product Market

163 Box Plants & Paper Mills

SCA Packaging 11% of European Corrugated Product Market

200 Box Plants & Paper Mills


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ASIA

Rengo Ltd. (Japan) 5 Paper Mills & 23 Converting Plants

20 mn tpy Paper Production

Cheng Loong Corporation (Taiwan)

7 Paper Mills & 12 Converting Plants

15mn tpy Paper Production

SCG(Thailand)

10 Paper Mills & Converting Plants

15mn tpy Paper Production


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INDIA

JR Packagers/ Venkraft Paper Mills Pvt. Ltd.

BMM / Subam Paper Mills- Cone

Manufacturer

K B Board Mills(LLP)- Cone Manufacturer

South India Paper Mills Ltd.


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