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Paper and Paperboard Packaging Industry Setup - An Overview

Are you passionate about pursuing your entrepreneurial journey with paper and paperboard packaging industry setup? If yes, you are the right place as our expert consultants ensure hassle-free paperboard packaging plant setup.

The paper and paperboard packaging industry setup involves producing and supplying various types of products made from paper materials. The industry has seen steady growth in recent years due to the increasing demand for sustainable and eco-friendly packaging solutions.

The packaging industry is an important sector that drives technological and innovation growth in the country. Moreover, the growth in the paper and paperboard packaging industry is driven by factors like growing pharmaceuticals, food processing, manufacturing, FMCG, healthcare, and other ancillary sectors. Recently, a good number of business enthusiasts have been moving ahead in the direction of the paper and paperboard packaging industry setup.

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Paper and Paperboard Packaging Industry Setup
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Benefits of Paper and Paperboard Packaging Industry Setup

The key benefits of paper and paperboard packaging industry setup are as discussed below:

Benefits of Paper and Paperboard Packaging Industry Setup
Sustainability & Environment Friendly

Sustainability & Environment Friendly:

Paperboard made from renewable resources, designed to be recyclable, biodegradable, and compostable, is considered a more sustainable and environmentally friendly option compared to many other packaging materials.

Cost- Effective

Cost- Effective:

Paperboard packaging is considered a cost-effective method, often less expensive than other packaging materials such as plastic, metal, or glass. Thus, business enthusiasts in the space of paper and paperboard packaging industry setup have an edge.

Versatile Application

Versatile Application:

The paper and paperboard packaging options are more versatile as it can be easily moulded, cut, and shaped to suit a variety of products and industries.

Branding and Printing Options

Branding and Printing Options:

The paperboard packaging offers a high-quality surface for branding and printing, which can help products stand out on shelves and increase brand recognition.

Protection Against Physical Damage

Protection Against Physical Damage:

The paper and paperboard packaging setup ensures protecting the packaged items, against physical damage, moisture, and temperature changes.

Foreign Investment

Foreign Investment:

India permits 100% Foreign Direct Investment (FDI) in the paper and paperboard packaging industry through the automatic route.

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Types of Products in Paper and Paperboard Industry

The different types of products in paper and paperboard industry are as discussed below:

  • Corrugated Boxes: Corrugated bags made from a combination of paper and cardboard provides strength and durability for the packaging and shipping of products.
  • Folding Cartons: Folding cartons made from paperboard can be easily folded and assembled, are used for the purpose of packaging food and beverages, pharmaceuticals, and other consumer goods.
  • Paper Bags: Paper bags used for shopping and packaging are prepared from kraft paper or recycled paper. It is considered an eco-friendly alternative to plastic bags, commonly used for packaging and shopping.
  • Envelopes: Envelopes, the most common type of paper and paperboard product made from paper comes in a variety of size and style are used for mailing letters and documents.
  • Tubes and Cores: Tubes and cores used for packaging rolls of paper, film, or textiles, tubes, and cores provide stability and protection during storage and transport.
  • Labels: Labels made from various paper and adhesive materials are used for branding and product identification and to ensure regulatory compliance.
  • Protective Packaging: Protective packaging products, which include bubble wrap, foam inserts, and cushioning pads, are used for protecting fragile or delicate products during shipping.

Market Size of Paper and Paperboard Industry

In India, the paper and paperboard industry has been on the rise because of several government initiatives, including 'Make in India'. Currently, the projected market size of the Indian paper and packaging industry is worth US$ 50.5 billion and is further expected to reach a CAGR of 26.7%, i.e., $204.81 billion by 2025.

The industry with an annual growth rate of 22 to 25% is considered the fifth largest sector of the Indian economy guaranteeing packaging solutions within the country.

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Eligibility for Paper and Paperboard Packaging Industry Setup

The eligibility criteria/ standards concerning the paper and paperboard packaging industry setup are as discussed below:

  • Market Research: The applicant seeking a paper and paperboard packaging industry setup must conduct thorough market research to determine the demand for paper packaging products in your region.
  • Identify Customer’s Preference: The applicants seeking for paper and paperboard packaging industry setup must identify their target customers, understand their preferences, and analyse the competitive landscape to gain clear understanding of their position within the market.
  • Business Plan: The applicant seeking a paper and paperboard packaging industry setup must develop an appropriate business plan outlining the objectives, goals, budget, marketing strategies, and expected outcomes.
  • Legal and Regulatory Requirements: The applicants seeking for paper and paperboard packaging industry setup must obtain all necessary licenses and permits, such as the Trade License, GST registration, Pollution Control Board certificate, and Fire Safety Certificate.
  • Manufacturing Location: The applicants seeking a paper and paperboard packaging industry setup must find a suitable manufacturing/ factory location that is accessible and affordable and meets all the regulatory requirements.
  • Equipment and Machinery: The applicants seeking for paper and paperboard packaging industry setup must make purchase or lease the necessary equipment and machinery required for the process of manufacturing or production.
  • Raw Materials: The applicants seeking for paper and paperboard packaging factory setup must source high-quality and eco-friendly raw materials such as paper, cardboard, and ink from reliable suppliers.
  • Skilled Workforce: The applicants seeking for paper and paperboard packaging factory setup must hire skilled and dedicated workforce/ employees having relevant experience in the paper packaging industry.
  • Financial Resources: The applicants seeking paper and paperboard packaging industry setup must secure sufficient financial resources to cover the start-up costs, operating expenses, and other business-related expenses.
  • Marketing and Distribution: The applicants seeking for paper and paperboard packaging business setup must develop a strong marketing and distribution strategy to effectively reach potential customers and promote their products.
Documents Required for Paperboard Packaging Factory Setup

Documents Required for Paperboard Packaging Factory Setup

The list of significant documents required for paper and paperboard packaging factory setup are as discussed below:

  • Certificate for Incorporation
  • GST Registration
  • MSME/ SSI Registration
  • PAN Card
  • Aadhar Card
  • State/ Central Pollution Control Board Certificate
  • Fire Safety Certificate
  • NOC Pollution Control Board
  • Factory License
  • Building plan and layout map
  • BIS Registration
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Steps for Paper and Paperboard Packaging Industry Setup

The applicant seeking a paper and paperboard packaging industry setup must ensure compliance with the following steps discussed below:

  • Meet Basic Requirements/ Prerequisites: The entrepreneurs must ensure meeting all basic requirements/ prerequisites such as getting the right location, conducting proper market research, training and preparing the workforce etc. This step is considered the foundation of the paperboard packaging business setup which requires proper attention.
  • Prepare Documentation: The entrepreneurs seeking for paper and paperboard packaging industry setup must further prepare the essential documents and furnish the proof of adherence to environmental rules, taxation policies, trade laws and other relevant licenses.
  • Filing of Application: The applicants seeking a paper and paperboard packaging business setup must file two applications to the Bureau of Indian Standards and the Department for the Promotion of Industry and Internal Trade (DPIIT) to ensure the safety and quality check of the products as prescribed in the quality norms of the country.
  • Scrutinization/ Inspection of Documents: After the due submission of the application the authorities must further scrutinize all the documents submitted, and inspect the factory site/ plant to check whether the owner has taken all the necessary steps and precautions to operate the plant.
  • Grant of License: After a thorough inspection of the documents and factory site, the authorities/ department shall grant the required license or permit to set up the paper and paperboard packaging industry.
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Regulations for Paper and Paperboard Packaging Industry Setup

The paper and paperboard packaging industry in India generally operates under several legal framework ensuing compliance with environmental, labour, and operational standards. The following are the acts and regulations applicable to the paper and paperboard packaging industry setup:

  • Companies Act, 2013
  • BIS Act, 2016
  • Import and Export (Control) Act, 1947
  • Factories Act, 1948
  • The Legal Metrology Act, 2009
  • Plastic Waste Management Rules, 2016
  • Packaging Material Regulations by BIS (BIS IS 9845)
  • Environmental Protection Act, 1986
  • Food Safety and Standards (Packaging and Labelling) Regulations, 2011
  • Foreign Trade (Development and Regulation Act), 1992
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Characteristics of Paper and Paperboard Packaging

The key characteristics of paper and paperboard packaging such as paper, corrugated paper board, fibre board, and allied products are as discussed below:

  • Easy to handle and transport
  • Easy to customize for branding and marketing
  • Durable when coated or laminated for additional strength
  • Eco-friendly, biodegradable, recyclable, and renewable
  • Uses economical and structural material
  • Protection from moisture, air permeability, and corrosion
  • Features an attractive appearance

Updates on Paper and Paperboard Packaging Business Setup

In 2021, the Government of India launched a National Packaging Initiative, which mainly focuses on the following measures promoting the paper and paperboard packaging business setup.

  • Reducing the logistics costs to improve overall logistical efficiency
  • Ensuring the implication of returnable packaging
  • Setting guidelines and certain requirements to promote product safety and sustainability
  • Focusing on the promotion of centralized industrial activity by encouraging the application of necessary infrastructure, such as specialized logistic parks
  • Encouraging processes to reduce packaging waste by establishing material recovery facilities (MRFs)
  • Supporting domestic businesses for the manufacture of sophisticated packaging materials

Cost for Paper and Paperboard Packaging Industry Setup

The cost for paper and paperboard packaging industry setup is quiet low as offset printing and die cutting can be easily outsourced. Moreover, the applicants mandatorily require working capital as supported under various government schemes like Mudra, SIDBI, and CGTMSE. The total professional cost for the setup of paper and paperboard industry varies as per the project.

Timeline for Paper and Paperboard Packaging Industry Setup

The timeline for paper and paperboard packaging industry setup depends upon factors such as the scale of the setup, regulatory processes, and infrastructure development. However, the timeline for the paper and paperboard packaging industry setup is around 3 to 6 months, depending upon the scale of the industrial setup.

Why Opt for Corpbiz for Paperboard Packaging Plant Setup?

Choose Corpbiz to simplify the complex regulatory requirements for the paper and paperboard packaging plant setup. Given below are the reasons why entrepreneurs trust us for paper and paperboard packaging plant setup-

  • Leading the Paperboard Packaging Industry with a 75% Market Share
  • Ensure Biodegradability and Compostability with our Solutions for Paperboard Packaging Factory Setup
  • 10+ Years of Proven Experience in Meeting Compliance Needs for Paper and Paperboard Packaging Plant Setup
  • Streamlines Cost Optimization Strategies for Paperboard Packaging Business Registration
  • Dedicated 24/7 Customer Support for Paperboard Packaging Business Setup
  • End-to-end Assistance in Paper and Paperboard Packaging Plant Setup in India

Easy Consultation Support for paper and paperboard packaging industry setup

Complete licensing & compliance support

  • Expert regulatory guidance
  • Free 30-Min Advisory
Connect With Our Consultant Now

Top Questions Regarding on Paper and Paperboard Packaging Industry

The paper and paperboard packaging industry involves the manufacturing and producing packaging materials made from paper and paperboard. These materials are commonly used to create boxes, cartons, and other forms of packaging for a wide range of consumer goods, including food, beverages, and household pro.

The raw materials used in the paper and paperboard industry include wood pulp, recycled paper, chemicals, and water.

As per the latest studies, the market size of the paper and paperboard industry in India was valued at approximately US$ 50.5 billion, which is further expected to reach a CAGR of 26.7% i.e., $204.81 billion by 2025.

In India, the DPIIT i.e., Department for promotion of Industry and Internal Trade is responsible for granting the permit to start the paper and paperboard packaging industry. However, this is subject to the submission of all the documents and compliance with the norms.

Popular products of the paper packaging industry are corrugated boxes, folding cartons, paper bags, envelopes, tubes and cores, labels and protective packaging.

Yes, it is necessary to obtain the Bureau of Indian Standards Certificate for paper and paperboard packages. BIS certification ensures that the products are safe for use and are made of high quality.

The application process can be confusing and tiresome, it is advised that the applicant take help from professionals or experts in the domain to obtain the permit to start the business.

The process to start a paper and paperboard packaging company includes the following steps, as described below:
  • Step 1: Meet Basic Requirements/ Prerequisites
  • Step 2: Prepare Documentation
  • Step 3: Filing of Application
  • Step 4: Scrutinization/ Inspection of Documents
  • Step 5: Grant of License

Paper and Paperboard packaging refers to packaging materials made from paper or wood pulp. It is recognized as a sustainable and eco-friendly alternative to plastic packaging, protecting, and presenting goods.

Yes, starting a packaging industry business can be initially lucrative, but subsequently it is considered a rewarding and growing venture which offers a range of opportunities for businesses of all sizes.

Paper and Paperboard packaging refers to packaging materials made from paper or wood pulp. It is recognized as a sustainable and eco-friendly alternative to plastic packaging, protecting, and presenting goods. Paper and paperboard packaging is of versatile, sustainable, and cost-effective nature includes items such as bags, boxes, and cartons used in different industries.
Many countries have substituted single-use plastic with paper and paperboard packaging due to its sustainability benefits. Additionally, the growing demand for eco-friendly packaging in the e-commerce industry has significantly boosted the market size of paper and paperboard packaging.

About the Author


NE
Neha Dawra

Legal Researcher

Written by Neha Dawra. Last updated on Jun 10 2026, 12:30 AM

Neha Dawra has 4+ years of experience in legal research and intellectual property advisory. Her expertise lies in analyzing IP laws, drafting structured legal content, and simplifying complex registration procedures into clear, simple insights.

 

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