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Overview of the Paper and Paperboard Packaging Industry

The paper and paperboard packaging industry involves producing and supplying various types of products made from paper materials. This includes boxes, cartons, bags, envelopes, and other containers used for food and beverage, consumer goods, pharmaceuticals, and other products. The industry has seen steady growth in recent years due to the increasing demand for sustainable and eco-friendly packaging solutions. In India paper and paperboard industry has been on the rise because of several government initiatives, including 'Make in India'. Currently, it is the fifth largest sector of the Indian economy as paper and paperboard products are still the primary source of packaging in the country and are heavily exported at a CAGR of 9.9% to US$1,119 million.

Acts and Regulations

  • Companies Act, 2013
  • BIS Act, 2016
  • Import and Export (Control) Act, 1947
  • Factories Act, 1948
  • Foreign Trade (Development and Regulation Act), 1992

Benefits of Paper and Paperboard packaging

Sustainability: Paperboard is made from a renewable resource and is recyclable, biodegradable, and compostable. This makes it an environmentally friendly option compared to many other packaging materials.

Cost-effective: Paperboard packaging is often less expensive than other packaging materials such as plastic, metal, or glass.

Versatility: Paperboard packaging can be easily moulded, cut, and shaped to suit a variety of products and industries.

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

Protection: Paperboard packaging protects against physical damage, moisture, and temperature changes.

Prerequisites for Paper and Paperboard Packaging Industries

Market research: Conduct thorough market research to determine the demand for paper packaging products in your region. Identify the target customers, their preferences, and their competitors.

Business plan: Develop an appropriate business plan that outlines your objectives, goals, budget, marketing strategies, and expected outcomes.

Legal and regulatory requirements: Obtain all the necessary licenses and permits, such as the Trade License, GST registration, Pollution Control Board certificate, and Fire Safety Certificate.

Manufacturing location: Find a suitable manufacturing location that is accessible, affordable, and meets all the regulatory requirements.

Equipment and machinery: Purchase or lease the necessary equipment and machinery required for the manufacturing process.

Raw materials: Source high-quality and eco-friendly raw materials such as paper, cardboard, and ink from reliable suppliers.

Skilled workforce: Hire a skilled and dedicated workforce with experience in the paper packaging industry.

Financial resources: Secure sufficient financial resources to cover the start-up costs, operating expenses, and other business-related expenses.

Marketing and distribution: Develop a strong marketing and distribution strategy to reach out to potential customers and promote your products.

Types of Products in the paper and paperboard industry

Corrugated boxes: Used for packaging and shipping products, corrugated boxes are made from a combination of paper and cardboard, providing strength and durability.

Folding cartons: Used for packaging food and beverages, pharmaceuticals, and other consumer goods, folding cartons are made from paperboard and can be easily folded and assembled.

Paper bags: Used for shopping and packaging, paper bags are prepared from kraft paper or recycled paper and are an eco-friendly alternative to plastic bags.

Envelopes: Used for mailing letters and documents, envelopes are made from paper and come in a variety of sizes and styles.

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 can be made from various Paper and adhesive materials for branding, product identification, and regulatory compliance,

Protective packaging: Used for protecting fragile or delicate products during shipping, protective packaging products include bubble wrap, foam inserts, and cushioning pads.

Documents for the Paper and Paperboard Industry

  • Certificate for Incorporation
  • GST Registration
  • MSME/ SSI Registration
  • PAN Card
  • Aadhar Card
  • State/ Central pollution control board certificate
  • Fire Safety Certificate
  • NOC from State Pollution Control Board
  • Factory License
  • Building plan and layout map
  • BIS Registration

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Process for Obtaining a License for the Paper and Paperboard industry

The applicant must ensure to complete the following steps to obtain the license for the paper and paperboard industry:

Prerequisites: The entrepreneurs must ensure that they have sorted out all the prerequisites, such as getting the right location, conducting proper market research, training and preparing the workforce etc. these are the foundations of the business, and proper attention must be paid to them.

Documentation: To start any business in India, an entrepreneur has to comply with various norms. The applicant must ensure that it is properly registered as a company and furnish proof of adherence to environmental rules, taxation policies, trade laws and other relevant licenses.

Application: The business owner has to file two applications. One is to the Bureau of Indian Standards to ensure that the products are safe and match the quality norms of the country. The second application is to be made to the DPIIT Department for the Promotion of Industry and Internal Trade.

Grant of License: After the application submission, all the documents will be scrutinised by the authorities, and the factory site and the plant will be inspected to check whether the owner has taken all the necessary steps and precautions to operate the plant. If authorities find everything satisfactory, then the department shall grant the permit to the business.

Frequently Asked Questions

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 products.

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 USD 7.5 billion in 2020 (pre-pandemic).

In India, the DPIIT 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 of 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.

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