Small scale packaging box manufacturing business is perfect for those aspiring entrepreneurs who have knowledge and experience in the commercial packaging system and paper industry. Here is a stepwise guide to starting a carton box-making business with costs, legalities, and machinery.
One can start this venture whether he is living in a metro city or suburban city area. Every small and big manufacturing business needs a box for packaging. An attractive and durable packaging box is a must-needed product when it comes to sending the product to the end-users.
Is Packaging/ Corrugated Box Manufacturing Business Profitable?
Corrugated box manufacturing is without saying a highly competitive industry. The profit margin is not big enough. However, the demand is so high that there is always a scope for new entrants to find customers and make good money.
FMCG companies are the main purchasers of corrugated packaging boxes. In addition, other industries like garments, apparel, pharmaceuticals, dairy products, automobile, and other product manufacturing industries are also bulk buyers of packaging boxes.
8 Steps to Start Packaging Box Manufacturing Business
Corrugated boxes are used in a wide variety of applications and are an always-in-demand product. More than 80% of industrial packaging is done by corrugated carton boxes due to effective cushioning, lightweight, easy to fabricate, easy for storing, easy for disposal, no strapping necessary, printing and advertising advantages, must in the export market, recyclable, etc.
Packaging boxes come in different customized sizes and shapes and are usually square and rectangular. Boxes are made of corrugated paper board with a variety of 3-ply, 5-ply, 7-ply, etc.
The business involves purchasing corrugated sheets from the manufacturers or market and turning them into customized boxes as per customer-specific requirements.
Corrugated packaging boxes are used in different areas of packing in goods such as Breweries, Glasswares, Cigarettes, Pharmaceuticals, Biscuits, Milk & Milk Products, Soaps, Cosmetics, Tea & Coffee, food items, clothing industry, chemical, agro-chemical, leather, etc.
Here are the 8 steps to follow to launch a successful packaging box manufacturing business:
1. Learn the Manufacturing Process
Before getting into the business it is important to have skills in the product and manufacturing process. You should know the detail about the industry also.
If you already have an educational background in packaging is better. Else you can go for some specific workshop about industrial packaging. You will also need to understand what specific boxes are the best for the specific products. Accordingly, you will also need to guide your customers.
2. Packaging Box Manufacturing Business Project Plan
It is important to have a detailed business plan. Packaging box manufacturing business required moderate capital to start. It is better to have customized project reports including the cost of machinery, cost of raw material, working capital requirement, total capital investment, and financial analysis.
Also, determine the mission statement and promotional or marketing strategy of your packaging box manufacturing business.
3. License for Packaging Box Manufacturing Business
Every country has different licensing processes. Check with the competent authority and procure the licenses and permits that are required.
In India to start a packaging box manufacturing business, you will need to have a trade license from the local authority. Also, you need to obtain a factory license. Apply for consent for establishment and consent for operation both from Pollution Control Board.
4. Packaging Box Manufacturing Machinery
To start the packaging box manufacturing business you will need to install machinery like corrugators, printing machines, cutting, and gluing machines.
Contact with several suppliers. Check their customer’s reviews about the machine company before purchasing. Ensure the warranty period of the machines.
5. How Much Does Packaging Box Machine Cost
To make packaging boxes commercially, you need to buy either semi-automatic or fully-automatic machines. For larger-scale operations, the automatic machine is always preferred.
A good quality machine will start from $4500 US dollars. You can check the Alibaba marketplace and ask for a quote for free.
6. What is the Profit Margin?
The profit margin for traditional packaging boxes revolves around 5% on turnover. However, it can be increased by offering innovative designs and better quality packaging boxes.
7. Packaging Box Raw Material
The main raw material of the packaging box manufacturing business is craft paper. You will need to gather good-quality craft paper from the suppliers. The qualities of craft papers actually determine the quality of your packaging boxes. Other raw materials that are required are glue and stitching wire.
There are several varieties of packaging boxes you can customize as per your customer’s requirements. These are normal corrugated boxes, export quality corrugated boxes, carton boxes, cardboard boxes, printed boxes, silver-coated corrugated boxes, etc.
8. Have a Promotional Plan
First, you will need to identify the potential buyer of the corrugated box in the industry. Contact them with your product catalog.
Try to provide better business deals with a better appearance of the boxes they are already using. Get online registration with the popular B2B portals. Make an online presence for your paper packaging business.
Concentrate on designing part of the boxes to create an attractive image. Attend trade fairs and business expos and get registered with local trade associations.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.