Corruator Oct-Dec 2011 - Fcbm.org

CONTENTSPlease address all correspondence tothe Editors at:Federation of Corrugated BoxManufacturers of India138, Mittal Estate No. 3, M. Vasanji Road,Andheri (East), Mumbai - 400 059.11 India Still Needs Packaging...21 Manufacture of Corrugated ...Joint EditorsR. Suresh+91 94470 36037streddiar@gmail.com39 Indian Consumer – FMCG 41 40th Conference - HighlightsS. T. Reddiar & SonsVeekshanam Road, P. B. No. 3627,Cochin - 682 035.Tel.: 0484 2370562Fax: 0484 2368633Ramchand Arora+91 94440 88533rcharora54@gmail.comMadras Paper Convertors & Industries18, T. H. Road, Tollgate, Chennai - 600 081.Tel.: 044 2591196959 CHINDIA -The Big Picture71 Food contamination from...Owner’s Name:Federation of Corrugated BoxManufacturers of India (FCBM)E-mail: admin@fcbm.orgWebsite: www.fcbm.orgDesign & Production:Grey CellsH-4/2, Jankalyan, Bangur Nagar,Goregaon (West), Mumbai - 400 090.Tel.: 2877 2890E-mail: greycells.nani@gmail.com79 Digital Flexo Suite 91 Shaping the FutureOther Features31 Value of Audits 65 View from Asia on the Growing ...87 Keeping your Boxplant 105 New Paradigm in the Global...119 Industry News 123 Product Profile 129 EventsPrinted at: Rajesh Printouch, MumbaiThe Corrugator | Oct. – Dec. 2011 | 5

India Still Needs Packaging to Broadcast its ‘Brand’Since my first visit to India in 1988, I have revisited many times andalways found it a pleasure. This great country which holds 17% ofthe world’s population, with its long and proud heritage and historiclinks with the West stretching back more than two millennia is a nationfull of colour, noise, scents and friendly optimism together withimpressive serenity, spirituality and courtesy. One cannot fail to beexcited by its energy and endeavour. Its global potential is enormous.But where are the people to fulfil the huge opportunities presented bymodernising the paper and corrugated board industries?Tony Pinnington“Longview consultant”Following my 2008 visit at the invitationof WICMA, I was moved to write thearticle ‘Where is Brand India’ whichwas published in ‘The Corrugator’ andoutlined the need to expand fast thepackaging sector in India. I was staggeredat how basic and lacking in organisation,investment, development and standardsthe paper and corrugated industries werewhen sitting within such a vast nation withglobal industrial giants of the steel andautomotive industries. It really is quiteastonishing how small and fragmentedthe corrugated packaging sector isin India, especially given the nation’slevel of production of fruit, vegetables,milk, flowers and its rapid recentindustrial developments in processedfood, beverages and a wide variety ofmanufactured goods, serving the largeand growing middle class.I received a lot of positive feedback to thatarticle from readers, much of it beggingme to broadcast the message more widelyin marketing, industrial and economicmagazines, but that was for others to do.The comparison tables were then asfollows and are shown again here asthere are no more recent official figurespublished for the industry in India:In 2011, I have been given unconfirmedestimates from a supposedly reliablesource that total production in IndiaCorrugated shipments 2007:MilliontonnesKg percapitaUK 2 31.8Germany 2 55Europe (total) 18.2 41.3USA 30 68China 24.7 18.7India (2005) 2 1.8(Source Indian FCMA)is 3.5 – 4 million tonnes, which with apopulation of 1.2 billion would equate tojust 2.9 – 3.3kg per capita. The difficultyin obtaining official statistics itselfdemonstrates a lack of cohesiveness andstrength in the industry.Clearly there is tremendous scopefor improvement in scale, quality andproductivity in the corrugated boardindustry in the sub-continent. As everhere, the domestic market is so largethat this will inevitably be the initialdriver. But welcome as this luxury is, atsome stage more attention will have tobe paid to exports. ‘Brand India’ needsto be globally established on the basisof quality, reliability, design and service.The full range of packaging from transitto point-of-sale will simply have to reflectand promote these attributes if India is toutilise its enormous resources to grow itsprosperity and market share in the everincreasingcompetitiveness of world tradeoutside its borders.The national importance of the paperboardpackaging industry was acknowledgedby a government sponsored study, thereport of which defined its broad needs asfollows:1. Sustained availability of good qualityforest based raw materials andbulk import of waste paper tosupplement them.2. Adequate modernisation ofmanufacturing assets.3. Improvements in infrastructure.4. Quality improvements and reductionin cost of production.Back in 1997, the paper and board industrywas declared a priority sector for foreigncollaboration; equity participation up to100% should receive automatic approvalfollowing de-licensing of the industry.Of course, things here are never as simpleor straight-forward as they sound andcertainly nothing dramatic has happenedin the fourteen years since. Some inwardinvestment from the West would bring ina wealth of experience and expertise andraise the quality and productivity game.If this cannot be attracted, India has tofashion its own progress, though this willThe Corrugator | Oct. – Dec. 2011 | 11

e on a shaky basis and would take muchlonger. For sure this matter is far moreurgent than that.The main stepping stones to higheroutput are improved paper quality,increased width and running speed ofthe corrugators and wider, better useof flexo printing and rotary die-cutting.Wider corrugators need wider papers,so the paper industry needs to providethese and at the same time have an eye tomore consistent caliper, moisture profileand then lighter weight grades. Greateruse of wood fibre pulp would also helpin quality, yield, energy consumption andcorrugating roll life.The standard of design and precisionof manufacture of the corrugating andconverting machinery needs to be steppedup at the same time as productivity. Thisis as important for the future as it isfor the present because in due course,smaller flutes and lighter weight boardwill need to be introduced to meet worldstandards, reduce bulk and costs andallow well designed shelf-ready packagingto proliferate.Such improvements could result in areduced number of plants turning outmore and better cases, so increasedreliance will fall on the transportinfrastructure for distribution of theseproducts to the packer-fillers. Better roadswould also facilitate the growth of largescale board manufacture feeding not onlyits own conversion but more dispersedconverters or ‘sheet plants’ close to theirown customers, thus continuing localisedservice and spread of employment as wellas enhancing quality and reliability of boxperformance. Thus, you could see ‘megaplants’with wider, faster high outputcorrugators on the periphery of large citiesservicing a number of localised convertingplants.The most visionary machine developmentsin recent years on the corrugator haveemanated from Europe and to someextent Japan. Europe has been makingand using recycled papers for decades.Its machinery companies have developedthe machine technology and corrugatingroll durability in the face of recycled paperbut they face a price challenge with theirdisproportionate wage levels. To meet thischallenge, at least one European corrugatormanufacturer has for some years nowbeen offering machine lines suitable forthe Asian market, manufactured in Asia(China) and with good local service. Thesemachines, though far less expensive thanfrom Europe and still operable with lowercost labour, provide a very competitivereturn on investment and the means toreach for the levels of quality and outputthat is so far not being achieved here.I joined the corrugated machinerybusiness in 1969 and worked for Langstonuntil 1983, then set up and ran the UKarm of BHS Corrugated from the 1980suntil 2003, which was shortly after firstpublication of my book ‘The CorrugatedIndustry, In Pursuit of Excellence’. When Ijoined the industry in England, it had notchanged much since the 1930s. Then in theseventies, splicers began to be installedon corrugators and realisation dawnedof the further possibilities of continuousrunning, improved productivity andreduced waste. It was in the 1980s whenthe great leap forward in technology reallybegan to take hold. Having lived throughand seen the growing pains and what cannow be achieved with giant machines upto 3.3m wide and running speeds of upto 400m/min producing microflute up toeven four-ply board all of excellent quality,I know what can be done and it is there foranybody to see.Perversely, we in the West have made lifedifficult for ourselves by now having it tooeasy, even though we – or perhaps ourfathers - worked hard to achieve this. Thesocial and moral aspects can be debated,but it is a fact we have high productioncosts relative to the growing, eager andvery capable BRIC countries. But nobodyshould write us off. Our expertise andexperience-based technology in manyareas is superb, and that certainly includesbox plant machinery. Furthermore, weare already addressing the cost issue bysetting up manufacturing bases in Asiausing modern European designs suitedto local conditions of materials (paper,The Corrugator | Oct. – Dec. 2011 | 13

starch) and labour and backed up by localmanufacture of hardened and coatedcorrugating rolls and comprehensiveservice support and spares.I shall illustrate this using the exampleof the company I know - BHS, a trueworld leader in our industry. They havea well-established factory in Shanghaimaking two corrugator lines designed attheir German centre to fulfil ideally theconditions of the Asian market, The SteadyLine and the Quality Line.The Steady Line is made in 1800/2200mmworking width and designed with themeans to produce at steady speedsthrough order changes up to 180m/min.(splicers, bridge level control, continuousrun features etc) It is a robust machineincorporating state-of-the-art technologyand is designed ‘green’ to minimiseelectrical power and steam consumption,while handling well the present typicalIndian domestic paper qualities. Itstechnology also includes many selfadjustmentfeatures which reduce theinfluence of the operators’ skill. This linecosts more than machines produced bylocal companies, but is wider and faster,stronger built and its lifetime runningcosts and productivity can easily justify thedifference. The quality of board producedis also an important consideration in allsuch buying decisions. These machinesreally can run at the claimed speeds andthis line seems the ideal springboard foraspiring market leaders in India.The Quality line is a step up in design,being made in 1800/2500mm widths,being still more robust to allow for thewidest machine and to enable it to runat speeds up to 250m/min. This is also aline worth considering for those thinkinglonger term, but of course is a further stepup in price.Emphasis has been given to the corrugatingrolls and the BHS factory in China makeshardened, coated rolls to provide optimumroll life expectancy using local paperswhich are quite abrasive. They have alsodeveloped flute profiles to help achievehigher running speeds with less paperbreaks based on their experience withweak and lightweight papers worldwide.As a result, they have sold many rollretrofits into competitive machines in Asiaas elsewhere. They give a unique localservice for corrugating rolls with regularcheck-up and reporting of the state of therolls.I find it especially encouraging that BHShave recently retro-fitted a good numberof SPX splicers to existing corrugators inIndian factories. As I mentioned before,this development was the precursor of asurge in corrugator performance startingin the 1970s in Europe, so I glean fromthat some hope that history may berepeated and such a surge may comesooner rather than later in India. In mysimple and distant view, that cannot comesoon enough for the wider commercialand industrial interests of India. Hugeopportunities beckon you in the exportfield once you can protect and promoteyour best products with well designedmade and decorated packaging. Let theworld wake up to Brand India.Mr. Tony Pinnington of ‘Longviewconsultants’ is a CorrugatedIndustry consultant based in UK.He is source of abundant informationand he has been contributing sincea long time to various industrymagazines including the corrugatorthe success of this magazine‘seditorial matter.e-mail: tony.pinnington@btopenworld.com.The Corrugator | Oct. – Dec. 2011 | 15

Manufacture of Corrugated Boards / Boxes onAutomatic Plant: Problems & SolutionsContinued from last issueSurinder Singh Bhurjee,Micro Mechanical Works, Mumbai, IndiaThe Corrugator | Oct. – Dec. 2011 | 21

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This Machine slots, prints, and makes thecorrugated board into a complete box with onlyglue joint or pinning as the final operationThe Corrugator | Oct. – Dec. 2011 | 29

As a customer of corrugated box makers,she exhorted the 1000 plus attendees todeliver more value to customers by usinginnovation and use of technology. Sheemphasized that there is a need to integratemore technology to spur innovation in thesector. This will in turn help the sector inmaintaining high growth and attract morebusiness.Mr. Keith Pearson, in his Keynote Addressgave a presentation on ‘CHINDIA’,pointing out the rocket of opportunitiesfor the Indian Corrugating industry vis àvis the tremendous growth achieved byChina. He exhorted India to address US$195.3 bn global corrugated packagingmarket.“The world is coming to India to buy itsproducts and services and India can takepride of place in packaging market, byembracing more technology in the sector,”Pearson said.NICMA presented the Life-timeAchievement Award to Mr. Subhash Goel,with a citation that praised his contributionto the growth of NICMA in particular andthe Industry in general.Harlalka Award was presented toMr. R. Suresh & Mr. Ramkumar Sunkara.Mr. Haresh Mehta of M/s Jayna Packaging,Mumbai was presented with the BK DoshiAward.The CorruStar Awards were presented tothe winners: M/s SECURIPAX PACKAGING,Roorkee, VIVA PACKAGING, Ahmedabad,PACKERS PRODUCTS, New Delhi, LATHAINDUSTRIES, Chennai and KCL Ltd.,NOIDA.Mr. Harish Madan was presented theAward for Excellence, as a token of love forhis inspiring leadership in orchestratingthe CorruMeet INDIA 2011 and motivatingthe Team NICMA.The Technical Sessions revolving aroundthe Conference Theme and structuredon the 5M concept were a veritable‘feast for thought’ with new ideas andnew technologies presented by eminentspeakers.Speakers in the 2nd and 3rd TechnicalSessions enlightened the audience onRole of fluting media; Next GenerationAdhesive; Developments in Coatings;Process Parameter Controls; Box DesignTools; Box Plant Waste Control; SystemIntegration at a Box Plant; Role of Splicers;Role of Pressure Shoes / Contact Bars;Shortened Double Bakers, to create moresace for Auto Stackers,The Role of Auto Stackers; Role of GearlessLead Edge Feeders; Role of Semi AutoStitchers in Improving Productivity,were the subjects deliberated in the 4thTechnical Session.In the final session the four eminentspeakers threw light on how the corrugatedpackaging industry can leverage thepositive growth trend in production ofgoods and increasing presence of globalbrands in the Indian Market. Hoe to makethe pie bigger for the box makers!!Flavours of North India – scintillatingdances from North India & Bollywoodalong with the fireworks on Dec 16thregaled the delegates.Sham-E-Qawwalli, accompanied with thestreet food of Delhi6 on 17th was a delightfor all participants.The extensive media coverage underlinedthe importance of the event.The Corrugator | Oct. – Dec. 2011 | 43

“What they said” about the ‘Meet’“Please accept my sincere gratitude forallowing me the privilege of sharing inCorru Meet India 2011.I enjoyed every aspect of the proceduresfrom the speaker events, packagingexhibition, to the music and song evenings.In addition I would like to thank you andthe sponsors for the very sensible goingaway gifts.The excellence of the hotel facilities,require special mention, together with theefficiency of the hotel staff.”Keith Pearson, PresidentWorld Packaging Organisation“I offer my heartiest congratulations toMr. Harish Madan, Mr. Subash Goel andTeam NICMA for successfully conductingthe FCBM Conference. All the hard workput in by them as a team had paid richdividends to them.I shall extend full co-operation andsupport to Sunil Sethi in discharging hisduties as the President of FCBM and myfull support will also be there for hisentire team.”M. R. Gopalchary, Hyderabad“Dear Harish ..Kudos......the event wasnot only well covered but very wellorganized.....hats off to you and NICMAteam on this grand performance...Venue was superb, food was excellentand all the arrangements were to thefull satisfaction....congrats to you andyour entire team...and the icing was yourpersonal warm hospitality. keep it up.”Kirit Modi, Mumbai“My heartiest congratulations and thanksfor the hospitality, every thing was to itsperfection it was truly an unprecedentedevent organized by team NICMA hope thiswill set the new heights for followers.Once again I extend my thanks to teamNICMA for such a wonderful arrangementspecially the cultural programmes and MrShiv Khera’s motivation lecture are reallyunforgettable.My best wishes to the newly elected FCBMPresident, Shree Sunil Sethi hope weshall be benefited by his experience anddedication.”K. P. Singh, NOIDA, UPCBMA“Dear Mr. Rajkamal Jindal ...Congratulations To Team NICMA !!I take this opportunity to thank you andyour team for the highly successful show.Your personalized arrangements of “To &Fro” Transport is highly appreciable . Yourhave made our stay very comfortable.The Planning & Detailing of food for allthree days was excellent.The cultural programs were veryentertaining. The inaugural session ofMr. Shiv Khera was very interesting.”Ashok Vyas, Mumbai“This is to congratulate team NICMA forhosting such a wonderful ConferenceArrangement right from Pick up, choice ofVenue, seminars, menu selection, culturalprograms, hospitality, were all excellent.I really enjoyed my stay at venue so asseminars etc. I thank you all for the greatevent hosted.”Sanjay KediaPrem Packaging Industries, Bangalore“Hugely successful event !! As judged by1000+ registrations !!Sold out Corru Expo2011 !! 500+attendance in technical sessions !!Many foreign speakers !! Many localexperts !!Interesting and educative presentations !!Effective Audio Visuals !! Good food andevening programmes !!World class arrangements !!Received feedback from severalparticipants that they were happy andsatisfied.Some of the speakers were outstanding !!Few other points worth noting.Not all participants have interest intechnical sessions.Many register for networking, forexhibition, for enjoying company.Some presentations were too technical,too new.Some presentations were difficult tounderstand.Some of the suggestions received.Costing of corrugated boxes be covered infuturePresentations should avoid selfadvertisement and be pre screenedCopy of presentations be distributedPankaj Shah, Mumbai“Dear Harishji... On behalf of the entireKACBMA delegation that attendedthe conference I would like to firstlycongratulate You and the entire NICMATeam for organizing a truly world classconference.In all aspects weather it was food,transport, content and speakers of thetechnical session, punctuality, choice ofvenue and courtesy of hotel staff it was anexcellent experience.The Corrugator | Oct. – Dec. 2011 | 45

This conference has not only raised the barby quite a few notches but put the futureHosts under pressure because doing oneup seems impossible, just matching yourperformance will be difficult.Once again on a personnel note KEEP ITUP TEAM NICMA.”Manish Gupta, President, KACBMA“As I always share the hotel room inFCBM meetings, I do share and agreefully with my room mate, Aruna’s view onthe conference.Congratulation team NICMA and Harish jiin particular, for one of best Conference,I have attended so far.”Lalit Lath, Chennai“Thanks for excellent arrangement, whichwe enjoyed through out.All the best dear Harish & Team NICMA.”Biplab Datta, Kolkata“Dear Harish bhai & Team NICMA ….Kindlyaccept my “Hearty Congratulations!!!“for hosting a remarkable & comfortable40th FCBM Conference at Delhi.”Dharmendra PandyaVIVA PACKAGING PRODUCTS,Ahmedabad“It was one of the best managed, FCBMMeet attended by me. From Check-in,Registration, till Check-out, from Food toEntertainment, everything was top Notch.Cheers! to all involved.”Ashish Khemka, DirectorKCL Limited, NOIDAPRESS COVERAGEDate Source Headlines12/19/2011 Indiamart SME News (Online) India’s packaging industry requires technology integration to attract domestic,international customers12/18/2011 Sify News (Online) Innovation in packaging must: Britannia12/17/2011 SME Times (Online) Technology can spur growth of packaging industry12/17/2011 Thetop.in (Online) Vinita Bali kicks off 40th Annual Conf Federation of corrugated box manufacturers at Delhi12/17/2011 India Vision (Online) Technology can spur Indian packaging industry’s growth12/17/2011 Daijiworld (Online) Technology can Spur Indian Packaging Industry’s Growth12/17/2011 India Blooms (Online) Innovation in packaging must: Britannia12/17/2011 IIFL (Online) Vinita Bali kicks off 40th annual conf federation of corrugated box manufacturers at Delhi12/16/2011 Yahoo India News (Online) Technology can spur Indian packaging industry’s growth12/16/2011 Yahoo India Finance (Online) Technology can spur Indian packaging industry’s growth12/16/2011 Wow Delhi (Online) Innovation in packaging materials must to delight customers: Vinita Bali12/16/2011 Webindia123.com (Online) Technology can spur Indian packaging industry’s growth12/16/2011 Up2date News (Online) Technology can spur Indian packaging industry’s growth12/16/2011 EFY Times (Online) CorruMeet India 2011 Kicks Off In Delhi12/16/2011 MSN News (Online) Technology can spur Indian packaging industry’s growth12/16/2011 IANS (Online) Technology can spur Indian packaging industry’s growth12/15/2011 Sify News (Online) CorruMeet India kicks off in Delhi12/15/2011 New Kerela.com (Online) CorruMeet India kicks off in Delhi12/15/2011 Packaging Service Reviews (Online) CorruMeet India kicks off in Delhi12/15/2011 Indiamart SME News (Online) Indian corrugated box industry to witness strong growth with opening of retail sector12/15/2011 MSN News (Online) Corrugated box industry to grow faster with retail opening12/15/2011 IIFL (Online) CorruMeet India 2011 kicks off in Delhi on Dec 1612/15/2011 India Blooms (Online) CorruMeet India kicks off in Delhi12/15/2011 APN News (Online) CorruMeet India 2011 kicks off in Delhi on Friday Dec 1612/14/2011 Sify (Online) Corrugated box industry to grow faster with retail opening12/14/2011 IANS (Online) Corrugated box industry to grow faster with retail openingThe Corrugator | Oct. – Dec. 2011 | 47

Awards and Honours Presented at CorruMeet 2011Mr. Subhash Goel receiving the Lifet-ime Achievement AwardMr. Harish Madan, felicitating the Chief GuestMr. Ramkumar Sunkara - The Harlalka Award recipientMr. Subhash Goel, felicitating the Keynote SpeakerMr. R. Suresh - Recipient of Harlalka AwardChief Guest Presenting Memento to FCBM PresidentMr. Haresh Mehta of Jayna Packaging,receiving B.K. Doshi AwardThe Corrugator | Oct. – Dec. 2011 | 49

Memorable Moments of the MEET50| The Corrugator | Oct. – Dec. 2011

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40th FCBM Conference16-18 December 2011, New Delhi - IndiaPresidential AddressRespected Chief Guest of today’sinaugural function, Ms. Vinita Bali,Managing Director Britannia IndustriesLtd; Mr. Keith Person, Key note speaker &President, World Packaging Organization;Shri. Subhash Goel, Chairman Elite,Conference; Shri.Harish Madan, PastPresident FCBM and ConferenceChairman; Shri.Rajkamal Jindal,President of Northern India CorrugatedBox Manufacturers’ Association; mycolleagues on the dais; distinguishedspeakers, invitees, delegates attendingthis conference, exhibitors participating inCORRU EXPO INDIA both from India andabroad, our valued customers & suppliers,friends from media, ladies and gentlemen.,good After noon to you all.As President of the Federation ofCorrugated Box Manufacturers’ of IndiaI am privileged to extend a very warmand hearty welcome to you all to this40th FCBM Conference at Delhi. I amindeed overwhelmed with the responseNICMA has received for the Conference-CORRU MEET INDIA and the concurrentexhibition- CORRU EXPO INDIA withthe large gathering present here for theinauguration. The Conference and theExhibition are being held at the Capital cityof Delhi which is truly cosmopolitan in allrespects not-withstanding the amount ofbusiness interest the city generates for thewhole country.About FCBMI will take a couple of minutes to brief youall about FCBM-established way back in1972; and its activities. FCBM comprisesof 12 Regional Associations, having anoverall membership of around 2100 boxmakers spread all over the country. It isregarded as one of the most organized andwell managed trade bodies also acting asan interface between its members and thegovernment and other authorities.FCBM has various Sub-Committees likeResearch and Developments , Taxation,New Market Development, Paper Mill Co-Ordination etc to name a few.R & D Committee is engaged in regularlyconducting workshop and seminarsto continuously carry out activities tocontinually improve and address issuesof corrugated packaging; standardizespecifications and quality parametersrelated to both the product as well asspecific to its application.Taxation committee keeps itself abreastof all the latest Notifications and rules ofDirect and Indirect Taxes, prepares bothPre-Budget and Post-Budget Memorandumfor submission to the Ministry of Finance,Government of India. It acts as an educatorThe Corrugator | Oct. – Dec. 2011 | 53

to the members of FCBM and alsomakes representations on various issuesconcerning the members to the variousGovernment departments and Ministries.New Market Development Committeeconducts seminars and workshops totry and explore new markets for usageof corrugated packing where otheralternative packing methods are used.Paper Mill Coordination Committeeengages in constant dialogue with thevarious paper mills and their associationsregarding quality parameters required forcorrugated packaging.Economic OutlookAs per the recent announcement made bythe Ministry of Finance, Govt. of India theGDP for the 2nd quarter of 2011-12 hadcome down 6.9% which is lower than 7.7%growth recorded in the previous quarterthis fiscal. This has been the lowest growthin GDP in the last nine quarters. However,the government exuded confidence thatover all GDP growth would be 7-7.5% thisfiscal. But the growth performance for2nd quarter is not all that disappointingas the manufacturing sector grew 2.7%.The negative growth in the Mining andQuarrying industry has been made a dentin the overall growth for this quarter. Witheconomies like Europe and US seeingreduced growth there seems to be goodchance for India to go ahead of them inthe race to be a economic super power.The Govt. too is optimistic about theeconomy and expects it to rebound in the4th quarter the overall growth rate thisfiscal is expected to be 7-7.5%.The recent announcement made by theGovt. of India regarding FDI in retailsector, though opposed by various StateGovts., would be welcome news forPackaging industry. Also,with the farmsector set to be directly aligned with theorganized retailing, the need for betterand more reliable sources corrugatedpackaging is on the anvil.India is no longer said to be part ofemerging economies and has long sincebeen considered truly emerged economyby all super powers. At the same time,the per capita consumption of corrugatedboxes in India is far behind as comparedwith China, UK and the US.Government Policies andNotificationsThe much awaited GST has still not seenthe light of the day due to differences fromsome of the State Governments. I hopethat the problem is resolved at the earliestas the entire gamut of industry is keenlywaiting for the introduction of GST.FCBM Awards andRecognitionsAt every annual conference FCBM presentsLate Shri Harlalka Award to an eminentmember of the Federation in recognitionof his contribution to the growth ofIndustry and Federation. I congratulatethis year’s awardees.FCBM also had instituted Late Shri BK Doshi Award to an organization inrecognition of their contribution toinnovation and excellence in Corrugatedpackaging.40th FCBM Conference theme: 5Ms-Man,Material, Method, Machine and Marketing.In this rapidly changing world of business,in order to stay in it and also stay ahead,a manufacturer’s ultimate quest is todeliver the best product. The 5Ms asaptly mentioned in the theme, form thecornerstones in this endeavour - withthe kind of people who contribute to it;newer and cost effective raw materialsused; traditional and accepted oradvanced practices; faster/better and stateof art technology; need for awareness &spreading the benefits of the offering.All of these sum up the need of the hourin even our Corrugated Industry with everdemanding customer and the constraintsthat are on hand.Special ThanksI would not like to take further time ofyours as you are eagerly waiting for theTechnical Sessions lined up by the HostAssociation. Before I conclude, I wouldlike to thank all the Past Presidents andfor sharing their rich experience andcontinuously guiding me during my tenureand I cherish and value their guidance andco-operation.I thank all the Chairmen of various SubCommittees for the excellent work doneby them during my tenure as President. Ithank all the Regional Presidents for theirco-operation extended to me.I thank both the Editors of the HouseMagazine, “The Corrugator” for makingimprovements in the lay out and contentsand this has been appreciated by one andall.I shall be failing in my duty if I do notoffer my special thanks to my colleaguesMr.Sunil Sethi, Mr.Raju Ankola, Mr.PradipBosmaya and Mr.Vincent Mathias andother Managing Committee membersfor the excellent support given to methroughout the year. I also wish to thankMs.Sudha Menon, Excutive Secretary andthe staff of FCBM for their hard work putin throughout the year.Last but not the least, I thank Team NICMAfor making such wonderful arrangementsfor the Conference and I am sure that allthe Delegates attending this event willgo back home with fond memories tocherish and richer in knowledge with theexperience shared by eminent speakers.Thank you one and all.54| The Corrugator | Oct. – Dec. 2011

FCBM NewsKerala Corrugated Box Mfrs.AssociationKeCBMA had its Managing Committeemeeting recently. The meeting evaluatedthe conduct of MC meeting hosted byKeCBMA and the members appreciatedthe President and other members for thesuccessful conduct of the meeting. TheMC strongly felt the need for hostingan annual conference of the Federationsince Kerala had never a chance to hostthe annual conference even though it hasbeen an affiliate member of the Federationfor more than three decades. Presidentinformed the members that he had alreadyrequested the Federation to give us anopportunity at the earliest. He also statedthat we have already created a history inthe annals of the Federation by organizingthe meeting in a mega conference boatfloating in Sea.Our Past President and Chief Editor ofMaster Carton, Mr. R Suresh was honouredwith Haralalka 2011 National Award forthe excellent service rendered to thecorrugated industry in India sponsoredby the FCBM and the award was presentedat the National Conference held atNew Delhi. The Award was given byMrs. Vineeta Bali, MD of BritanniaIndustries.KeCBMA also discussed about the holdingthe Annual General Body meeting ofthe Association during January, 2012 atKochi. A family get-together is also beingplanned along with a small presentationby one of the veterans in the Federation.A committee has been formed to chalk outand monitor the programmes.Western India Corrugated BoxManufacturers’ AssociationWICMA, Marathwada Division helda seminar on 13.11.2011 on 3 POptimization : Parameter, Process &Profit For Semiautomatic Plants In Today’sEnvironment. Shri Ramkumar Sunkarawas the speaker. There was a goodattendance of about 80 persons.A half-day Seminar on “How to fight lowprice competition” was held in associationwith NCQM on 26.11.2011 at WICMAAuditorium. Expert faculty from NCQM,Shri Madhav Karbelkar gave a veryinteresting and informative presentationon the relevance of Productivity to pricingand the different strategies to counterlow price competition. About 35 personsattended the seminar.Seminar on Technical ways tocut the cost organized byUPCBMA CorrugatorsThe Uttar Pradesh Corrugated BoardManufacturers Association (UPCBMA)organised a technical seminar for theindustry on at Noida,Mr. Pankaj Shah and Mr. Ram KumarSunkara the speakers emphasisedthe techniques on reducing costs andenhancing productivity.Mr. Pankaj Shah, through a series of slidesshowed where the costs can be cut. Hedisplayed a ten point method to reducethe costs and the ways it can he reduced.The ten points he displayed were largediameter paper reels, crush stitch flap,extended manufacturer’s joint, materialhandling - paper reels and sheets, takeup factor, cutting top paper with 2-plyliner glue versus stitch joint, baler andpower factorRam Kumar Sunkara suggested a fewimprovements in the manufacturingprocess. Board quality, automatic plants,single facer quality and double facemoisture. Single facer quality, as Sunkaraimplied, is poor compared to an automaticplant.Mr. Sunkara emphasised on the variousreasons why automatic plants are moresuccessful than the manual ones. He saidthat the drying of board is faster and theturn-around time is less in automaticplants, while in manual plants the boardstake longer to dry and if the climaticconditions are not supportive the moistureof the boxes will not be as required andthe delivery will fail.The Corrugator | Oct. – Dec. 2011 | 55

The 39th AGM of FCBMMr. Sunil Sethi getting “pinned”to the post of FCBM President byMr. M. R. Goapalchary,the outgoing PresidentAcceptance Speech by Mr. Sunil SethiAt the 39th AGM of FCBM held on 18th December 2011, in New Delhi,the following office bearers were elected for the year 2011-12.Mr. Sunil SethiPresidentMr. Raju AnkolaVice - President - IMr. Ram AroraVice - President - IIPopping up the CelebrationMr. Pradeep BosmayaHon. SecretoryMr. Sandeep AgrawalHon. TreasurerM. R. GopalcharyEx-OfficioThe Corrugator | Oct. – Dec. 2011 | 57

CHINDIA - The Big PictureKeynote Address presented at the CorruMeet INDIA 2011. by Keith Pearson, President, World Packaging Organisation (WPO)The Corrugator | Oct. – Dec. 2011 | 59

Concluding the presentation,Mr. Keith Pearson said the need ofthe hour is to “Provide for theJourney the strategy.”The Corrugator | Oct. – Dec. 2011 | 63

FCBM PublicationsP. No. Title of Publication3:90 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Bursting Strength ofCorrugated fibre board.4:90 Proceedings –Technical Sessions of Conference 1982 – 19906:91 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Puncture Resistance ofCorrugated fibre board.7:91 Corrugated Box manufacturers’ Practical Standards –Nomenclature: A Glossary of Terms related to theCorrugated Packaging Industry8:92 Corrugated Box manufacturers’Practical Standards – Standard Test Method for WaterAbsorption (COBB Method)9:92 Technical Information Booklet –Variable Speed - Drives for Corrugated Machines10:93 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Grammage of kraft paper andCorrugated fibre board11:94 Technical Information Booklet – Adhesives12:94 Technical Information Booklet – Box Styles14:96 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Compression Strength ofCorrugated Box15:97 Corrugated Packaging Brochure16:97 Technical Information Booklet – Industry Survey - 199617:97 Operational Manual ACS (ver 4.2)(Account Computing System)18:98 Technical Information Booklet – Industry Survey - 199719:98 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Ring Crush resistance ofPaper and paper board.20:99 Technical Information Booklet - Industry Survey – 199821:99 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Moisture Content inPaper and paper board.22:00 Technical Information Booklet – Industry Survey – 1999R-1:00 Corrugated Box manufacturers’ Practical Standards –Box Dimensions, styles, Mfrs. Joints23:02 Technical Information Booklet – Industry Survey – 200124:02 Project Report (Full Version)i) A study on the Important Properties ofKraft paper at Different Climatic Conditionsii) A study on the influence of Properties of Kraft paper onthe Properties of Corrugated Board and Box at variousclimatic conditions25:02 Project Report (Condensed Version)26:03 Technical Information Booklet – Industry Survey – 200227:03 Proceedings – Technical Sessions of31st Conference 2002, Mumbai28:03 Proceedings – Technical Sessions of30th Conference 2001, Chennai29:04 Corrugated Box manufacturers’ Practical Standards –Standard Test Method for Thickness of Board30:04 Technical Information Booklet – Industry Survey – 200331:05 Proceedings – Technical Sessions of 32nd Conference 200332:05 Proceedings – Technical Sessions of 33rd Conference 200433:05 Technical Information Booklet – Industry Survey – 200434:06 Proceedings – Technical Sessions of34th Conference 2005, Bangalore35:06 Technical Information Booklet – Industry Survey – 200536:06 Technical Information Booklet –Units of Measurement and Conversion Factor37:06 Technical Information Booklet –International Rules for Corrugated Board and Cases38:07 Proceedings – Technical Sessions of 35th Conference 200639:07 Technical Information Booklet – Restricted Heavy MetalsSpecification in packaging Material40:07 Technical Information Booklet – Guidelines for DesigningHeat Transfer System using Heat Transfer Fluids41:08 Proceedings – Technical Sessions of 36th Conference 200742:10 Proceedings – Technical Sessions of 38th Conference 200943:11 Proceedings – Technical Sessions of39th Conference 2010 – Interactive DVD44:11 Technical Information Booklet – Industry Survey – 2010FCBM 44:11Technical InformationBooklet2010 INDUSTRY SURVEYFOR PRIVATE CIRCULATION ONLYFor further details contact:Federation of corrugated box mfrs. of IndiaTel.: +91 22 2850 0687, E-mail: adminfcbm.org, www.fcbm.orgFederation of Corrugated BoxManufacturers of India72| The Corrugator | Oct. – Dec. 2011

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Marketing Your BoxplantIn this, the second in a series, Raj Bhardwaj of the UK based sales,marketing and recruitment consultancy, Know It All, looks at waysin which boxmakers can improve how they portray themselves to themarketplace.There are three ways of making moremoney - Improve productivity andefficiency; Increase your prices; and sellmore product. To increase sales youneed to develop a marketing plan that isstructured, targeted and cost-effective.Lets start by clarifying what marketing is.Peter Drucker put it this way: The aim ofmarketing is to make selling superfluous.GlobalMarketConvergenceSimilar customer needs/Global customersTransferable marketingGlobalTrade policiesGloablInfluenceTechnical standardsStrategiesHost government policiesInterdependenceGlobal CompetitionsHigh exports / ImportsGlobalCompetition7.00%6.00%5.00%4.00%3.00%2.00%1.00%0.00% China Rest of Asia Europe North America South AmericaThe aim is to know and understand thecustomer so well that the product orservice fits him and sells itself.” Put anotherway, the aim is to create a vacuum-effectaround your business, generating so muchinterest that customers are drawn towardyou. Depending on where you are in theworld, growth in demand for corrugatedover the next six years will vary:Whilst creative destruction bringsboth opportunity and threat via freemarket economics (although for theEconomics purists, Schumpeter wasreferring to innovation rather than lowercostcompetition - the impact standscomparison), we must not forget that ourdestiny remains in our own hands. Ourindustry’s bigger players have the optionof deploying global strategies, althoughsome also have the problem associatedwith trying to do a U-turn in a supertanker - you will continue to drift in thewrong direction whilst you’re turning(See Fig 2).If you read the last strategy article(‘How to Survive and Thrive’), for thepurpose of this article it will be assumedthat you have settled on a target marketand a preferred product range.The AIDCA ModelWhatever the size of your business, theAIDCA model shows the evolution ofa potential clients mindset, which themarketing mix should support.The message should get the Attention ofthe customer in order to make a sale. Thiscould be an all-singing, all-dancing act,or by an introduction from an influentialperson. You have to win the customers’eyes and ears before you can win theirhearts, minds and wallets. Capitalisingon attention by turning it into Interestdepends on understanding and pressing acustomer’s ‘hot-spot’. That is the promisethat the potential purchase will meet agenuine customer need. On its own, theScale economiesSourcing efficienciesCountry specific costsHigh productdevelopment costCostAdvantagesRaj Bhardwajstatement that excitesinterest will not makea sale - it sets upthe customer to bereceptive to furtherinformation.Attention andinterest are notenough to clinch asale. The customerhas to be brought toa condition of Desire. Where promotionattracts attention, details about a productarouse interest. Extras, like discounts orpreferential payment schemes, provideadditional attraction of your USP that cantip the scale and can be seen as the mainobjects of desire. This desire needs to begalvanised into Conviction.The test of effectiveness is Action. Thetwo key principles supporting this areimmediacy and urgency - you want thecustomer to place their order now so youmake it appear that the opportunity willnot last forever. This situation may beartificial, but unless elements of urgencycan be created, the sales process may dragon, and impetus may be lost. Then theAwarenessInterestDesireConvictionActionThe Corrugator | Oct. – Dec. 2011 | 87

whole AIDCA sequence will have to berepeated, with lower chances of success.Properly timed, the sequence is logicaland highly effective.You may well be thinking that the AIDCAmodel has been laboured, but it is worthemphasising. How then does one takethis worthy and somewhat esoteric modeland make it happen? The answer is yourmarketing mix, which needs to supporteach stage of the AIDCA process.The Seven Ps of Marketing TheMarketingMix is one of the major concepts in modernmarketing: it is a set of controllablemarketing variables that a business canblend to produce the response it wants inits target market. It consists of everythingthe company can do to influence thedemand for its product. The manypossibilities can be collected into sevengroups of variables know as the seven‘Ps’: price, product, promotion, place,people, physical evidence and process(See Fig 4).- Price stands for the amount of moneycustomers have to pay to obtain eachproduct. Each ‘price’ has to be in linewith the perceived value of the offer,or else buyers will purchase competingproducts;- Product stands for the ‘goods-andservice’ combination that the companyoffers to the target market;- Promotion stands for activities whichcommunicate the merits of the productand persuade target customers tobuy it; - Place represents the variouscompany activities that make theproduct available to target consumerssuch as integrated plants, sheet plantsPrice Product Promotion Place / distributionchannelPersonalSellingGeneraladvertisingPublic relationsSponsorshipDirect mailWebsiteDirectDistributorsPeopleor warehouses - including checks onstock and the arrangement of efficienttransportation and storage of theproduct;- People stands for those involvedin making the products or servicesavailable to the marketplace. In ourbusiness, that means external salespeople and the sales office - they areeffectively our shop window. It is alsoimportant not to forget the otherinterface with our clients - drivers.Yes, our people should be competentat their job, but they should also befriendly and have a passion for makingclients happy.Physical evidence refers to thosethings that clients interface with fromyour business. Consideration shouldbe given to what clients see, hear andtouch. The physical evidence shouldresonate with the impression thatyou wish to give of your business. Ifyou want to convey a quality feel, payattention to your website, stationery,vehicles and presentation of your salespeople. The quality of the fixtures andfittings is central;- Process needs to be consistent. Thegoodwill generated from achieving99 per cent on-time in full (OTIF)deliveries for 50 weeks of the yearwould be hugely undermined by 80 percent OTIF in the run-up to Christmaswhen demand typically rises by 30per cent. Key Performance Indicatorsshould be measured and managed -OTIF and quotation turnaround timeare recommended as a minimum.These measures should form partof the balanced scorecard, which isdiscussed later.Modern marketing calls for more thandeveloping a good product, pricing itPhysicalEvidenceProcessattractively, andmaking it accessibleto target customers.Companies mustalso communicatewith their customers.For most companiesthe question isnot whether tocommunicate, but how much to spend onpromotion and in what ways. Althoughresearch has identified that the mosteffective promotional tools in industrialselling are personal selling (see chartbelow) followed by sales promotion, let’slook at all of the relevant options open toa corrugated marketing manager to spendhis budget:Personal selling - the main cost here isin salaries. However, sales people benefitfrom sales and negotiation techniquetraining as most of the sales revenue inindustry is brought in by this method;General advertising - there are manyplaces in which to advertise, howeverthis needs to be carefully targeted using asuitable vehicle;Sales promotion - must come high on thelist as the market is suffering from overcapacityand therefore is price sensitive.Any sensible form of sales promotion willfoster increased desire for your product;The dark art of public relations comes inmany different guises, from press releasesto customer ‘freebies’. Just beware of theold adage that “there is no such thing asbad publicity” this is simply not true;Other vehicles for promoting yourcompany include: sponsorship, direct mailand a good website to give your companya quality brand feel to it.Fig 5 indicates that advertising is mosteffective for consumer goods, but thisis trumped by personal selling when itcomes to industrial goods.Personal SellingHence in business-to-business trading,personal selling is central. However, thereare more options for personal sellingthan you might think. Give some thoughtto how you can innovate to add value toclients and stand out from the crowd.Sales Directors and Managers. Anycustomer entertainment should betargeted at a spread of key clients andprospects. Change events regularly toavoid inviting only the same familiar facesThe Corrugator | Oct. – Dec. 2011 | 89

to events. Do ask clients what they wouldlike to do in advance, and respond to thesubsequent demand;Account Managers. How about sendingyour best sales person to do a presentationat a trade gathering or awards event?Sales Representatives. Consider offeringtraining to suppliers to improve symbioticrelationships;Sales Administrators. Make time tointroduce them in person to their keyclients. Putting a face to a name enhancesrelationships;Trade fairs / exhibitions are different fromalmost all salesman-client interactions.The client has chosen to seek you out.They are in buying mode and it canaccelerate the AIDCA process if you catchthem in this mindset.Remember, people buy from people -deploy them to your maximum advantage.Innovation can help you shine, but equallyimportant, to quote Cohn Williams, sellingis an active verb - be active.General AdvertisingInvesting heavily in general advertising istempting, but should be resisted. Betterto target your advertising - more rifleshootingand less machine-gunning inapproach. To continue the metaphor,ammunition is expensive so don’t wasteit. The key is to know what your targetmarkets are, and then judiciously use theappropriate media.PublicityPersonalSellingSalesPromotionAdvertisingPublic Relations OptionsPR can be wonderfully cost-effective, andmake your business feel good about itself.Options are varied:- Freebies for (potential) customerssuch as pens are OK. However, whatabout a USB portable hard drive withyour company presentation on it?- Events for charity or good causes are agreat idea from every angle. Good forthe soul and good for business! Mondi’scommitment to ‘good citizenship’ forexample, is to be applauded;- Regular press releases to your chosenmedia make good sense. Remember tomake them interesting and punchy;- High quality customer gifts toinfluential decision makers;- Publicity stunts to get on the localnews e.g. sponsored charity bike rides;- Editorial comment in trade publications.Sponsorship optionsSimilarly, sponsorship can be a lowcostway to help ensure that you namepermeater:- Sponsor schools or universities.Perhaps sponsoring an award ona Packaging Technology course orbuying text books for a local school;- Support local charities and events;- Community contact to improve yourimage in the local community;Industrial GoodsConsumer Goods- At the other end of the cost scale youcould sponsor industry awards tohelp raise your profile, and increaseyour association with innovation andexcellence.Direct Mail OptionsBusiness to business marketing is at itsbest when it is targeted at the individual.Direct mail can be a useful component inthe marketing mix.- Postal mail shots addressing thedecision-maker personally. Theaverage take-up rate on flyers is just1 per cent, so do try to mould themessage to each recipient;- Direct mail by fax can be perceivedas a huge pest. However, it has itsplace if it can be seen to be of valueto the recipient. An example is a faxhighlighting lead times have changed- get your orders in or miss your deliveryslot’ is crude but can be effective inbreathing life into a quiet order book;- For direct mail to be of value it isstrongly recommended that you investin your own database, and then keep itup to date;- E-mail advertising has the same prosand cons as fax promotion, but thequality of the output is much better.SPAM filters can undo your hard work,which underlines the value of sendingbespoke messages.Sales Promotion OptionsSales promotions are not restrictedto washing up liquid. There are manyavenues for a packaging business tostimulate demand:- Free trial run samples;- Free origination - if you commit to acertain volume;- Extended credit terms for a limitedperiod;- Discounts, eg 10 per cent off your firstorder if you take delivery this month;- Rebate, eg 2 per cent of your sales valueback if you spend at least f500,000 perannum;- Reciprocal trading schemes.– Cont. on Pg. 95The Corrugator | Oct. – Dec. 2011 | 91

– Cont. from Pg. 91Website OptionsIn this technically-advanced age, theinternet seems to be under-exploited bymany packaging businesses. Websites areeffectively electronic brochures, but theycan also be used for:- On-line promotions;- E-commerce, and therefore anotherdistribution channel. Unlike humansa website never sleeps and is availableglobally;- What about an internet ‘blog’ site forcustomer feedback? Be aware though,this is for the courageous!Control MechanismsOnce you’ve settled on your marketingmix, you need to manage the subsequentmarketing action plan. To this end thereare two control mechanisms that arerecommended to monitor and controlthe cunning plan. A balanced scorecardis a cockpit of KPIs to steer your businessby. Making boxes is a messy business -typically 4,000 live products; hundredsof clients; hundreds of bespoke ordersper week; hundreds or even thousandsof pallets delivered per week; thousandsmore pallets in stock...you get the picture.Amongst this complexity it is easy to getlost in detail. A balanced scorecard is apowerful tool for helping you to focus onsome key areas.BudgetsAt the detail level, comparing actualperformance with budgets is a goodstart. However, if you tie in your prospecttracker and a sales forecast for each salesperson and the sales team collectively youcan see where you are going as well aswhere you’ve been.If you tie in your profit and loss too,you can model the impact of potentiallywinning an account on your bottom line,In SummaryPut like this it seems simple doesn’t it?If you execute your plan you’ll end uptargeting your chosen market sectors witha great message. (“Next to doing the rightthing, the right thing is to let people knowthat you are doing the right thing.” John DRockefeller)As previously noted, there are otherimportant aspects of developing anddelivering strategy, which we’ll continueto review in this series of articles:Sales - how to increase sales, in profitablemarkets;• Recruitment - finding the right people(i.e. enthusiastic, rounded sales peoplethat can sell to varying personalities,and can read, write and do sums), andhow to keep them incentivised;• Infrastructure - is your product mixsuited to the equipment you areoperating and vice versa;Investment - how to justify and select new/ used equipment.Raj Bhardwaj is an energetic,uncommonly enthusiasticworkaholic who has developeda highly successful approach togetting professional results in ahurry. Experience in 9 packagingplants; most of these years werespent in senior sales and operationalmanagement roles.This experience is underpinned bya sound education: an MBA 1st classdegree in Marketing with SystemsAnalysis; a Diploma in Marketingand a Diploma in Management.He set up his own business in 2004- Know It All Ltd. the UK basedsales, business and recruitmentconsultancy, with an initial focuson the packaging industry, buthas now diversified into a range ofsectors.Customer PerspectiveHow do customers perceives?Financial perspectiveWhat is important to ourshareholders?BalancedscorecardInternal Process PerspectiveHow do customers perceives?OrganisationalPerspectiveAre we innovative andready for the future?This article was published first inInternational Paper Board IndustrySeptember 2006 issue and we reprintedthis in ‘The Corrugator’ immediately afterit was published by International PaperBoard Industry and now we are bringingthis for the benefit of new entrants intothe industry The readers will surely findit very useful.The Corrugator | Oct. – Dec. 2011 | 95

Shaping the FuturePaper Presented at CORRUPACK SUMMIT 2010 at HyderabadA global paper and packaging company• USD 23 billion revenuePaul BrownPresident, International Paper Asia• 60,000 employees worldwide• Operations in 20 countries and sales in 100+ countries• Most Admired Company by Fortune -- 8 years running• Most Ethical Company by Ethisphere -- 4 years running* International Paper Annual Report 2009Over 200 corrugated plants around the worldIndia!1463027Projected annual GDP, in 2006 dollars1Plus 10 million tons of containerboard production3$60 trillion50403020100‘14 ‘54‘14 ‘54Source: Goldman Sachs9,100 employees and 36 locations in AsiaXianghe ShenyangHohhot BeijingTianjin DalianKoreaBaodingChinaChengduYanzhouWuhan NanjingSacheonWuxiSuzhouShanghaiChongqingJapanNew DelhiGuangzhouFoshanPanyuIndiaDongguanHyderabadThailandBangkokVietnamKuala LumpurJohorSingoporeBatamIndonesiaThe Corrugator | Oct. – Dec. 2011 | 97

Indian corrugated market is growing fastMM mt• Large population andhence packaging demand• Growing industryproduction• Rising middle classSource: ICCA8Three paradigms to consider…Challenges for IndiaMillintegrationBig box retailers will require higher packaging qualityCapitalmodelFibersource9NowComing…Mill integrationChallenges for India13?Better infrastructureNonintegratedHighlyintegratedNowComing…10Fiber sourceChallenges for India?More efficient freight movementRecovered edfiber basedVirgin fiberbasedNowComing…11The Corrugator | Oct. – Dec. 2011 | 9915

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Industry NewsGerman Packaging Institute awardsIn the course of a celebration gala on the evening of the 9th November, the competitionfor the German Packaging Award 2001 came to an end. The gala was hosted by theGerman Packaging Institute and awarded 21 innovative packaging solutions consideredto be economically, technically, aesthetically and ecologically trend-setting. Amongthe award-winning submissions were user-friendly closing or sealing systems, newsolutions in the field of migration and food safety, innovative materials and materialcombinations, further possibilities for branding and packaging design, processes toconserve resources, dosage and security systems, active and intelligent packaging aswell as machine technology. The competition for the German Packaging Award hasbeen held since 1963. It is an international competition and is under the patronage ofthe German Federal Ministry of Economics and Technology. Here are a few of the awardwinning displaysDrinks – MultipacksThe drinks multipack is characterised byits form and the integrated carrier grip.The possible LISCS of the integratedcarrier grip for return to the POS is alreadyknown. What is new is the adaptation ofthe cardboard carriergrip which has onlybeen possible so far in a plastic version.This carrier grip enables carrying of thedrinks multipack above the bottle-top areaand thus reduces the danger of consumerFruit fresh + the innovativepackaging solutionThe fruit crate fruit fresh’ made ofcorrugated cardboard, uses ford le firsttime the hollow spaces between thecorrugations to apply active materials,in this case all absorber The shelf life ofcertain fruit and vegetables is profoundlyaffected by the formation of ethylene gaswhich, for example is produced by applesduring ripening. The ethylene absorbingcorrugated cardboard crate call to slowdown the process of decay and reducelossesdueto more rapid ripening. To makethis active packaging a binding elementis applied to the corrugation cavities,the ethylene absorber applied to this inpowder or granule form and coveringpaper put on top of this. The furtherproduction of the crate call carry on asnormal. The compatibility with foodstuffsIS guaranteed.Participant: SCA PackagingDeutsch land Stiftung & CoDesigner: Volker Fleischmann SCA PackagingDeutschland Stiftung & Co Norbert RodlerFraunhofer IVV FreisingManufacturer:SCA Packaging Deutschland Stiftung & CoUser: SCA Packaging Deutschland Stiftung& Coinjury. The drinks multipack is designedfor the variants 4 x 0.331 bottles up to10 0.51 bottles. Removal of the bottlesfrom the pack is ensured with perforatedaccess areas. The octagonal form on theone hand, and the push-clown possibilityof the carrier grip during storage andtransport on the other hand, togethermake up the special features of thispackaging. In this way both concept andconstruction have been focused upon andhave been evaluated as innovative as wellas advantageous for the consumer.Participant: BayPackDesigner: Andreas SchusterManufacturer: BayPack, Türkhei iiiUser: BayPackThe Corrugator | Oct. – Dec. 2011 | 119

Load-Carrying displayNESCAFE 3 in 1 StiXThis display impressed the jury with itsthree-dimensional effect as well as itscorrespondingly adapted presentation ofthe product. The single packages areclearly visible,simple totake out andstably placed.The effect ofthe displayremains evenwhen theproduct issold out. Theprocessingwas alsograded well,as the displayconsists ofonly onematerialt h u ssimplifyingdisposal inretail outlets.Participant: SCA Packaging DeutschlandStiftung & CoDesigner: Katrin Hecht und MichaelHautz (Nestlé & Schokoladen GmbH),Nicolette Kemp and Jorg Dassow(SCA Packaging DeutschlandStiftung & Co)Manufacturer: SCA PackagingDeutschland Stiftung & CoUser: Nestlé Deutschland - Coffee &BeveragesOutside-in displayThe one-piece construction of this displayenables a low-cost and efficient inlineproduction as the body of the display andthe back wall can be made from one piece.Due to the folding technique applied, onlythe outside wall of the display can be seenthus a printing of the inside wall is notnecessary.Participant: SCA Packaging DeutschlandStiftung & CoDesigner: Berndt Diethei (SCA PackagingDeutschland Stiftung & Co)Manufacturer: SCA PackagingDeutschland Stiftung & CoUser: ZöllnerWiethoffPackaging South Asia Nov. 2011Blackwell Handbook ofStrategic ManagementEdited by Michael A. hit, R. EdwardFreeman and Jeffrey S. HarrisonIn this major reference work, top scholarsin the field of strategic managementpresent major ideas and theories in thefield drawing on their own researchand special expertise. Offers completecoverage of the field of strategicmanagement. Incorporates new ideas onstrategy topics from leading scholars inthe field. Edited by three of the World’sleading management academics.2012 TAPPI Best Practices onthe Corrugator2/14/2012 to 2/17/2012TAPPI Training RoomBy attending the TAPPI Best Practiceson the Corrugator, a range of plantemployees will learn how to achievehigher productivity, better productquality and waste reduction during onecomprehensive course.The TAPPI Best Practices on theCorrugator Course teaches participantshow to understand each element withinthe corrugating process. They’ll studythe basics of how each component in thecorrugator system works and how to runeach component with optimum settingsfor peak performance. Both old and newequipment are covered.Participants develop an understanding ofthe critical properties of the raw materialsthat are vital to guarantee acceptablequality board. Course instructors teachparticipants how the “Centerline Process”can be adopted in their plant to achievea product that is consistent every day andon all shifts.Participants will also learn the causes ofexcess waste and how to measure andeliminate this waste.New for 2012!! Video clips will be used todemonstrate defects in the making—andmeasures taken to resolve the defects.Contact: memberconnection@tappi.orgThe Corrugator | Oct. – Dec. 2011 | 121

Product ProfileMaterial Management Solutionby IntellisysThe system is able to receive automaticallyelectronic delivery notes with full rolldata preventing from manual entry errorsand speeding up supply chain operations.Alternatively, mill barcode labels can bescanned to register rolls. At the same time,RFID on barcode technology tracks everyroll event.The system improves the efficiencyof clamp truck operations providingaccurate roll locations by providers,paper type, width, etc and consequentlyreducing the operator’s dependency.Material requirements generation can bebased on minimal stock Levels, historicconsumption and forecast projections.The splicing operation is automatedproviding precise paper quality for eachorder change, bridge control and endof roll splice. Traceability functionalityprovides exact and instant knowledgeof roll lifecycle, paper consumption andgenerated waste.Inteltisys provides a high Return OnInvestment (ROI) ensuring the featuresand functionalities are deployed to thebest advantage.The Intellisys Material ManagementSolution (MMS) provides completereal time management of materialsand operations from roll reception tofinished products. This state-of-the-artsolution provides accurate real time stockinformation and full traceability all theway through the entire roll life cycle.1) Roll Reception ModuleManagement of roll entries andelectronic delivery notes from rollproviders.2) Roll Stock ModuleKeeping up-to-date roll inventories inreal time and avoiding rolls lost.3) Clamp Truck ModuleAutomatic roll selection and locationfor clamp truck operators.4) Roll Feeding ModuleHandling roll machine entrancepriorities and generating optimal rollmix and butt usage.5) Splice synchronization ModuleAutomatic order changes with papersplice synchronization and bridgecontrol.6) Traceability ModuleFull traceability throughout all rolland paper life cycle from reception toconsumption.For more information:sales@intellysis-corrugated.comwww.inteltisys-corrugated.comThe Corrugator | Oct. – Dec. 2011 | 123

New Console – supportedSteam JointFriese GmbH is world’s one of the leadingmanufacturers of Corrugaing rolls sincemore than over a decade. They havebeen offering the corrugating industrycorrugating rolls with a special surfacepolishing on the Rockwelle (tungstencarbide) coating making the finish assmooth as chrome. These rolls are knownfor their outstanding performance. Theperformance of corrugating rolls is oftenaffected by the condensate remaininginside. To overcome this problemFriese designed Controlled CondennsateRemoval System (CCS)The condensate pipe is held by asupport mounted in the shaft 2mm awayfrom the roll’s inner wall. At the sametime anew concept rotary joint wasdesigned to enable the proper assembly ofsuch a device.As claimed by the company these are theadvantages.Max performance of rolls throughoutfull production line as there is littlecondcusate left inside. There is no need forthe period is chedcing of the components,these is no need to change any partsduring the rolls life.Due to the vibration created due tocorrugating rolls and pressure rollsworking together, the corrugatingrolls cannot run correctly and results inloss of productivity and also affects theboard quality.To solve this problem, a special InternalDynamic Damping (IDD pressue rolls,the latest version of IDD can be installedin any single face. It is possible to retrofitthe system in European, Taiwanese andAmerican single facers.TIPS FOR GOOD HEALTH1. Early to bed and early to rise. Get up inthe morning before one and half hourof sunrise.2. Drink 2 -3 glasses of warm water withlime & honey.3. Do not drink Tea/Coffee on emptystomach.4. For healthy teeth, press top & bottomteeth, against each other while passingmotion.5. Fill the mouth with water and sprinklecold water on the eyes to keep themhealthy.6. Clean the place below the tongue withthumb to avoid diseases of eye, ear,nose and neck.7. Rub mustard oil on both legs andelbows before taking bath to keepthe eyes healthy. Walk on green grasswithout shoes.8. Brush teeth with Babool or neem stemin the morning and clean the teeth inthe night before going to sleep.9. Take bath with water mixed with limeto remove bad smell of skin.10. Early morning do Yoga / Jogging /Pranayam / Walking etc.Regular Pranayam can cure all diseasesand keep the body healthy. It givespeace to mind and increase stamina.11. Breakfast should be light with sproutedgrains, fruits, daliya , etc.12. Sit in Vajrasan After Food For10 Minutes and little walking afterdinner.13. Drink 8 to 12 Glasses of water everyday.14. Always keep the spine straight whilesitting15. Sit on the floor and get up without anysupport.16. Keep the nails small and clean. Do notcut nails with teeth.17. Do not drink water while taking food.Drink before half an hour or after halfan hour. Drink water slowly drop bydrop.18. Be Vegetarian. Light & easy to digestfood to be taken only when hungry.Eat slowly. Bite as many times aspossible.19. Avoid fast food, cool drinks, smoking,alcohol and non-vegetarian food.20. Eat Less, eat for living. Do not live foreating. Half portion of stomach to befilled with food, quarter portion filledwith water and quarter portion to beleft for air/gas.Contributed by: Mr. Santosh LathTo be continued.....The Corrugator | Oct. – Dec. 2011 | 127

EventsIntelpack23-25 Feb 2012Venue: Bombay Exhibition Centre(BEC)Mumbai, Maharashtra, IndiaThe event will offer the perfect platformto explore huge business potential in thecountry. Moreover, it will also serve asthe grandest networking platform for allthe major players and decision makers.Intelpack will facilitate the process ofdirect selling to the trade buyers. Latesttechnologies and products will bedisplayed at this three day exhibition.Over 250 exhibitors and 6000 visitors areexpected to visit the event.More details From : Intel Trade Fairs &Expositions Private LimitedPharmapack ExpoDate: 23-Feb-2012 to 25-Feb-2012Venue: Bombay Exhibition Centre(BEC),Mumbai, Maharashtra, IndiaPharmapack Expo is the most cost effectivemarketing opportunity and is also the bestopportunity to meet senior buyer›s anddecision makers from all facets of the userindustry. This is your chance to meet thepeople that matter most to your business -all in one place, all at one time.Processing & Packaging ExpoDate: 24-FEB-2012 to 26-FEB-2012Venue: Pragati Maidan, New Delhi, Delhi,Processing & Packaging Expo will be anideal platform for all kinds of technologysuppliers, specially in processing& packaging machinery & inputs, in thechanged retailing atmosphere.INDPACK 201215th-17th March, 2012Maniram Dewan Trade Centre, GuwahatiFor Further information log onto:www.indpack.orgSinoCorrugated South 2012April 11 to 13, 2012Guangdong Modern InternationalExhibition Center in Houjie, DongguanRight now, the global economy isrecovering steadily. The preliminaryfindings of the OECD’s 2011 EconomicOutlook report show that six majordeveloped economies, excluding Japan,realized stronger-than-expected economicgrowth, an estimated yearly increase of 3%,in the first half of the year. As the recoveryof the global economy continues, sodemand for corrugated packaging grows.The corrugated industry has entered anew stage of development – one filledwith numerous opportunities andpotential. According to statistics from theWorld Packaging Organization, the totaloutput value of the world’s packagingindustry was USD 563.8 billion in 2009,of which USD 216 billion, or 38%, camefrom the paper packaging market.SinoCorrugated South 2012, organizedby Reed Exhibitions, will reflect thisshift, and serve as a convenient, highlyefficient, channel for communicationamong exhibitors, visitors and buyers.The exhibition will span an areaof 45,000 sqm and attract over600 exhibitors. An additional 1,200corrugated manufacturing machinesand 1,000 related consumables will befeatured. Outside of the displays will bea further 10+ technical presentations andindustry exchange meetings. Altogether,21,500 local and international visitorsand over 30 industry associations areexpected on-site.SinoCorrugated South 2012 will attractglobally renowned suppliers of corrugatedcardboard processing machinery, cartonprocessing equipment, consumablesand spare parts. The event will displaythe world’s most advanced carton andcardboard manufacturing devices, as wellas related, cutting edge consumables.Well-known companies like BHS,FOSBER, DONGFANG PRECISION, MINGWEI, JUSTU, KAITUO-NC, SINOVAN,KESHENGLONG, K & H, MARQUIP,ETERNAL, Tsai Yi Group, TAN CHEN, etc.will display their newest manufacturingand processing solutions on-site. Reedexpects most exhibitors to feature alarge range of machines live. Severalpieces of equipment that are rarely seenoutside of the companies’ plants willbe prominently displayed in exhibitionbooths. On-site demonstrations will givevisitors a real sense of the productionplant, and allow them to see how effectiveand high in quality the equipment is.Reed will hold a range of exciting,complementary activities around keyissues in the corrugated box industry.Every aspect of corrugated boxproduction - from managementtraining to symposiums on standardsof finished products, to lectures on hownew technologies are delivering crucialsolutions - will be covered. The activitieswill enable attendees to grow their shareof the market by helping them to accessthe latest information; better understandthe market and its development trendsand uncover important opportunities,while touring the exhibits on-site.Through SinoCorrugated South,participating companies will also be ableto access an important channel throughwhich to share details of the industry andstudy market trends.The Corrugator | Oct. – Dec. 2011 | 129