Bengaluru, 20 March 2017: The 26 year old Association – The (KCBMA) Karnataka Corrugated Box Manufacturers Association a regional member of “The Federation of Corrugated Box Manufacturers (FCBM) of India” is one of the most trusted and dependent associations for Corrugated box manufacturers of the country. KCBMA is an Association of the corrugated box manufacturers of Karnataka. The members supply corrugated boxes to all big and small companies in and around Karnataka. Owing to the hike in raw material costs largely due to shortage of imported waste, the production costs of corrugated boxes has been directly impacted.
The Industry has been pushed into a tough spot with the sudden short supply of raw materials and erratic shutdown notices issued by the Paper Mill Associations of India. Responding to the market situation, the KCBMA (Karnataka Corrugated Box Manufacturers Association) has also been forced to recommend a 21% to 23% hike on prices of corrugated boxes.
Commenting on the same, Manish Bothra, President, KCBMA, said, “The forced hike will adversely affect the start-up and MSME sectors making it tough for them to meet competitive prices. Central government’s aggressive push to these sectors will also face a daunting challenge. With rising cost of packaging the common man will be affected as costs of groceries will go up. The fresh produce, milk & dairy products, confectionery, packaged food, Agarbatti, readymade garments, crafts and e-commerce sector that Karnataka is popular for, will be hugely impacted. ”
“We seem to be sandwiched between the fast rising prices of raw materials and unwilling clients who refuse to see the market realities. There is no way that we can avoid the price hike hence as an Association, we are collectively pushing for it to ensure our industry’s survival. Without this price hike it will become impossible for the corrugated box manufacturing industry to survive. The working capital requirement of this industry too will be adversely affected.” he also added.
The FCBM and KCBMA have been dealing with the unplanned shutdowns of paper mills for the past two months and now, which has played havoc with their member’s inventories and price margins. KCBMA is the Only Association for Corrugated Box manufacturers in Karnataka with over 90 members across sectors and 98% MSMEs.
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