Evolving Business Paradigm Independent Integrated

Presented by Mahesh Gandhi

Introduction
In today's dynamic and highly competitive environment, market leadership has changed from :Ability to supply product :Just Ability to supply product With Best Quality At Competitive Prices On Time Delivery To Create enhanced Value

THEME
This situation prompts us to think beyond set norms/procedures/ideas. We need to evolve newer business strategies. Hence the theme Evolving Business Paradigm Independent Integrated

APPLYING THE THEME OF Independent

IN CORRUGATED BOX MANUFACTURING (CBM)

Integrated

Types of Corrugated Box Manufacturer (CBM)

CBM

Independent CBM:Who buys paper from outside for converting into Boxes

Integrated CBM:Who produces more than 50% of paper required internally to convert into Boxes

Independent Corrugated Box Manufacturing

SOURCE TO END VALUE CHAIN

Emissions to Air, Water and Soil

Emissions to Air, Water and Soil

Landfill Incineration

Waste Paper

Paper Mill

Converting Plant

End Consumer

End-of-Life

Chemicals, Power and Fuel

Chemicals, Power and Fuel

Recycling

Independent Corrugated Box Manufacturing SOURCE TO END VALUE CHAIN IMPORTANT STEPS

Paper Manufacturing at Paper Mill Shipping to CBM Converting at CBM Waste shipping back from CBM to Paper Mill Independent Operations

Changing Scenario for Corrugated Box Manufacturing

Demand for quality corrugated boxes has steadily increased through out last decade i.e., from 2000 to 2010. At present the market size is 4mn tpy. Estimated to grow at CAGR 12% for period 2010-2015

This increase in demand can be attributed to: Increased demand for consumer durables Growth in organized retail Increasing consumption of Packaged food and Beverages Increased consumption of Alcoholic drinks Increased Exports

LAY OUT OF A TYPICAL 3 Ply Automatic Corrugator

Advantages of Integrated Corrugated Box Manufacturing

A. Sharing of infrastructure Boiler Power Generation Material Handling Equipments

Advantages of Integrated Corrugated Box Manufacturing

B. Supply Chain Management
Flexible & Effective Production Planning & Control Increased Productivity and Effciencies in the system Single Point Inventory Management Reduced & Simple Logistics Management Savings in freight costs of paper and waste paper

Advantages of Integrated Corrugated Box Manufacturing

C. OVERHEADS & OTHERS Synergy of overheads at different levels Best Utilisation of 3Ms (Man, Machine & Money) Better working capital management Effective planning and utilisation of Manpower

Advantages of Integrated Corrugated Box Manufacturing

D. STRATEGIC Competitive Advantage due to various savings as noted above Backward Integration insulating from business cycles including ups and downs Opportunity to convert backward integration into a business model any time Better image in the overall market

Integrated Manufacturing- Global Scenario North America

International Paper
27% of American Corrugated Product Market Operates in North & South America, Europe, Middle East & Africa More than 600 paper manufacturing and converting facilities world over Smurfit Stone Container Corporation (SSCG) 17% of American Corrugated Product Market 12 Paper Mills & 96 Converting Facilities through out The USA

Integrated Manufacturing- Global Scenario Europe

Smurfit Kappa Group (SKG) 20% of European Corrugated Product Market 163 Box Plants & Paper Mills SCA Packaging 11% of European Corrugated Product Market 200 Box Plants & Paper Mills

Integrated Manufacturing- Global Scenario ASIA

Rengo Ltd. (Japan) 5 Paper Mills & 23 Converting Plants 20 mn tpy Paper Production Cheng Loong Corporation (Taiwan) 7 Paper Mills & 12 Converting Plants 15mn tpy Paper Production SCG(Thailand) 10 Paper Mills & Converting Plants 15mn tpy Paper Production

Integrated Manufacturing- Global Scenario INDIA

JR Packagers/ Venkraft Paper Mills Pvt. Ltd. BMM / Subam Paper Mills- Cone Manufacturer K B Board Mills(LLP)- Cone Manufacturer South India Paper Mills Ltd.