How to set up a corrugated box manufacturing unit – by Tanmay Nagpal(CEO Nagpal Industries ) (Business Mentor)

3 Mins read

India is growing economy and GDP growth is more the 7% per year. Packaging industries is growing day by day and have very good opportunity for the new businesses. Current market size of packaging industry is USD 14.5 billion and growing 15% per year.
If you want to set up a new corrugating box manufacturing unit then following points need to be considered for the planning process.

  1. Legal Requirement
  2. Market Trends
  3. Location of Factory
  4. Customer Need Identification (Box Type)
  5. Output Of Plant
  6. Type of Plant
  7. Land required
  8. Labor Requirement
  9. Transportation
  10. Legal Requirement-

First of all you need to know the legal requirement of this business. You need to set up a company with the help of CA any type of legal company is eligible for this business. You can register any type of company (Private Limited, Partnership, Limited Liability Partnership, Public Limited Company, Sole Proprietorship). If you are going with automatic plant then you need to get pollution certificate from the respective authorities.

  1. Market Trends-

Do a proper analysis of your market. You need to know about your competitors and the market reports. You should have proper information about your local market and types of boxes and infrastructure, machinery your competitors are having, stay updated with time.

  1. Location of Factory-

This is the one of the most important step for the plant set up process. You need to select your factory’s location near to your target customer’s factory location or you can plan location in the industrial area. Do proper research on your purposed factory location. You need to think about the connectivity to road and transportation facility available in this area. Your factory location should have proper electricity supply if proper electricity is not available the cost of production can increase.

  1. Customer Needs Identification (Box Type) –

Different industries use different sizes and types of the boxes. You need to know about the size of the box of your targeted customer. You also need to know about the different types of boxes. Boxes are available in 3,5,7 ply etc. Different industries use the different type of corrugated box type. Machine requirements change according to the box type.

  1. The output of the Machinery-

You need to plan your daily and monthly output of the plant according to your customer requirement and expansion plan. If you are starting with small seal then you can go with the 4 ton to 5 ton per day or if your target customer requirement is higher then you can go for the 20 to 50 ton per day which can only be achieved from a fully automatic plant. Cost, Type of plant and cost of the operations change according to the output.

  1. Type of Plant-

We have Semi-Automatic box making Plant and Fully Automatic box making the plant. If you want to start with small scale then you need to go with the Semi-Automatic plant, Output of semi-automatic plant starts from 3 to 4 ton per day and minimum investment required for semi-automatic plant machinery is INR 2000000/-. If you want to start with big scale production then you need to go with fully automatic pant, minimum investment required for automatic plant machinery

is INR 1,50,00,000/- and can increase according to the plant speed and level of specifications.

  1. Land required –

For semi-automatic plant, you need to have minimum 5000 SQFT area and for automatic plant minimum 30000 SQFT area is required. Area requirement in the automatic plant can be changed according to the length of the plant.

  1. Labor Requirement-

In semi-automatic plant minimum 12 to15 workers are required for operation. In Fully Automatic plant man power depends on the speed and level of automation of plant, tentative 50-60 workers are required.

  1. Transportation-

Your factory location should be optimised for transportation cost. If your factory is far from your customer’s factory location then cost of the product can increase and your competitors can take advantage of that. There should be proper road connectivity.

To learn more about the corrugated box industry and products contact

us on +919910004093, +919810604093 or log on to:


Established in the year 1950, are the leading manufacturers, exporters & suppliers of 5 ply, 3 ply Automatic and Semi-Auto corrugated box making machines and equipments which are offered under the brand name ‘NATRAJA’. Having developed a well equipped manufacturing unit and an in-house design unit, we have been able to meet the specific requirements of our valued clients.


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