Corporate Report: Care Corupack
Packagers to the Misters
The two-decade-old company has grown from a small manual unit to an expansive, fully automated set-up with a turnover in excess of Rs. 1 billion, thanks to the vision and untiring efforts of its founder Rajeev Agrawal. In keeping with its ‘client first’ philosophy, Care Corupack is looking to go beyond its staple of large corrugated boxes and enter the smaller-box space. It has ridden out the negative effects of the recent demonetization exercise and is targeting a top line growth of 10 % in the coming fiscal.
In today’s world, a great product by itself cannot translate into great sales. It’s here that the business of packaging comes into its own and can make or mar the fortunes of the best of items. A leader in this segment, Care Corupack Ltd. Is involved in manufacturing and trading corrugated boxes, and provides innovative and technology-driven corrugated packaging solutions. Being in the industry for more than two decades, the company caters to a host of industries like food, pharmaceuticals, textiles, FMCG, dyes and chemicals, e-commerce, etc. Incorporated in 1995 by Rajiv Agrawal and family as Care Beverage (India) Ltd, the name of the company was changed to Care Corupack Ltd. in 2001.
The manufacturing unit of the company is located near Dholka-Bagodara High-way in Gujarat having an installed capacity of 35,000 MTPA. “For me, corrugated boxes are not just boxes, they are an eco-friendly means of delivering or storing goods,” avers Rajeev Agrawal, founder-Director. of Care Corupack Ltd. He believes in building economic value along with being socially responsible and protecting the environment. In keeping with this vision, Care Corupack focuses not just on profits but on bettering the lives of people and the well-being of our planet. Not surprisingly, the company’s vision is ‘Better Quality of Life through Better Packaging’. In today’s times, packaging is not restricted to moving goods from one place to another; it has a vital role in storage of goods in an attractive manner. Care Corupack turns out corrugated boxes which help in delivering and storing goods safely, securely, attractively and in the most convenient manner as per clients’ needs. Mr. Agrawal has seen his business grow from a small manual unit in 1996 to a fully automated plant with multiple lines of production in 2016. A workaholic, his untiring efforts over a span of two decades has been a key driver in the company’s turnover cross-ing Rs 1 billion. Besides, good quality, timely delivery and competitive pricing have helped the company make a name for itself and gain premium clientele.
Having an entrepreneurial drive and fuelled by a creative streak. Mr. Agrawal founded the corrugated box manufacturing company in 1996. The initial set-up was at Kalol, in a small area having a single working shed with manually operated machinery. He vividly remembers the day he took the most important decision of his life to start this business. “I was young, barely 24 and my finances were limited, but I could feel that this was the opportunity which I needed to work on and today I am happy.”
In 2012, the company was relocated to Dholka in a large area of 32,000 sq yards, with fully automated machinery for manufacturing corrugated boxes. It is an ISO 9001 and ISO 22000 certified company from JAZ ANZ, with an in-house quality control laboratory and, to boot, a lush green ambience in its forecourt.
STATS AND OUTLOOK
The domestic packaging industry converts about 2 mil-lion tons of Kraft paper into corrugated boxes. The industry, currently pegged at $25 billion, is growing at a rate of 15% per annum and is set to touch $30-35 billion mark by 2020, ac-cording to a top Central government official. The government is also planning to set out standard guidelines across the pack-aging sector. The industry is highly labour-intensive and there are over 4,000 corrugated board and sheet plants across the country, employing over half a million people — both directly and indirectly. A majority of these plants are either manually operated or are semi-automatic. An increase in the consumption of packaged food, coupled with growth in the pharmaceutical, electronics and automobile sectors and an increase in exports, has triggered the growth of
the packaging industry in India. Even the tremendous growth in the e-commerce industry has had a major impact on the growth of the packaging industry. Care Corupack Ltd. has always tried to keep itself updated by adopting the latest technology and catering to new clientele from various upcoming segments. The company is equipped with fully automatic 5-ply machinery, rotary die cutters, auto glue deployment folders, color printing, etc. It also has an in-house quality control facility with the latest machinery to ensure delivery of quality products.
Says Mr. Agrawal, “We are currently manufacturing large corrugated boxes only. Seeing our clients’ needs, as they come first, as well as for company’s growth we are planning to expand vertically and start manufacturing smaller boxes in the near future. The plans for execution have already been initiated. We are also planning to look into avenues to make ourselves more sustainable and eco-friendly by reducing our carbon emissions, water wastage and solid waste.
“Currently, the company procures virgin kraft paper from local players. It is planning to import it directly for its internal consumption, bringing in more cost- effectiveness. It also plans to import waste and supply it to local players.
With the current production line and post demonetization market conditions, the company remains positive about maintaining its profitability in 2017 and looks forward to expansion plans. The company is planning to import new fully automatic machinery for manufacturing small or book boxes, pizza boxes, etc.
Giving a thumbs-up to the recent demonetization exercise, Mr. Agrawal says, “ft is going to impact industries in the short run but with this move I believe the economy will be-come stronger in the long run.” He adds, “The packaging industry has diversified applications over various sectors, lead-ing to a reduced impact of recession in the industry. Owing to our clientele in different sectors, we envisage a minimal impact from the economic changes on our business and expect to continue with our growth and expansion.”
Having put the effects of demonetization behind it, the company, which currently serves about 100 companies/ clients, is looking at widening its customer base, leading to top line growth by 10% in the coming year. That’s what you call sturdy optimism, even at a time when other industries are wringing their hands over the near-term future.