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The business of manufacturing corrugated boxes could be lucrative, with the demand for FMCG products ranging from small packs of agarbatti (incense sticks) to large boxes for mixies and televisions, which keeps increasing. The 6-year-old Boxit Packaging LLP, a part of the VK Jhaver group, shows success in making boxes from large reels of brown paper.
Starting in 2018 with ten employees in a small unit at Ambattur, the company today has around 150 employees and a revenue of around ₹45 crore revenue. “We will reach ₹100 crore in the next financial year,” said Ayush Mukherjee, Managing Director of the company.
The company has around 50 clients, including Panasonic, N Ranga Rao & Sons of Cycle Agarbatti, Tropical Agro and Tagros & Littles Agrivet, he told businessline at the company’s plant in Tiruvallur. “We started with around 4,000 sq ft at Ambattur. The semi-automatic unit at Ambattur still exists while the fully automatic unit at Tiruvallur is much bigger,” he added.
Workers at the Boxit Packaging unit near Chennai. The company aims to replace traditional box fillers with eco-friendly alternatives. | Photo Credit: BIJOY GHOSH
The new unit has a production capacity of about 1,500 tonnes per month and makes all kinds of corrugated boxes for pharmaceutical companies, furniture, automobiles and electronics. “We make anything from 150 mm size boxes to 2,200 mm,” he said.. The company has invested ₹30 crore in the new unit that can manufacture boxes according to the client’s needs.
Mukherjee said revenue growth is due to good demand from many industries that the company serves. “We feel the market is good and they are open to many more new ideas,” he said.
“We work with clients on re-engineering the boxes. For instance, we are working with them on replacing thermal coal and plastic that are stuffed inside the boxes as fillers with the paper. This is sustainable for them also and 100 per cent recyclable,” he said. The company sources papers from Tamil Nadu and Andhra Pradesh, he added.
With many electronics companies spreading their wings in and around Chennai, Mukherjee is bullish on the market. “Our next target is the mobile manufacturers,” he added.
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