Concept Note of Printing & Packaging Cluster

1. Overview of Cluster:

The Indian MSME sector is a vital contributor to economic growth, employment generation, and
innovation. However, MSMEs encounter significant challenges due to printing and packaging, the
challenges including limited access to modern technology, lack of skilled manpower. The proposed
Common Facility Center (CFC) aims to address the pressing challenges faced by Micro, Small, and Medium
Enterprises (MSMEs) in the printing and packaging sector across various industries, including food and
others. Under the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), the CFC will
provide shared infrastructure, technology, and expertise to enhance the competitiveness and
sustainability of MSMEs through this Printing and Packaging Cluster.

Number and size of units in cluster:

(a) Micro- 20 SPV and 300 Non SPV (Approx.)

(b) Small -0 (Approx.)
(c) Medium= 0
(d) Large = 0

Total No. of Unit in the cluster is 320 Nos. approx.

Above all units have approx. direct Employee in cluster – 3000 Nos.

1.1 Printing & Packaging Cluster Plan with Corrugated Box, Met Pet Boxes, Printed Boxes with
Effect like Lamination, UV Coating & Foiling, Blister Card Packaging, Master Cartons

Key Components of the CFC:

• Corrugated Box Manufacturing Unit: Equipped with modern machinery and equipment for the
production of high-quality corrugated boxes, the manufacturing unit will cater to the diverse
packaging needs of industries such as e-commerce, logistics, and food processing.

• Specialized Printing Facilities: The CFC will feature state-of-the-art printing facilities capable
of delivering customized solutions, including Met Pet boxes, printed boxes with effects like
lamination, UV coating, and foiling. These facilities will enable MSMEs to offer visually appealing
and impactful packaging solutions to their clients.

• Blister Card Packaging Unit: With dedicated machinery and expertise, the CFC will provide
MSMEs with the capabilities to produce blister card packaging solutions for pharmaceuticals,
consumer electronics, and retail products. This unit will ensure the safe and secure packaging of
products while enhancing their shelf appeal.

• Master Carton Production Facility: The CFC will house a master carton production facility
equipped with advanced machinery for the efficient manufacturing of large-scale packaging
solutions. MSMEs can leverage this facility to meet the bulk packaging requirements of their
clients in industries such as manufacturing and distribution.

• Quality Laboratory : Common Facility Center can establish a quality lab that provides reliable,
accurate, and efficient testing services to MSMEs in the printing and packaging cluster,
contributing to the overall quality and competitiveness of the industry.
1.2 Market

• The printing and packaging industry in India was valued at approximately USD 32 billion
in 2020.
• The market is projected to reach over USD 50 billion by 2025, growing at a compound
annual growth rate (CAGR) of around 8% during the forecast period. The India Coatings
market accounted for $896.7 million in 2017 and is anticipated to reach $1,508.2 million
by 2025, registering a CAGR of 6.6% from 2018 to 2025.
• Corrugated boxes and cartons segment is estimated to be worth around USD 10 billion.
• India is one of the largest exporters of printed packaging materials in the world, exporting
goods worth over USD 8 billion annually.
• The printing and packaging industry in India provides employment to over 4 million
people, including skilled and unskilled workers, technicians, engineers, and managerial
staff.
• The sector is a significant contributor to employment generation, particularly in urban and
semi-urban areas across the country.

1.3 Customer Demand

Here are some insights into customer demand for these items:

Corrugated Boxes:
• Corrugated boxes are widely used for packaging and shipping products across various
industries, including e-commerce, retail, food and beverage, electronics, and
pharmaceuticals.
• Customers demand corrugated boxes that are sturdy, lightweight, and cost-effective, while
offering sufficient protection for their products during transit.
• With the growth of e-commerce and online retail, there is a rising demand for customized
corrugated boxes that reflect brand identity and enhance unboxing experiences for
consumers.

Met Pet Boxes:

• Met Pet (metalized polyester) boxes are favored for their glossy appearance and high
barrier properties, making them suitable for packaging premium and perishable products
such as chocolates, snacks, and cosmetics.
• Customers seek Met Pet boxes that not only provide excellent product protection but also
offer visual appeal and shelf differentiation to attract consumers in retail environments.

Printed Boxes with Effects like Lamination, UV Coating, and Foiling:

• Printed boxes with special effects like lamination, UV coating, and foiling are in demand
across industries where brand visibility and product presentation are paramount.
 • Customers value packaging solutions that incorporate these effects to enhance brand
recognition, communicate product quality, and create a memorable consumer
experience.
• Industries such as luxury goods, cosmetics, confectionery, and electronics often require
printed boxes with premium finishes to convey a sense of exclusivity and sophistication
to consumers.

Blister Card Packaging:

• Blister card packaging is widely used for retail display packaging of small consumer goods
such as electronics accessories, toys, hardware, and pharmaceuticals.
• Customers prefer blister card packaging that offers product visibility, tamper resistance,
and ease of display while ensuring product protection and security.
• Customization options such as die-cut shapes, printed inserts, and hang-hole features are
often requested by customers to enhance brand visibility and shelf impact.

Master Cartons:
• Master cartons are used for bulk packaging and shipping of products across industries
such as manufacturing, distribution, and logistics.
• Customers require master cartons that are durable, stackable, and compatible with
automated handling systems to facilitate efficient storage, transportation, and distribution
of goods.
• Customization options such as branded printing, labeling, and barcoding are sought after
by customers to streamline inventory management and enhance supply chain visibility.

1.4 Annual Turnover of Cluster (320 Units.)

Turnover of Cluster (320 units)

Year Amount In Lacs
2023
2022
2021
2020
2019

1.5 Average investment in Plant & Machinery

10-25 Lakhs per Unit

2. Problems being faced by cluster

Indian Micro, Small, and Medium Enterprises (MSMEs) in the printing and packaging industry face several
challenges that hinder their business operations and growth prospects. These challenges include:

• Marketing and Branding: Effective marketing and branding are essential for MSMEs to
differentiate their products and attract customers. However, limited marketing budgets,
lack of branding expertise, and competition from established brands pose challenges for
MSMEs in building brand awareness and market visibility.

• Technological Obsolescence: Rapid advancements in printing and packaging technology

necessitate continuous upgrades to remain competitive. However, MSMEs often lack the
resources and expertise to invest in and adopt new technologies, leading to technological
obsolescence and reduced efficiency.

• Quality Control and Compliance: Maintaining consistent product quality and

compliance with industry standards and regulations is essential for MSMEs to meet
customer expectations and avoid legal issues. However, limited access to testing facilities,
quality assurance mechanisms, and expertise poses challenges for MSMEs in ensuring
product quality and regulatory compliance.

• Environmental Concerns: Increasing awareness of environmental sustainability and

regulatory requirements for eco-friendly packaging solutions pose challenges for MSMEs
in adopting environmentally responsible practices. Transitioning to sustainable materials
and processes requires investment and innovation, which may be challenging for MSMEs
with limited resources.

• High Initial Investment: Setting up a printing and packaging business requires significant
capital investment in machinery, equipment, and infrastructure. Many MSMEs struggle to
access financing or secure adequate funds to invest in modern technology and facilities,
limiting their ability to compete effectively.

• Skilled Manpower Shortage: The printing and packaging industry requires skilled
professionals with expertise in machine operation, design, prepress, and post-press
processes. MSMEs often face challenges in recruiting and retaining skilled manpower due
to limited availability and intense competition from larger enterprises.

• Market Competition: The printing and packaging industry in India is highly competitive,
with numerous players operating at various scales. MSMEs face stiff competition from
larger firms with greater financial resources, brand recognition, and economies of scale,
making it challenging to carve out a niche and expand their market share.

• Supply Chain Challenges: MSMEs in the printing and packaging industry often encounter
supply chain disruptions, delays in raw material procurement, and logistical challenges.
These issues can impact production schedules, increase costs, and affect customer
satisfaction, posing significant challenges for business continuity.
 • Access to Markets: Expanding market reach and accessing new markets is crucial for the
growth of MSMEs in the printing and packaging industry. However, challenges such as
limited market information, distribution networks, and access to export markets hinder
MSMEs' ability to explore new business opportunities and expand their customer base.

3. Solutions: Need of Common Facility Centre

Establishing a Common Facility Center (CFC) can effectively address the challenges faced by MSMEs due
to printing and packaging . Here's how a CFC can provide solutions to these challenges:

• Cost Savings: MSMEs can significantly reduce their capital expenditure by accessing shared
infrastructure, equipment, and facilities available at the CFC. This leads to cost savings in
purchasing, maintenance, and operation of specialized printing and packaging machinery.

• Access to Modern Technology: The CFC provides MSMEs with access to state-of-the-art printing
and packaging technology, which may have been financially out of reach for individual businesses.
By utilizing advanced equipment and processes, MSMEs can enhance the quality and efficiency of
their operations.

• Improved Product Quality: With access to quality assurance facilities and technical expertise
available at the CFC, MSMEs can ensure that their products meet industry standards and
regulatory requirements. This leads to improved product quality, reliability, and customer
satisfaction.

• Enhanced Efficiency: Shared facilities and resources at the CFC enable MSMEs to optimize their
production processes and improve operational efficiency. By streamlining workflows and
reducing downtime, MSMEs can increase productivity and output without significant investment
in additional infrastructure.

• Skill Development: The CFC offers training programs and capacity-building initiatives to enhance
the technical skills and knowledge of MSME employees. Through hands-on training and
workshops, employees can acquire new skills, stay updated on industry trends, and improve their
overall competency.

• Market Expansion: The CFC provides MSMEs with access to market research, branding, and
marketing support services to help them identify new market opportunities and expand their
customer base. By leveraging the resources and networks available at the CFC, MSMEs can explore
new business avenues and diversify their revenue streams.

• Collaborative Opportunities: The CFC fosters collaboration and knowledge-sharing among

MSMEs within the printing and packaging cluster. By collaborating on projects, sharing best
practices, and pooling resources, MSMEs can leverage collective strengths and enhance their
competitiveness in the industry.
 • Environmental Sustainability: Through initiatives promoting eco-friendly practices and
materials, the CFC encourages MSMEs to adopt sustainable packaging solutions. By embracing
environmental sustainability, MSMEs can reduce their carbon footprint, meet consumer demand
for green products, and enhance their brand reputation.

• Employment: The increased efficiency and competitiveness of MSMEs facilitated by the CFC can
lead to business growth and expansion. As MSMEs scale up their operations to meet market
demand, they may need to hire additional employees across various functions such as production,
design, marketing, and logistics.

• Entrepreneurship: The CFC can inspire entrepreneurship and innovation by providing aspiring
entrepreneurs with access to shared infrastructure, technology, and support services. By lowering
the barriers to entry into the printing and packaging industry, the CFC encourages the
establishment of new MSMEs and startups, thereby creating additional employment
opportunities.

Overall, the tangible benefits of a Common Facility Center in the printing and packaging cluster
empower Indian MSMEs to overcome challenges, capitalize on opportunities, and achieve
sustainable growth and competitiveness in the industry.

4. Assistance to Printing & Packaging Cluster under MSE-CDP:

Assistance to Micro, Small, and Medium Enterprises (MSMEs) through the Common Facility Center (CFC)
for Printing & Packaging Cluster can be tailored to address the specific needs and challenges faced by
these businesses. Here's how the CFC can provide assistance to MSMEs:

• Access to Infrastructure and Equipment: MSMEs can benefit from shared infrastructure and
equipment available at the CFC, including printing presses, packaging machinery, testing
laboratories, and design studios. This reduces the capital expenditure for MSMEs, enabling them
to access modern technology and facilities without significant upfront investment.

• Technology and Innovation Support: The CFC can offer training programs, workshops, and
technical assistance to MSMEs to enhance their knowledge and skills in printing and packaging
technologies. Assistance in adopting advanced printing techniques, packaging materials, and
design innovations can help MSMEs improve their product quality, efficiency, and
competitiveness.

• Quality Assurance Services: MSMEs can avail quality assurance and testing services offered by
the CFC to ensure compliance with industry standards, regulatory requirements, and customer
specifications. This includes testing for print quality, material strength, durability, safety, and
environmental sustainability, among others.

• Market Development Assistance: The CFC can provide MSMEs with market research, branding,
and marketing support services to identify market opportunities, target customers, and promote
their products effectively. Assistance in developing packaging designs, labels, and promotional
materials can help MSMEs enhance their brand visibility and attract customers.

• Capacity Building and Training: Training programs and capacity-building initiatives can be
organized by the CFC to enhance the technical skills, managerial capabilities, and
entrepreneurship mindset of MSMEs. This includes training on production techniques, quality
management systems, marketing strategies, and business development practices.
 • Financial and Regulatory Assistance: The CFC can facilitate access to finance, subsidies, grants,
and incentives available from government schemes and financial institutions to support MSMEs'
investment in infrastructure, technology, and skill development. Assistance in understanding and
complying with regulatory requirements related to licensing, permits, environmental regulations,
and taxation can also be provided.

• Networking and Collaboration Opportunities: The CFC can serve as a platform for MSMEs to
network, collaborate, and share best practices with other businesses, industry experts,
government agencies, and academia. This facilitates knowledge exchange, business partnerships,
and collective problem-solving, strengthening the ecosystem for MSMEs in the printing and
packaging cluster.

5. Probable estimated cost of CFC Project

Probable estimated cost of CFC/Project= _____________ lacs.

(The actual cost will be decided after DPR Formation) (Land and Building Cost is not included)

Contact Person in the cluster

Mr. Abhishek Anand (7738055334)

Email Id: