Indian paper industry is largely driven by the packaging and paper board Segment which accounts for 47%. Paperboard is a paper-based thick material made up of compressed layer of paper pulp and used in various applications in items such as lever arch file, daily calendar board, cake base board, jewel box etc. The raw material used to produce paperboard is paper pulp, which are manufactured from cotton rag waste and paper waste. Paperboards are recycled in large amounts to reduce deforestation and waste. These are also mainly used in the packaging of food & beverages, medical packaging, durable goods, non-durable goods, industrial packaging, and cosmetics.

The most important properties of paperboard, which drives the market are its recyclability, renewability and sustainability. Moreover, the increasing awareness about the ecological conservation makes consumers prone towards the usage of paperboard. The utilization of paper and board is increasing year to year though digitalization is expected to influence production and consumption in different ways.

Considering the market potential for paperboards, the need for upgradation of the micro units to meet the growing market demand becomes essential. In view of the same, the micro units in the Karur & Erode district formed a cluster and propose to establish a Common Facility Center (CFC), which could be utilized by the Micro units on user fee basis, and cater the domestic market.

Common production model: Under this model, the CFC will be operated by the SPV on its own. the raw material will be procured at optimum cost and the marketing of Micronutrient & Bio stimulant will be undertaken by the SPV by engaging the Marketing consultant as the Business Development Service (BDS) provider to devise suitable.