Premier Paper Converting Machinery, Inc.



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New Berlin, WI 53151

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262.754.4772 fax 

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Is India The Next New Frontier?

June 29, 2015


Keep Your Eye on India


With oil prices the lowest they have been in the past 5 years, smaller Indiancorrugated box makers may begin to see opportunities to lower costs associated with purchasing raw materials.  The decrease in price of Petroleum based products and product shipping costs could lend a hand to struggling businesses.  With heavy competition due to lack of entry barriers for startups, it has become difficult to find quality, regulated product.  Though media portrays India to be a thriving, emergingmarket and there has been some improvement in India’s economic climate, the truth is that there is still a long way to go.


India’s Economic Climate

In the past few decades India has made noticeable advances in their economic conditions.  Plans are already in place to implement vast improvements to its infrastructure and foster the well-being of its citizens.  Growth is not the only goal for India; more importantly they strive to attain it in a sustainable and globally-conscious manner.  Currently administration is grappling with phasing out old, inefficient, and harmful methods of increasing growth, which continues to hold back the economy’s possibility for advancement.  As a nation that contains 17% of the world’s population, sustainable growth must occur out of necessity to lay a foundation and pattern of success capable of enticing foreign business to invest.


Increased Demand

India’s average disposable income is increasing due to the results of policies implemented in the “Make in India Initiative”.  This will directly affect consumers’ willingness to purchase disposable goods and translates into increased shipping activity.  The rise is demand for folding cartons has already been observed in more developed areas of India.  Increasing revenues in 2014 of around 12% offers excellent insight into the potential for massive growth in very short time frames.  To provide further push towards the increase in buying behavior, innovation, and economic development, India is setting its focus on select candidates for “smart cities”. 


Further Growth Expectations

The expectations for smart cities are to ultimately provide benchmarks for the rest of the country, and act as a beacon to draw in foreign investment.  It remains to be seen whether or not the development of these cities will follow the plan the government hopes to achieve.  The biggest hopes for India’s corrugated box market, is for economic conditions to improve, and for box making to be regulated to achieve higher quality standards, with reduced competition.  Higher quality product opens up more options for international exportation, further adding to India’s potential.  India is an emerging frontier; but the biggest question most worldwide businesses want to know is when will it happen? 




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