spike in prices of packaging materials squeezes profit margins | indore news - times of india
Indore: the soaring price of packaging materials has squeezed the margins of SMEs and raised concerns about possible forced cuts in production capacity. According to the industry association, the cost of packaging materials, such as aluminum blister foil, PVC, duplex board and IPC pulp board, etc, mainly used in the pharmaceutical, confectionery, spice and food industries increased by more than ten per cent. Mahesh Gupta, regional president of Malwa, MP Laghu Udyod Bharti, said that the cost of packaging materials has risen sharply, which has had a negative impact on our business. Our profit margins have fallen and we cannot afford to bear the burden, and we are considering reducing production. Gupta said he is negotiating with customers to raise tariffs on the final product, but the customer does not agree with the price increase. According to industry insiders, small-scale industries have been hardest hit by rising prices for packaging materials, which are unlikely to be stable soon. Amit Chawla, member of the MP association of small pharmaceutical manufacturers, said that due to expensive packaging materials, my monthly expenses increased by about 7 percentage points. My monthly packing material budget is between Rs 60 and Rs 70. According to the MP association of small pharmaceutical manufacturers, the regional pharmaceutical industry buys more than Rs 10 per month for packaging materials. This growth is a very sharp and disturbing overall budget for the industry, Chawala said. The scope of delivering price increases to customers is small, which means that the manufacturer must bear all the heat that will definitely reflect the production capacity. Â x80 x9d Vineet Jainism, who owns a packaging material enterprise, has produced a large amount of vacuum in the local market, because most of the packaging materials are imported and imported less in the past few months, resulting in a deficit in the market. Download the India Times news app in the latest city.