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Packages (Financial Analysis)

Packages (Financial Analysis)

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Published by Ali Raza Sahni

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Published by: Ali Raza Sahni on Feb 01, 2011
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12/04/2012

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Packages Pakistan Ltd
INTRODUCTION TO PAPER& BOARD
Definition of Paper & Board
:
 
When the weight of one square meter of sheet exceeds 130 grams, it istermed as
Board or Paper Board
. Substance lower than 130 grams per square meter is called
Paper 
.Board is basically used in the manufacture of cartons where creasing is alsorequired. It provides necessary strength to the cartons, which are mostcommonly used in packaging of cigarettes, toiletries and detergents, teapharmaceutical products, food and other consumer items.
History of Paper & Board in Pakistan:
In the early Pakistan though the country mainly depended on agriculture andthe manufacturing industry was in a primitive stage, yet the need fopackaging consumer’s material was there, the native production of consumer products was little and the consumers material used to come in alreadypacked from abroad. In the early fifties during the initial stages of industrialization, consumer goods industries sprang up and the need for packaging material was satisfied through imports. At the time, such industriesas tea, food, pharmaceuticals, shoes, matches, textiles, and cigarettes wereimporting packaging material to the turn of Rs. 5 million per year. Packagingindustry came into existence as a natural and logical link in the industrialdevelopment of Pakistan. Between the periods 1950 to 1955, PakistanIndustrial Development Corporation established basic industries fomanufacturing paper and board viz. Karnaphulli Paper Mills, Chandraghona,Adamjee Paper & Board Mills, Nowshera, and Sethi Straw Board Mills.Rahwali went into production in about 1955 when government went aheadand placed restrictions on the import of Packaging material. This on the onehand not only saved foreign exchange and on the other encouraged the
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Packages Pakistan Ltd
development of Packaging industry. The first unit went into production in1957, followed by a number of additional units, bringing the total over a dozenin West Pakistan. Since 1967, four additional Paper and board mills havegone into production at Charsadda, Lahore and Gharo. In the early days,packaging was an industry in which Pakistan had no previous experience or trained people.In view of the growing demand for paper and board the small size projects,economically viable were set up in almost all the big cities. In order to further develop the production of this sector and with a view to reduce the importliability, few more projects were set up in 1972-77. Although the industry hasbeen passing through a crisis, interest has been shown lately by several newinvestors to set up paper and board units. Plans have also been made to setup a newsprint mill in the country.
Per Capita Consumption Of Paper & Board InPakistan:
Per capita consumption of paper and board is regarded as one of theyardsticks to measure a nation’s prosperity. Compared to the USA, Swedenand Canada where an individual on an average consumes 200 to 250kilograms of paper & board per year, the per capita consumption in Pakistanis hardly three kilograms.The apparent consumption of paper and board has shown a steady increaseover the past years and is expected to grow at a faster pace over the comingyears because of the increased Industrial and commercial activity in thecountry.
(Source: Company’s Brochure)
2
 
Packages Pakistan Ltd
INTRODUCTION TO PACKAGING
Definition Of Packaging:
Packaging is the use of containers and components with the addition of labeling to protect, identify, merchandise and facilitate the use of products.Protection and identification of product is being the overwhelming factors inthis process. This obviously facilitates the use of a product of a particular brand.
Packaging History:
At first, packaging was any readily available natural such as skins, bark,leaves and woven twigs. They worked marginally well because drying,smoking, salting or fermentation generally preserved food. Non-foods weremostly sturdy in construction.However, obvious deficiencies in these materials led very quickly todevelopment of textile, wood and ceramic containers. These materials werean improvement, but still did not effectively protect food from insects, rodentsand diseases that plague mankind, nor did they guard some nonfood productsfrom the two main ravages of moisture and air – rot and rust.The next step in packaging, one of the most important advances ever madeby man, did not occur until early in the nineteenth century. It was the heatsterilization of perishable foods in metal and glass containers. It took another hundred years before frozen foods were developed, making the nutrition,taste and convenience of fresh foods in economical paperboard packagesavailable year–round to a significantly large population.A world conflict forty five years ago spurred the creation of still newepackaging and distribution techniques capable of preserving foods,medicines, clothing and military machines and parts in climatic extremesranging from steamy jungle heat to searing alpine cold. Thin metal foils and
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