Japanese Paper Giants Have Invested Heavily in India To Build The Largest Carton Factory in South Asia, Where Is The Sword?

Japanese paper giants have invested heavily in India to build the largest carton factory in South Asia, where is the sword?

Prince India Packaging Limited, a subsidiary of Japan's Oji Group and a global leader in the paper products industry, has announced the official opening of its fifth manufacturing facility in Sri City, Andhra Pradesh, India. Spanning 43,000 square metres, the new facility is the largest of its kind in South Asia and focuses on the production of high-quality corrugated boxes and packaging accessories, with the aim of providing sustainable packaging solutions to the South Indian market.

Prince India Packaging Limited was established in 2012 and previously had manufacturing facilities in Rajasthan, Tamil Nadu, Gujarat and Punjab. The inauguration of the Sri City facility, equipped with state-of-the-art automation technology, further reinforces the company's strong commitment to innovation, efficiency and eco-friendly packaging.

The inauguration ceremony was attended by Mr. Takemi Takahashi, Consul General of Japan in Chennai, Mr. Hiroyuki Isano, President of Oji Holdings Co., Ltd. and CEO of Prince Group, Mr. Ravindra Sannaredi, Founder and Managing Director of Sri City, and Mr. Yoshiyuki Kurahashi, CEO of Prince India Packaging. In his speech, Mr. Hiroyuki Isono highlighted the importance of India in the PRINCE Group's global expansion strategy, noting that the Sri City facility will be a key hub for PRINCE's packaging solutions in the South India region. He also expressed his appreciation for the infrastructure and support provided by Sri City, which ensured the smooth and timely completion of the project.

In his speech, Mr. Takahashi mentioned that Sri City is home to India's second largest Japanese industrial cluster and highly praised the region's contribution to sustainable packaging innovation and regional economic growth. With the opening of this new facility, Prince India Packaging Limited further strengthens its position as a leading provider of advanced eco-friendly packaging solutions, reinvigorating India's growing manufacturing ecosystem.

Prince India Packaging Limited is India's leading provider of sustainable packaging solutions, focusing on the production of high-quality corrugated packaging products. As a subsidiary of Prince Holdings Ltd., a global leader in the paper and packaging industry, Prince India Packaging Limited is committed to environmental sustainability and technological innovation.

The company focuses on providing eco-friendly and customized packaging solutions to customers in various industries such as retail, logistics, and food to meet their diverse needs. By applying advanced technology and sustainable practices, Prince India Packaging Limited not only ensures that its products are durable and cost-effective, but also contributes to a reduced environmental footprint, which is highly in line with the global trend towards sustainable manufacturing.

Prince Holdings previously announced its financial results for the first nine months of fiscal 2024 (April 1 to December 31, 2024). According to the report, in the first nine months of fiscal year 2024, Prince Holdings achieved a significant increase in consolidated net sales, with a total increase of 91.3 billion yen to a total of 1,383.7 billion yen (about 66.613 billion yuan), a year-on-year increase of 7.1%. This growth was driven by the new merger of Wokey Holdings, and the successful resumption of operations of Pan Pacific Forest Products New Zealand, which had previously been suspended due to hurricane damage, and its recovery was completed at the end of November 2024.

In terms of profitability, consolidated operating profit increased by 700 million yen to 57.1 billion yen, up 1.3% year-on-year. The main driver of the increase in operating profit was the increase in prices in the overseas pulp market and the increase in sales volumes. Operating profit increased despite higher sales costs such as distribution and staffing, but positive market conditions and higher volumes contributed to the increase in operating profit.



In terms of ordinary profit, although it decreased, it remained at a high level. During the reporting period, ordinary profit decreased by 2.3 billion yen to 63.1 billion yen, a decrease of 3.69% year-on-year. The decrease in ordinary profit was mainly due to a decrease in foreign exchange gains arising from the revaluation of accounts receivable and payables denominated in foreign currencies. Net profit attributable to shareholders of the parent company achieved a significant increase, increasing by 8 billion yen to 50.3 billion yen (about 2.421 billion yuan), an increase of 18.8% over the same period last year.

In addition, during the reporting period, the proportion of overseas sales of Prince Holdings also further increased, increasing by 5 percentage points over the same period last year to 39.5%, indicating that its globalization strategy is steadily advancing and the contribution of overseas markets continues to increase. All in all, Prince Holdings has shown solid growth momentum in the first nine months of fiscal 2024, with sales growth, operating profit and net profit attributable to the parent company, as well as positive progress in overseas business expansion. While ordinary profit declined, the overall financial performance remained strong.

The overseas business of the Industrial Materials & Consumer Goods business was mainly affected by the following factors: net sales of containerboard increased due to currency fluctuations; Net sales of corrugated boxes also increased, benefiting from the construction of a new corrugated box plant in Vietnam, which is an important part of Oji Holdings' strategy to expand its business in Southeast Asia. In the disposable diapers segment, sales expansion in Malaysia was a key factor driving net sales growth.