The sector in the Haryana city grows from Rs600 crore to Rs4,000 crore in six years
With increase in domestic as well as export of textile business in past few years, Panipat has become a hub for packaging industry in North with expansion in business from Rs 600 crore to Rs4,000 crore in past six years providing employment opportunities to 20 thousand people.
For packaging there is need for woven fabric, plastic sheets, polythene cloth and card board to produce boxes. There are nearly 20 large or medium and 50 small scale manufacturing units for woven fabrics
According to statistics, Panipat doing export of textile cloth, bed sheets, carpets and bath mats of value worth Rs 10000 crore annually to which require packaging material between 12000 to 15000 tons every months.
Information reveals tht Panipat textile industry provides revenue to the state government worth Rs 4700 crore annually including Rs 300 crore packaging industry towards GST. The manufacturers of plastic cloths express relief for procurement of raw material plastic pills locally from Indian Oil Refinery at Panipat.
The manufacturers of packaging industry while talking to The Financial World expressed several grievances faced by them to meet competition with packaging industry in Gujarat state.
The entrepreneurs regretted high power tariff in Haryana and told that Vipul Goel state industry minister had assured Panipat manufacturers to reduce electricity charges from Rs 6 per unit to Rs 5 per unit but in spite of reducing power tariff was increased to Rs 6.40 per unit putting additional burden on them, besides frequent power cuts affecting production adversely.
They told that cost of and at Panipat is much higher than in Gujarat as such those new entrepreneurs willing to set up new industry or expansion are unable to afford costly land for installation of new units or expand existing production and meet the challenge from packaging industry in Gujarat.
