Incha Paper Group





In the past 7 years, 120 million US dollars of PE has been invested in the paper industry

ChinaVenture Group issued a report saying that driven by the strong domestic demand for consumer goods, PE can appropriately move its sights forward to the consumer goods packaging industry. Recyclable cardboard, recyclable and decomposable paper production and packaging enterprises with a strong sense of design and environmental protection concepts, especially PE institutions of environmentally friendly paper packaging enterprises that have mastered the resources of many well-known consumer goods manufacturing enterprises along with the good development trend of IT consumer goods Appropriate attention can be given.The consumer goods industry has always been the focus of VC/PE institutions. However, with the continuous expansion of the domestic consumer market, some paper industries that provide packaging for consumer goods companies are also emerging in the market. While PE institutions frequently take action on consumer goods manufacturing companies, they have begun to shift their attention to the front end of the industrial chain, focusing on the field of consumer goods packaging with rich customer resources.The upstream industries of the consumer goods packaging industry are mainly paper, resin, and cloth industries. Generally speaking, the paper industry is in a state of complete competition, and its price is directly determined by the relationship between supply and demand. Usually, when the economic development is good, the demand for downstream consumer goods industries is relatively large, and the development of the packaging industry will also show a good development trend. Paper packaging The cost will rise relatively. As far as the current overall trend of the industry is concerned, compared with resin and cloth, paper packaging is gradually favored by more downstream companies due to its leading environmental protection and price advantages.The downstream industries of the consumer goods packaging industry are relatively broad, including snack foods, beverages, daily chemical products, luxury accessories such as watches, bags, jewelry, etc. Today's packaging is not limited to protecting products from damage, but tends to a greater extent It is an economical packaging product with a sense of design and environmental protection concept, which can add color to the product. Especially for companies that specialize in packaging for some luxury goods, the added value of the products is high, and the profits of the companies are relatively considerable, but the barriers to entry in the industry are relatively high, which requires a certain accumulation of company brands.Some environmentally friendly paper material production enterprises, such as recyclable cardboard, recyclable and biodegradable paper production and packaging enterprises, are gradually approaching the vision of investors. Compared with the huge downstream consumer goods industry, the market size of the paper packaging industry is relatively small, but usually one company can supply multiple downstream companies. Therefore, the impact of the economic cycle on the company is greatly reduced, and the investment risk is relatively small .According to statistics from CVSource, since 2007, a total of 29 domestic papermaking enterprises have obtained financing from VC/PE institutions, with a cumulative financing scale of US$120 million and an average single financing scale of only US$4.1 million. Its financing scale increased slightly from 2007 to 2010, mainly due to the rapid growth of the domestic economy and the explosive demand of the downstream consumer goods industry, but it began to show a significant decline after 2011, mainly due to the domestic VC This is due to PE institutions adopting a tightened investment strategy for the entire consumer goods industry under the fading demographic dividend.From the perspective of various subdivisions, paper packaging material companies have obtained the highest financing scale of US$73.53 million, accounting for 62%; the financing scale of cultural paper and household paper is slightly lower, respectively US$15.69 million and US$15.09 million

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