Crisil Research has launched CoDex, an index for tracking input cost movement for making corrugated box in western India, which accounts for 30-35 per cent of the industry output.

Mandated by the Western India Corrugated Box Manufacturers Association (WICMA), Crisil Research will use data independently collected from raw material suppliers in Maharashtra, Goa, Daman, Silvassa and border areas of Vapi.

“CoDex will bring in much needed transparency and authenticity to measure the cost movements. We hope CoDex will provide credible information tool for all stakeholders in the corrugated box industry and provide a better indication to adjust prices,” said Mr Pankaj Shah, Chairman, WICMA. The index will have January 22, 2010 as base year and value of 100.

Crisil Research and WICMA have together defined the weightage of each raw material in the index. Besides paper, which is the main raw material, the index will also take into account price movements in adhesives, power, fuel, labour and other inputs.

Based on these prices, the model computes the CoDex value. Specialty and rarely used materials such as binding cloth, multi-colour printing, partitions/fitments, lamination and coatings etc are not included.

The first update of CoDex was done by taking into account the raw material prices as on January 17-21, 2011 and its comparative period last year. The CoDex value as on January 22 was 122.98 which indicate a cost push of almost 23 per cent in the western region in the one-year.

CoDex will be of enormous value not only to corrugated box makers but also to suppliers and consumers. It will enable these players to track movements in cost of corrugated boxes in an accurate, scientific and credible manner, said Mr Nagarajan Narasimhan, Director, Crisil Research.

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