CoDex, an index for tracking input cost movement in Western India, is developed by CRISIL Research. It is the brainchild of Pankaj Shah, chairman of the R&D Centre at WICMA, who has spearheaded this project.

"CoDex uses a rigorous model for computing the total input cost of a corrugated box," said Shah.

"WICMA and CRISIL Research have together defined the relative proportion of each input consumed for making a corrugated box. Besides paper which is the main raw material, it also takes into account the cost of adhesives, power, fuel and labour."

The Western region accounts for around 35% of corrugated box output in India. Prices of these inputs are independently collected by CRISIL Research from suppliers in Maharashtra, Goa, Daman, Silvassa, and border areas of Vapi. Based on these prices the model computes the CoDex value.     

CRISIL Research completed the first update of CoDex by compiling raw material prices between January 2010 and January 2011. The CoDex value as on 22 January 2011 was 122.98, an increase from its base value of 100 as on 22 January 2010. This change depicts the rise in cost of manufacturing a corrugated box by almost 23% in Western India in a year.

"CoDex will bring in much needed transparency and authenticity to measure the cost movements," added Shah.

CRISIL Research will publish CoDex six times a year, giving the industry a scientific database to track costs. "It will be of enormous value to suppliers and consumers as well," said Nagarajan Narasimhan, the director of CRISIL Research.

Mechanism for an accurate and scientific tracking for the cost of key materials has been critical for creating a standard pricing model. The national and regional associations representing the print industry have a lesson to learn from WICMA.