Paper Industry

JK Paper Ltd reported its profit more than doubled in the third quarter, on the back of higher demand for copier papers and packaging boards from schools and offices post-pandemic

The Ukraine-Russia war has put a strain on global supply chains and while transportation of various commodities have been severely impacted, India's paper imports were hit

Govt must avoid protectionist measures

Move addresses dumping concerns of domestic paper industry and also checks re-routing of goods through other countries in lieu of trade agreements, says govt

Paper consumption is likely to witness 6-7% annual growth and will reach 30 million tonnes by FY 2026-27, largely driven by emphasis on education and literacy coupled with growth in organised retail

Despite the absence of boards in its offerings, West Coast Paper has large capacities and is a formidable player with a positive outlook going forward, an official at LKP Securities said

The rally in paper stocks began early September when states eased Covid-19 related restrictions and announced re-opening of schools and offices

Improving demand and likely consolidation in the industry are key triggers

The share of paper imports from ASEAN in total paper imports for India has risen more than four times from about 5 per cent in 2010-11 to about 21 per cent in 2019-20

"Sirpur Paper Mills has temporarily shut down its operations at Sirpur-Kaghaznagar in Telangana in view of the current market condition consequent to Covid-19 situation," the company said

They fear that with factories remaining shut during peak season, China may resort to dumping; Indian manufacturers want govt to levy customs duty on imports

Industry officials said 59 running mills in Tamil Nadu produce close to 31 lakh tonnes of paper annually

The paper industry in India is likely to grow 12 per cent per annum for next five years and the overall paper consumption is expected to increase to 24 million tonne in 2024-25 from the present 15 million tonne. The industry is witnessing a transformation and several industry leaders are investing in capex to expand their capacity to meet the expected demand growth, said Indian Paper & Manufacturers Association (IPMA) in a statement. Besides, IPMA expects consolidation in the industry in the coming years as players would take up mergers and acquisitions to compete with each other. "The paper industry is going through a transformation phase and few big paper companies are doing expansion to meet their region or product or category-specific demand. Overall paper consumption is projected to increase to 24 million tonne in 2024-25 from 15 million tonne currently," said IPMA VP J P Narain. Moreover, the manpower-driven industry is expected to generate employment opportunities, both ...

Higher imports are leading to lower capacity utilisation for domestic manufacturers

The sharp decline in import is set to help domestic paper mills further increase prices of their products ahead of the ensuing academic year

Market leader JK Paper posted a 72 per cent jump in December quarter profit to Rs 120.26 crore this year, compared to Rs 69.81 crore in the corresponding quarter last year.

Ban on plastics has helped see a spurt in demand of paper bags and many mills in the unorganised sector have been revived to make them operational

Between 2010-11 and 2017-18, import of paper and paperboard had a compound annual growth rate of nearly 19.5%

---Drop the pointer table---With demand burgeoning for paper products and an increasingly severe shortage of raw materials at mills, manufacturers have again asked for a comprehensive industrial plantation policy. Currently, most paper mills source raw material in the form of trees and plants from plantations owned by farmers, since regulations don't allow industry ownership. On Wednesday, minister of state for commerce and industry C R Choudhary suggested the industry increasing its rate of recycling across categories. Choudhary was speaking at Paperex 2017, the world's largest exhibition for paper, paper products and related equipment. Recycling in India is 40-50 per cent; it is over 85 per cent in Japan, senior industry sources said."Today, the model of large players is farm forestry. We have partnered with farmers across Odisha, Andhra Pradesh, Gujarat and Maharashtra but with demand continuously rising, availability of wood is the single biggest problem," Harsh Pati Singhania, ...

Paper mills in unorganised sector face huge difficulties due to the implementation of the goods and services tax (GST), their lack of competitiveness to install green technology and disappearance of informal and cash trade. The government should facilitate integration of unorganised sector players into the formal system, says Saurabh Bangur, Vice Chairman, West Coast Paper Mills Ltd and President of Indian Paper Manufacturers' Association (IPMA) in an interview with Dilip Kumar Jha. Edited excerpts:What is driving cheaper imports of paper in India?India is a fibre-deficit country. With raw materials accounting for around 50 per cent of the cost of production, availability of fibre is the biggest constraint faced by Indian paper industry. For example, availability of wood in India is estimated at 9 million tonnes per annum (TPA) against its total requirement of 11 million TPA. Hence the price of wood in India is quoted $30-40 higher than the prevailing in ASEAN countries. This raises ..