Indian Paper Industry Likely To Touch 11.

5 Mt By 2011-12: ASSOCHAM

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Indian paper industry is poised to grow and touch 11.5 million tonnes from 9.18 million tonnes to 2011-12 from 2009-10 at the rate of 8% per annum, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM). The ASSOCHAM paper on “Growth of Paper Industry in India“, indicated that per capita paper consumption increased to 9.18 kg on 2009-10 as compared to 8.3 kg during 2008-09. Still, the figure is low (9.2 kg) compared to 42 kg in China and 350 kg in developed countries. India has emerged as the fastest growing market when it comes to consumption, posting 10.6% growth in per capita consumption of paper in 2009-10. India produces many varieties of papers, namely, printing and writing paper, packaging paper, coated paper and some speciality paper. Varieties under printing and writing paper are creame wove paper, super printing paper, maplitho paper (non-surface and surface size), copier paper, bond paper and coating base paper and others. The varieties under packaging paper are kraft paper, boards, poster paper and others. The other varieties under coated paper are art paper/board, chromo paper/board and others. There are approximately 600 paper mills in India, of which twelve are major players. Paper in India is made from 40 per cent of hardwood and bamboo fibre, 30 per cent from agro waste and 30 per cent from recycled fibre. Newsprint and publication paper account for 2 million tonnes, of which 1.2 million tonnes of newsprint paper is manufactured in India and the remaining 0.8 million tonne is imported. India imports about two million tonnes of pulp (soft wood and hardwood) and waste paper (sack waste for unbleached grades, envelopes waste, cup stock for white grades and magazine waste) for newsprint. Indian paper industry can be more competitive by adding improvements of key ports, roads and railways and communication facilities, revision of forest policy is required for wood based paper industry so that plantation can be raised by industry, cooperatives of farmers, and state government. Degraded forest land should be made available to the industry for raising plantations.Import duty on waste paper should be reduced,Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation. The paper industry in India looks extremely positive as the demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade coated paper, etc., is growing up. The following prime grades of paper are imported from USA, Europe, Dubai and Singapore: label stock, wet strength papers, tea bag tissue, soft tissue, filter paper, insulation kraft, extensible kraft, decorative laminates, overlay tissue, thermal papers, digital papers, coated papers/boards and some specialities. Stock lots of all grades totaling about 200,000 tonnes arrive every year mostly from USA and Europe. These are imported by traders in major metro cities of Mumbai, Chennai, Cochin, Bengaluru and Delhi. India has surplus to export some grades. It exports following grades of papers to Middle East, South Eastern countries, Eastern Europe and USA: A4 copiers, wood-free (mostly from bamboo and agro waste by several small mills), MG varieties (from small agro based mills), coated duplex (mostly recycled fibre) and large quantity of converted products like stationery items, calendars, books, magazines, children’s play books and comics. Major issues confronting India’s pulp and paper industry are high cost of production caused by inadequate availability and high cost of raw materials, power cost and concentration of mills in one particular area, non-availability of good-quality fibre, uneconomical plant size, technological obsolescence and environmental challenges, highlighted the ASSOCHAM paper. The cost of wood to Indian players is $50 per metric tonne compared to around $30 internationally. While issues related to technology, capacity and environment come directly under the purview of companies, raw material shortage is a disadvantage affecting all domestic companies. There are not many mills that have integrated wet-end systems in the overall control strategy. The paper mill, is the formative stage in a paper making process and any forward control strategy results in impressive gains in terms of quality. Likewise, energy, being the

http://www.assocham.org/prels/printnews.php?id=2460

6/20/2010

Home About Us News Events Services Publications Policies mail your suggestions & queries regarding website to webmaster © The Associated Chambers of Commerce and Industry of India ASSOCHAM Corporate Office. Dealers and end users can track their orders as the product moves through various stages of production. Only integrated automation and enterprise systems will enable these industries to achieve sustainable competitive advantage.assocham.5 Mt By 2011-12: ASSOCHAM Page 2 of 2 significant portion of production cost. Collaborative production management systems will improve the mill management and business systems radically. is getting less attention in terms of monitoring the overall consumption of power across various sections of the plant. Another area is integration of raw material flow information on realtime basis and utilising the same to effectively control the quality at various stages. and supply chain management systems have not received adequate attention from the paper industry management. Quality control labs with statistical models can be linked to give advantage to both production and quality control personnel. As a result. including intelligent motor control centres with mill distributed control systems (DCS). With the country’s economy growing robustly.in http://www.Indian Paper Industry Likely To Touch 11.php?id=2460 6/20/2010 . Kailash Colony. New Delhi – 110 048 Phone: 46550555 (Hunting Line) Fax: 46536481/46536482 46536497/46536498 Email: assocham@nic. Businesses will not survive with just traditional automation systems. 1. and integrating them to achieve collaborative production management. Community Centre Zamrudpur. will help in monitoring the overall energy consumption. Essentially. and the existing gap is a good indicator of the industry’s growth potential. such as enterprise resource planning systems. the pulp and paper industry in India lags behind its Asian and global counterparts. Also there exists a lack of coordination between the automation department and IT within the mill. Integration of electrical systems. Enterprise solutions. This means paper mills in India have tremendous opportunity to improve their profit margin by increasing their investments in automation systems and enterprise solutions. manufacturing execution systems or collaborative production management systems. there is a huge potential for automation and system integrators to work collaboratively with India’s pulp and paper companies and help them acquire the competitive edge. the paper consumption in India is bound to expand.org/prels/printnews.

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