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of nearly six million tones, and the industry is working towards the objective of attaining a production capacity of 13 million tones by the end of the year 2020. Like any other industry, the paper industry in India is also dominated by a number of top players and the names of some of the top operators in this industry are given below: Top players in the paper industry in India: • ITC PSPD • Ballarpur Industries Limited • JK Paper Limited • Tamil Nadu Newsprint & Papers Limited • Century Pulp & Paper • The Andhra Pradesh Paper Mills Limited • West Coast Paper Mills Limited Some of the details regarding these top players in the paper industry in India are given below: ITC PSPD: ITS PSPD is operating from its headquarters in the city of Secunderabad and they have their factories in different cities in India like Bollarum, Tribeni, Coimbatore and Bhadrachalam. Their branch offices are located at Ahmedabad, Bangalore, Chennai, Kolkata, Mumbai and New Delhi. They have introduced some of the products like DigiArt, Perma White, HiZine, Alfazap, etc… in the paper industry. Ballarpur Industries Limited: This company has its headquarters in the city of Gurgaon and factories in the states of Maharashtra and Orissa. Their branch offices are located in the cities like New Delhi, Chennai, Mumbai and Kolkata. They have introduced some of the products like ten on ten copier, LWC paper, sack paper and maplitho NSD paper. JK Paper Limited: JK Paper Limited is operating from their headquarters in the city of Delhi and they have their factories in the states of Gujarat and Orissa. Their branch offices are located in the cities of Chennai, Mumbai, Kolkata and New Delhi and some their products are Notepad, JK Printerblank, JK Pristine Cote, JK IV Board, JK Endura and cedar branded copier was also introduced by them in the paper industry. Tamil Nadu Newsprint & Papers Limited: The headquarters of this Public Sector undertaking is located in the city of Chennai and Tamil Nadu and their factory is located in the Karur District in Tamil Nadu. They have branch offices at Secunderabad, New Delhi, Nagpur, Mumbai, Kolkata, Ernakulam, Bangalore and Ahmedabad. Some of their products are AceMarvel, Perfect Copier, Commander A4 size paper. Century Pulp & Paper: Century Pulp & Paper company is operating from its headquarters in the city of Mumbai in Maharashtra and factory in the state of Uttarkhand. They have branches at Kolkata and New Delhi and some of the products introduced by them are:
• Unbleached Absorbent Kraft • Century Green, which is a copier paper made out of Recycled Fibre • Century Elenza, which is a wood based paper • Different grades of soft tissue papers The Andhra Pradesh Paper Mills Limited: This company has its headquarters in the city of Secunderabad and factories at Rajahmundry and MR Palem. They have branch offices at Bangalore, Kochi, Chennai, Mumbai, Kolkata and New Delhi. Their product range includes Andhra Royal Silk, Andhra Primavera, Andhra Starwhite and Reflection. West Coast Paper Mills Limited: West Coast Paper Mills is located in the city of Bangalore with its factory in Dandeli in the state of Karnataka. Their branch offices are located in cities like Chennai, Mumbai, Kolkata and New Delhi and they have introduced different copier papers and computer paper grades. Most of these top companies in the paper industry make their contribution to the society by using eco-friendly production techniques and they also help the society by offering a wide range of employment opportunities in their factories and offices in different parts of the country.
Paper industry in India is the 15th largest paper industry in the world. It provides employment to nearly 1.5 million people and contributes Rs 25 billion to the government's kitty. The government regards the paper industry as one of the 35 high priority industries of the country. Paper industry is primarily dependent upon forest-based raw materials. The first paper mill in India was set up at Sreerampur, West Bengal, in the year 1812. It was based on grasses and jute as raw material. Large scale mechanized technology of papermaking was introduced in India in early 1905. Since then the raw material for the paper industry underwent a number of changes and over a period of time, besides wood and bamboo, other non-conventional raw materials have been developed for use in the papermaking. The Indian pulp and paper industry at present is very well developed and established. Now, the paper industry is categorized as forest-based, agro-based and others (waste paper, secondary fibre, bast fibers and market pulp). In 1951, there were 17 paper mills, and today there are about 515 units engaged in the manufacture of paper and paperboards and newsprint in India. The pulp & paper industries in India have been categorized into large-scale and small-scale. Those paper industries, which have capacity above 24,000 tonnes per annum are designated as large-scale paper industries. India is self-sufficient in manufacture of most varieties of paper and paperboards. Import is confined only to certain specialty papers. To meet part of its raw material needs the industry has to rely on imported wood pulp and waste paper. Indian paper industry has been de-licensed under the Industries (Development & Regulation) Act, 1951 with effect from 17th July, 1997. The interested entrepreneurs are now required to file an Industrial Entrepreneurs' Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for setting up a new paper unit or substantial expansion of the existing unit in permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed on automatic route on all activities except those requiring industrial licenses where prior governmental approval is required. Growth of paper industry in India has been constrained due to high cost of production caused by inadequate availability and high cost of raw materials, power cost and concentration of mills in one
cooperatives of farmers. BILT Ten on Ten notebooks are targeted at students and are also available with licensed characters such as Barbie. BILT Graphic Paper Products Limited (BGPPL). is growing. Following measures need to be taken to make Indian paper industry more competitive: Improvements of key ports. Hotwheels. Since then. Building on its unmatched paper quality. Import duty on waste paper should be reduced. Sabah Forest Industries (SFI). In 2005. and elevated BILT’s ranking among the global top 100. Vederah is the Managing Director and Executive Vice Chairman. like. the company has acquired Premier Tissues India Limited. In 2008. and Bilt Tree Tech Limited (BTTL). Government has taken several policy measures to remove the bottlenecks of availability of raw materials and infrastructure development. The company has a dominant share of the high-end coated paper segment in India. giving it geographic coverage over most of the domestic market. and state government. Revision of forest policy is required for wood based paper industry so that plantation can be raised by industry. light weight online coated paper. (BIGPH). BILT Student Stationery has won ‘Product of the Year’ award for the last three consecutive years.V. the company has six manufacturing units. Future prospects of paper industry. BILT’s subsidiaries include Ballarpur International Graphic Paper Holdings B. roads and railways and communication facilities. which runs BILT’s farm forestry programme in several states in India. medical grade coated paper. For example. It accounts for over 53% of the coated wood-free paper market. BILT ventured into the paper-based office stationery segment. Spiderman. etc. Malaysia. BILT’s acquisition of SFI. Print and Pens – serving both B2C and B2B clients across India. filter paper. it transformed BILT into a major regional player. besides being India's largest exporter of coated and uncoated paper. tea bags.. BILT forayed into organised retail through P3 – Paper. R. to overcome short supply of raw materials. BILT Copy Power. Malaysia’s largest pulp and paper company. the leading player in hygiene tissue products in the domestic retail market. BILT has mega brands such as BILT Royal Executive Bond. The company markets its stationery through a well-established network of 350 retail distributors spread over 270 locations. Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation. BILT entered into the tissue and hygiene business with two brands: Etiquette and Spruce-up. Degraded forest land should be made available to the industry for raising plantations. Jungle King and Hannah Montana. BILT Image Copier and BILT Matrix that have now become an integral part of office stationery. an impressive 80% of the bond paper market and nearly 35% of the hi-bright Maplitho market. In India. Outlook Outlook for paper industry in India looks extremely positive as the demand for upstream market of paper products.particular area.R. duty on pulp and waste paper and wood logs/chips has been reduced. Ballarpur Industries Limited (BILT) is India’s largest manufacturer of writing and printing (W&P) paper. Winnie the Pooh. tissue paper. Mr. in 2007 was a watershed event – it was the first overseas acquisition by an Indian paper company. Indian paper and newsprint industry has a huge potentials and prospects in coming .
tissue paper. medical-grade coated paper. whereas it is 337 kg in North America. lightweight online coated paper. wood raw materials & technologies etc. There are vast demands in the area of tea bags. 22000-crore paper industry in India. The foreign direct investment is allowed upto 100% in paper industry except those who require industrial license with prior approval from Reserve Bank of India. Quality improvements and reduction v. vi.5 million people with the help of Rs. newsprint and paperboards in India with have the annual capacity of 8.future. filer paper. The Rs. ii. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd(HNL). Compare to this scenario India' par capita consumption is one of the lowest in the World. (SPBL). Indian Government has completely delicensed the paper industry under the Industries (Development & Regulation) Act with effect from17th July. country. Seshasayee Paper & Board Ltd. The interested entrepreneurs or existing players now require to file an Industrial Entrepreneur' Memorandum (IEM) with the Secretariat for Industrial Assistance(SIA) for setting up a new paper mill or substantial expansion of the existing mill in permissible locations. iii. Indian paper industry is one of the underestimated industries. 110 kg. rated 15th largest in world engaged about 1.3 million tones. iv. which likely to be 16 million tonnes by 2014. demand for paper and newspaper is rapidly increasing. because India's per capita consumption of paper is just about 5 kg. There are about 515 manufacturing units engaged in production of paper. 1997. Government has given paper industry as one of the 35 high-priority lists. Rising power and shipping logistics cost and concentration of mills in one particular area. ITC Paper. Remove the bottlenecks of good quality of raw materials (forest based wood pulp) and bulk import of waste paper to bridge the gap of short supply of raw materials. Tamil Nadu Newsprint and Papers Ltd(TNPL). Import duty on pulp and waste paper. No rehabilitations packages for near about 194 small-scale paper manufacturing units. 2500 crore Government subsidy. The biggest stumbling blocks in Indian paper industry: i. Few promising players in the paper production: . in China. In our. etc. High cost of raw materials and lack of modernization of the manufacturing units. which are sick or lying sick. Ballarpur Industries Ltd (BUILT). in Europe and 30 kg.
aseptic cartons and gypsum liners. Gradually company has increased its production to 2. 1000 crore for expanding of production capacity 4. They are expected to see in-house plup production going up to 440-tonnes a day from 240-tonnes a day. Company has emerged as the largest bagasse based Paper Mill in the world consuming about one million tones of bagasse every year. In their forthcoming ambitious project.000 tonnes per annum. Seshasayee Paper & Board Ltd.000 tonnes per annum. 25. wood logs/chips has been reduced.00.45. 20. company has plan to invest Rs. The Government has taken several steps to make availability of raw materials and infrastructure development to overcome the shortage of raw materials. graphic. ITC Paperboards & Specialty Papers Division is India's largest and most technologically advanced paper and paperboards business. 3. one of the South Indian based company have been producing Fine Paper since 1960.45. The TNPL has initial capacity of 90.000 tonnes of paper boards. Not only that BILT is the only Indian paper company to feature in the global top 100 list.000 crore 'paper fund'. writing. Now they are commissioning its new pulp production units with an additional investment of Rs. They have the customers over the 20 countries with extensive range of product cater the various customers. The Indian Paper Mills' Association(IPMA). part of the US$ 3 bn Avantha Group. Company is already pioneered in many specialty applications like cigarette tissues. ITC has the wide spectrum products like packaging.000 lakh tonnes from present 2. Expectations of the industry from the Government. IPMA also. Its recent acquisition of Malaysia's Sabah Forest Industries are expected to start operations by 2009-December.000-million by 2009 to boost its production capacity to 2 lakh tonnes. Duty on plup waste paper. suggested to setting up existing technology upgradation fund .Ballarpur Industries Ltd(BILT). printing and specialty paper through its four world-class mills in India. Tamil Nadu Newsprint and Papers Limited (TNPL) owned by the Government of Tami Nadu started early eighties to produce Newsprint and Printing & Writing Paper. In their Bhadrachalam plant. it has capacity to produce 4.000 million. BILT has an impressive 85% share of the bond paper market in India. has suggest to setting up of a Rs. ITC already made public announcement to invest Rs. end. is India's largest manufacturer of writing and printing paper. packaging boards.000 tonnes per annum. More than 50% of India's coated wood-free grades roll out of BILT's state-of-the-art plants and machineries.00..
Introduction of "Ecolabelling" system where in products made from recycled fibre are rated higher than the products made form virgin fibre. quality upgradation and product improvement. (iii) For Agro based industry: Funds to be made available for technology modernization and processing of agro residue fibre. road.g. etc. manufacturing sector. as a result near about 20 per cent direct and indirect taxation on paper industry including 12% VAT. Indian paper industry has direct linkage with educational sector. octroi. IPMA also.(TUF) for improvement of energy conversation. the Government does not permit forests to be used for sourcing woods by the corporate sector. (ii) For Waste Paper based Industry: Less export duty on Import of waste paper. rail. Most of the paper mills are using old . expected to grow by 10 per cent by the year 2010. urged the Government to reduce the excise duty from 12 per cent to 8 per cent for all type of paper mills as they are looking to upgradation of 25 per cent of their capacity. The Indian paper industry is growing at 8 per cent per annum. particularly for small & medium scale paper industries. It is also. port which will help the entire industrial sector Technology Upgradation There is a wide gap between the technologies of the domestic paper industry in India compared to that of the foreign countries. But. Introduction of modern and effective collection and grading system. Reduction of direct and indirect taxation can make more competitive player in the world. The following measures can be taken to make Indian Industry more competitive: Raw Material (i) For Wood based industry: The Indian paper and newsprint industry already urges the Government to amend the laws for immediate revision of forest policy so that plantation to make use of the degraded land for raising plantations for better quality of plup. Infrastructure Improvements of communication e. nor does it allow industrial plantation on degraded forestlands.
iii) China was another fear factor. a CAGR of 11.9%.technologies. as a result the ex-mill rates. Begasse can be introduced in replace of using bamboo. India also. rice or white straw.45 lakh tonnes in 2007. Government Policies (i) Social forestry scheme should be introduced to small and marginal farmers to promote sapling and know-how for raising plantations of fast growing trees with an assurance of a buy back at a remunerative price. (ii) The industry is also seeking permit duty free imports of new & second hand machinery/equipment for Technology Up gradation. Power Policy More uniform cost effective Power Policy for paper production units/mills. It has been estimated that domestic demand will touch 35. Newsprint prices with unprintable tag: Virtually paper industry is decontrolled and there is no price control on finished product. but currently we are using only 8%.9 lakh tonnes in 2004 to 26. ready for shipment. an estimated 55-million begasse is available. In a recent development.9%. it may gallope to $770 by the end of Q3 2008. risen from $608 to $710 per tonne. a CAGR of 10. i) Mass production by International Paper Manufacturer ii) Declining demand from UK and part of the Europe forced paper products to sell at economical rates in India.50 lakh tonnes to 16. a CAGR 14. Domestic consumption move up by 6. From North America we have imported 18. (iii) Right now. while import went up by 12.75 lakh tonnes. India had purchased imported newsprint at very economical rates. which is serious cause of resultant in low productivity with high costs of production. It has several reasons.3%.40 lakh tonnes to 9.70 lakh tonnes. an increase of $ 102 in just three months. imports bulk of newsprint from foreign countries. As a result entire cost has shifted upon the end-users. an increase of $145 since December 2007. . Last year. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per tonne. US-East Coast prices increased.54 lakh tonnes in year 2009.
12.Trends have reversed in North America. relax environmental laws to encourage captive plantations for raw materials. 2011. as a result prices rose up. they supply 40. which exceeded demand of 38. affect on freight rates. two million tonnes of production had fallen. Recently. which is one of the raw materials for paper industry. crude prices breached the mark $140. Rising Crude price also.35am IST Tags: JK PAPER| International Paper| Indian paper Indusrty| BILT| Andhra Pradesh Paper Mills Ltd. As global industry is not flourishing. with the help of implementation of setting up institutional mechanism for funding technology upgradation. They went for changing product mix. cutting excess capabilities and consolidation through buyouts. At the beginning of 2007. . nearly double to $270 per tonne in span of just 5 to 6 months. In China. old newsprint. Despite the growing demand for paper industry. we expect that in near future India may become market leader in paper industry.5 million tonnes. as a result plup prices increase from $575 to $750 per tonne. At the early 2008.3 million tonnes. AP Paper-International Paper deal: Will exuberance last for the lagging paper industry? Kiran Kabtta Somvanshi May 30. there should be new policies/projects to overcome the acute shortage of raw materials and infrastructure development.
Most of the leading players generate 20-22% return-on-equity. It is much lower than most of its Asian peers. has led to a churn in the industry with valuation getting re-rated and a renewed thrust on expansion. The Indian paper industry is growing on the back of economic growth. Another positive fall out of the deal was the initial public offerings of Servalakshmi Paper and Paramount Printpackaging. filter paper. . Indian paper companies are better than their global peers in terms of return-on-equity. plans to raise Rs 225 crore through foreign currency convertible bonds. a leading player in premium paper category. It has about 630 companies with an average production capacity of 39. Per capita paper consumption in India was 9. which was earlier planning to raise $330 million by listing on the London Stock Exchange. For instance. So is the paper sector indeed promising or was the AP Paper deal just an aberration? The answer lies in tracking the growth of paper consumption in India and financials of paper companies. shelved plans hoping for better valuations. water consumption and low cost. While paper as a sector is facing slowdown in the developed parts of the world. International Paper paid more than twice of AP Paper's market price due to its strategically located plant. JK Paper. raw material linkages. The industry is capitalintensive registering steady growth. The acquisition of Andhra Pradesh Paper Mills by the world's largest paper company. has gained a fresh lease of life after the acquisition of Andhra Pradesh Paper by International Paper. the acquisition of Andhra Pradesh Paper by the US company has turned the tide. The deal.6 kg against global average of 57. however. Growth in the sector will be led by increased consumption and rising capacities. established distribution network and low debt. both of them having been over-subscribed. Ballarpur Industries. as paper is one of the least volatile commodities. Paper prices have been rising and future outlook looks positive. AP Paper was acquired at 16 times its prevailing EV/EBITDA ratio of 7. it is steadily growing in developing countries like India and China. copier paper and coated paper is growing in India. But will this exuberance last? Finds out ET Intelligence Group's Kiran Kabtta Somvanshi The Indian paper industry is on a roll. packaging board and copier paper are growing above 10% per annum. thrust on educational initiatives and industrialisation. which was lagging behind in the markets. Demand for paper products such as tissue paper.6 kg in 2010. The paper sector has been low profile with a few patrons on the bourses despite being considered as a core sector by the government.000 tonne per player a year. The deal has turned the tide for the industry with paper stocks getting re-rated on the bourses. Most paper makers in India are in an expansion mode funding it through borrowings or internal accruals. due to peaking consumption levels.The Indian Paper Industry. tea bags. They are investing in upgrading their technologies to achieve more efficient and cost-effective scale of operations. Consumption growth and production base in the world has been increasingly shifting to Asia. efficiency of operations. has lifted the sentiment of the industry as a whole. industry data shows. International Paper. However. It has been one of the most under-valued sectors in the stock markets with average industry priceto-earnings in single-digit. Different types of papers such as office paper. which experts consider as a very high valuation. such as North America and Europe.
JK Paper. more acquisitions by intern-ational players cannot be ruled out. Its margins in paper business were hit by rising cost of pulp.5 lakh tonne per annum (TPA).300 crore to increase pulp capacity and lower dependence on imports by fiscal 2012-13. TNPL. merger and acquisition route may be used to expand inorganically. TNPL . APPM and Rainbow Papers are safe bets. The company is planning to list its international subsidiary on the London Stock Exchange. Increase in efficiency in operations and expansion of product portfolio will boost earnings. Its productivity and operating margins are seen improving over the next two years. APPM Andhra Pradesh Paper Mills has sold a majority stake to the US paper major. The paper industry is likely to consolidate in the near term and BILT. With most players wanting to grow to meet the rising demand. power and fuel. A part of the Avantha group. It has a capex plan of Rs 1. Andhra Pradesh Paper's current production capacity is 2. The proceeds from listing will help fund its expansion and improve profitability.860 crore.As a natural corollary. In case where an entire sector is getting re-rated. West Coast. it is the only Indian firm to feature in the list of top 100 paper companies of the world. investors need to be aware of the best companies to choose from. for about Rs 1. However. will benefit. International Paper. Leading players such as BILT. The fragmented industry is also a fertile ground that could see some consolidation. being the largest firm in the sector. The company could be worth investing in post acquisition due to the global expertise and brands that will come along with International Paper. The company has raised product prices to offset rise in input cost. It is the market leader in coated paper segment in India. BILT BILT is the largest paper company in India. Following is the snapshot of these investment-worthy companies in the sector and what investors can expect from them in the near term. high pulp prices will continue to weigh on the company's margins in the near term. Long-term investors can look at accumulating the stock at lower levels. With 100% FDI permitted in the sector. only players with integrated and efficient operations and clear-cut strategic advantages would be the ones to enjoy increased valuations.
It manufactures from waste paper. The company has started pulp manufacturing to cut cost of buying it from outside. Phase II expansion is currently in progress. JK PAPER JK Paper is the largest producer of branded paper in India and a leading player in fine paper and packaging board segment.2 lakh TPA. It manufactures newsprint. The company is promoted by the Tamil Nadu government.45 lakh TPA. incurring a capex of Rs 1.400 crore. The expansion will increase volume and improve operating profit margin. which includes building an integrated pulp and paper plant of 1. the company added 80. cost savings and improved realisations will boost the company's earnings. The use of bagasse as a raw material makes Tamil Nadu Newsprint one of the most efficient and cost-effective in the local paper industry. In fiscal 2010-11. The company plans to raise Rs 225 crore through foreign currency convertible bonds. WEST COAST PAPER Karnataka-based West Coast Paper is one of the most promising companies in the Indian paper sector. will boost earnings. It is used as a biofuel and as renewable resource in manufacture of pulp and paper products and building materials. built de-inking pulp plant to produce pulp from waster paper and implemented a lime sludge management project at a capex of Rs 385 crore.7% from 24. The company currently has a capacity of 2. In fiscal 2010-11. RAINBOW PAPER Ahmedabad-based Rainbow Papers is one of the fastest growing small paper companies. The company has been reporting robust performance since the past three quarters. Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. which is likely to be complete by the end of this year.Tamil Nadu Newsprint and Paper is the largest bagasse-based paper company in India. which will enable it to source raw material at cheaper . reinforcing confidence in its business.000 crore.7%. printing and writing paper. Increased demand for paper. Phase II expansion. Despite rise in waste paper prices.000 TPA capacity which led to enhanced performance in 2010-11. the company reported improvement in margins in the quarter ended March 2011. A small portion of its revenues is contributed by manufacture of optical fibre cable. The company is expanding its annual pulp-processing to 3 lakh TPA and paper-making capacity to 4 lakh TPA at a total investment of Rs 1. It also plans to build a pulp mill in South Asia. such as glazed newsprint and speciality papers.2 lakh TPA and a 20 MW captive power plant. It has management control in the country's leading newsprint maker Rama Newsprint through a 53% stake that strengthens its presence in the growth-oriented sector. It has a production capacity of 3. The company revamped its steam and power system. Commanding one of the best valuations on the bourses. firm paper prices. In its phase I expansion. the promoters increased their stake in the company to 29. the company undertook expansion of its paper production capacity to 4 lakh TPA from 2.7 lakh TPA. Its operating margin is one of the best in the industry. the company is engaged in manufacturing different varieties of paper and after the current capacity expansion it will also produce valueadded products. half of which is imported from overseas. The company's capacity addition and robust realisations have improved its profitability. It plans to increase its capacity by nearly 50% to 4 lakhs TPA by the end of 2012 when its plant in Orissa will be operational.
Its market valuation is a tad more than onefifth its annual net sales. the sector is a long-term play for investors. JK Paper's stock is undervalued with a trailing price-to-earnings multiple of 3. With the capacity expansion of most of these players rolling out over the next couple of years. INDIAN PAPER INDUSTRY . Capacity expansion and good demand will boost earnings.5.rates.
per annum Demand of paper has been around 8% and during the years 2002-07 newsprint registere growth of 13% age in world market Newsprint and publication paper consumption account for 2 million tonnes. etc. newsprint. During this time there were 15 mills with a total production of lakh tones. Owing to very narrow forest resources wood pulp is in a shortage. These 157 functional units manufacture handmade paper worth around Rs. Paper industry in India is mainly plantation based and is essential that more land must be brought under plantations of eucalyptus and other trees apposite for the making of papers.000 crore (USD 5. paperboard. In India the Soft wood is the principal raw material used for making paper especially newsprint and high class printing papers.2 m tonnes of newsprint paper is manufactured in India and the remaining 0.000 people. The capacity of Indian Paper Industry has been raised to 75. The Nepanagar Newsprint plant in Madtiya was set up to meet these aforementioned demands.he Industry Indian Paper Industry accounts for about 1. 10.6% of the world’s production of paper and paperboard. 2918 crore.000 tonnes.000 crores have been announced covering the various sectors like paper. The total newsprint production has now reached well over 400. History India first Machine-made paper was manufactured in 1812. A large number of expansion programmes & expansion of capacities with an outlay of Rs. As soft woods grow in temperate climate India is in short supply of such woods. Its requirement is bound to grow noticeably. Indian paper industry is a vast industry comprising more than 157 paper-producing divisions all over India.000 tonnes a year. . in such circumstances the Bamboo became the major raw materials for the manufacture of paper in the country as it grows very quickly even after cutting. Thus. The paper industry also requires huge amount of soft water and paper utilized for newspapers is called newsprint. Sanganer village is the biggest center in western India humming on the rhythm of the sound of paper making activities. of which 1.8 million tonnes i imported. West Bengal and Maharashtra are the leading states for the industry. The estimated turnover of the industry is Rs 25.95 billion) contribution to the exchequer is around Rs.21 cores and provide employment to approximately 10. With rise in population and broadening of education the demand for paper has been constantly escalated.
of which 1. Greeting Cards.Brief Introduction Indian Paper industry has created sustainable livelihood in rural areas and has helped generating employment for the local population especially for women to earn their livelihood. .000 millions. paper diaries.8 million tonnes is imported. 30 % from agro waste and 30 % from recycled fibre. Other products including Paper Bags.2 million tonnes of newsprint paper is manufactured in India and the remaining 0. filter paper. Market capitalization The Indian Paper Industry has the top 15 global players with an output of more than 6 millions tonnes annually with an estimated turnover of Rs. paper Albums. drawing sheets. Indian Paper Industry is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tonnes by 2010 & 13 million tonnes by 2020. The Indian Paper Industry has emerged as a diversified and specialized industry that produces numerous types of papers that comes in various use such as watermark. Size of the industry Indian Paper Industry accounts for about 1.400 crores worth of paper products per annum to the developed nations. paper photo Frames. are manufactured and exported across the world. Paper in India is made from 40% of hardwood and bamboo fibre. Today. 2918 crore.95 billion) and its contribution to the exchequer is around Rs.000 crore (USD 5. etc. The industry was delicensed effective from July 1997 by the Government of India & foreign participation is permissible. etc. Handmade paper Boxes. the Indian exporters export nearly Rs. Newsprint and publication paper consumption account for 2 million tonnes. The estimated turnover of the industry is Rs 25. 150. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern.6% of the world’s production of paper and paperboard.
34 million people indirectly. tissues. paper boxes. . paper production is likely to grow at a CAGR of 8. Containerboard. the Indian paper market witnessed a fivefold jump in the import of coated paper. India is the fastest growing market for paper globally and it presents an exciting scenario and paper consumption is poised for a big leap forward in sync with the economic growth and is estimated to touch 13. The toiletry products include paper towels. carbon paper are not a part of paper products industry. and bath tissue.4% while paper consumption will grow at a CAGR of 9% till 2012-13. Specialty papers like sandpaper. printing and writing papers. During last few years. Stationery includes greeting cards. stationery. So far.000 tonnes in 2008 from 2. The futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons.95 million tons by 2015-16. periodicals. school and office papers. Some of the paper products are sheet paper. blueprint paper. etc.Total contribution to the economy/ sales Demand of Paper has been around 8% and during the years 2002-07 while newsprint registered a growth of 13% and Writing & Printing.12 million people directly and 0. As per industry estimates. the growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7 % over the last few years. envelopes. Cartonboard and others registered growth of 5%. The import of pulp & paper products is likely to show a growing trend. and newspapers.000 tones. paper bags. 11%. The total import of this paper rose to 10. 9% and 1% respectively. Employment opportunities The industry provides employment to more than 0. tissue paper. and printed-paper products such as books.
The Rs. Indian paper and newsprint industry has a huge potentials and prospects in coming future. demand for paper and newspaper is rapidly increasing.40 lakh tonnes to 9. Ballarpur Industries Ltd (BUILT). ITC Paper. As a result entire cost has shifted upon the end-users. Tamil Nadu Newsprint and Papers Ltd (TNPL).000 people. filer paper. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd (HNL).5 million people with the help of Rs.75 lakh tonnes. Seshasayee Paper & Board Ltd. 110 kg in Europe and 30 kg in China. Whereas it is 337 kg in North America.The Indian Paper Manufacturers Association (IPMA) has urged the Centre to raise tariff walls or at least retain the 10% current level of import duties.3%. lightweight online coated paper. Domestic consumption move up by 6.Latest developments The US government’s recent move to clamp anti-dumping duty against the paper imports from China and Indonesia has affected the Indian paper manufacturers. These 157 functional units together manufacture paper worth around Rs.9 lakh tonnes in 2004 to 26. rated 15th largest in world engages about 1.45 lakh tonnes in 2007.9%. Newsprint and paperboards in India which have the annual capacity of 8. Government has given paper industry as one of the 35 high-priority lists. Compared to this scenario. a CAGR 14. a CAGR of 10.70 lakh tonnes. Indian handmade paper industry is a vast industry comprising more than 157 handmade paper-producing divisions all over India. imports bulk of newsprint from foreign countries. Virtually paper industry is decontrolled and there is no price control on finished product. 22000-crore paper industry in India. etc. From North America we have imported 18. There are about 515 manufacturing units of processing and production of paper. while import went up by 12. Updated: Jan 2011 Indian Industries Classified under RED category Aluminium industry. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per ton. India' par capita consumption is one of the lowest in the World.3 million tonnes. Construction . 21 crores and provide employment to 10. tissue paper. a CAGR of 11. is likely to be 16 million tonnes by 2014. Cement industry. In our. medical-grade coated paper. (SPBL). India also. 2500 crore Government subsidy. an increase of $145 since December 2007.50 lakh tonnes to 16.9%. country. Indian paper industry is one of the underestimated industries for quite some time because India's per capita consumption of paper is just about 5 kg. There are vast demands in the area of tea bags.
Aviation industry. Garment industry. Pearl industry. Mutual fund industry. Cottage industry. Poultry industry. IT industry. Fertilizer industry. Fashion industry. Printing industry. Film industry. Zinc industry Classified under ORANGE category Automobile industry. Jewellery industry. Jute industry. Plastic industry. Railway industry. Agricultural industry. Hotel industry. Biscuit industry. Cosmetic industry. Furniture industry. Solar industry . Real estate industry. Weaving industry Advertising industry. Pharmaceutical industry. Coir industry. Health care industry. Music industry. Paper industry. Banking industry. Mining industry.Soap industry.industry. Food Classified under GREEN category Processing industry. Insurance industry. Shipping industry. Tabacco industry. Electronic industry. Silk industry. Cotton industry.Biotechnology industry. Steel industry. Dairy industry. Sugar industry. Textile industry. Chocolate industry. Tractor industry. Leather industry. Diamond industry. Granite industry. Rubber industry. Paint industry. Oil industry. Copper industry. Power industry.
Also. The industry was delicenced in 1997 by the Government of India and made foreign participation permissible. cost of wood is much higher in global comparison.Stocks in India – Major Manufacturers.Paper Industry Issues. Sri Jayalakshmi Enterprises. however only about 20% waste paper is being currently recovered annually. India is the fastest growing market for paper globally with paper consumption set to rise with the economic growth and is estimated to touch 14 million tons in the next 5 years (Source IPMA) Paper Recycling in India Paper Recycling has several benefits. wheat straw. recycled fibre. bagasse. packing. In some instances. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern.5% of the global production of paper and parperboard with a size of around 5. Bagasse/ Straw: Though annual availability of agro residues is large yet. In India. packing. Recycling paper saves landfill space and reduces the amount of pollution in the air from incineration.List of Paper Companies. Issues with Paper Industry Wood: Indian wood resources are limited therefore. Using recycled paper to make new paper reduces the number of trees that are cut down. bamboo. Japan 60%.Moreover. this may not be able to sustain the future growth of the Industry. For instance in Germany it is 73%.5 billion dollars. rice husk and recycled fibre. Waste Paper: The recovery rate works out to about 20% which is much lower in comparison with 65% recovery achieved by many global players. bagasse is increasingly used by sugar mills for co-generation of power.The mills use a variety of raw material eg. recycling services are cheaper than trash-disposal services. etc. USA 49% and Italy 45 %. a Chennai based enterprise is one of the leading company in the recycling of old paper and cardboard for final recycling.Growth and Paper Recycling in India The Indian Paper Industry makes a small 1. Major Paper companies in India are: . Low recovery is on account of alternate use of paper in wrapping. Lack of source segregation results in waste paper getting contaminated and becoming unusable. conserving natural resources. Low recovery is on account of alternate use of paper in wrapping. Energy Cost: Cost of coal is escalating and prospect of availability of quality coal is diminishing. power purchased from the grid is proving expensive for the industry. In comparison in developed countries the percentage of recovery of waste paper is very high. etc. wood.
The furnish mix for the existing Paper Machines of the Company is 55% bagasse and 45% hardwood. 6.00.244 crores.Texiles. Ballarpur Industries is one of the largest paper companies in India. – TNPL makes paper primarily from Bagasse.With a market cap of Rs.2. 2. The sales turnover was 280 crores & net profit margin was 8.It was the first in India to use 100% hardwood in place of 100% bamboo. 4. West Coast Paper Mills .The Company completed a Mill Expansion Plan in 2010 to increase the mill capacity to 4.40% of the issued share capital of Ballarpur.The production capacity is 3. JK Paper L .109 crores.74. Other Major Paper and Pulp Manufactuers are Century. The turnover of the company was Rs.With a market cap of Rs. They recycle and reuse water resources.5% (Mar 2010).300 crores (Mar 2010).20. ‘Cedar’ etc.1090 crores. integrated pulp and paper manufacturing companies in India. It took over Coastal Papers Ltd in 2001.000 TPA. 7.Orient Paper Mills. Rama Newsprint and Papers is India’s largest private sector Newsprint and Printing & Writing paper manufacturing facility at a single location. from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe. Members of the Avantha Group own 49. Seshasayee Paper & Boards – The flagship company belonging to ‘ESVIN GROUP’.500 crores with a net profit margin of 7. 5.275 crores & it achieved a sales turnover of Rs.455 crores.1.1. 8.540 crores.TNPL exports about 1/5th of its production to more than 30 countries. with net profit margin of 12% (Mar 2010). namely sugarcane waste using as little wood as possible.900 crores & recorded a Sales turnover of Rs. Bilt Paper s focused on the manufacture of bulk coated and uncoated paper and viscous grade fibre while the rest of the Ballarpur Group focuses on the manufacture of copier paper. speciality paper and tissue paper.000 TPA. Rainbow Papers – With a market cap of Rs. 3. The sales turnover was Rs.5% (Mar 2010).44.000 tonnes . Retail and OSSB. India’s largest producer of branded papers & a leading player in fine papers & packaging board segments. It has a market capitalisation of Rs. Ballarpur Industries is also listed on the BSE and National Stock Exchanges in India. it is part of one of India’s leading business houses – JK organisation which has significant presence in Cement & Tyres. It recorded a sales turnover of around Rs. . The market cap of the company is Rs. Rama Newsprint & Paper -With a market cap of Rs.000 crores with a net profit margin of 5% (Jun 2010). Nearly 95% of the Company’s product mix comprises high value products marketed under various popular brand names like ‘JK Copier’.Emami and Abhishek Industries.Cigarette etc.000 TPA. ‘JK Bond’.ITC Bhadrachalam.300crores .547 crores.The market cap of the company is Rs.They are not pure play paper companies but manufacture other products as well such as FMCG. having an installed capacity of 1. with a net profit margin of 7% (Mar2010).5% (Mar 2010). It offers a plethora of world class products ranging from Duplex to File Board. Andhra Pradesh Paper Mills Ltd. Ballarpur Industries Ltd. The takeover of APMM by a foreign paper company International Paper with a substantial premium has raised the valuations of the other paper companies listed in India. Its production capacity is 1. . It achieved a sales turnover of Rs.650 crores with a net profit margin of 8.670 crores & net profit margin 8% as on March 2010. – With a market cap of Rs. APPM is one of the biggest.4. Tamil Nadu Newsprint & Papers Ltd. Rainbow today is one of the fastest growing corporations in the Indian Paper Industry. JIt recorded a sales turnover of 1300 crores.
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