Paper Industry

INTRODCUTION
The Paper Industry in India is witnessing significant growth and capacity expansions to meet the growing demand for paper consumption as a result of growth in education sector and increasing literacy rate. Increased economic activity is providing the players an opportunity for growth and expansion. 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). 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. 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. 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, childrens play books and comics.

Target Anchors:

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Ballarpur Industries Ltd ITCBhadrachalam Andhra Pradesh Paper Mills Ltd . (PR1) Tamil Nadu Newsprint & Papers Ltd. Rainbow Papers(BBB-) West Coast Paper Mills JK Paper L(A1) Seshasayee Paper & Boards

(A+) (LAA-) by ICRA (A+) (A+)

y Rama Newsprint & Paper(LC) by ICRA