he paper industry in India is one among the top 15 players in the global market, the industry offers an output

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

R. BILT Student Stationery has won ‘Product of the Year’ award for the last three consecutive years. duty on pulp and waste paper and wood logs/chips has been reduced. and state government. The company markets its stationery through a well-established network of 350 retail distributors spread over 270 locations. which runs BILT’s farm forestry programme in several states in India. BILT entered into the tissue and hygiene business with two brands: Etiquette and Spruce-up. the company has six manufacturing units. Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation. BILT Image Copier and BILT Matrix that have now become an integral part of office stationery. tea bags. Government has taken several policy measures to remove the bottlenecks of availability of raw materials and infrastructure development. Mr. BILT ventured into the paper-based office stationery segment. In India. Vederah is the Managing Director and Executive Vice Chairman. roads and railways and communication facilities. Hotwheels. Outlook Outlook for paper industry in India looks extremely positive as the demand for upstream market of paper products. For example. cooperatives of farmers. light weight online coated paper. Sabah Forest Industries (SFI).particular area. medical grade coated paper. Spiderman. and Bilt Tree Tech Limited (BTTL). etc. in 2007 was a watershed event – it was the first overseas acquisition by an Indian paper company. an impressive 80% of the bond paper market and nearly 35% of the hi-bright Maplitho market. Winnie the Pooh. Future prospects of paper industry. it transformed BILT into a major regional player. Following measures need to be taken to make Indian paper industry more competitive:   Improvements of key ports. like. Print and Pens – serving both B2C and B2B clients across India. Jungle King and Hannah Montana. Indian paper and newsprint industry has a huge potentials and prospects in coming . (BIGPH). BILT Copy Power. It accounts for over 53% of the coated wood-free paper market. giving it geographic coverage over most of the domestic market. In 2005.R.. is growing. the company has acquired Premier Tissues India Limited. BILT Graphic Paper Products Limited (BGPPL). Degraded forest land should be made available to the industry for raising plantations. the leading player in hygiene tissue products in the domestic retail market. In 2008. Building on its unmatched paper quality. BILT forayed into organised retail through P3 – Paper. to overcome short supply of raw materials. tissue paper. Malaysia. The company has a dominant share of the high-end coated paper segment in India. Since then. BILT Ten on Ten notebooks are targeted at students and are also available with licensed characters such as Barbie.   Import duty on waste paper should be reduced. BILT’s acquisition of SFI. filter paper. besides being India's largest exporter of coated and uncoated paper. Ballarpur Industries Limited (BILT) is India’s largest manufacturer of writing and printing (W&P) paper. and elevated BILT’s ranking among the global top 100. Revision of forest policy is required for wood based paper industry so that plantation can be raised by industry.V. Malaysia’s largest pulp and paper company. BILT has mega brands such as BILT Royal Executive Bond. BILT’s subsidiaries include Ballarpur International Graphic Paper Holdings B.

There are vast demands in the area of tea bags. No rehabilitations packages for near about 194 small-scale paper manufacturing units. Compare to this scenario India' par capita consumption is one of the lowest in the World. rated 15th largest in world engaged about 1. Tamil Nadu Newsprint and Papers Ltd(TNPL). tissue paper.future. 110 kg.3 million tones. country. 1997. wood raw materials & technologies etc. 22000-crore paper industry in India.5 million people with the help of Rs. Rising power and shipping logistics cost and concentration of mills in one particular area. Quality improvements and reduction v. High cost of raw materials and lack of modernization of the manufacturing units. because India's per capita consumption of paper is just about 5 kg. The Rs. filer paper. which likely to be 16 million tonnes by 2014. (SPBL). Ballarpur Industries Ltd (BUILT). vi. newsprint and paperboards in India with have the annual capacity of 8. Indian paper industry is one of the underestimated industries. demand for paper and newspaper is rapidly increasing. etc. Seshasayee Paper & Board Ltd. which are sick or lying sick. Government has given paper industry as one of the 35 high-priority lists. In our. medical-grade coated paper. ii. iv. in Europe and 30 kg. whereas it is 337 kg in North America. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd(HNL). The biggest stumbling blocks in Indian paper industry: i. iii. lightweight online coated paper. Indian Government has completely delicensed the paper industry under the Industries (Development & Regulation) Act with effect from17th July. 2500 crore Government subsidy. 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. ITC Paper. 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. 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. Import duty on pulp and waste paper. Few promising players in the paper production: . in China. There are about 515 manufacturing units engaged in production of paper.

3. has suggest to setting up of a Rs. They have the customers over the 20 countries with extensive range of product cater the various customers. BILT has an impressive 85% share of the bond paper market in India.000-million by 2009 to boost its production capacity to 2 lakh tonnes. printing and specialty paper through its four world-class mills in India. one of the South Indian based company have been producing Fine Paper since 1960. aseptic cartons and gypsum liners. packaging boards. ITC has the wide spectrum products like packaging. Tamil Nadu Newsprint and Papers Limited (TNPL) owned by the Government of Tami Nadu started early eighties to produce Newsprint and Printing & Writing Paper. writing. wood logs/chips has been reduced. The TNPL has initial capacity of 90. Not only that BILT is the only Indian paper company to feature in the global top 100 list. end. ITC already made public announcement 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.000 tonnes per annum.000 tonnes per annum. Company has emerged as the largest bagasse based Paper Mill in the world consuming about one million tones of bagasse every year.00. graphic.Ballarpur Industries Ltd(BILT). ITC Paperboards & Specialty Papers Division is India's largest and most technologically advanced paper and paperboards business. They are expected to see in-house plup production going up to 440-tonnes a day from 240-tonnes a day. In their forthcoming ambitious project. More than 50% of India's coated wood-free grades roll out of BILT's state-of-the-art plants and machineries.000 crore 'paper fund'. is India's largest manufacturer of writing and printing paper. Expectations of the industry from the Government. 1000 crore for expanding of production capacity 4.000 tonnes of paper boards.45.000 tonnes per annum. 25.00. In their Bhadrachalam plant. 20. Duty on plup waste paper. company has plan to invest Rs.45. Its recent acquisition of Malaysia's Sabah Forest Industries are expected to start operations by 2009-December. suggested to setting up existing technology upgradation fund . Seshasayee Paper & Board Ltd. Now they are commissioning its new pulp production units with an additional investment of Rs. Gradually company has increased its production to 2.000 lakh tonnes from present 2. part of the US$ 3 bn Avantha Group. it has capacity to produce 4.. Company is already pioneered in many specialty applications like cigarette tissues.000 million. IPMA also. The Indian Paper Mills' Association(IPMA).

octroi. manufacturing sector. Reduction of direct and indirect taxation can make more competitive player in the world. The Indian paper industry is growing at 8 per cent per annum. the Government does not permit forests to be used for sourcing woods by the corporate sector. Most of the paper mills are using old . Indian paper industry has direct linkage with educational sector. Introduction of modern and effective collection and grading system.g. But. Infrastructure Improvements of communication e. IPMA also. (iii) For Agro based industry: Funds to be made available for technology modernization and processing of agro residue fibre. as a result near about 20 per cent direct and indirect taxation on paper industry including 12% VAT. It is also. etc. quality upgradation and product improvement. 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. nor does it allow industrial plantation on degraded forestlands. 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. (ii) For Waste Paper based Industry: Less export duty on Import of waste paper. rail. Introduction of "Ecolabelling" system where in products made from recycled fibre are rated higher than the products made form virgin fibre.(TUF) for improvement of energy conversation. particularly for small & medium scale paper industries. 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. expected to grow by 10 per cent by the year 2010. road.

which is serious cause of resultant in low productivity with high costs of production. it may gallope to $770 by the end of Q3 2008. Last year. 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.technologies.54 lakh tonnes in year 2009. a CAGR of 11. Begasse can be introduced in replace of using bamboo. as a result the ex-mill rates. a CAGR of 10. US-East Coast prices increased. while import went up by 12. imports bulk of newsprint from foreign countries.75 lakh tonnes. 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. Domestic consumption move up by 6. As a result entire cost has shifted upon the end-users. ready for shipment. rice or white straw.70 lakh tonnes.9%. India also.45 lakh tonnes in 2007. (iii) Right now. It has been estimated that domestic demand will touch 35.50 lakh tonnes to 16.40 lakh tonnes to 9. (ii) The industry is also seeking permit duty free imports of new & second hand machinery/equipment for Technology Up gradation. an increase of $145 since December 2007. iii) China was another fear factor. Power Policy More uniform cost effective Power Policy for paper production units/mills. but currently we are using only 8%. an increase of $ 102 in just three months. risen from $608 to $710 per tonne. From North America we have imported 18. an estimated 55-million begasse is available. India had purchased imported newsprint at very economical rates. .9%. a CAGR 14.3%.9 lakh tonnes in 2004 to 26. It has several reasons. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per tonne. In a recent development. Newsprint prices with unprintable tag: Virtually paper industry is decontrolled and there is no price control on finished product.

with the help of implementation of setting up institutional mechanism for funding technology upgradation. Recently. we expect that in near future India may become market leader in paper industry.3 million tonnes.  . affect on freight rates.5 million tonnes. which is one of the raw materials for paper industry. there should be new policies/projects to overcome the acute shortage of raw materials and infrastructure development. At the beginning of 2007. crude prices breached the mark $140. They went for changing product mix. nearly double to $270 per tonne in span of just 5 to 6 months. 12. Rising Crude price also. old newsprint. 2011. which exceeded demand of 38. relax environmental laws to encourage captive plantations for raw materials.35am IST      Tags: JK PAPER| International Paper| Indian paper Indusrty| BILT| Andhra Pradesh Paper Mills Ltd. as a result plup prices increase from $575 to $750 per tonne. they supply 40. At the early 2008. cutting excess capabilities and consolidation through buyouts. As global industry is not flourishing.Trends have reversed in North America. Despite the growing demand for paper industry. AP Paper-International Paper deal: Will exuberance last for the lagging paper industry? Kiran Kabtta Somvanshi May 30. as a result prices rose up. In China. two million tonnes of production had fallen.

plans to raise Rs 225 crore through foreign currency convertible bonds. packaging board and copier paper are growing above 10% per annum. The paper sector has been low profile with a few patrons on the bourses despite being considered as a core sector by the government. The acquisition of Andhra Pradesh Paper Mills by the world's largest paper company. 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. Another positive fall out of the deal was the initial public offerings of Servalakshmi Paper and Paramount Printpackaging. The deal. thrust on educational initiatives and industrialisation. Different types of papers such as office paper. Growth in the sector will be led by increased consumption and rising capacities. Per capita paper consumption in India was 9. has led to a churn in the industry with valuation getting re-rated and a renewed thrust on expansion.6 kg in 2010. Demand for paper products such as tissue paper. has gained a fresh lease of life after the acquisition of Andhra Pradesh Paper by International Paper. efficiency of operations. The Indian paper industry is growing on the back of economic growth. which experts consider as a very high valuation. Most paper makers in India are in an expansion mode funding it through borrowings or internal accruals. But will this exuberance last? Finds out ET Intelligence Group's Kiran Kabtta Somvanshi The Indian paper industry is on a roll. Most of the leading players generate 20-22% return-on-equity. AP Paper was acquired at 16 times its prevailing EV/EBITDA ratio of 7. International Paper paid more than twice of AP Paper's market price due to its strategically located plant. raw material linkages. International Paper. They are investing in upgrading their technologies to achieve more efficient and cost-effective scale of operations. It has about 630 companies with an average production capacity of 39. For instance.000 tonne per player a year. While paper as a sector is facing slowdown in the developed parts of the world. The industry is capitalintensive registering steady growth. the acquisition of Andhra Pradesh Paper by the US company has turned the tide. a leading player in premium paper category. as paper is one of the least volatile commodities. It is much lower than most of its Asian peers. it is steadily growing in developing countries like India and China. It has been one of the most under-valued sectors in the stock markets with average industry priceto-earnings in single-digit. however. JK Paper. which was lagging behind in the markets. Ballarpur Industries. such as North America and Europe. . The deal has turned the tide for the industry with paper stocks getting re-rated on the bourses. Paper prices have been rising and future outlook looks positive.6 kg against global average of 57. copier paper and coated paper is growing in India. Indian paper companies are better than their global peers in terms of return-on-equity. established distribution network and low debt. filter paper. both of them having been over-subscribed. Consumption growth and production base in the world has been increasingly shifting to Asia. due to peaking consumption levels. which was earlier planning to raise $330 million by listing on the London Stock Exchange. has lifted the sentiment of the industry as a whole. tea bags. However. shelved plans hoping for better valuations. industry data shows. water consumption and low cost.The Indian Paper Industry.

With 100% FDI permitted in the sector. Leading players such as BILT. International Paper.860 crore. With most players wanting to grow to meet the rising demand. The company has raised product prices to offset rise in input cost.300 crore to increase pulp capacity and lower dependence on imports by fiscal 2012-13. APPM and Rainbow Papers are safe bets. high pulp prices will continue to weigh on the company's margins in the near term. JK Paper. APPM Andhra Pradesh Paper Mills has sold a majority stake to the US paper major. Its productivity and operating margins are seen improving over the next two years. it is the only Indian firm to feature in the list of top 100 paper companies of the world. BILT BILT is the largest paper company in India. West Coast. Long-term investors can look at accumulating the stock at lower levels. Increase in efficiency in operations and expansion of product portfolio will boost earnings. Its margins in paper business were hit by rising cost of pulp. It has a capex plan of Rs 1.As a natural corollary. The fragmented industry is also a fertile ground that could see some consolidation. TNPL. more acquisitions by intern-ational players cannot be ruled out. The company could be worth investing in post acquisition due to the global expertise and brands that will come along with International Paper. merger and acquisition route may be used to expand inorganically. will benefit. The paper industry is likely to consolidate in the near term and BILT. investors need to be aware of the best companies to choose from. The company is planning to list its international subsidiary on the London Stock Exchange. Andhra Pradesh Paper's current production capacity is 2. being the largest firm in the sector. Following is the snapshot of these investment-worthy companies in the sector and what investors can expect from them in the near term. The proceeds from listing will help fund its expansion and improve profitability. only players with integrated and efficient operations and clear-cut strategic advantages would be the ones to enjoy increased valuations. It is the market leader in coated paper segment in India. However. In case where an entire sector is getting re-rated.5 lakh tonne per annum (TPA). for about Rs 1. A part of the Avantha group. power and fuel. TNPL .

which will enable it to source raw material at cheaper . Increased demand for paper. Despite rise in waste paper prices. reinforcing confidence in its business. 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. The company revamped its steam and power system. the promoters increased their stake in the company to 29. A small portion of its revenues is contributed by manufacture of optical fibre cable. will boost earnings.000 TPA capacity which led to enhanced performance in 2010-11.7% from 24. It is used as a biofuel and as renewable resource in manufacture of pulp and paper products and building materials. It manufactures from waste paper. the company added 80.7%. 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. It manufactures newsprint. the company undertook expansion of its paper production capacity to 4 lakh TPA from 2. Commanding one of the best valuations on the bourses. incurring a capex of Rs 1.2 lakh TPA. The company currently has a capacity of 2. It also plans to build a pulp mill in South Asia. which is likely to be complete by the end of this year.7 lakh TPA. 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. In fiscal 2010-11. In fiscal 2010-11. Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. JK PAPER JK Paper is the largest producer of branded paper in India and a leading player in fine paper and packaging board segment. 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.Tamil Nadu Newsprint and Paper is the largest bagasse-based paper company in India. The company has been reporting robust performance since the past three quarters. In its phase I expansion. 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.2 lakh TPA and a 20 MW captive power plant. It has a production capacity of 3. The expansion will increase volume and improve operating profit margin. The company is promoted by the Tamil Nadu government. printing and writing paper. cost savings and improved realisations will boost the company's earnings. which includes building an integrated pulp and paper plant of 1.400 crore. Phase II expansion. The company plans to raise Rs 225 crore through foreign currency convertible bonds.000 crore. half of which is imported from overseas.45 lakh TPA. The company has started pulp manufacturing to cut cost of buying it from outside. such as glazed newsprint and speciality papers. Phase II expansion is currently in progress. The company's capacity addition and robust realisations have improved its profitability. Its operating margin is one of the best in the industry. WEST COAST PAPER Karnataka-based West Coast Paper is one of the most promising companies in the Indian paper sector. firm paper prices. the company reported improvement in margins in the quarter ended March 2011. the company is engaged in manufacturing different varieties of paper and after the current capacity expansion it will also produce valueadded products. RAINBOW PAPER Ahmedabad-based Rainbow Papers is one of the fastest growing small paper companies.

INDIAN PAPER INDUSTRY . Capacity expansion and good demand will boost earnings. With the capacity expansion of most of these players rolling out over the next couple of years.rates. JK Paper's stock is undervalued with a trailing price-to-earnings multiple of 3. Its market valuation is a tad more than onefifth its annual net sales. the sector is a long-term play for investors.5.

The estimated turnover of the industry is Rs 25. paperboard. 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. With rise in population and broadening of education the demand for paper has been constantly escalated.21 cores and provide employment to approximately 10.000 people. The total newsprint production has now reached well over 400.000 crore (USD 5. 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. Indian paper industry is a vast industry comprising more than 157 paper-producing divisions all over India. A large number of expansion programmes & expansion of capacities with an outlay of Rs. The Nepanagar Newsprint plant in Madtiya was set up to meet these aforementioned demands. newsprint.95 billion) contribution to the exchequer is around Rs. In India the Soft wood is the principal raw material used for making paper especially newsprint and high class printing papers. Owing to very narrow forest resources wood pulp is in a shortage. Sanganer village is the biggest center in western India humming on the rhythm of the sound of paper making activities.000 tonnes. of which 1. The paper industry also requires huge amount of soft water and paper utilized for newspapers is called newsprint. As soft woods grow in temperate climate India is in short supply of such woods.000 tonnes a year. . 2918 crore. 10. etc. These 157 functional units manufacture handmade paper worth around Rs. Its requirement is bound to grow noticeably.he Industry Indian Paper Industry accounts for about 1. West Bengal and Maharashtra are the leading states for the industry. 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. History India first Machine-made paper was manufactured in 1812. Thus.2 m tonnes of newsprint paper is manufactured in India and the remaining 0. During this time there were 15 mills with a total production of lakh tones.6% of the world’s production of paper and paperboard.000 crores have been announced covering the various sectors like paper. The capacity of Indian Paper Industry has been raised to 75.8 million tonnes i imported.

2918 crore.6% of the world’s production of paper and paperboard. paper Albums. Newsprint and publication paper consumption account for 2 million tonnes. are manufactured and exported across the world.95 billion) and its contribution to the exchequer is around Rs. 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.8 million tonnes is imported. Today.400 crores worth of paper products per annum to the developed nations. the Indian exporters export nearly Rs. paper diaries. etc. Other products including Paper Bags. etc. 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 estimated turnover of the industry is Rs 25.000 crore (USD 5. Size of the industry Indian Paper Industry accounts for about 1. Handmade paper Boxes.2 million tonnes of newsprint paper is manufactured in India and the remaining 0. paper photo Frames. filter paper. 30 % from agro waste and 30 % from recycled fibre. Greeting Cards. .000 millions. The industry was delicensed effective from July 1997 by the Government of India & foreign participation is permissible.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. 150. 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. of which 1. drawing sheets. Paper in India is made from 40% of hardwood and bamboo fibre. 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.

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. So far. Cartonboard and others registered growth of 5%. the Indian paper market witnessed a fivefold jump in the import of coated paper.34 million people indirectly. The total import of this paper rose to 10. 9% and 1% respectively. school and office papers. paper bags. and bath tissue. envelopes.000 tones. Employment opportunities The industry provides employment to more than 0. printing and writing papers. Stationery includes greeting cards.12 million people directly and 0. 11%. and printed-paper products such as books. blueprint paper. the growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7 % over the last few years. The toiletry products include paper towels. Some of the paper products are sheet paper.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. stationery.000 tonnes in 2008 from 2.95 million tons by 2015-16. 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. paper boxes. Specialty papers like sandpaper. carbon paper are not a part of paper products industry. tissues. During last few years. The import of pulp & paper products is likely to show a growing trend. tissue paper.4% while paper consumption will grow at a CAGR of 9% till 2012-13. periodicals. paper production is likely to grow at a CAGR of 8. Containerboard. As per industry estimates. etc. . and newspapers.

Seshasayee Paper & Board Ltd. Whereas it is 337 kg in North America.3 million tonnes. 110 kg in Europe and 30 kg in China. Newsprint and paperboards in India which have the annual capacity of 8. demand for paper and newspaper is rapidly increasing.5 million people with the help of Rs. 21 crores and provide employment to 10. imports bulk of newsprint from foreign countries.45 lakh tonnes in 2007. is likely to be 16 million tonnes by 2014.9%. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per ton. etc.50 lakh tonnes to 16. lightweight online coated paper. Tamil Nadu Newsprint and Papers Ltd (TNPL).75 lakh tonnes.40 lakh tonnes to 9. The Rs. Construction . There are about 515 manufacturing units of processing and production of paper. a CAGR of 10.9 lakh tonnes in 2004 to 26. India also.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. In our. From North America we have imported 18. Indian handmade paper industry is a vast industry comprising more than 157 handmade paper-producing divisions all over India. rated 15th largest in world engages about 1. (SPBL). Updated: Jan 2011 Indian Industries Classified under RED category Aluminium industry. Cement industry.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. country. Virtually paper industry is decontrolled and there is no price control on finished product. Ballarpur Industries Ltd (BUILT).9%. There are vast demands in the area of tea bags. Domestic consumption move up by 6. 22000-crore paper industry in India. a CAGR of 11.000 people.70 lakh tonnes. ITC Paper. filer paper. an increase of $145 since December 2007. 2500 crore Government subsidy. As a result entire cost has shifted upon the end-users. Indian paper and newsprint industry has a huge potentials and prospects in coming future. tissue paper. India' par capita consumption is one of the lowest in the World. Government has given paper industry as one of the 35 high-priority lists. medical-grade coated paper. Compared to this scenario. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd (HNL). These 157 functional units together manufacture paper worth around Rs. while import went up by 12. a CAGR 14.3%. 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.

Music industry. Agricultural industry.Biotechnology industry. Fashion industry. IT industry. Cosmetic industry. Railway industry. Copper industry. Textile industry. Furniture industry. Printing industry. Steel industry. Hotel industry. Cotton industry. Film industry. Mining industry. Shipping industry. Plastic industry. Paper industry. Mutual fund industry. Jewellery industry. Solar industry . Poultry industry. Fertilizer industry. Sugar industry. Coir industry. Granite industry. Garment industry. Diamond industry. Tractor industry. Paint industry. Silk industry. Electronic industry. Power industry. Insurance industry.Soap industry.industry. Chocolate industry. Tabacco industry. Oil industry. Food Classified under GREEN category Processing industry. Rubber industry. Aviation industry. Pearl industry. Jute industry. Dairy industry. Zinc industry Classified under ORANGE category Automobile industry. Banking industry. Leather industry. Real estate industry. Health care industry. Weaving industry Advertising industry. Biscuit industry. Cottage industry. Pharmaceutical industry.

  Major Paper companies in India are: . USA 49% and Italy 45 %. recycling services are cheaper than trash-disposal services. bagasse is increasingly used by sugar mills for co-generation of power.5% of the global production of paper and parperboard with a size of around 5. cost of wood is much higher in global comparison. Lack of source segregation results in waste paper getting contaminated and becoming unusable. rice husk and recycled fibre. In some instances.The mills use a variety of raw material eg.Paper Industry Issues.5 billion dollars. Low recovery is on account of alternate use of paper in wrapping. Issues with Paper Industry   Wood: Indian wood resources are limited therefore. For instance in Germany it is 73%. 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. Energy Cost: Cost of coal is escalating and prospect of availability of quality coal is diminishing. Sri Jayalakshmi Enterprises. Low recovery is on account of alternate use of paper in wrapping. a Chennai based enterprise is one of the leading company in the recycling of old paper and cardboard for final recycling. packing. conserving natural resources.Moreover. Using recycled paper to make new paper reduces the number of trees that are cut down. wheat straw. wood.List of Paper Companies. 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. Recycling paper saves landfill space and reduces the amount of pollution in the air from incineration. In comparison in developed countries the percentage of recovery of waste paper is very high. recycled fibre. this may not be able to sustain the future growth of the Industry. etc. packing. Bagasse/ Straw: Though annual availability of agro residues is large yet. The industry was delicenced in 1997 by the Government of India and made foreign participation permissible. Japan 60%. etc. Also.Growth and Paper Recycling in India The Indian Paper Industry makes a small 1.Stocks in India – Major Manufacturers. 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. power purchased from the grid is proving expensive for the industry. bamboo. In India.

Ballarpur Industries is one of the largest paper companies in India. 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.000 tonnes .650 crores with a net profit margin of 8.109 crores.The production capacity is 3.40% of the issued share capital of Ballarpur. Rainbow Papers – With a market cap of Rs. JIt recorded a sales turnover of 1300 crores.TNPL exports about 1/5th of its production to more than 30 countries.300 crores (Mar 2010). – With a market cap of Rs.It was the first in India to use 100% hardwood in place of 100% bamboo. Tamil Nadu Newsprint & Papers Ltd. 6. . ‘JK Bond’. with net profit margin of 12% (Mar 2010). Ballarpur Industries is also listed on the BSE and National Stock Exchanges in India.They are not pure play paper companies but manufacture other products as well such as FMCG. .300crores . They recycle and reuse water resources. namely sugarcane waste using as little wood as possible. JK Paper L . It recorded a sales turnover of around Rs. 2. speciality paper and tissue paper. Andhra Pradesh Paper Mills Ltd. Other Major Paper and Pulp Manufactuers are Century.1. from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe. India’s largest producer of branded papers & a leading player in fine papers & packaging board segments. The turnover of the company was Rs.Orient Paper Mills.670 crores & net profit margin 8% as on March 2010. 5.44.000 TPA. ‘Cedar’ etc.455 crores.5% (Mar 2010). – TNPL makes paper primarily from Bagasse. having an installed capacity of 1. 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. It has a market capitalisation of Rs. Its production capacity is 1. 4. Rama Newsprint & Paper -With a market cap of Rs.The Company completed a Mill Expansion Plan in 2010 to increase the mill capacity to 4. It offers a plethora of world class products ranging from Duplex to File Board.Emami and Abhishek Industries. The sales turnover was Rs.1090 crores.Cigarette etc.ITC Bhadrachalam. with a net profit margin of 7% (Mar2010).000 TPA. It took over Coastal Papers Ltd in 2001. The market cap of the company is Rs.5% (Mar 2010). 7.275 crores & it achieved a sales turnover of Rs.000 crores with a net profit margin of 5% (Jun 2010).74. Rama Newsprint and Papers is India’s largest private sector Newsprint and Printing & Writing paper manufacturing facility at a single location.500 crores with a net profit margin of 7. APPM is one of the biggest. The sales turnover was 280 crores & net profit margin was 8.000 TPA.With a market cap of Rs.540 crores. integrated pulp and paper manufacturing companies in India.With a market cap of Rs.547 crores.900 crores & recorded a Sales turnover of Rs. Ballarpur Industries Ltd.The market cap of the company is Rs.5% (Mar 2010).4. 8. Nearly 95% of the Company’s product mix comprises high value products marketed under various popular brand names like ‘JK Copier’. 3.00.2.244 crores. It achieved a sales turnover of Rs. Retail and OSSB.Texiles. it is part of one of India’s leading business houses – JK organisation which has significant presence in Cement & Tyres. Members of the Avantha Group own 49.20.1. West Coast Paper Mills . Seshasayee Paper & Boards – The flagship company belonging to ‘ESVIN GROUP’. Rainbow today is one of the fastest growing corporations in the Indian Paper Industry. The furnish mix for the existing Paper Machines of the Company is 55% bagasse and 45% hardwood.

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