Our Core Ideology

We Will Always Work For One Common Goal, And That Is To Contribute Towards The Development Of Our Nation. We Will Do Everything To Ensure the Growth Of MSME, Job Creation, Reducing Poverty, Encouraging Life-Long Learning Attitude In All The Citizens That We Deal With,

Develop Meritocratic Mindset In The Youth And Entrepreneurs, and Make Them Confident & Competent.

All Our Products And Services Would Be Passionately Focused On Fulfilling These Commitments For

All Above Mentioned Target Groups.

PAPER INDUSTRY

OBJECTIVE• To present Macro sketch of Paper Industry –

global viz-e-viz Indian context as per my research understanding

• To add to our knowledge basket as a part of upgrading our capabilities and to make us more confident.

Flow of Presentation

1. History 2. Global Perspective3. Indian Perspective

1. Types of industries and category2. India V/s Global3. Production and Consumption Pattern4. Current status of Indian Paper Industry5. Drivers and challenges6. Constraints7. Strategies to overcome8. Opportunities

Paper Production is Bad for Environment?

or

Paper Production is Bad for Climate?

History• Word Paper?   From papyrus plant. 

• Birthplace of paper?

China in 105 AD  

• 14th Century European papermakers continue the innovation 

• 16th Century Literature and literacy supported by paper mills’ increasing productivity (190 mills)

 • 19th Century Emergence of wood based paper and increased mechanisation • 20th Century Full-scale industrialisation - innovation and specification lead to new paper grades and paper uses 

Paper can be impregnated, enamelled, creped, waterproofed, waxed, glazed, sensitised, bent, folded, twisted, crumpled, cut, torn, dissolved, moulded and embossed.

Global Perspective

321.4 328.1360.0 366.0 382.0 402.0

490.0

2002 2003 2004 2005 2006 2010 2020

Paper and Paperboard Production – Global Market, 2002-20 (in million tones)

Global Paper Production 2012

The world’s total paper production amounted to 400 MT in 2012

In Asia the main producer of paper are China, Japan and India.

In Europe Sweden, Germany, Finland and

In North America USA and Canada are main producer of paper.

Global PerspectiveThe global pulp and paper industry consists of about 5000 industrial pulp and paper mills, and an equal number of very small companiesBroadly, classified into two segments:1. Paper and paperboard

(writing, printing, packaging and tissue) Further divided into coated and uncoated segments.

2. Newsprint For newspapers, flyers, and other printed material intended for mass distribution.

Indian PerspectiveThe paper industry in India could be classified into 3 categories according to the raw material consumed

1. Wood based (eucalyptus, bamboo)2. Agro based (Wheat straw and Rice straw, sugarcane residue-

bagasse)3. Waste paper based (recycled fiber)

Total 850

Wood (Large) 16

Agro (Medium) + Waste paper (Small)

834

Indian Paper CategoryPrinting and Writing

Newsprint

Packaging

B

Ballarpur comes on 82 rank

JK paper comes on 99 rank

Among Packaging Industries by PwC 2015

Indian Perspective – Current

Printing and Writing

Newsprint

Packaging

0 50 100 150 200 250

110

34

222

5.25

1.04

7.3

Variety-wise production of paper/paperboard and status of India

Indian Production in MT World Capacity Production in MT

Production and Consumption PatternImported Item includes wood pulp and waste paper

Indian Perspective – Current

• Accounts 1.6% of the world’s production of paper and paperboard.

• The estimated turnover of the industry is Rs. 35,000 crore

• Output of more than 13.5 Million tonnes annual.• Paper industry current growth rate is 6.5 to 7%

CAGRThe demand is growing by 8 to 8.5% CAGR and is

likely to reach 31 MT by 2022

Drivers and Challenges

DRIVERS • Growth in Education Sector • Growth in Press Publications • Increased Demand for

Packaging • Increased Toll Collection

Operations

CHALLENGES • High input costs • Increasing Internet

Penetration • E-books Growth • Low rate of paper recycle

Constraints1. Raw Material Availability:

1. Wood Base Mills –– Acute Shortage of pulpwood– Non availability of land for captive pulpwood plantations– High Capital Investment with long gestation period

2. Agro Base Mills –– Harvesting mechanism of wheat mainly the combine harvester which recovers only

75% of straw and leaves 25% in the field itself – Lower thermal efficiency at sugar mill which consumes more quantity of bagasse, so

less supply of bagasse

3. Recycle Mills –– Poor recovery of waste paper collection mechanism

Constraints2. High Cost of basic Inputs viz. raw material, energy, chemicals.

The Indian paper industry uses 20% more raw material; about 30% more energy, 200% more water & 10% more chemicals as compared to a modern European mill.

3. Scale of Operation/adoption of state-of-art technologies Obsolesce of technology and high cost if its imported.4. Environmental Compliance Requirement of high capital investment5. Lack of Skilled Manpower

Lack of adequate infrastructure or facilities / training centre or courses to provide skilled manpower for pulp and paper sector

STRATEGIES

1. Rs. 42000 crore investment for wood based mills.

2. Rs. 10,700 crore for Modernization ad capacity expansion for existing agro based mills.

3. Rs.42,800 crore for Recycle waste for importing plant and machinery.

4. Total 98,250 crore for 12th five year plan 2012-2017.

5. Such a large investment for the paper industry would need long term funding (10 years) at a low rate of interest and also support of equity from Venture Capital Funds.

STRATEGIES

1. Eight Institutes producing 316 people2. 10 crore fund for educational, training and RnD institutes

Total Manpower working 51000

Large Mills (Wood) 21000

Medium (Agro) 15000

Small (Waste Paper) 15000

Opportunities

Production and exports of pulp 2012

Production and exports of Paper 2012

OpportunitiesNet Trade of Paper in 2012

Net imports Net exports

THANK YOU

Sources

1. A Report by Working group on Pulp and Paper sector Committee report dated 14th November 2011.

2. Central Pulp & Paper Research Institute (CPPRI), A National level institute to promote R&D in the field of pulp & paper, was established in 1980.

3. PwC Reports - Global Forest, Paper & Packaging Industry Survey 2016 edition survey of 2015 results.

4. A Study On Paper Industry Of India - Management Research Project –I.

5. Indian Paper Manufacturer Associations (IPMA).