For healthy pulp & paper industry


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Pulp and paper manufacture needs agri-forestry dependent raw material and modern environment friendly chemical and paper making process.

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For healthy pulp & paper industry

  1. 1. Technological Status & Potential of Productivity Enhancement in IndianPulp & Paper Industry under Existing Liberalization & GlobalisationScenarioPREAMBLEIn 2002 a study was made, on “Global Competitiveness of Indian PaperIndustry”. The objective of the study was to assess the competitive abilityand sustainability of Indian Paper Industry due to increasing competitionnot only in global paper market also in domestic market context due to India’sinitiation into open market economy.The study was a milestone in outlining a road map to frame out strategies &policies for sustenance and growth of Indian paper industry as well asbecoming globally competitiveOver the last decade , since the submission of this report, the Indian PaperIndustry has gone through significant changes in technological andenvironmental status including capacity expansion, adoption of modern fiberline technologies, improved environmental management etc .However inspite of significant improvement in Technological & Environmental status overthese years, the Indian Paper Industry is facing stiff challenges not only inglobal but even in domestic market especially from countries like, China,Indonesia, Thailand , Malaysia etc. The major challenges before the industryinclude sustained raw material availability of uniform quality, quality andavailability & price of waste Paper, high cost of basic inputs, issues relatedGovernment policy and regulations in accordance with open market economy,Shortage of Trained & Qualified Manpower, Sustenance crisis of Agro Based 1
  2. 2. Mills producing kraft paper (below 50 tpd) due to environmental noncompliance, Lack of indigenous technology/equipment development etcIn this scenario there is an urgent need to explore and evaluate the potentialof productivity enhancement in Indian Paper Industry in order to formulate thestrategies or action plan to address the above issues in order to beglobally competitive in existing liberalised & globalised scenario.OBJECTIVE OF THE STUDYTo evaluate the technological status and explore potential of productivityenhancement in Indian Paper Industry, prepare a road map or action plan forimplementation both by Industry as well as Government to improve theindustry’s overall sustainability and competitive ability in domestic andinternational market.A) DEMAND FORECAST FOR PAPER, NEWSPRINT, PAPERBOARDS AND KRAFT PAPER IN INDIA UP TO THE YEAR 2030: This forecast should take a stock of demand drivers such as a growth in literacy rate, industrial growth, and increase in population; etc. Correspondingly it should also consider effects of growth of electronic media as well as substitution effects of alternative materials like plastic , jute etc. This part- must also study the end user trend in printing, writing, packaging and new segments and the shifts taking place between them. 2
  3. 3. The study has to focus on “end-use demand influentials like growth in the:- 1) Printing and publishing industry; 2) Study of Central Government purchasing; 3) Demand of I.T. peripherals (printers), photocopier manufactures; 4) Growth in circulation of newspaper and magazines; 5) Growth in demand for packaging material; & 6) Paper substituting products ;B) POTENTIAL EXPORT MARKET FOR NEWSPRINT , COATED AND UNCOATED WOOD FREE DUPLEX BOARD , RECYCLED LINER , FLUTING ETC: Details of trends in exports of various products, forecast for future export markets catered by Indian Paper IndustryC) RAW MATERIALS: 3
  4. 4. Availability of cellulosic raw materials in the country viz-a-viz existing Government policies with the clear cut recommendation for the Government and Industry on the steps to be taken to ensure sustained availability of cellulosic raw materials to meet the demand growth in paper, paper products & newsprint. The study should look into all categories of fibrous raw materials namely:- Virgin fiber {Wood, Bamboo}; Agricultural residues {Bagasee, Cereal straw & Annual plants, etc.} & Recycled fiber {Waste paper}; (Domestic recovery and needs for further improvement in domestic recovery; Traditional waste paper scenario; Future of imports of waste paper in India ;)D) INDUSTRY STRUCTURE Details of the scale of operation , installed and operating capacities , capacity utilization and their growth projections in various segments of the IndustryE) COST POSITION OF THE INDUSTRY Details of unit level cost of basic inputs and comparison with leading paper manufacturing countries, analysis of main cost drivers and cost structure of various products 4
  5. 5. F) TECHNOLOGY STATUS OF INDIAN PAPER INDUSTRY VIS A VIS GLOBAL TECHNOLOGY TRENDS Segment wise technological status of Indian paper Industry along with analysis of technology gaps with leading pulp and paper manufacturers, recommended technologies for all segments of the Industry along with cost benefit analysisG) RESEARCH & DEVELOPMENT & HUMAN RESOURCEDEVELOPMENT Need for R&D , Current Status, Focussed Areas , Future Scope & Prospects Status of Human resource availability , prospects of training & human resource management in the industryH) COMPETITIVENESS SWOT analysis of paper industry to assess its competitiveness in context of:1) Scale of Operation: Integrated mills (wood, bamboo & bagasse based); 5
  6. 6.  Agro raw materials based mills (straw, bagasse & others); Recycled fiber (wastepaper) based mills; (Optimum scale of operation for each raw material)2) Quality Benchmarks: Quality bench mark with corresponding products from Asian countries like Indonesia, China, Thailand and developed countries like Sweden, Finland and USA for the different grades of paper likea) Writing & Printing Grade of paper ( Wood based , Agro Based & RCF Based)b) Newsprint Grade of Paper (Wood based , Agro Based & RCF Based)c) Unbleached Kraft Paper (Wood based , Agro Based & RCF Based)d) Coated Papere) Coated duplex board; &f) Test liner / KLB;3) Cost of Production: 6
  7. 7. a) Pulp stage (Virgin fiber – wood & agro ) for chemical & mechanical;b) Recycled fiber-processing stage; &c) Paper stage (both for virgin & recycled fiber furnish);d) Cost analysis for each Component namely; Raw material, Chemicals, Energy, Manpower, Fuel , Power , Interest, Depreciation and Environment & other Socio-Economic costs. Determine the disadvantage of Indian manufactures with respect of high cost and shortage of fibre, cost of Government administered inputs, infrastructural inadequacy, cost of finance, labour productivity, scale of operations, etc. Michel Porter‘s analysis of factors affecting competitive position of Industry and its profitabilityI) MANAGEMENT PRACTICES: Marketing Management; Quality Management; Inventory Management; 7
  8. 8.  Financial Management; Energy and Environment Management;J) REVIEW OF GOVERNEMNT REGULATIONS & IMPACT : 1. Newsprint production scenario India and reasons for low production & low quality and suggestion for improved new structure including cost reduction 2. Impact of Import tariffs / duties / direct / indirect taxes etc and suggestions 3. Depreciation of the Indian currency viz-a-viz the US Dollar and the resultant cushioning effect. 4. Thrust on literacy. 5. Prevailing lassiez – affairs environment with respect to use of non- biodegradable materials (lack of any homogenized Government Policy). 6. Foreign Direct Investments In Pulp And Paper Industry: 7. Export Policy , Export Potential, Facilitation of Export 8
  9. 9. 8. Other demand stimulating mechanisms. 9. Exit Policies (LABOUR). 10. Forest Policy and 11. Environmental Policy.K) PRINTING & PACKAGING INDUSTRY IN INDIA  Status and Opportunities;  Incentive required;  Potentiality for Indian printing& Packaging industry as outsource- sing hub for international printing industry;  Structure of printing & packaging industry;  Quality of paper and printing;  R&D and HRD potential in printing & packaging industry 9