2. The global pulp and paper industry consists of
about 5000 industrial pulp and paper mills, and
an equal number of very small companies.
Broadly, the industry can be classified into two
segments:
- Paper and paperboard (writing, printing,
packaging and tissue). The writing and printing
paper market can be further divided into coated
and uncoated segments.
- Newsprint mainly uses for newspapers,
INTRODUCTION
3. Contd….
The US is the largest market for paper product
and commands high per capita consumption.
Asia’s main markets are China, Japan, India,
Malaysia, Singapore and Thailand.
In 2005, Japan had the highest per capita
consumption (247 kg), followed by Singapore
(228 kg), Malaysia (106 kg), Taiwan (51 kg) China
(42 kg), Indonesia (22 kg) and Philippines (16 kg).
India’s per capita consumption is estimated to
be 7.0 kg in 2006.
4. India first machine-made paper was
manufactured in 1812.
During this time there were 15 mills with a total
production of lakh tones.
With broadening of education, the demand for
paper has been constantly escalated. Owing to
very narrow forest resources, wood pulp is in
shortage. Thus, the bamboo became the major
raw materials for the manufacture of paper in the
country.
The capacity of Indian Paper Industry has been
HISTORY
5. The Paper and Pulp Industry falls
under Primary Sector Industries
as it involves extraction of natural
resources such as wood from
trees, to make papers.
Type of Industry
6. The index of Industrial Production(IIP) recorded a decline
of 0.01% in FY14. Paper and paper products industry saw
growth of only 0.1% yearly. However the industry saw a
revival in FY15 with a growth of 3% yearly. In 8th month of
FY16, it recorded a growth of 3.2% y/y.
Of the total installed capacity, 43 per cent is dependent on
forest based raw materials, 28 per cent on agro based raw
materials and the remaining 29 per cent on other materials
including waste paper.
The growth in paper industry has mirrored the growth in
GDP and has grown on an average of 6-7% over the last
few years.
Nature of the
Industry
8. The paper industry in India is one of the
most thriving industries in the country.
The Indian paper industry accounts for
about 1.6 per cent of the world’s
production of paper and paperboard.
Indian paper industry is the 15th largest
in the world and provides employment
to 1.3mn people in country contributing
Rs25bn to the government
Scenario of Industry in India
9. The global paper and paperboard industry is
dominated by North America, Europe and Asia.
Global paper and paperboard production stood
at around 380 million tons in 2008, the US
leading with over 100 million tons and
accounting for nearly a third of the world’s
production. It is expected to increase to 392
million tonnes by 2010 and 490.0 million
tonnes by 2020.
Global Scenario
10. According to “India Paper Industry Forecast &
Opportunities, 2017” the paper industry in India is
expected to grow at the CAGR (Compound Annual
Growth Rate) of around 9.6% during 2012-2017,
which will make the revenues of paper industry of
India to reach up to USD 11.83 Billion by 2017. About
70% of the total installed capacity of paper production
in India is accounted by Gujarat, West Bengal,
Orissa, Andhra Pradesh, Karnataka and Maharashtra.
Uttar Pradesh, Tamil Nadu, Haryana, Kerala, Bihar
and Assam together account for about 25% of the
total paper production in India.
Future Trends
11. Competitive strengths:
Large and growing domestic paper market.
Relatively low personnel and fuel costs.
Well developed printing industry.
Competitive Weakness:
Fibre shortage.
Small and fragmented industry structure.
Environmental problems of most of the small pulp mills
and also some big mills.
Impact of high local taxes (sales tax, entry tax etc.)
SWOT Analysis
12. Competitive Opportunities:
Enormous domestic market potential.
WTO: foreign participation/ FDI would speed up
restructuring.
Low labor cost.
Competitive Threats:
Unprepared mills for international competition.
Decline in capacity.
Short term planning for raw material
Contd….
13. Central Excise is levied @8 per cent for the first
3500 MT production and thereafter @12 per cent on
the value of the invoice.
Being classified as a manufacturing industry, the
industry even for Job Work on conversion basis will
not be subjected to Service Tax requirements.
All the licenses required under Municipality Act,
Factories Act are obtained and duly renewed.
Necessary permission under effluent discharge Act
is obtained and the facilities required to maintain the
permission are in place for pollution control
Government
Regualtions
14. The foregoing discussion traced that the
Indian paper industry is a booming
industry and is expected to grow in the
years to come. The usage of paper
cannot be ignored and this awareness is
bound to bring about changes in the
paper industry for the better.
Key Learnings
