APPENDIX

Profile of Indian Paper Industry

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 Paper Industry Map of India (Large Plants)

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 Global Paper Industry
Per Capita Consumption (in kgs)
Country
USA 354
Germany 215
UK 215
France 153
Japan 243
Sweden 257
China 30
India 9
Source: FAO, CPPRI data projection

Expected demand and supply for paper

(in million tonnes)
Year Demand Supplies Shortfall
1995-96 3.28 2.41 0.87
2000-01 4.95 3.26 1.69
2005-06 6.70 4.16 2.54
2010-11 8.55 4.91 3.64
2015-16 10.88 5.81 5.07
Source: “The Reverse Logistics Model in the paper industry”, The Productivity, Vol. 44,
(3), 2003, pp. 444.

Variety wise production of paper from different raw materials (2010-11)

(million tonnes)
Variety of paper
RCF/Waste
Wood based Agro based Total
paper based

Writing/printing
2.36 0.73 0.81 3.90

Packaging
0.77 1.50 3.15 5.42

Newsprint Nil 0.79

0.03 0.76

Grand Total 3,16 2.23 4.72 10.11

Source: Industry & CPPRI

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 Variety wise production of paper from different segments of Indian paper industry

Source: Industry & CPPRI

Projected Consumption and Production of paper

Source: Industry & CPPRI

Indicators of innovation in the paper industry

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 Projected Production of Paper
(Million tonnes)
Wood Agro Based Recycled Baseline
Total
YEAR Resources resources Paper production
Production

2010-11 3.20 2.2 4.7 10.1 10.1

2011-12 3.40 2.3 5.1 10.9 10.9
2012-13 3.70 2.5 5.7 11.8 11.7
2013-14 4.00 2.7 6.2 12.9 12.5
2014-15 4.30 2.9 6.8 14.1 13.3
2015-16 4.60 3.2 7.5 15.3 14.1
2016-17 5.03 3.4 8.3 16.7 14.8
2021-22 8.00 5.4 14.7 28.0 19.6
2024-25 9.00 6.3 17.8 33.4 22.0
2026-27 10.80 7.4 21.5 39.7 23.5
Source: Industry & CPPRI

Projected Imports of paper

(Million tons)
Year Total Consumption Imports Domestic
Consumption
2010-11 11.2 1.0 10.1
2011-12 12.0 1.1 10.9
2012-13 13.0 1.2 11.8
2013-14 14.2 1.3 12.9
2014-15 15.4 1.4 14.1
2015-16 16.8 1.5 15.3
2016-17 18.4 1.7 16.7
2022-23 31.0 2.9 28.0
2024-25 36.9 3.5 33.4
2026-27 43.9 4.3 39.7
Source: Industry & CPPRI

Product wise pattern of growth demand

(Million tons)
Product Product Current Current Current Production
Growth % domestic import Consumption by 2025
production
Writing 7 0. 81 - 0.81 1.9
Printing
Packaging 9 3. .15 2 - 3.15 8.2
(Duplex
Board &
Kraft
Newsprint 6 0.76 0.95 1.71 1.6
Total 7.8 4.72 0.95 5.67 11.7
Source: Industry

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 Projected demand of waste paper for next five years without improvement in
current recovery rate
(Million tonnes)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16

Total Paper & Paperboard

consumption (at average 12.0 12.9 13.8 14.6 15.5
growth rate of 7.8%)
Production through RCF/WP 5.1 5.5 5.8 6.2 6.6
Waste Paper requirement to
6.8 7.3 7.7 8.2 8.7
meet the production
Indigenously recovered waste
3.2 3.5 3.7 3.9 4.2
paper (at 27% recovery rate)
Waste paper import 3.6 3.8 4.0 4.3 4.5
Share of Indigenous & 48%:52%
Imported waste paper
Source: Industry
Projected demand of waste paper for next five years with improvement
in current level of recovery *
(Million tons)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16

Total Paper & Paperboard

consumption (at average 12.0 12.9 13.8 14.6 15.5
growth rate of 7.8%)
Production through RCF/WP 5.1 5.5 5.8 6.2 6.6
Waste Paper requirement to
6.8 7.3 7.7 8.2 8.7
meet the production
Indigenously recovered waste
3.2 3.5 3.7 3.9 4.2
paper (at 27% recovery rate)
Waste paper import 0.8 0.9 0.8 0.9 1.0
Share of Indigenous & 89%:11%
Imported waste paper
Source: Industry
Per Capita Consumption of Paper in India
(in kgs)
Years Consumption
1951 0.46
1961 0.87
1970 0.25
1975 1/39
1980 1/76
1985 1.89
1990 2.20
1995 3.40
2000 5.00
2005 6.50
2010 7.50
2011 9.18
Source: Indian Pulp of Paper Technical Association (IPPTA),
Conventional issue, December- 98, pp.36.

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 Growth of Indian Paper Industry

Source: CMIE/ Industry/CPPRI

Export and Import of Paper, Paper Board and Newsprint

(million tonnes)
Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Paper/paper Export
0.18 0.22 0.23 0.28 0.304 0.339 0.325 0.334 0.369 0.518
Board

Newsprint 0.001 0.006 0.003 0.005 0.008 0.004 0.004 0.006 0.013 0.009

Total Export 0.181 0.226 0.233 0.285 0.312 0.343 0.329 0.340 0.382 0.527

Paper/paper Import
0.118 0.15 0.24 0.19 0.291 0.348 0.451 0.437 0.614 0.632
Board

Newsprint 0.45 0.54 0.77 0.68 0.69 0.79 0.89 0.97 0.85 0.95

Total
0.56 0.69 1.01 0.87 0.981 1.138 1.341 1.407 1.464 1.582
Export

Source: CMIE

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 Schematic Diagram of Chemical Recovery Flow Process

Typical Pulp & paper Manufacturing Proces

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 Employment and Output in Paper and Printing Industry
(Output in Rs crore and persons employed in ‘000)
Share of Printing &
Paper & paper Printing &
Year Publishing in total
products Publishing
PaperSector
Persons Value of Persons Value of Persons Value of
employed Output employed Output employed Output
2003-04 174.9 20534.0 113.0 11044.3 39.2 35.0
2004-05 178.1 22696.8 115.4 12942.4 39.3 36.3
2005-06 177.7 24887.6 134.9 16894.0 43.2 40.4
2006-07 190.1 27663.6 144.6 19596.4 43.2 41.5
2007-08 251.4 35863.9 145.1 22907.5 36.6 39.0
2008-09 273.2 39432.5 146.3 240876.2 37,1 39.7
2009-10 276.5 40671.3 148.6 25345.4 39.4 42.6
Source: Industry
Projected Consumption of Paper
(Million Tonnes)

Writing Packaging Total

Baseline
YEAR paper Paper News Print consumption
Scenario

2010-11 4.0 5.4 1.7 11.2 11.2

2011-12 4.3 5.9 1.8 12.0 12.1
2012-13 4.6 6.4 1.9 13.0 13.0
2013-14 5.0 7.1 2.1 14.2 13.8
2014-15 5.4 7.8 2 2.2 15.4 14.7
2015-16 5.8 8.6 2.4 16.8 15.6
2016-17 6.3 9.4 2.6 18.4 16.5
2021-22 9.3 15.2 3.9 28.4 21.8
2024-25 11.8 20.2 4.9 36.9 23.5
2026-27 13.8 24.5 5.7 43.9 25.3
Source: Industry & CPPRI

Imports and Exports of Paper

Imports Exports
Year Quantity Value Quantity Value
(in tones) (Rs. in crores) (in tones) (Rs. in crores)
997-1998 118795 629.30 60880 181.80
1998-1999 104735 683.30 59682 200.00
1999-2000 112588 761.60 102194 328.80
2000-2001 109069 662.80 157799 559.30
2001-2002 109376 648.40 189280 614.30
2002-2003 153590 745.10 236938 812.60
2003-2004 235963 1057.80 232805 712.50
2004-2005 204927 1082.10 282395 914.60
2005-2006 290996 1679.70 303690 978.00
2006-2007 348051 2363.50 339111 1195.40
2007-2008 351567 2643.00 355610 1271.90
2008-2009 380515 2824.00 375610 1383.60
2009-2010 451312 3165.00 399210 1571.50

Source: Industry the market size and shares centre for Monitoring Indian economy.

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 SWOT analysis – Indian paper industry
Change in competitive conduct
 Foreign investments and the
attractiveness of Indian markets
• Modernization of existing assets and
capital needs
• Development of pulp and paper
industry in South East Asia
 Consolidation and acquisitions as
growth vehicle Management of scale
and
 scope through networked production.
Competitive strength tree should be protected and nurtured
Change in industry structure
 Industry size, consolidation and
investment capacity
 access to raw material, recycled
fibre, non-wood fibre and wood
resources.
 Minimum efficient scale and asset
quality
 Quality improvements and standards
 Environmental considerations and
standards
 Trade of fibre, pulp and paper
products
The competitive weakness tree should be felled and the roots dug up
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Ensure profitability and competitiveness of the
industry in years to come by focusing on –
 Market potential in India and potential export
markets
 Raw materials available for paper industry in
India
 Competitiveness of the industry
 Utilisation of global and proprietary
technologies
 Management practices
 Government regulations and guidance
Competitive weaknesses
 Fibre shortage, especially virgin wood fibre
 Small and fragmented industry structure, many non
competitive mills/machines (both quality and cost
wise) + fragmented market
 Highly skilled and job specific manpower is not
available
 Quality and availability of some of the domestic
pigments and chemicals
 Environmental problems of most of the small pulp mills
and also some big mills
 Low level of internationalisation of the industry
 Low standard of converting industry
 Infrastructure, transportation
 High cost of raw material including wood, non wood
and waste paper
 High energy costs (from grid) High cost of financing
 Lack of local capability for design and development
and achinery manufacture + process controlSystems
 Obsolence of technology, quality targets are not met by
many mills (eg. newsprint produced by small mills
 Impact of high local taxes (sales tax, entry tax, etc.) on
inputs of paper,
 Low input into mill level R&D
 Paper Making Process

Forces driving Indian paper industry

Forces driving Indian paper industry

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 Forces driving Indian Economy
External driving forces
• GDP growth and increased standard
• of living
• Development of export-led industry
• Growth potential in India and South-East
Asia
• Development of human capital
• Legislation and government regulations
• Access to capital
• Technology and process innovations
Change in competitive conduct
 Foreign investments and the attractiveness
of Indian markets
• Modernization of existing assets and
capital needs
• Development of pulp and paper industry in
South East Asia
 Consolidation and acquisitions as growth
vehicle Management of scale and
 scope through networked production.
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Change in industry structure
 Industry size, consolidation and investment
capacity
 access to raw material, recycled fibre, non-
wood fibre and wood resources.
 Minimum efficient scale and asset quality
 Quality improvements and standards
 Environmental considerations and standards
 Trade of fibre, pulp and paper products
Change in industry Performance
 Global competitiveness
• Improvement of profitability
• Increased capital intensity
• Tax incentives
• Shareholder returns
• Job creation opportunities
• Improvement of paper and related
products trade balance
 Typical Wood based Pulp & Paper Manufacturing Process

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 Agro-residue based Manufacturing Process

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 Paper Mill Cogeneration Plant

Factory Layout

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 Paper Industry under five year plans

(in Million metric tones)

Period Capacity Production
Plan year Target Actual Achievement Target Actual Achievement
I 1951-56 0.21 0.21 100 0.20 0.19 93.60

II 1956-61 0.46 0.43 94.10 0.36 0.35 98.30

III 1961-66 0.83 0.67 80.30 0.71 0.56 78.50

Annual 1967-69 0.75 0.73 97.30 0.64 0.66 103.60

plan
IV 1969-74 - 0.99 - 0.85 0.83 97.10

V 1974-78 1.3 1.14 87.5 1.05 0.90 85.70

VI 1978-83 2.05 2.4 117.1 1.50 1.36 90.70

VII 1985-90 2.70 3.04 112.6 1.80 2.43 135.0

VIII 1992-97 3.85 4.20 109.1 3.20 2.80 87.50

IX 1997-02 6.5 4.55 N.A 4.20 3.05 72.6

X 2002-07 7.8 5.10 112.60 4.20 3.05 87.50

XI 2007-12 10 5.10 112.60 4.20 3.05 87.50

Source: Industrial data year Book, CIER, 2010 P.556, Ed.16, New Delhi.

Installed Capacity, Production and Capacity Utilization of Paper and

Paper Board at India Level.
Year Installed Capacity Production Capacity
utilization
1997-98 43.5 29.22 67.17
1998-99 45.5 31.07 68.28
2000-01 49.0 34.58 70.57
2001-02 51 30.69 60.17
2002-03 51 31.62 62.00
2003-04 64 34.12 53.31
2004-05 62 55.60 89.67
2005-06 74 58.90 79.59
2006-07 76 59.00 77.63
2007-08 78 40.00 33.33
2008-09 82 40.03 35.78
2009-10 92 45.00 38.96
2010-11 100 48.91 39.12
2011-12 115. 46.00 40.23
Source: Industry Market Size and Shares Centre for Monitoring Indian Economy.

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