This document summarizes and compares several of ITC's competitors in the paper industry in India. It discusses that Ballarpur Industries Limited is the largest paper manufacturer but is debt-ridden. Tamil Nadu Newsprint and Papers faces water shortages affecting production. JK Paper is a market leader in branded copier paper. It also overview opportunities for growth in the e-commerce and packaged food sectors due to rising demand for paper products. ITC can use technology to reduce costs and grow market share.
This document summarizes and compares several of ITC's competitors in the paper industry in India. It discusses that Ballarpur Industries Limited is the largest paper manufacturer but is debt-ridden. Tamil Nadu Newsprint and Papers faces water shortages affecting production. JK Paper is a market leader in branded copier paper. It also overview opportunities for growth in the e-commerce and packaged food sectors due to rising demand for paper products. ITC can use technology to reduce costs and grow market share.
This document summarizes and compares several of ITC's competitors in the paper industry in India. It discusses that Ballarpur Industries Limited is the largest paper manufacturer but is debt-ridden. Tamil Nadu Newsprint and Papers faces water shortages affecting production. JK Paper is a market leader in branded copier paper. It also overview opportunities for growth in the e-commerce and packaged food sectors due to rising demand for paper products. ITC can use technology to reduce costs and grow market share.
• Largest manufacturer of writing & printing paper in India. • Operates under two different blocks one is standalone entity BILT and other is its subsidiary, Bilt Paper. • Due to the very high amount of capital it raised, the company`s financial cost is over 900 crores. • The company is planning to get out of the debt-ridden through divestment of the existing subsidiaries and restructuring of loan. Tamil Nadu Newsprint and Papers Limited: • TNPL is an establishment of govt. of Tamilnadu, and is a leading manufacturer of paper from bagasse. • The company faces sever water crisis, due to which the production is also affected. • The annual pulp wood requirement has come down from 4 lakh MT to 2.5 lakh MT during the FY 2017-18. • Achieved sales of 3,52,937 MT of paper in the FY 2017-18 of which exports account for 23%. JK Paper Mills: • JK Paper Ltd has a capacity of 4.55 lakh TPA. • JK is market leader in branded copier paper category. • Largest player in coated paper and premium packaging boards. • Acquired Sirpur Paper Mills in Telangana and production raised to 1.40 lakh tonnes per annum.
West Coast Paper Mills:
• High Performance due to Strong distribution network and an experienced management • Adequate supply of water, • Dependency on the import for the wood fibre puts it at the risk of currency and supply volatility. IPAPPM: • Started by AP govt. • After the acquisition by International Paper in 2011 and got rechristened as IPAPPM in 2014. • Sources 100% of fibre requirement with in 300 km radius • Works along with the research institutes to develop high yielding plants for the farmers • E-Commerce Boom: • Indian e-commerce market is to reach $228 billion by the year 2030. • The growth is at 9.5 % in the recycle packaging board • Virgin packaging board the growth is at 15% • Room for ITC to innovate and grow with the E-commerce growth Increase Automation and technology implementation
Heavily dependent on capital.
To remain competitive in the market one need to put technology in front. With strong neighbours (ASEAN countries, China, South Korea) and the zero duties on the imports of these nations It is imperative for ITC in technology to reduce the price of paper which is high compared to neighbours. Supply and demand 1. The demand for the paper and paper board category is growing at a rate of 8.9% and it is about to hit 11.4 tonnes in FY20. 2. However, the import of paperboard as grown at a rate of 31.18% in 2017, showing difference between the production and demand in Indian market. 3. The penetration of the female hygiene products and the baby diapers use is growing at 14%. 4. ITC can use this opportunity through the investments and through strategic acquisitions which could serve the growing demand. Growing opportunities in packaged food: • The FMCG companies’ growth is also going to affect the sales of the industry. • The FMCG sector in 2018 has grown over 80% compared to 2011. • The sales were around 32 billion USD in 2011 and 53 Billion USD in 2018. It is going to hit $104 billion in 2020. • ITC company can grow in this space through innovation in the paper technology which could help the packaging industry.