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  • Bargaining Power of Suppliers: Overall: Low To Medium

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    kumaravel_ind
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    The bargaining power of paper suppliers in India is low to medium. While there are many small fragmented suppliers of raw materials like wood pulp and waste paper, wood availability is inadequate. Switching costs are low for suppliers, and suppliers pose little threat of forward or backward integration given their small size. Supplier contribution to quality is medium, as raw material combinations impact paper quality, but the industry's importance to individual suppliers is low. Legal compliance around environmental and safety standards poses some challenges for the industry.

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    Bargaining power

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    BPS & Legal

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    The bargaining power of paper suppliers in India is low to medium. While there are many small fragmented suppliers of raw materials like wood pulp and waste paper, wood availability is inadequate. Switching costs are low for suppliers, and suppliers pose little threat of forward or backward integration given their small size. Supplier contribution to quality is medium, as raw material combinations impact paper quality, but the industry's importance to individual suppliers is low. Legal compliance around environmental and safety standards poses some challenges for the industry.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    24 views2 pages

    Bargaining Power of Suppliers: Overall: Low To Medium

    Uploaded by

    kumaravel_ind
    The bargaining power of paper suppliers in India is low to medium. While there are many small fragmented suppliers of raw materials like wood pulp and waste paper, wood availability is inadequate. Switching costs are low for suppliers, and suppliers pose little threat of forward or backward integration given their small size. Supplier contribution to quality is medium, as raw material combinations impact paper quality, but the industry's importance to individual suppliers is low. Legal compliance around environmental and safety standards poses some challenges for the industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 2

    Bargaining power of suppliers

    • Number of suppliers of wood pulp, waste paper, agro-residue are high and fragmented
    • Availability of wood is inadequate in India. (demand 11mtpa, availability 9mtpa)
    • Switching cost is low
    • Supplier threat of forward integration is low. Suppliers are small players and may not invest in the scale to make papers
    • Industry threat of backward integration is low. The users of papers are diverse and may not be interested to make paper.
    • Supplier contribution to quality is medium as raw material combination is important to output paper quality.
    • Industry’s importance to supplier is low

    Overall: low to medium

    http://ipma.co.in/overview/
    Legal
    • Compliant to meet government environmental order and afforestation
    • Waste water discharge and pollution due to bleaching issues
    • Emission from boilers like Sulphur and nitrogen
    • Employee safety and plant safety for boiler safe usage and chemical usage in plants

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