PAPER IMPORT & SALES
FROM THAILAND
INTRODUCTION
The history of paper dates back to the history of human culture and
civilization. The ancient Egyptians, Greeks and Romans used a different kind
of paper called `papyrus’. To-day’s kind of paper was first developed and used
by China and spread to other countries. Growth of human population, need for
transfer of knowledge, education and information within the society at large
were forcing factors for innovations and notable increase on the production of
paper. "
"
Modern paper making began in early 19th century in Europe. All most all
paper is manufactured using trees as primary source of wood pulp. Paper
manufacturing continues to be a concern in modern times from an
environmental perspective due to its use of large number of trees, harsh
chemicals, huge water consumption resulting in ecological imbalances,
pollution and contamination risks. "
OVERVIEW OF PAPER INDUSTRY
The Indian paper industry has been historically divided on a three dimensional
matrix identified by size, grades manufactured and raw material utilized.
Generally, tariff rates have protected smaller units utilizing “unconventional”
raw material. Over the years, the growth of various segments, investments levels
in specific segments, technological changes, industry fragmentation and
intensity of competition have been significantly influenced by the Government
tariff policy. The present Excise duty on Paper is 12 %. The Government of India
from time to time has given some benefits to small industries in order to protect
them i.e. the first 3500 tones produced by a mill is chargeable only @ 8 % and
thereafter it is @ 12 %."
OVERVIEW OF PAPER INDUSTRY
The three main grades of paper manufactured in India are :-"
1. Newsprint"
2. Writing and printing."
3. Industrial Variety ( Craft paper and Duplex Board )"
"
Over 550 players currently populate the industry and the estimated capacity is
about 7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe
in the “industrial” (packaging) grades, which rely on “unconventional” raw
material such as waste paper and partly agro residues. This division generally
comprises of units with an average size of about 10000 MTPA and contributes
to 45% of the output of paper and paper boards in the country. Although the
other divisions in the Indian paper industry are also fragmented by
international standards, the degree of fragmentation is less severe. “Newsprint”
till about 1995, was the sole preserve of large public sector units and was well
protected by high import tariff barriers. Nevertheless, imports contributed to
about 50% of the domestic consumption. Since then, new domestic capacity
with private investment has been allowed to be created. This growth has relied
namely on De-inked waste paper as a source of raw material. "
DEMAND AND SUPPLY GAP IN PAPER
INDUSTRY
Indian paper industry is the 15th largest in the world and provides employment to
1.3mn people in the country contributing Rs.25bn to the Government. The industry
has recorded a volume growth of CAGR of 5.47% over the last 3 years. In 2017-18, it
recorded a volume growth of 6%, in line with the GDP growth. Indian paper
industry has a 1:1 correlation with the economy. The demand for paper is linked to
the GDP Growth. The government is planning to target a GDP Growth of about
10% in 2-3 years. With this increase in the GDP growth the paper sector is expected
to record a similar growth rate. "
"
The Indian paper industry has an installed capacity of 6.7mn tons while, the
effective capacity is estimated to be lower at 6.15mn tons. The industry produced
5.26mn tons of paper in 2017-18. Newsprint capacity in India is estimated at 1.12mn
tons however, domestic production is only 0.59mn tons, while consumption of
newsprint is 1.1mn tons. Favorable demand - supply scenario to keep prices firm "
BASIC IMPORT DATA
TOTAL VALUE & VOLUME OF IMPORTS IN INDIA
"
Total Value $ 63,559,923"
Total Quantity 88,277,671"
Average price per unit $ 0.72"
Average value per shipment $ 5,526"
"
TOP SUPPLIERS
"
China $ 17,324,318"
Indonesia $ 11,989,098"
Sri Lanka $ 4,866,904"
COSTING OF PAPER ( Q3 PRICE )
Item : Copy Paper,"
Material : 100% wood pulp,"
Size : A4, A3, 8.5x11, 8.5x14,"
Base Weight : 80gsm, 75gsm, 70gsm,"
Whiteness : 102-104%,"
Packing : 500 sheets per ream, 5 reams per carton (box),"
"
LOADING QUANTITY
"
80gsm 8000REAMS (1600BOXES) IN 1X20FT CONTAINER WITH PALLET"
75gsm 8200REAMS (1640BOXES) IN 1X20FT CONTAINER WITH PALLET "
70gsm 8400REAMS (1680BOXES) IN 1X20FT CONTAINER WITH PALLET"
"
80gsm : 0.99$ per ream "
75gsm : 0.89$ per ream"
70gsm : 0.79$ per ream "
"
IMPORT DUTY
"
Customs duty -10%"
Cess - 0.125%"
IGST -12%"
"
Total duty - 24.49%"
"
COST OF THE PROJECT ( 70 GSM )
Particulars Quantity Amount (Rs.)
Company Registration & 1" 11,00,000"
Basic Investment"
Refundable Deposit to 20 Containers " 91,57,680"
Manufacturer"
First Purchase" 20 Containers + Imp Duty" 1,14,00,395"
4 Months Purchase ( Before 80 Containers + Imp Duty" 4,56,01,580"
getting first payment )"
10,000 [Link] Storage Shed" 1" 30,00,000 "
Man Power" 15 * 5 Months" 15,00,000"
Total " 7,17,59,655"
***** Local India transportation cost not included *****"
AVERAGE PRICE CALCULATION
AVERAGE PRICING FOR 70 GSM COPY PAPER
"
Unit Avg. Costing Sell To Dealer Sell To Shop "
Per Ream Rs. 85 Rs. 150 Rs. 180 "
Per Box Rs. 425 Rs. 750 Rs. 900 "
Per 20 Ft Container Rs. 7,14,000 Rs. 12,60,000 Rs. 15,12,0000 "
Per 20 Containers Rs. 1,42,80,000 Rs. 2,52,00,000 Rs. 3,02,40,000 "
"
TELANGANA EMBOSSED 70 GSM COPY PAPER
Unit Avg. Cost Gov. Price
Per Ream Rs. 95 Rs. 250 "
Per Box Rs. 475 Rs. 1,250 "
Per 20 Ft Container Rs. 7,98,000 Rs. 21,00,000 "
Per 20 Containers Rs. 1,59,60,000 Rs. 4,20,00,000 "
Lowest Profit – 10% Highest Profit 100% "
