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 Ensure profitability and competitiveness of the
Foreign investments and the industry in years to come by focusing on –
attractiveness of Indian markets Market potential in India and potential export
• Modernization of existing assets and markets
capital needs Raw materials available for paper industry in
• Development of pulp and paper India
industry in South East Asia Competitiveness of the industry
Consolidation and acquisitions as Utilisation of global and proprietary
growth vehicle Management of scale technologies
and Management practices
scope through networked production. Government regulations and guidance
Competitive strength tree should be protected and nurtured
Change in industry structure Competitive weaknesses
Fibre shortage, especially virgin wood fibre
Small and fragmented industry structure, many non
Industry size, consolidation and competitive mills/machines (both quality and cost
investment capacity wise) + fragmented market
access to raw material, recycled Highly skilled and job specific manpower is not
fibre, non-wood fibre and wood available
resources. Quality and availability of some of the domestic
Minimum efficient scale and asset pigments and chemicals
quality Environmental problems of most of the small pulp mills
Quality improvements and standards and also some big mills
Low level of internationalisation of the industry
Environmental considerations and
Low standard of converting industry
standards
Infrastructure, transportation
Trade of fibre, pulp and paper High cost of raw material including wood, non wood
products 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
The competitive weakness tree should be felled and the roots dug up
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Paper Making Process
Forces driving Indian paper industry
Forces driving Indian paper industry
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Forces driving Indian Economy
External driving forces Change in industry structure
• GDP growth and increased standard Industry size, consolidation and investment
• of living capacity
• Development of export-led industry access to raw material, recycled fibre, non-
• Growth potential in India and South-East wood fibre and wood resources.
Asia Minimum efficient scale and asset quality
• Development of human capital Quality improvements and standards
• Legislation and government regulations Environmental considerations and standards
• Access to capital Trade of fibre, pulp and paper products
• Technology and process innovations
Change in competitive conduct Change in industry Performance
Foreign investments and the attractiveness Global competitiveness
of Indian markets • Improvement of profitability
• Modernization of existing assets and • Increased capital intensity
capital needs • Tax incentives
• Development of pulp and paper industry in • Shareholder returns
South East Asia • Job creation opportunities
Consolidation and acquisitions as growth • Improvement of paper and related
vehicle Management of scale and products trade balance
scope through networked production.
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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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