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India Paper and Pulp Market Overview

The Indian paper industry is large and fragmented, producing various paper products. It contributes around 5% to global paper production and market. The industry has grown significantly since the 1990s due to rising domestic demand and is expected to continue expanding. However, per capita paper usage in India remains well below global averages.

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59 views11 pages

India Paper and Pulp Market Overview

The Indian paper industry is large and fragmented, producing various paper products. It contributes around 5% to global paper production and market. The industry has grown significantly since the 1990s due to rising domestic demand and is expected to continue expanding. However, per capita paper usage in India remains well below global averages.

Uploaded by

baccha1556677788
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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India Paper and Pulp Market

Overview
Introduction
The Indian paper industry is highly fragmented, encompassing small, medium, and large mills
with production capacities ranging from 10 to 1,650 tonnes per day. In the Indian hinterland,
wood and agricultural waste are extensively used as the primary raw materials for paper
manufacturing. The industry is well-known for producing writing paper, newsprint, and
commercial paper. Many mills generate newsprint-grade paper using recycled wastepaper as
the primary raw material, although the raw material base has seen significant changes over
the years.

India contributes about 5% to the world's total paper production and holds approximately 5% of the
global paper market, which is valued at around US$ 8 billion. The Indian paper industry generates an
estimated ₹70,000 crore in annual revenue, with a domestic market size of ₹80,000 crore. Additionally, the
industry's tax contribution to the government is approximately ₹5,000 crore.

History and Growth of the Indian Paper Industry


In the 13th century, Sultan Zainul Abedin, a captive
monarch in Samarkand, brought papermakers to Kashmir,
India, and established the country's first paper production
enterprise between 1417 and 1457 AD. Later, in 1812,
William Carey built India's first paper manufacturing
machine in Serampore. The first Fourdrinier paper machine
was introduced in Serampore, West Bengal, in 1832, a pre-
colonial city on the west bank of the Hooghly River in
Kolkata. However, due to insufficient demand, it eventually
shut down. The second mill was established in 1870 in
Ballygunge, near Kolkata, marking the foundation of India's
core paper industry.
Since the implementation of the New Indian Economic
Policy in 1991, paper consumption in India has increased
steadily in line with the country's GDP growth. Paper
consumption rose from 8.5 million tons in 2011-12 to 13.05
million tons in 2016-17. The sector is expected to continue
expanding due to rising domestic demand, a thriving
manufacturing sector, and a growing market for paper
products such as tissue paper, filter paper, tea bags, and
lightweight online coated paper. Additionally, organized
retail outlets are driving higher demand for better-quality
packaging.

From 2012-13 to 2022-23, India's paper consumption


registered a compound annual growth rate (CAGR) of 6%,
compared to the global growth rate of 3%, making India
one of the fastest-growing paper producers worldwide.
India's share of global paper demand is increasing as
domestic demand rises and western demand declines.
Indian paper demand grew from 9.4 million tonnes in FY
2008 to 15.4 million tonnes in FY 2016. Despite this
growth, per capita paper usage in India is just over 14 kg,
significantly lower than the global average of 57 kg and
North America's 200 kg.

While newsprint consumption has declined slowly and


marginally, production and imports of newsprint have
decreased drastically over the past decade. According to
the Indian Newsprint Manufacturers Association (INMA),
the annual demand for newsprint in India is approximately
2.2 million tonnes, with about 68% (1.5 million tonnes per
annum) met by imports, primarily from Canada and Russia.
The disruption in supply chains and rising prices have
further impacted this sector.

THE PAPER SECTOR IN THE YEAR 2021 -2022 (Latest


reported by Cppri)
Year Pro Pro Imp Exp Con
duct duct ort ort sum
ion ion ptio
Cap n
acit
y

201 20.6 16.1 4.31 1.04 20.2


6-17 5 9 0 0 20

2017 22.1 18.9 3.57 1.32 21.1


-18 1 1 9 3 66

201 21.9 19.3 3.25 1.91 20.7


8-19 0 6 0 0 00

201 22 20.1 3.54 2.09 2.56


9-20 1 2 7
202 24 21.6 2.09 2.58 21.1
0-21 8 8 5 9
202 25.2 22.4 2.17 3.53 21.0
1-22 8 3 8 7

202 25.6
2-23 1

Total number of mills based on


2022 data
Total Number 912
of Mill

Total Installed 29.11


Capacity,
million tons

Operating 25.28
Installed
Capacity,
million tons

Production of 22.43
paper, paper
board and
Newsprint,
million-ton

Capacity 89
Utilization %
No of running 538
units as of 22

No of mills 368
closed as of 22

Ideal installed 5.51


capacity

Import in MT 2.17

Export in MT 3.53

Consumption in 21.07
MT

Per capita 15.75


consumption
(Kgs)
Global share 5.60%

recycled fiber 71%


accounting

wood-based 21%
fiber

agro-residuals. 8%
Packaging 70%
grade paper

Writing And 23%


Printing

Newsprint 3%

Others/ <4%
specialty paper

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