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Presented by

Dr. T. K. RoyDirector, CPPRI

Central Pulp & Paper Research Institute

Saharanpur, U.P., INDIA

Overview ofIndian Paper Industry


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1

0 20000 40000 60000 80000 100000 120000

Venezuela

Chile

Colambia

Argentina

South Africa

Australia

Thailand

Mexico

India

Taiwan

United Kingdom

Russia

Brazil

Indonesia

Sweeden

Korea

France

Finland

Germany

Canada

Japan

China

US

India is among the top fifteen global producers

Paper & Board Capacity (2000)

Source : ICRA report to IPMA : 2000

000

tonnes

INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES

INDIA


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North

America,

31.0%

Rest, 9.0%Europe,

28.0%

India,1.6%Asia, 30.4%

PERCENTAGE OF WORLD PAPER PRODUCTION

World Paper & Board consumption is dominated by three major regionalblocks- North America, Western Europe & Asia.

Global paper production is 340 million tons.

India consumes nearly 5% of the Asian and 1.6% of the worlds consumptionof paper and paper board.

Indian Paper Industry in Global Perspectives Contd


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GROWTH OF PAPER INDUSTRY

In the 1970s excise concessions were given to small agro based mills,

which resulted in a rapid increase of small mills and capacity.

In the late 1980s the industry was in a severe oversupply situation,

capacity utilisation rates being around 60 %.

In early 1990s the government reversed the policy, making large units

more competitive (e.g. by removing excise concessions for agro based

mills).

First mill in the country was commissioned in 1812 in Serampur (W.

Bengal).

The initial development & growth of industry in the 19th century was

affected by shortage of wood (soft wood) in the country.

In 1914 the development of pulp making processes based on bamboo

lead to rapid growth of the industry and by the end of the 1950s

installedcapacity increased to 137000 tonnes.


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GROWTH OF PAPER INDUSTRY. Contd

Paper Capacity and production in India 1950- 2007

0.00

1.00

2.00

3.00

4.005.00

6.00

7.00

8.00

9.00

1950 1960 1970 1980 1990 2000 2005 2007

Capacity

Production


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Other

varities

5%

Industrial

paper

55%

Writing &

printing

grades

40%

Writing & printing gradesIndustrial paperOther varities

Total Paper and Paperboard demand in India

CAGR of nearly 5.5%

in the past 3 years.


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STRUCTURE OF PAPER INDUSTRY

33

165

508

0

100

200

300

400

500

600

Wood Based Mills Non Wood Based

Mills

RCF Based Mills

Categorization of the Mills Based on Cellulosic Raw

Materials

NumberofMills


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PER CAPITA CONSUMPTIONThe per capita paper consumption in India is 6 kg compared to 324 kg in USA,

25 kg in Indonesia, 250 kg in Japan and 37 kg in China

0

50

100

150

200

250

300

350

PAKIST

AN

INDI

A

LATIN

AMER

ICA

EASTER

NEURO

PE

INDO

NESIA

CHIN

A

WOR

LD(Avera

ge)

WES

TERN

EURO

PE

JAPAN

NORT

HAMER

ICA

Per Capita Consumption

Kg


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FIBRE RESOURCES

India is a fibre deficient country. Due to lack of wood resources, the paper industry

is utilizing a wide verities of raw material for paper making ranging from forest

based raw material to annual plant and recovered paper.

Forest based Agro based Recycled fiber

7%9%

84%

39%

31%

30%

34%

28%

38%

1970

2000

2005


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RECYCLED FIBRE - RECOVERY & RECYCLING

Million tons

0

2

46

8

1995 2000 2003 2010

Recovery Imports Consumption

Import of waste paper is continuously increasing

At present more than 80% of consumption is met through imports.


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TECHNOLOGICAL STATUS Obsolescence of technology in most cases.

Lack of eco friendly state of the art processing technologies.

Uneconomic scale of operation.

In an international comparison, even the largest machines are medium-

size

The average capacity of paper machines is about 14000 t/a

Most of Indian paper machines have a trim width from 1.5 to 3.5 m

There are only 9 paper machines with trim width of 5 m or more

Only 14 machines have capacities 50000 t/a or more

It is not possible to have very high speed paper machine, i.e. >1500 mpm

for type of raw material available in India

Similarly for adoption of new papermaking technology quality of raw

material and mill size are the major limitations.

Except the wood based integrated mills and few agro/RCF mills the level of

automation and process control is very low in most of the mills


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COMPETITIVENESS OF THE SECTOR

As compared to USA, Europe, the paper industry in India is far

below the quality standards of the products.

It is not as competitive as in other Asian countries such as ; Japan,

Indonesia, Thailand, Malaysia & China.

The paper industry in India is less competitive as compared to

similar sectors such as; cement and capital goods.

The possible reasons which makes paper industry less competitive

compared to other similar sectors are

(i) Availability of good fibrous raw materials;

(ii) Level of technology.


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ISSUES BEFORE INDIAN PAPER INDUSTRY

Low scale of operationInferior pulp & paper

quality

High cost of transportation and power

Low capacity utilisation

High capital costs

High costs of raw materials

Issues &

Challenges

State of art equipment &

machineries

Emerging Environmental issues


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Modernization Required

Wood Based MillsBy and large modernized through its own resources in order to meet CREP requirement,however the paper machine section need major rebuild up-gradation.

Needs restructuring to 1000t/day capacity.

Agro Based Mills

Immediate attention required for

pulp washing

paper machine

black liquor handling and effluent treatment.

Recycled Fibre Based Mills

Need to be modernized by introduction of

deinking cells

pulp cleaning

slots screening equipment

paper machine rebuilds.

SUGGESTED INITIATIVES


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Government

Revision of Forest Policy so that

plantation can be increased.

Degraded forest lands should be

identified by state govt. and beoffered to indutry on long leases

of plantations.

FDI in plantation programmes

(with no change in land use)

Publicprivate partnerships

Allow duty free imports of waste

paper

Encourage voluntary agreements

to increase paper recovery

Equal subsidy be made available

to paper industry at par with

energy subsidy of bagasse

Funds for technologydevelopment

Industry

Cooperation with farmers and

State Forest Dept.

Search for foreign partners.

Publicprivate partnerships

Long term contract with

printing/converting waste

Global sourcing, foreign partners

Sorting of imported mixed waste

Fibre fractionation to separate

long fibres

Restructuring needed due to

quality and environmental reasons

Develop pulping and papermaking

technology based on non-wood

fibre.

Wood

Raw Material

Recycled Fibre

Agro Fibres

ACTION PLAN


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Government

Allow duty free imports of new and

second hand machinery/equipment

for technology upgradation.

Encourage cooperation &

networking inside the forest cluster

and other industries to make the

sector more competitive.

R&D funding should be increased to

1% of turnover primarily through

funding by industry.

Better availability and quality of coal.

More uniform energy policy by states

Uniform policy as regards to non-

biodegradable materials.

Eco labeling scheme based on

sustainable raw material base

(wood/waste paper /agro) and

environmental friendly processes.

Industry

Better access to international financing

Seek for foreign partners

Focus on R&D to improve quality and

to meet customers requirement.

More closure to international

connections

Closure cooperation and interaction

between CPPRI & Industry

Cogeneration in pulp & paper mills

Bigger mills and modernization to meet

environmental standards.

Actively participate development of Eco

label schemes so that industryscan be

taken into consideration.

ACTION PLAN.. Contd

Research

& Development

Environmental

Policy

Energy policy

Finance


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hank You

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