Presented by

Dr. T. K. Roy
Director, CPPRI




Central Pulp & Paper Research Institute
Saharanpur, U.P., INDIA

Overview of
Indian Paper Industry
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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

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INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES
INDIA
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 regional
blocks- 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 consumption
of paper and paper board.
Indian Paper Industry in Global Perspectives Contd
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PAPER INDUSTRY AT A GLANCE
Total number of Pulp & Paper Mills 706
Wood Based 33
Agro Based 165
Recycled Fiber Based Mills 508
Installed Capacity of Mills 8.3 million tonnes
Per-capita consumption 7.0 kg
(Paper & Paperboard)
Production 6.0 million tonnes P&B
0.8 million tonnes - Newsprint
The industry is fragmented with capacities ranging from 2 to 800 tonnes per day
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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 19
th
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 installed
capacity 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
4.00
5.00
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 grades
Industrial paper
Other 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
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PER CAPITA CONSUMPTION
The 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
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50
100
150
200
250
300
350
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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
4
6
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 operation
Inferior 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 Mills
By 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
15
Government
Revision of Forest Policy so that
plantation can be increased.
Degraded forest lands should be
identified by state govt. and be
offered to indutry on long leases
of plantations.
FDI in plantation programmes
(with no change in land use)
Public private 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 technology
development
Industry
Cooperation with farmers and
State Forest Dept.
Search for foreign partners.
Public private 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
16
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 industrys can be
taken into consideration.


ACTION PLAN.. Contd
Research
& Development
Environmental
Policy
Energy policy
Finance
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