he paper industry in India is one among the top 15 players in the global market, the industry offers an output

of nearly six million tones, and the industry is working towards the objective of attaining a production capacity of 13 million tones by the end of the year 2020. Like any other industry, the paper industry in India is also dominated by a number of top players and the names of some of the top operators in this industry are given below: Top players in the paper industry in India: ITC PSPD Ballarpur Industries Limited JK Paper Limited Tamil Nadu Newsprint & Papers Limited Century Pulp & Paper The Andhra Pradesh Paper Mills Limited West Coast Paper Mills Limited Some of the details regarding these top players in the paper industry in India are given below: ITC PSPD: ITS PSPD is operating from its headquarters in the city of Secunderabad and they have their factories in different cities in India like Bollarum, Tribeni, Coimbatore and Bhadrachalam. Their branch offices are located at Ahmedabad, Bangalore, Chennai, Kolkata, Mumbai and New Delhi. They have introduced some of the products like DigiArt, Perma White, HiZine, Alfazap, etc in the paper industry. Ballarpur Industries Limited: This company has its headquarters in the city of Gurgaon and factories in the states of Maharashtra and Orissa. Their branch offices are located in the cities like New Delhi, Chennai, Mumbai and Kolkata. They have introduced some of the products like ten on ten copier, LWC paper, sack paper and maplitho NSD paper. JK Paper Limited: JK Paper Limited is operating from their headquarters in the city of Delhi and they have their factories in the states of Gujarat and Orissa. Their branch offices are located in the cities of Chennai, Mumbai, Kolkata and New Delhi and some their products are Notepad, JK Printerblank, JK Pristine Cote, JK IV Board, JK Endura and cedar branded copier was also introduced by them in the paper industry. Tamil Nadu Newsprint & Papers Limited: The headquarters of this Public Sector undertaking is located in the city of Chennai and Tamil Nadu and their factory is located in the Karur District in Tamil Nadu. They have branch offices at Secunderabad, New Delhi, Nagpur, Mumbai, Kolkata, Ernakulam, Bangalore and Ahmedabad. Some of their products are AceMarvel, Perfect Copier, Commander A4 size paper. Century Pulp & Paper: Century Pulp & Paper company is operating from its headquarters in the city of Mumbai in Maharashtra and factory in the state of Uttarkhand. They have branches at Kolkata and New Delhi and some of the products introduced by them are:

 Unbleached Absorbent Kraft Century Green, which is a copier paper made out of Recycled Fibre Century Elenza, which is a wood based paper Different grades of soft tissue papers The Andhra Pradesh Paper Mills Limited: This company has its headquarters in the city of Secunderabad and factories at Rajahmundry and MR Palem. They have branch offices at Bangalore, Kochi, Chennai, Mumbai, Kolkata and New Delhi. Their product range includes Andhra Royal Silk, Andhra Primavera, Andhra Starwhite and Reflection. West Coast Paper Mills Limited: West Coast Paper Mills is located in the city of Bangalore with its factory in Dandeli in the state of Karnataka. Their branch offices are located in cities like Chennai, Mumbai, Kolkata and New Delhi and they have introduced different copier papers and computer paper grades. Most of these top companies in the paper industry make their contribution to the society by using eco-friendly production techniques and they also help the society by offering a wide range of employment opportunities in their factories and offices in different parts of the country.

Paper industry in India is the 15th largest paper industry in the world. It provides employment to nearly 1.5 million people and contributes Rs 25 billion to the government's kitty. The government regards the paper industry as one of the 35 high priority industries of the country. Paper industry is primarily dependent upon forest-based raw materials. The first paper mill in India was set up at Sreerampur, West Bengal, in the year 1812. It was based on grasses and jute as raw material. Large scale mechanized technology of papermaking was introduced in India in early 1905. Since then the raw material for the paper industry underwent a number of changes and over a period of time, besides wood and bamboo, other non-conventional raw materials have been developed for use in the papermaking. The Indian pulp and paper industry at present is very well developed and established. Now, the paper industry is categorized as forest-based, agro-based and others (waste paper, secondary fibre, bast fibers and market pulp). In 1951, there were 17 paper mills, and today there are about 515 units engaged in the manufacture of paper and paperboards and newsprint in India. The pulp & paper industries in India have been categorized into large-scale and small-scale. Those paper industries, which have capacity above 24,000 tonnes per annum are designated as large-scale paper industries. India is self-sufficient in manufacture of most varieties of paper and paperboards. Import is confined only to certain specialty papers. To meet part of its raw material needs the industry has to rely on imported wood pulp and waste paper. Indian paper industry has been de-licensed under the Industries (Development & Regulation) Act, 1951 with effect from 17th July, 1997. The interested entrepreneurs are now required to file an Industrial Entrepreneurs' Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for setting up a new paper unit or substantial expansion of the existing unit in permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed on automatic route on all activities except those requiring industrial licenses where prior governmental approval is required. Growth of paper industry in India has been constrained due to high cost of production caused by inadequate availability and high cost of raw materials, power cost and concentration of mills in one

particular area. Government has taken several policy measures to remove the bottlenecks of availability of raw materials and infrastructure development. For example, to overcome short supply of raw materials, duty on pulp and waste paper and wood logs/chips has been reduced. Following measures need to be taken to make Indian paper industry more competitive:

Improvements of key ports, roads and railways and communication facilities. Revision of forest policy is required for wood based paper industry so that plantation can be raised by industry, cooperatives of farmers, and state government. Degraded forest land should be made available to the industry for raising plantations.

Import duty on waste paper should be reduced. Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation.

Outlook Outlook for paper industry in India looks extremely positive as the demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade coated paper, etc., is growing. Ballarpur Industries Limited (BILT) is Indias largest manufacturer of writing and printing (W&P) paper. BILTs subsidiaries include Ballarpur International Graphic Paper Holdings B.V. (BIGPH); BILT Graphic Paper Products Limited (BGPPL); Sabah Forest Industries (SFI), Malaysias largest pulp and paper company; and Bilt Tree Tech Limited (BTTL), which runs BILTs farm forestry programme in several states in India. Mr. R.R. Vederah is the Managing Director and Executive Vice Chairman. In India, the company has six manufacturing units, giving it geographic coverage over most of the domestic market. The company has a dominant share of the high-end coated paper segment in India. It accounts for over 53% of the coated wood-free paper market, an impressive 80% of the bond paper market and nearly 35% of the hi-bright Maplitho market, besides being India's largest exporter of coated and uncoated paper. Building on its unmatched paper quality, BILT ventured into the paper-based office stationery segment. The company markets its stationery through a well-established network of 350 retail distributors spread over 270 locations. BILT has mega brands such as BILT Royal Executive Bond, BILT Copy Power, BILT Image Copier and BILT Matrix that have now become an integral part of office stationery. BILT Ten on Ten notebooks are targeted at students and are also available with licensed characters such as Barbie, Spiderman, Winnie the Pooh, Hotwheels, Jungle King and Hannah Montana. BILT Student Stationery has won Product of the Year award for the last three consecutive years. In 2008, BILT forayed into organised retail through P3 Paper, Print and Pens serving both B2C and B2B clients across India. In 2005, BILT entered into the tissue and hygiene business with two brands: Etiquette and Spruce-up. Since then, the company has acquired Premier Tissues India Limited, the leading player in hygiene tissue products in the domestic retail market. BILTs acquisition of SFI, Malaysia, in 2007 was a watershed event it was the first overseas acquisition by an Indian paper company, it transformed BILT into a major regional player, and elevated BILTs ranking among the global top 100.

Future prospects of paper industry. Indian paper and newsprint industry has a huge potentials and prospects in coming

future. In our, country, demand for paper and newspaper is rapidly increasing. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc. Indian paper industry is one of the underestimated industries, because India's per capita consumption of paper is just about 5 kg. whereas it is 337 kg in North America, 110 kg. in Europe and 30 kg. in China. Compare to this scenario India' par capita consumption is one of the lowest in the World. The Rs. 22000-crore paper industry in India, rated 15th largest in world engaged about 1.5 million people with the help of Rs. 2500 crore Government subsidy. Government has given paper industry as one of the 35 high-priority lists. There are about 515 manufacturing units engaged in production of paper, newsprint and paperboards in India with have the annual capacity of 8.3 million tones, which likely to be 16 million tonnes by 2014. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd(HNL), Tamil Nadu Newsprint and Papers Ltd(TNPL), Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper. Indian Government has completely delicensed the paper industry under the Industries (Development & Regulation) Act with effect from17th July, 1997. The interested entrepreneurs or existing players now require to file an Industrial Entrepreneur' Memorandum (IEM) with the Secretariat for Industrial Assistance(SIA) for setting up a new paper mill or substantial expansion of the existing mill in permissible locations. The foreign direct investment is allowed upto 100% in paper industry except those who require industrial license with prior approval from Reserve Bank of India. The biggest stumbling blocks in Indian paper industry: i. Remove the bottlenecks of good quality of raw materials (forest based wood pulp) and bulk import of waste paper to bridge the gap of short supply of raw materials. ii. High cost of raw materials and lack of modernization of the manufacturing units. iii. Rising power and shipping logistics cost and concentration of mills in one particular area. iv. Quality improvements and reduction v. No rehabilitations packages for near about 194 small-scale paper manufacturing units, which are sick or lying sick. vi. Import duty on pulp and waste paper, wood raw materials & technologies etc. Few promising players in the paper production:

Ballarpur Industries Ltd(BILT), part of the US$ 3 bn Avantha Group, is India's largest manufacturer of writing and printing paper. More than 50% of India's coated wood-free grades roll out of BILT's state-of-the-art plants and machineries. BILT has an impressive 85% share of the bond paper market in India. Not only that BILT is the only Indian paper company to feature in the global top 100 list. Its recent acquisition of Malaysia's Sabah Forest Industries are expected to start operations by 2009-December, end. Seshasayee Paper & Board Ltd., one of the South Indian based company have been producing Fine Paper since 1960. Now they are commissioning its new pulp production units with an additional investment of Rs. 3,000 million. They are expected to see in-house plup production going up to 440-tonnes a day from 240-tonnes a day. They have the customers over the 20 countries with extensive range of product cater the various customers. Tamil Nadu Newsprint and Papers Limited (TNPL) owned by the Government of Tami Nadu started early eighties to produce Newsprint and Printing & Writing Paper. The TNPL has initial capacity of 90,000 tonnes per annum. Gradually company has increased its production to 2,45,000 tonnes per annum. Company has emerged as the largest bagasse based Paper Mill in the world consuming about one million tones of bagasse every year. In their forthcoming ambitious project, company has plan to invest Rs. 1000 crore for expanding of production capacity 4,00,000 lakh tonnes from present 2,45,000 tonnes per annum. ITC Paperboards & Specialty Papers Division is India's largest and most technologically advanced paper and paperboards business. ITC has the wide spectrum products like packaging, graphic, writing, printing and specialty paper through its four world-class mills in India. Company is already pioneered in many specialty applications like cigarette tissues, packaging boards, aseptic cartons and gypsum liners. In their Bhadrachalam plant, it has capacity to produce 4,00,000 tonnes of paper boards. ITC already made public announcement to invest Rs. 25,000-million by 2009 to boost its production capacity to 2 lakh tonnes. Expectations of the industry from the Government. The Government has taken several steps to make availability of raw materials and infrastructure development to overcome the shortage of raw materials. Duty on plup waste paper, wood logs/chips has been reduced. The Indian Paper Mills' Association(IPMA), has suggest to setting up of a Rs. 20,000 crore 'paper fund'. IPMA also, suggested to setting up existing technology upgradation fund

(TUF) for improvement of energy conversation, quality upgradation and product improvement. The Indian paper industry is growing at 8 per cent per annum. It is also, expected to grow by 10 per cent by the year 2010. IPMA also, urged the Government to reduce the excise duty from 12 per cent to 8 per cent for all type of paper mills as they are looking to upgradation of 25 per cent of their capacity. Indian paper industry has direct linkage with educational sector, manufacturing sector, as a result near about 20 per cent direct and indirect taxation on paper industry including 12% VAT, octroi, etc. Reduction of direct and indirect taxation can make more competitive player in the world. The following measures can be taken to make Indian Industry more competitive: Raw Material (i) For Wood based industry: The Indian paper and newsprint industry already urges the Government to amend the laws for immediate revision of forest policy so that plantation to make use of the degraded land for raising plantations for better quality of plup. But, the Government does not permit forests to be used for sourcing woods by the corporate sector, nor does it allow industrial plantation on degraded forestlands. (ii) For Waste Paper based Industry: Less export duty on Import of waste paper. Introduction of "Ecolabelling" system where in products made from recycled fibre are rated higher than the products made form virgin fibre. Introduction of modern and effective collection and grading system. (iii) For Agro based industry: Funds to be made available for technology modernization and processing of agro residue fibre, particularly for small & medium scale paper industries. Infrastructure Improvements of communication e.g. rail, road, port which will help the entire industrial sector Technology Upgradation There is a wide gap between the technologies of the domestic paper industry in India compared to that of the foreign countries. Most of the paper mills are using old

technologies, which is serious cause of resultant in low productivity with high costs of production. Government Policies (i) Social forestry scheme should be introduced to small and marginal farmers to promote sapling and know-how for raising plantations of fast growing trees with an assurance of a buy back at a remunerative price. (ii) The industry is also seeking permit duty free imports of new & second hand machinery/equipment for Technology Up gradation. (iii) Right now, an estimated 55-million begasse is available, but currently we are using only 8%. Begasse can be introduced in replace of using bamboo, rice or white straw. Power Policy More uniform cost effective Power Policy for paper production units/mills. Newsprint prices with unprintable tag: Virtually paper industry is decontrolled and there is no price control on finished product. As a result entire cost has shifted upon the end-users. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per tonne, an increase of $145 since December 2007. India also, imports bulk of newsprint from foreign countries. From North America we have imported 18.9 lakh tonnes in 2004 to 26.45 lakh tonnes in 2007, a CAGR of 11.9%. Domestic consumption move up by 6.40 lakh tonnes to 9.70 lakh tonnes, a CAGR 14.9%, while import went up by 12.50 lakh tonnes to 16.75 lakh tonnes, a CAGR of 10.3%. It has been estimated that domestic demand will touch 35.54 lakh tonnes in year 2009. In a recent development, US-East Coast prices increased; as a result the ex-mill rates, ready for shipment, risen from $608 to $710 per tonne, an increase of $ 102 in just three months, it may gallope to $770 by the end of Q3 2008. Last year, India had purchased imported newsprint at very economical rates. It has several reasons. i) Mass production by International Paper Manufacturer ii) Declining demand from UK and part of the Europe forced paper products to sell at economical rates in India. iii) China was another fear factor.

Trends have reversed in North America. They went for changing product mix, cutting excess capabilities and consolidation through buyouts. At the beginning of 2007, they supply 40.5 million tonnes, which exceeded demand of 38.3 million tonnes. At the early 2008, two million tonnes of production had fallen; as a result prices rose up. In China, old newsprint, which is one of the raw materials for paper industry, nearly double to $270 per tonne in span of just 5 to 6 months. Rising Crude price also, affect on freight rates. Recently, crude prices breached the mark $140, as a result plup prices increase from $575 to $750 per tonne. Despite the growing demand for paper industry, there should be new policies/projects to overcome the acute shortage of raw materials and infrastructure development. As global industry is not flourishing, with the help of implementation of setting up institutional mechanism for funding technology upgradation, relax environmental laws to encourage captive plantations for raw materials, we expect that in near future India may become market leader in paper industry.

AP Paper-International Paper deal: Will exuberance last for the lagging paper industry?
Kiran Kabtta Somvanshi May 30, 2011, 12.35am IST

Tags: JK PAPER| International Paper| Indian paper Indusrty| BILT| Andhra Pradesh Paper Mills Ltd.

The Indian Paper Industry, which was lagging behind in the markets, has gained a fresh lease of life after the acquisition of Andhra Pradesh Paper by International Paper. The deal has turned the tide for the industry with paper stocks getting re-rated on the bourses. But will this exuberance last? Finds out ET Intelligence Group's Kiran Kabtta Somvanshi The Indian paper industry is on a roll. The acquisition of Andhra Pradesh Paper Mills by the world's largest paper company, International Paper, has led to a churn in the industry with valuation getting re-rated and a renewed thrust on expansion. The paper sector has been low profile with a few patrons on the bourses despite being considered as a core sector by the government. It has about 630 companies with an average production capacity of 39,000 tonne per player a year. It has been one of the most under-valued sectors in the stock markets with average industry priceto-earnings in single-digit. However, the acquisition of Andhra Pradesh Paper by the US company has turned the tide. AP Paper was acquired at 16 times its prevailing EV/EBITDA ratio of 7, which experts consider as a very high valuation. The deal, however, has lifted the sentiment of the industry as a whole. For instance, Ballarpur Industries, which was earlier planning to raise $330 million by listing on the London Stock Exchange, shelved plans hoping for better valuations. Another positive fall out of the deal was the initial public offerings of Servalakshmi Paper and Paramount Printpackaging, both of them having been over-subscribed. JK Paper, a leading player in premium paper category, plans to raise Rs 225 crore through foreign currency convertible bonds. So is the paper sector indeed promising or was the AP Paper deal just an aberration? The answer lies in tracking the growth of paper consumption in India and financials of paper companies. While paper as a sector is facing slowdown in the developed parts of the world, such as North America and Europe, due to peaking consumption levels, it is steadily growing in developing countries like India and China. Per capita paper consumption in India was 9.6 kg against global average of 57.6 kg in 2010, industry data shows. It is much lower than most of its Asian peers. Consumption growth and production base in the world has been increasingly shifting to Asia. The Indian paper industry is growing on the back of economic growth, thrust on educational initiatives and industrialisation. Demand for paper products such as tissue paper, tea bags, filter paper, copier paper and coated paper is growing in India. Different types of papers such as office paper, packaging board and copier paper are growing above 10% per annum. Indian paper companies are better than their global peers in terms of return-on-equity, efficiency of operations, water consumption and low cost. Most of the leading players generate 20-22% return-on-equity. Growth in the sector will be led by increased consumption and rising capacities. Most paper makers in India are in an expansion mode funding it through borrowings or internal accruals. They are investing in upgrading their technologies to achieve more efficient and cost-effective scale of operations. The industry is capitalintensive registering steady growth. Paper prices have been rising and future outlook looks positive, as paper is one of the least volatile commodities. International Paper paid more than twice of AP Paper's market price due to its strategically located plant, raw material linkages, established distribution network and low debt.

As a natural corollary, only players with integrated and efficient operations and clear-cut strategic advantages would be the ones to enjoy increased valuations. The fragmented industry is also a fertile ground that could see some consolidation. With most players wanting to grow to meet the rising demand, merger and acquisition route may be used to expand inorganically. With 100% FDI permitted in the sector, more acquisitions by intern-ational players cannot be ruled out. In case where an entire sector is getting re-rated, investors need to be aware of the best companies to choose from. Leading players such as BILT, JK Paper, West Coast, TNPL, APPM and Rainbow Papers are safe bets. Following is the snapshot of these investment-worthy companies in the sector and what investors can expect from them in the near term. BILT BILT is the largest paper company in India. A part of the Avantha group, it is the only Indian firm to feature in the list of top 100 paper companies of the world. It is the market leader in coated paper segment in India. Its margins in paper business were hit by rising cost of pulp, power and fuel. The company has raised product prices to offset rise in input cost. It has a capex plan of Rs 1,300 crore to increase pulp capacity and lower dependence on imports by fiscal 2012-13.

However, high pulp prices will continue to weigh on the company's margins in the near term. The company is planning to list its international subsidiary on the London Stock Exchange. The proceeds from listing will help fund its expansion and improve profitability. The paper industry is likely to consolidate in the near term and BILT, being the largest firm in the sector, will benefit. Long-term investors can look at accumulating the stock at lower levels. APPM Andhra Pradesh Paper Mills has sold a majority stake to the US paper major, International Paper, for about Rs 1,860 crore. The company could be worth investing in post acquisition due to the global expertise and brands that will come along with International Paper. Andhra Pradesh Paper's current production capacity is 2.5 lakh tonne per annum (TPA). Its productivity and operating margins are seen improving over the next two years. Increase in efficiency in operations and expansion of product portfolio will boost earnings.

TNPL

Tamil Nadu Newsprint and Paper is the largest bagasse-based paper company in India. Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. It is used as a biofuel and as renewable resource in manufacture of pulp and paper products and building materials. The use of bagasse as a raw material makes Tamil Nadu Newsprint one of the most efficient and cost-effective in the local paper industry. The company is promoted by the Tamil Nadu government. It manufactures newsprint, printing and writing paper. In fiscal 2010-11, the company undertook expansion of its paper production capacity to 4 lakh TPA from 2.45 lakh TPA, incurring a capex of Rs 1,000 crore. The company revamped its steam and power system, built de-inking pulp plant to produce pulp from waster paper and implemented a lime sludge management project at a capex of Rs 385 crore. The expansion will increase volume and improve operating profit margin. RAINBOW PAPER Ahmedabad-based Rainbow Papers is one of the fastest growing small paper companies. Commanding one of the best valuations on the bourses, the company is engaged in manufacturing different varieties of paper and after the current capacity expansion it will also produce valueadded products, such as glazed newsprint and speciality papers. It manufactures from waste paper, half of which is imported from overseas. Despite rise in waste paper prices, the company reported improvement in margins in the quarter ended March 2011. In fiscal 2010-11, the promoters increased their stake in the company to 29.7% from 24.7%, reinforcing confidence in its business. In its phase I expansion, the company added 80,000 TPA capacity which led to enhanced performance in 2010-11. Phase II expansion is currently in progress, which includes building an integrated pulp and paper plant of 1.2 lakh TPA and a 20 MW captive power plant. Phase II expansion, which is likely to be complete by the end of this year, will boost earnings. WEST COAST PAPER Karnataka-based West Coast Paper is one of the most promising companies in the Indian paper sector. The company has been reporting robust performance since the past three quarters. It has a production capacity of 3.2 lakh TPA. The company is expanding its annual pulp-processing to 3 lakh TPA and paper-making capacity to 4 lakh TPA at a total investment of Rs 1,400 crore. The company's capacity addition and robust realisations have improved its profitability. A small portion of its revenues is contributed by manufacture of optical fibre cable. The company has started pulp manufacturing to cut cost of buying it from outside. Its operating margin is one of the best in the industry. Increased demand for paper, firm paper prices, cost savings and improved realisations will boost the company's earnings. It has management control in the country's leading newsprint maker Rama Newsprint through a 53% stake that strengthens its presence in the growth-oriented sector. JK PAPER JK Paper is the largest producer of branded paper in India and a leading player in fine paper and packaging board segment. The company currently has a capacity of 2.7 lakh TPA. It plans to increase its capacity by nearly 50% to 4 lakhs TPA by the end of 2012 when its plant in Orissa will be operational. The company plans to raise Rs 225 crore through foreign currency convertible bonds. It also plans to build a pulp mill in South Asia, which will enable it to source raw material at cheaper

rates. Capacity expansion and good demand will boost earnings. JK Paper's stock is undervalued with a trailing price-to-earnings multiple of 3.5. Its market valuation is a tad more than onefifth its annual net sales. With the capacity expansion of most of these players rolling out over the next couple of years, the sector is a long-term play for investors.

INDIAN PAPER INDUSTRY

he Industry

Indian Paper Industry accounts for about 1.6% of the worlds production of paper and paperboard. The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion) contribution to the exchequer is around Rs. 2918 crore.

per annum

Demand of paper has been around 8% and during the years 2002-07 newsprint registere growth of 13%

age in world market

Newsprint and publication paper consumption account for 2 million tonnes, of which 1.2 m tonnes of newsprint paper is manufactured in India and the remaining 0.8 million tonnes i imported.

History India first Machine-made paper was manufactured in 1812. During this time there were 15 mills with a total production of lakh tones. In India the Soft wood is the principal raw material used for making paper especially newsprint and high class printing papers. With rise in population and broadening of education the demand for paper has been constantly escalated. Owing to very narrow forest resources wood pulp is in a shortage. As soft woods grow in temperate climate India is in short supply of such woods. Thus, in such circumstances the Bamboo became the major raw materials for the manufacture of paper in the country as it grows very quickly even after cutting.

Paper industry in India is mainly plantation based and is essential that more land must be brought under plantations of eucalyptus and other trees apposite for the making of papers. The paper industry also requires huge amount of soft water and paper utilized for newspapers is called newsprint. Its requirement is bound to grow noticeably. The Nepanagar Newsprint plant in Madtiya was set up to meet these aforementioned demands. The capacity of Indian Paper Industry has been raised to 75,000 tonnes a year. West Bengal and Maharashtra are the leading states for the industry. The total newsprint production has now reached well over 400,000 tonnes. A large number of expansion programmes & expansion of capacities with an outlay of Rs. 10,000 crores have been announced covering the various sectors like paper, paperboard, newsprint, etc. Indian paper industry is a vast industry comprising more than 157 paper-producing divisions all over India. These 157 functional units manufacture handmade paper worth around Rs.21 cores and provide employment to approximately 10,000 people. Sanganer village is the biggest center in western India humming on the rhythm of the sound of paper making activities.

Brief Introduction Indian Paper industry has created sustainable livelihood in rural areas and has helped generating employment for the local population especially for women to earn their livelihood. The Indian Paper Industry has emerged as a diversified and specialized industry that produces numerous types of papers that comes in various use such as watermark, filter paper, drawing sheets, etc. Other products including Paper Bags, paper diaries, paper photo Frames, Greeting Cards, Handmade paper Boxes, paper Albums, etc, are manufactured and exported across the world. Today, the Indian exporters export nearly Rs.400 crores worth of paper products per annum to the developed nations.

Market capitalization
The Indian Paper Industry has the top 15 global players with an output of more than 6 millions tonnes annually with an estimated turnover of Rs. 150,000 millions. Indian Paper Industry is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tonnes by 2010 & 13 million tonnes by 2020.

Size of the industry

Indian Paper Industry accounts for about 1.6% of the worlds production of paper and paperboard. The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion) and its contribution to the exchequer is around Rs. 2918 crore. The industry was delicensed effective from July 1997 by the Government of India & foreign participation is permissible. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern. Paper in India is made from 40% of hardwood and bamboo fibre, 30 % from agro waste and 30 % from recycled fibre. Newsprint and publication paper consumption account for 2 million tonnes, of which 1.2 million tonnes of newsprint paper is manufactured in India and the remaining 0.8 million tonnes is imported.

Total contribution to the economy/ sales

Demand of Paper has been around 8% and during the years 2002-07 while newsprint registered a growth of 13% and Writing & Printing, Containerboard, Cartonboard and others registered growth of 5%, 11%, 9% and 1% respectively. So far, the growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7 % over the last few years. India is the fastest growing market for paper globally and it presents an exciting scenario and paper consumption is poised for a big leap forward in sync with the economic growth and is estimated to touch 13.95 million tons by 2015-16. The futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons.

As per industry estimates, paper production is likely to grow at a CAGR of 8.4% while paper consumption will grow at a CAGR of 9% till 2012-13. The import of pulp & paper products is likely to show a growing trend. During last few years, the Indian paper market witnessed a fivefold jump in the import of coated paper. The total import of this paper rose to 10,000 tonnes in 2008 from 2,000 tones.

Employment opportunities
The industry provides employment to more than 0.12 million people directly and 0.34 million people indirectly. Some of the paper products are sheet paper, paper boxes, tissues, paper bags, stationery, envelopes, and printed-paper products such as books, periodicals, and newspapers. Specialty papers like sandpaper, blueprint paper, carbon paper are not a part of paper products industry. Stationery includes greeting cards, printing and writing papers, school and office papers, etc. The toiletry products include paper towels, tissue paper, and bath tissue.

Latest developments

The US governments recent move to clamp anti-dumping duty against the paper imports from China and Indonesia has affected the Indian paper manufacturers.The Indian Paper Manufacturers Association (IPMA) has urged the Centre to raise tariff walls or at least retain the 10% current level of import duties. Indian paper and newsprint industry has a huge potentials and prospects in coming future. In our, country, demand for paper and newspaper is rapidly increasing. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc. Indian paper industry is one of the underestimated industries for quite some time because India's per capita consumption of paper is just about 5 kg. Whereas it is 337 kg in North America, 110 kg in Europe and 30 kg in China. Compared to this scenario, India' par capita consumption is one of the lowest in the World. The Rs. 22000-crore paper industry in India, rated 15th largest in world engages about 1.5 million people with the help of Rs. 2500 crore Government subsidy. Government has given paper industry as one of the 35 high-priority lists. There are about 515 manufacturing units of processing and production of paper. Newsprint and paperboards in India which have the annual capacity of 8.3 million tonnes, is likely to be 16 million tonnes by 2014. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd (HNL), Tamil Nadu Newsprint and Papers Ltd (TNPL), Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper. Virtually paper industry is decontrolled and there is no price control on finished product. As a result entire cost has shifted upon the end-users. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per ton, an increase of $145 since December 2007. India also, imports bulk of newsprint from foreign countries. From North America we have imported 18.9 lakh tonnes in 2004 to 26.45 lakh tonnes in 2007, a CAGR of 11.9%. Domestic consumption move up by 6.40 lakh tonnes to 9.70 lakh tonnes, a CAGR 14.9%, while import went up by 12.50 lakh tonnes to 16.75 lakh tonnes, a CAGR of 10.3%. Indian handmade paper industry is a vast industry comprising more than 157 handmade paper-producing divisions all over India. These 157 functional units together manufacture paper worth around Rs. 21 crores and provide employment to 10,000 people.
Updated: Jan 2011

Indian Industries
Classified under RED category Aluminium industry, Cement industry, Construction

industry, Copper industry, Dairy industry, Diamond industry, Fashion industry, Fertilizer industry, Film industry, Granite industry, Health care industry, Jewellery industry, Mining industry, Oil industry, Paint industry, Paper industry, Power industry, Printing industry, Rubber industry, Silk industry,Soap industry, Steel industry, Sugar industry, Textile industry, Tabacco industry, Zinc industry Classified under ORANGE category Automobile industry, Cotton industry, Hotel industry, Jute industry, Pharmaceutical industry, Tractor industry, Weaving industry Advertising industry, Agricultural industry, Aviation industry, Banking industry,Biotechnology industry, Biscuit industry, Chocolate industry, Coir industry, Cosmetic industry, Cottage industry, Electronic industry, Food Classified under GREEN category Processing industry, Furniture industry, Garment industry, Insurance industry, IT industry, Leather industry, Music industry, Mutual fund industry, Pearl industry, Plastic industry, Poultry industry, Railway industry, Real estate industry, Shipping industry, Solar industry

List of Paper Companies,Stocks in India Major Manufacturers,Paper Industry Issues,Growth and Paper Recycling in India
The Indian Paper Industry makes a small 1.5% of the global production of paper and parperboard with a size of around 5.5 billion dollars. The industry was delicenced in 1997 by the Government of India and made foreign participation permissible. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern.The mills use a variety of raw material eg. wood, bamboo, recycled fibre, bagasse, wheat straw, rice husk and recycled fibre. India is the fastest growing market for paper globally with paper consumption set to rise with the economic growth and is estimated to touch 14 million tons in the next 5 years (Source IPMA) Paper Recycling in India Paper Recycling has several benefits. Using recycled paper to make new paper reduces the number of trees that are cut down, conserving natural resources. In some instances, recycling services are cheaper than trash-disposal services. Recycling paper saves landfill space and reduces the amount of pollution in the air from incineration. In India, however only about 20% waste paper is being currently recovered annually. Low recovery is on account of alternate use of paper in wrapping, packing, etc. Lack of source segregation results in waste paper getting contaminated and becoming unusable. In comparison in developed countries the percentage of recovery of waste paper is very high. For instance in Germany it is 73%, Japan 60%, USA 49% and Italy 45 %. Sri Jayalakshmi Enterprises, a Chennai based enterprise is one of the leading company in the recycling of old paper and cardboard for final recycling. Issues with Paper Industry
Wood: Indian wood resources are limited therefore, cost of wood is much higher in global comparison. Bagasse/ Straw: Though annual availability of agro residues is large yet, this may not be able to sustain the future growth of the Industry.Moreover, bagasse is increasingly used by sugar mills for co-generation of power. Waste Paper: The recovery rate works out to about 20% which is much lower in comparison with 65% recovery achieved by many global players. Low recovery is on account of alternate use of paper in wrapping, packing, etc. Energy Cost: Cost of coal is escalating and prospect of availability of quality coal is diminishing. Also, power purchased from the grid is proving expensive for the industry.

Major Paper companies in India are:

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Ballarpur Industries Ltd. - With a market cap of Rs.2,300crores , Ballarpur Industries is one of the largest paper companies in India. It recorded a sales turnover of around Rs.4,000 crores with a net profit margin of 5% (Jun 2010). Bilt Paper s focused on the manufacture of bulk coated and uncoated paper and viscous grade fibre while the rest of the Ballarpur Group focuses on the manufacture of copier paper, speciality paper and tissue paper, Retail and OSSB. Members of the Avantha Group own 49.40% of the issued share capital of Ballarpur. Ballarpur Industries is also listed on the BSE and National Stock Exchanges in India. Andhra Pradesh Paper Mills Ltd. With a market cap of Rs.1,244 crores, APPM is one of the biggest, integrated pulp and paper manufacturing companies in India. The turnover of the company was Rs.670 crores & net profit margin 8% as on March 2010. It took over Coastal Papers Ltd in 2001. Its production capacity is 1,74,000 TPA. The takeover of APMM by a foreign paper company International Paper with a substantial premium has raised the valuations of the other paper companies listed in India. Tamil Nadu Newsprint & Papers Ltd. TNPL makes paper primarily from Bagasse, namely sugarcane waste using as little wood as possible.TNPL exports about 1/5th of its production to more than 30 countries.The Company completed a Mill Expansion Plan in 2010 to increase the mill capacity to 4,00,000 TPA. It has a market capitalisation of Rs.900 crores & recorded a Sales turnover of Rs.1090 crores, with net profit margin of 12% (Mar 2010). Rainbow Papers With a market cap of Rs.547 crores, Rainbow today is one of the fastest growing corporations in the Indian Paper Industry. It offers a plethora of world class products ranging from Duplex to File Board, from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe. They recycle and reuse water resources. The sales turnover was 280 crores & net profit margin was 8.5% (Mar 2010). West Coast Paper Mills - The market cap of the company is Rs.540 crores. It achieved a sales turnover of Rs.650 crores with a net profit margin of 8.5% (Mar 2010).The production capacity is 3,20,000 TPA.It was the first in India to use 100% hardwood in place of 100% bamboo. JK Paper L - With a market cap of Rs.455 crores, it is part of one of Indias leading business houses JK organisation which has significant presence in Cement & Tyres. Indias largest producer of branded papers & a leading player in fine papers & packaging board segments. Nearly 95% of the Companys product mix comprises high value products marketed under various popular brand names like JK Copier, JK Bond, Cedar etc. JIt recorded a sales turnover of 1300 crores, with a net profit margin of 7% (Mar2010). Seshasayee Paper & Boards The flagship company belonging to ESVIN GROUP. The market cap of the company is Rs.275 crores & it achieved a sales turnover of Rs.500 crores with a net profit margin of 7.5% (Mar 2010). The furnish mix for the existing Paper Machines of the Company is 55% bagasse and 45% hardwood. Rama Newsprint & Paper -With a market cap of Rs.109 crores, Rama Newsprint and Papers is Indias largest private sector Newsprint and Printing & Writing paper manufacturing facility at a single location, having an installed capacity of 1,44,000 tonnes . The sales turnover was Rs.300 crores (Mar 2010).

Other Major Paper and Pulp Manufactuers are Century,Orient Paper Mills,ITC Bhadrachalam,Emami and Abhishek Industries.They are not pure play paper companies but manufacture other products as well such as FMCG,Texiles,Cigarette etc.