India Paper & Paper Products Industry Report - 2014
This report profiles India’s paper and paper products industry, discussing market trends and outlook through 2014 and beyond. The report also highlights leading players in the sector including Ballarpur Industries Ltd, Tamil Nadu Newsprint and Paper Ltd and Rainbow Papers Ltd.
The paper industry in India has been in existence since ancient times, experiencing a paradigm change over the years. The existing paper mills in the country employ diverse technologies- from legacy to advanced methods. The Indian paper mills mainly use three types of raw material namely wood/chemical pulp, agro residues and recycled fibre to produce paper and paper products.
While the demand for paper remained subdued in the developed world during 2009-12, the Indian paper and products sector saw a rapid growth. The sector saw consistent growth in consumption, in turn increasing production. This trend motivated the paper manufacturers in the country to move forward with capacity expansion and growth plans.
After a rapid consumption growth experienced during the 2009-12 period, Indian paper industry experienced a lull in FY13. The rising raw material prices forced manufacturers to increase the prices of paper and paper products. However, the industry witnessed a demand revival in FY14-15. This together with decline in raw material prices brought relief to the manufacturers.
The long term outlook for the Indian paper sector is stable because of existing low per capita paper consumption, rising literacy rate and a young population. Government support and technology upgrades bode well for the sector.
• During 2009-13, the value of paper and paper products production of Indian companies grew at a CAGR of 11%. After recording a peak y/y increase of 34.5% in FY11, the sector saw a subdued growth in the last three years.
• India saw rapid growth in consumption of paper and paper products during 2006-11, growing at a CAGR of 9.3%, much higher than the average global growth rate of around 3%. However, after peaking in FY11, the demand decelerated during FY12 and FY13. The sector finally reported some demand recovery in FY14.
• India experienced strong growth in production of paper and paper products during 2007-11, growing at a CAGR of 13% and yet it was not enough to meet demand. However, during the last two years in FY13-14, production has remained subdued.
• The index of industrial production (IIP) recorded a decline of 0.1% in FY14. Paper and paper products industry recorded a growth of only 0.1% y/y. However, the industry saw a revival in FY15 with a y/y growth of 1.9% in 7MFY15.
1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning
2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Production trends
2.3 Installed capacity
2.4 Consumption trends
2.5 Paper imports
2.6 Paper exports
2.7 Paper prices
2.8 Raw materials
2.9 Market outlook
3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 Ballarpur Industries Limited (BILT)
3.1.2 Tamil Nadu Newsprint and Paper Limited (TNNPL)
3.1.3 Rainbow Papers Limited (RPL)
3.2 Comparative matrix
3.3 SWOT analysis
4. Tables and Charts
Table 1: Fiscal relief measures suggested by working group on paper sector
Table 2: Recent capacity additions by major paper companies
Table 3: Key financial ratios of leading players
Chart 1: Production of paper and paper products in India
Chart 2: Share of Indian paper and paper products in global production
Chart 3: Indian paper production breakup by type of raw material
Chart 4: Total production output of Indian paper and paper product companies
Chart 5: Share of sector segments by value
Chart 6: Cumulative FDI in paper sector in India
Chart 7: Share of Indian paper companies by installed capacity
Chart 8: Results of Indian general elections
Chart 9: Current account deficit and fiscal deficit
Chart 10: Indian literacy rate according to census
Chart 11: Quarterly GDP growth rate-India
Chart 12: Average Monthly USD to INR Exchange Rate
Chart 13: Inflation during FY14-India
Chart 14: Repo rate
Chart 15: Contribution of industries in IIP
Chart 16: Y/Y change in Index of industrial production
Chart 17: Annual production of paper in India
Chart 18: Y/Y change in index of production by segments
Chart 19: Installed capacity for paper production in India
Chart 20: Total consumption of paper and paper products in India
Chart 21: Ratio of paper and paper products demand to supply and capacity
Chart 22: Annual paper import in India
Chart 23: Total value of paper and paper products import in India
Chart 24: Annual paper and paper product exports from India
Chart 25: Trade deficit in the paper and paper products sector
Chart 26: Monthly wholesale price index-Printing and writing paper
Chart 27: Monthly wholesale price index-Newsprint
Chart 28: Monthly wholesale price index-Pulp
Chart 29: Monthly wholesale price index-Bagasse
Chart 30: Forecast for paper consumption in India
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