Browse the Featured Interview of Mr. Abhishek Agarwal, Director at Resonance Paper Mill, Morbi, Gujarat (India).
Resonance Paper: Product Quality decides the Future of Paper Business
Resonance Paper: Product Quality decides the Future of Paper Business
Resonance Paper Mill is located in the strategic location of Rajkot-Morbi Highway, Gujarat. Also to be noted is its close proximity to Mundra and Kandla ports. The paper mill is spread in an area of 1,80,000 square feet. Resonance Paper Mill Private Limited manufactures multi-layer high-quality kraft paper, with a range from 16 to 35 BF and GSM from 110 to 300, using its paper machine with size press technology. Paper Mill use reliable and highly-efficient lab equipment for testing of manufactured paper. Its experts are constantly conducting research and experimenting to improve paper quality and save energy resources. The capacity of our plant is 48,000 metric tonnes per year.
The administration of the company, and its sales team, in its headquarters in Morbi are constantly strategizing to boost business and build it as a bigger brand.
Recently The Pulp and Paper Times got the opportunity to Interact with Mr. Abhishek Agarwal, Director at Resonance Paper Mill. He shares his views on the current paper industry situation, expansion plans, and Market trends. Here is the conversation…
Q. Nowadays, a large number of Kraft manufacturers are coming up in the market; does Resonance Paper find any difficulty in selling its paper? What is your Kraft Paper’s USP?
Yes, it is true that many new paper projects are coming into the market and it is also true that this will affect on sales productivity but according to my point of view if we provide the continuous good quality paper with client satisfaction service then it would never affect on your sales. But now we have to keep more attention on quality, service and client satisfaction.
And I am feeling happy to share that the day when we start our company and till today we never face any sales problem and any kind of order shortage problem and it is just because of our USP (unique selling point).
from the beginning day of our company we always focus on various markets and succeed to capture the export market. we divide our production into region wise and country wise. our global presence includes China, middle east and Bangladesh.
“We are working on a new paper project with India-china cooperation basis” - Abhishek Agarwal
Q. How Marketing and Branding of Kraft Paper are important in today’s scenario?
In today’s scenario marketing and branding are two main pillars of every product and this also applicable to kraft paper. Marketing is the first step to reach the clients and after that, your paper quality and service decide the business. According to me in the paper industry, the paper quality decide the future business but as taking the first trial order from clients the Branding and Marketing play a vital role.
Q. Do you think that Online Marketplaces (Amazon, Flipkart, Alibaba, etc) are the right platform to sell the Kraft Paper in India? Like paper mills in Europe and America do it. Please explain.
No, I don't think that Online Market places are the right way to sell the kraft paper the reason is the kraft paper is an industrial product and in kraft paper, the technical parameter like Burst index, RCT, moisture and COBB value play an important role to sell and this factor should be very accurate and as per customer requirement.
Second reason is the auto plant customer requirement is minimum 10 Mt and the value of the consignment is very high so it is not possible to place them order online and execute immediately. According to my point of view, the dealer basis network is the best way to sell kraft paper
Q. Share your Expansion plan if any new Product development in near future?
As we already expand the plant capacity in last year February 2019 up to 150 tons per day and now we have fulfilled the current plant capacity upto full level so now there is no scope in further expansion on our current plant. But it is glad to share that we are working on a new paper project with India-china cooperation basis and under foreign investment and we will keep update you after finalizing the deal in a short time.
Q. The Kraft Paper export to China and other countries has come down for the last 6 to 8 months, what are the possibilities of improving the export market in the coming time?
Actually in the year 2018 there was a boom in India’s paper export market and very high potential in kraft paper export business but by year end it start to fall down and approximate 30 to 40 % export market come down till march 2019.there are many reason behind this crisis mainly quality issues in flutting paper, china’s global crisis and Trade war between USA and China.
But the current export market for China and other countries are turned good and all the good factories getting many export orders.
According to my analysis of export market trend especially for china if we match the quality according to international standard and can match the landed prices competitive then export will be continuous and forever.
Q. Waste paper market is being benefited due to China’s partial ban on the import, next year it is expected to be considered as a complete ban by China, How do you analyze the waste paper procurement after the ban?
Yes, It is true that due to the partial ban on the imported waste by China The prices of import waste turned down and very easy to available but on second phase the prices of finish paper also down to the same level so according to our cost analysis there is no effect on profit ratio.
In the other side of import waste ban by china Indian paper industry getting a good opportunity in terms of export orders.
Q. Corrugators are slipping into lower GSM like 60 to 70 range for product development, what do you think about this new trend?
Yes it is true that the demand of lower GSM paper is increasing day by day for domestic as well as the export market. Low GSM paper is key product of paper bag business so the importance of LOW GSM paper is high in this sector.
According to my opinion the LOW GSM paper manufacturing will be the bright future of Indian papermaking industry in terms of profitable and sustainable business.
Q. What do you think about the packaging industry’s future?
According to my view The future of the Indian packaging industry is very bright and would be outstanding growth in upcoming years. The packaging industry in India is predicted to grow at 18% annually with flexible packaging growing at 25% and rigid packaging at 15%. According to an article published in economic times, The market size of the country’s packaging industry is expected to touch USD 72.6 billion by FY20.
Q. The Indian government is planning to implement one percent limit for the contamination on mixed waste paper imports to India, How do you see this step of Govt. in terms of easy availability of waste paper? Will this step create hurdle for paper mills?
Yes, the Indian government is planning to implement a one percent limit for the contamination on mixed waste paper and we support this government decision. India is not a garbage center where other countries can put there municipal waste and other garbage. And this decision should be implemented uniformly to all Indian ports.
In our plant from day one we imports only clean grades of imports waste and never accept municipal or high contaminates waste paper.
after applying this rules by Indian government it will create hurdle for paper mills for short time but after suppliers strictness on sorting of waste paper the business will be on routine.