Paper Import policy should be amended in view of current demand-supply gaps: Rajinder Gupta

Paper Import policy should be amended in view of current demand-supply gaps: Rajinder Gupta 

Trident Paper is dedicated to keep pace with the latest technological advancements and focuses on technical superiority with world-class machine and ability to produce high quality eco-friendly paper. With a production capacity of 175,000 TPA, Trident is the world's largest manufacturer of wheat straw based paper. Post ongoing expansions, this capacity will be further upgraded to 200,000 TPA. Recently, The Pulp and Paper Times got the opportunity to interact with Mr. Rajinder Gupta, Chairman of Trident Group. Here is his full interview. 

Q. Trident Paper has become an established name in paper making, please share Trident’s principles and work ethics, for our readers, behind a successful paper manufacturer. 

Trident is driven by ethical practices and a vision for bringing a positive change. We are people who get ‘Inspired by Challenges’ and following our principles of determination and perseverance, we have been able to catapult Trident into a leading paper manufacturer. With a clearly defined customer centric approach, we have achieved this reputation. 

Q.The pandemic has subdued the demand for Writing and Printing Paper (WPP) significantly in the last 4 to 5 months. What is Trident’s strategy to combat this situation for next six months? 

With our strategic, comprehensive and resilient approach, we have been able to rise above all the challenges that came our way in the last six months. We have explored different markets domestically and internationally in order to increase our customer base for our existing products - Stiffener Paper, Super Line and Copier. We are also working towards expanding our product segment. In the last few months, we have launched our Kraft Paper and Enviro Copier. 

Q. Will these market conditions eat out the liquidity of paper mill? 

Today’s scenario is a challenge for the paper industry, wherein particularly WPP has low demand leading to a gap in the demand and supply. Despite the challenges posed by the pandemic, we at Trident have put our best foot forward, as always. We are conscious about the fact that it will take some time for the paper industry to recover but at the same time, we also anticipate its revival in the coming few years. 

   

Q. The pandemic has crippled import of paper from China. The price of coated paper already increased in the domestic market, how do you see this situation? The price of which paper grade may further be increased? 

The import of coated paper from China has received a positive response in the Indian market. However, once the Indian markets start opening up, these imports will gradually decrease and thus the domestic manufacturers of India can seize the opportunity and cater to the customers' demands. 

Answering your second question, as e-commerce and digital sectors are booming, there is a possibility of price hike for packaging paper specially when we talk about online shopping be it food, clothes or any other product that is packed and delivered at doorsteps. 

Q. Trident is going to invest around INR 200 crores for machine rebuild. Please share the details of this giant rebuild. What ‘value addition’ Trident is seeking to achieve from this massive investment? 

We are planning to upgrade our existing Paper Machine -1 in order to increase our capacity as well as improve our product basket. Earlier we were making paper up to 150 GSM but now we plan to reach 170-180 GSM. This rebuild will increase our product portfolio with more value-added products that can cater to the customized demand of customers in packaging and food grade segment. We are also aiming to upgrade critical components like head box, dryers and calendars. With this advanced equipment, we look forward to elevate the quality of our products.

Q. Indian Paper Industry has registered record profit in FY 18-19 and showing positive growth in their logbook despite increasing paper imports. How do you see this success of Indian paper mills in view of cheap paper imports? 

During FY 18-19, global paper industry was at a boom with high demand and high price of goods. Indian paper industry showcased a stellar performance during that period and received terrific exposure in the global space. With Indian paper becoming more acceptable for its usage and also standing fair in comparison to European and Indonesian paper, there’s not much to worry for the Indian manufacturers, especially when it comes to competing with cheaper imports. 

Q. How does Trident analyze the ongoing trade war between US and China? How this war impact the paper trade scenario in the world, especially for India? 

The US and China Trade war impact is visible across the globe. US being world's biggest consumer and China being world's biggest manufacturer, the gap in demand & supply gave a great push to developing countries like India which also has, only next to China, biggest source of human resource.

India’s domestic demand for paper - coated and un-coated, is vastly met by 600 Indian mills as well as the imports from international mills. Export from China has always been cheap but owing to the trade war, the positive impact which was initially predicted got subdued by the pandemic’s impact on global trade. 

Presently, the US - China Trade war has led to reduced imports from China to India, but paper from other countries is still been imported in India and is making the market highly price sensitive. 

Q. Recently, Trident conducted a successful trial of Kraft Paper Production, what factors have worked behind this ‘move’? Will the production of Kraft continue, or it is being produced just to eliminate the idle time of the machine till the demand of writing-printing paper picks up? 

With the vision to expand our current product portfolio, we have made few trials of Kraft Paper. We are currently evaluating the feedback received from the market. If the manufacturing is profitable and viable and the product can meet the customer demands, it would become part of our product portfolio. Further, continuation of Kraft Paper shall depend upon these factors and we would finalise upon the same in this quarter. 

Q. If Trident enters Kraft Paper manufacturing; don’t you think it may impact the profitability of small Kraft Paper mills in northern India? 

Based on our thorough research, there are very few virgin-based Kraft Paper manufacturers in the northern part of the country and the segment which we intend to cater has a very bright future. Majority of Kraft manufacturers are catering to corrugation segment but we are exploring a completely different domain. Thus, with Trident entering Kraft Paper manufacturing the profitability of other mills shouldn't be impacted. 

Q. After having invested a lot of money in the capacity build-up, Research & Development, and quality standards, still, lots of branded and signature paper are being imported to India for use into various printing applications, where are Indian Paper Mills lacking in global competition? 

The major challenge in our viewpoint is economies of scale apart from quality and availability of raw material. These results in much better costing of international players to give much better quality compared to most of the Indian players. 

Q. How does Trident access the Government's steps to curb the import of paper? Any suggestion do you want to convey?

 Import policy should be amended by the government considering the current demand–supply gaps to preserve the interest of domestic paper manufacturers. Countries like China and Indonesia have significant production capacity and are using this as an opportunity to push the excess inventories to India at lower prices. 

Q. How does Trident analyse the normalcy for the mill operation on the parameters of shortage of labour force and fund liquidity amid COVID? Has normalcy come up? 

With our proactive approach, we at Trident are functioning with full force. We are following 100% safety protocols to carry out our manufacturing operations. With our strong people policies and ethical practices and with the continued support of our members, we have overcome every challenge posed by the pandemic. Adapting to the new normal, we are ensuring safety at every step so that all our members feel protected at work. Fortunately, we did not face any issue like labour shortage or fund liquidity. We are grateful beyond words for the support and the faith that our people bestowed on us. 

Q. Any expansion Trident group is planning in the paper segment? If yes, please share the details. 

We are planning to rebuild our Paper Machine 1 which will lead to increase in our production capacity as well as elevate our GSM range from 150 to 180 GSM. This shall help us expand our product portfolio by adding more value-added products that will cater to the customised demands in the packaging segment. 

Q. Trident is considered as one of the most stable companies on employment parameters. What are the major reasons of the company which make an employee to stay in the company and give his best output in the company's growth? 

We are glad to share that after CII, WTW and People Matters recently GPTW (Great Place To Work) has recognised the best practices of Trident Group on their website. Regular employee engagement, reward & recognition activities along with continuous guidance from the leadership team help to build confidence amongst employees and motivate them to give their best at work.

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