We see a glorious future in the coming 10 years for the Paper Trade with the Survival of the Fittest

"We see a glorious future in the coming 10 years for the Paper Trade with the Survival of the Fittest"

"Occurrences of Bad Debts are majorly the choice of the Paper Trader & the new generation will surely not let it happen"

Mr.Dipesh Laddha (in Above picture)

Q.Please give us a small introduction of Kalpataru Papers.

Kalpataru Papers LLP is one of the leading facilitators for exporting of Printing & Packaging Paper – headquarters at Ahmedabad, sales office at Vadodara & international Office in Dubai, UAE. Kalpataru majorly exporting Duplex Board, Kraft Paper, Core Board, Newsprint Paper, Wood Free Paper, Colour Paper & Boards, Specialized Kraft and also have a prominent stake in the international market for the Polycoated Paper segment facilitating Polycoated Paper & the multi-structured paper widely used in Food Packaging & other multiple application. Currently exporting Printing & Packaging Paper to 12 countries - UAE, Saudi Arabia, South Korea, Vietnam, Turkey, Iran, Nigeria, Tanzania, Portugal, Durban, Srilanka & New Zealand. Kalpataru is FSC Certified and servicing leading corrugators & packaging houses in the Western region of India as well.

Q. These days, do you think paper trading is a career-making job and paper trading can also give good career opportunities to unemployed youth? Can you figure out the manpower strength of India Paper Trading and what yearly growth do you see?

Indeed – Paper Trading is a very lucrative career & it has evolved into an industry, which requires a matured & skilled workforce. It is no longer just a job of a marketing person – going door to door offering the product to printing or packaging units. In fact, it has turned very technical – with so much customization of Paper products being implemented in India. The traders who face difficulty are probably those who have not changed with the new trends in the patterns of trade but there is no doubt that it has an abundance to make a fruitful career for youth. In India, there are approximately 9000 to 10000 trade merchants, which are part of Paper Trade, out of which some traders deal in different commodities as well along with Paper. If we focus on manpower – the coming trend would see many paper traders would have to invest in human force. Moreover, even today, the investment in the workforce is increasing as the need to get skilled & technically sound workforce has increased specifically among the Paper Traders, which will be the boost to achieve organic growth for the Paper Trader. The growth of Paper Trader in India is very positive – in fact, the importance of trader will always be prominent for countries like India where we see majorly paper units are unorganized or working on a regional basis only. As such, the net worth of a standard Paper Trader should be growing realistically by 12 to 15 % every year!

Buy Paper Trade Directory 2019 (Latest Data of 500+ Indian Paper Mills) Avail Discount

Q. What challenges do you see in paper-trading in the current scenario in India? How Indian Paper Traders are ready to overcome these challenges?

Today - the biggest challenge in our Paper Trade Fraternity is to create our own USP among the customers. Conventionally – the majority of the Paper Traders have made themselves over leverage by providing Credit in excess of capital, succumbing to the pressure of the paper mill whom they would be representing to sell there quota, or working on extremely thin margins which have to lead to desperation to sustain in the business. However, all these measures have not and will not help any of the traders for a longer run. The most important tool to grow is to identify one’s own capacity – its own expertise to create a service, which ensures that the customer respects the value of the money & time invested by the Paper Traders. It is the most essential aspect where the monetary stakes are too high and it is unsecured as well.

The Paper Traders in India are seeing ample of changes in the Trade circle & they are all evolving with the way the options are available to service to customers. Every paper trader will have to be equipped with sufficient data before starting a new account. Due to globalization – there is new quantities – new products through new channels are infusing in the Paper Market of India. The Paper Traders in India are becoming smart buyers & working with a proper strategy reviewing the market conditions as per the demand. Most important after GST being implemented lots of Paper Traders have consolidated with other traders and this has helped to access the stocks available in the other region easily.

Q. In the global perspective, paper trading is playing an important role in the clearing of stock lot papers, opening up in new buying connections for paper mills and gives many other supportive advantages to the paper mills. How do you access the paper trading in view of Indian paper mills and foreign paper mills?

Yes – like I said the Paper Trade as a career or for an entrepreneur has lots of positivity going forward. Every trader has to define its own expertise in its region and work towards it. Globally, big capacities are being created – it is very difficult for a Paper Mill to service each & every Printing or Packaging unit and take care of the requirement. Eventually, every production unit needs an efficient Channel partner and this process will give lots of new opportunities to Paper Traders. Indeed, it is a win-win situation for both the trader & the Paper mill. If you see, developed countries there are large traders who would buy the entire quantity of the mill (specifically stock lots) and they would tie-up with different traders in each country. India has lots of space for such joint ventures. International players would want to work in India but they cannot go to the ground level and sell the stocks – they will always look forward to tie up with efficient Paper Traders existing in the market. This gives lots of accessibility for a local trader to add more products in its basket and it adds to its profitability as well.

Q. Paper Mills claims India paper traders are dumping the paper in India with the help of many international suppliers. How do you evaluate this claim?

No – this claim is incorrect. Paper Traders in India have more loyalty & are more bonded towards there principals compared to what you see in other regions of the world. Yes, it’s a fact the Paper Trader would have taken help to source the product from the International Suppliers but this would be only to increase products in its basket. Yes – some segments where the Paper mills in India have not been able to be cost-efficient and eventually lots of imports have been infused in the market. Such cases are only when we see the Paper mill is not able to beat the competition may be due to the high cost of production & less availability of raw material. In such cases, the trader has to take other options to make its own survival.

Q. Recently the government has imposed a 10% import duty on imported printing papers such as newsprint and printing grade paper. What impact do you see in short term and long term on Indian Paper Trading?

The duty is imposed specifically on the use of Newsprint Paper & the grades used for Newspaper & Printing magazine. This support comes from Government is quite a surprise, as the consumption of Newsprint Paper in India is approximately 2.4 million MT per annum whereas the production of good quality Newsprint Paper is only 1.00 Million MT per annum. On the top of that, the Newsprint Paper or LWC Newsprint being imported from other regions has superior quality than provided by the Indian mills. There is no major impact we would see by this move as Newspaper Publishers or Magazine Publishers who need good quality paper will still be dependent on imported Newsprint Paper so eventually, this

duty would not discourage the imports. Yes – it will surely increase the revenue of the government. In the long term - the surplus stock lots of Imported LWC Newsprint, which was being imported in the country as Newsprint Paper and waiver of import duty was availed – this move will curb such imports.

Q.As a paper trader, you are operating in many countries. What significant trading differences do you see in other countries in comparison to India? Please elaborate.

In the developed countries, we see Paper Traders or service providers being very prompt and accurate in communication to the customers. That is the reason they have always been in good books with the mills & the customers. Secondly – they would take a bank facility and use it in the most appropriate way – in fact now quite a few big players in Paper Trade are taking debt insurance for the outstanding receivable and this always keeps them safe in an unforeseen situation. Thirdly, a Paper Trader in overseas would have proper product knowledge to what he is offering to the end-user, he would be aware of the technicalities of the product – the market capacities and other factors which is very essential to understand the target customer. They will not work in low margins and will always do great networking & bonding with customers. Yes adding to this factor, as there is the number of traders in a said country is much lower than India – hence the unfair competition is saved to an extent. In addition, in the international market – the majority of the Paper Traders have an in house converting facility – so they are able to service the “Just in Time” orders and this value addition adds a good margin to the trader.

Q. India Paper Trading is trapped in illiteracy, Bad Debt, Short of Manpower and unorganized way of working. In these contexts, where do you see Indian Paper Trading in the next 10 years?

I think Paper Traders are learning from the mistakes done in the past. Illiteracy would be at some point but going forward every Paper Trader realizes that we have entered an era where we need to understand the composition of the product, the consumption, the application, the pros & cons of the product and this knowledge will always ensure they are superior in any competition. The occurrence of Bad Debts is majorly the choice of the Paper Trader & the new generation will surely not let it happen. Once the trader forms the respect for the product it offers, the service that he provides he would surely avoid the Bad Debts occurring due to overexposure or over-trading. The workforce is short and the demand for such skilled Manpower in Paper Industry will increase more. In fact, we are witnessing the annual salary package provided to the marketing representative by the Paper Traders in metro cities is higher than the ones provided at any leading Paper Mill. Therefore, Paper Traders in India are changing – they are growing & adapting to the global culture & with the support of the technology, everyone is becoming organized in its own capacities. We see a glorious future in the coming 10 years for the Paper Trade – with the Survival of the Fittest!

Web Title: We see a glorious future in the coming 10 years for the Paper Trade with the Survival of the Fittest