Orient Paper looks at Global Tissue Paper Market; Invests 70 Cr.

Orient Paper looks at Global Tissue Paper Market; Invests 70 Cr.

Shahdol: Tissue paper, an essential hygiene and sanitary paper product, has gained worldwide acceptance and stands out as an indispensable sanitation enabler today. According to market reports the global tissue paper market to grow at a CAGR of 4.88% over the period 2014-2019. India's largest paper producer Orient Paper has planned to install 3rd Tissue paper machine in the existing premises. According to internal sources, A 100 TPD tissue paper plant installation is expected to be finished by December 2016 and the commercial production will be started from Jan 2017. This is our 3rd expansion in Tissue segment. The global growth rate of tissue consumption was 4.0% in 2015.

This is an exceptionally strong growth compared to recent years as the global growth rate was not more than 3.2% in both 2014 and 2013, 3.5% in 2012 and 3.6% in 2011. This growth also exceeded our expectations, since the International forecast was 3.7% for global tissue market growth in 2015. Currently, Orient Paper has already 2 tissue machines producing 40 and 60 TPD respectively. “We have imported a good quality second hand tissue paper machine from Italy. We have estimated a total investment of Rs. 70 Cr. in this project through Bank loan. Orient is not planning to sell tissue in a retail commercial packaging box but to export in bulk to the traders in Sri Lanka, Malaysia, Bangladesh and as well to sell in India also.Informed by sources to The Pulp and Paper Times. In the Asia-Pacific region, the Chinese growth rate of 10.5% in 2015 clearly exceeded our expectations.

The Japanese market recorded a small decline, and the Asia Far East region recorded rather weak growth (our current figure is only 2.1%), mainly because South Korean consumption was down by more than 6% in 2015 after a major 10% growth rate in 2014. We think there is some statistical discrepancy in the South Korean statistics (production) and that the 2014 consumption figure was erroneous. Oceania showed a good growth of more than 4% in 2015.

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