“Global factors such as capacity expansions in Asia, evolving trade flows, and volatility in input costs (pulp, wood, and energy) will continue to impact domestic pricing and competitiveness.” — A S Mehta

“Global factors such as capacity expansions in Asia, evolving trade flows, and volatility in input costs (pulp, wood, and energy) will continue to impact domestic pricing and competitiveness.” — A S Mehta

As The Pulp and Paper Times marks its 10th anniversary, we celebrate a decade of meaningful and industry-focused journalism.

On this special milestone, we talked to Mr. A S Mehta, President, JK Paper Limited, about his perspective on the future of the paper business. We shared our theme, “Market Factors, Technology, and Consumer Interests Shaping the Indian Pulp and Paper Industry in the Next 10 Years.” We received very informative and deeply insightful views that everyone associated with the paper industry, in any capacity, should read. Here are a few insights.

The Pulp and Paper Times

The pulp and paper industry in India is currently undergoing a mixed yet structurally transformative phase. On one hand, we are witnessing positive demand growth, primarily driven by packaging and sustainability trends. On the other hand, the printing and writing (P&W) segment is experiencing low to moderate growth relatively better than the global trend, where it continues to decline.

However, the industry is also facing significant pressure on margins, driven by high raw material costs, particularly wood, along with increasing imports from countries such as China and Indonesia, following large-scale capacity expansions over the past few years. FY 2025-26 has been one of the most challenging periods for the industry. We are currently experiencing a “margin squeeze” phase, driven by rising input costs, increased imports, volatile pulp prices, and weak export competitiveness.

Looking Ahead: A Decade of Transformation

Over the next decade, the Indian pulp and paper industry stands at a pivotal juncture poised to transition from a volume-driven, cost-sensitive sector to a value-driven, sustainable, and innovation-led industry. This transformation will be shaped by three key forces: Market dynamics, technological disruption, and evolving consumer preferences.

1.Market Dynamics

The outlook for the Indian paper industry remains positive, supported by low per capita consumption, rising incomes, urbanization, and economic formalization. Overall demand is expected to grow at ~5.5-6% CAGR, led by packaging (7-8%), while printing and writing is likely to see moderate growth of 2-3%.

Packaging board will remain be the key growth driver, supported by e-commerce, retail, FMCG, and food delivery, while tissue and hygiene segments will grow strongly due to increasing awareness and lifestyle changes.

However, global factors such as capacity expansions in Asia, evolving trade flows, and volatility in input costs (pulp, wood, and energy) will continue to impact domestic pricing and competitiveness, requiring a careful balance between strong domestic demand and rising global pressures.

2.Technological Disruption

Technology will be the key driver of reinvention and a critical differentiator in the next phase of growth. Indian mills must accelerate the adoption of automation, digitalization, and AI-driven processes to improve efficiency, optimize costs, and enhance global competitiveness. Key focus areas include smart manufacturing (Industry 4.0), fibre innovation with sustainable raw materials, energy efficiency, and the development of value-added and specialty products.

This technological shift will enable the industry to move beyond cost competitiveness toward capability-led leadership.

3. Evolving Consumer Interests

The Indian consumer is evolving rapidly becoming more environment-conscious, quality-driven, and brand-sensitive. This shift is driving by:
a. Increased demand for sustainable packaging as an alternative to single-use plastics
b. Premiumization of packaging, especially in FMCG, e-commerce, and luxury segments
c. Greater focus on hygiene and safety, boosting demand for tissue and food-grade packaging
d. Need for customization and branding, requiring innovative and differentiated solutions

Customers today seek not just paper, but value, sustainability, and an enhanced product experience. The convergence of market, technology, and consumer forces is driving a shift from commodity products to value-added offerings, making scale, consolidation, and value chain integration critical for cost competitiveness. It is also accelerating collaboration through solution-based offerings rather than traditional product selling. Looking ahead, over the next decade, the entire industry must focus on continuously innovating in products and processes, reinventing cost structures through integration and efficiency, and deepening customer partnerships by transitioning from product selling to solution selling.

In conclusion, the future of the Indian pulp and paper industry will not be defined by how much it produces, but by how intelligently it innovates, how efficiently it operates, and how sustainably it grows.
 

Published at : Jun 19, 2026 08:27 AM (IST)

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