APP will replace imported paper coming into our system from various Chinese and European sources

APP will replace imported paper coming into our system from various Chinese and European sources

Asia Pulp & Paper (APP) Sinar Mas is considering the construction of a paper production facility in the Raigad district of the western Indian state of Maharashtra. The site in Dherand village identified for the facility will have a capacity to produce 1.2 million MT of paper products, including printing paper, tissue and packaging board. By 2025, Asia Pulp & Paper intends to begin its enormous capacity in India to produce WPP, tissue, and packaging boards

The many stakeholders in the paper business are briefly discussed in The Pulp and Paper Times on the APP's investment. We get a range of answers and criticism. Here is the opinion of Mr Hardik Patel, who is currently working as Director – Om Sree Papertek Pvt. Ltd.

The Pulp and Paper Times | February 2023: 

Q: is Asia Pulp and Paper's (APP) 1.2 million MT capacity hurt big and small paper mills in terms of the export of paper? 

I dont think it will hamper the prospects of small and medium paper mill. In fact, i look at it the other way around. It will be a big boost to the entire paper manufacturing ecosystem. They will end up employing sa whole lot of people who will have a better understanding of paper manufacturing and in turn enrich the entire paper manufacturing space. 

Q: is this massive capacity good for the Indian market or will it derail market sentiments...please explain 

Paper is a double-digit growing market but having said that such an huge influx of volume at one go will definitely destabilise the market for a short while. Once the capacity is absorbed and to the best of understanding APP will replace imported paper coming into our system from various Chinese and European sources. Once the initial phase is passed the Indian manufacturers won't have an major impact. 

Q: APP's will manufacture WPP, Tissue and Packaging Grades, will the local market of these grades experience a slowdown? how do Indian paper mills compete in these grades

All the grades that APP will manufacture have an ever-expanding market with our populations growing and the consumer base expanding. As i said earlier it will definitely impact the local mills for abrief period of time until the volumes are absorbed but over a long period, it will only benefit the local eco system. 
 

Web Title: APP will replace imported paper coming into our system from various Chinese and European sources