ITC-PSPD demands Minimum Import Price (MIP) on paperboard imports amid a 31% decline in Q4 FY25 profit

ITC-PSPD demands Minimum Import Price (MIP) on paperboard imports amid a 31% decline in Q4 FY25 profit

-Low priced Chinese & Indonesian supplies, soft domestic demand, lower realisations continue to impact Industry performance
-Unprecedented increase in wood cost
-ITC Paperboards & Packaging division’s profit for FY24–25, which ended on March 31, 2025, dropped by 34%, with profit standing at Rs. 911 crore
The Pulp and Paper Times

ITC's Paperboards and Specialty Papers Division (ITC-PSPD) has disclosed its financial results for the fourth quarter of FY24-25, revealing a 6% year-on-year increase in revenue, totaling INR 2,188 crore. Competitive pressures from low-priced Chinese supplies in global markets, sluggish domestic demand, and rising wood costs are creating a challenging environment for the paper sector, ITC said in its media release.

Paperboards, Paper and Packaging Segment remains impacted due to low priced Chinese & Indonesian supplies in global markets including India, soft domestic demand conditions and unprecedented surge in wood prices

The Paperboards, Paper and Packaging Segment delivered resilient performance during the year amidst a challenging operating environment as aforestated. The Business continued its sharp focus on portfolio augmentation, export customer/market development and structural cost management to mitigate near term challenges.

ITC-PSPD further strengthened its leadership position in the Value-Added Paperboard (VAP) segment through focused innovations and development of customised solutions for end-use industries. The Business also consolidated its leadership position in the eco-labelled products and premium recycled paperboards segments. Structural advantages of the integrated business model, stepped-up end-user engagements, Digital interventions and increase in salience of margin accretive exports and Plastic substitution (PlaSub) products aided in partly mitigating pressure on margins.

ITC’s paper division remains confident of leveraging its market standing and competitive strengths to mitigate the impact of cheap imports into the country. Representations continue to be made at appropriate forums for suitable measures to safeguard domestic industry. In this regard, it is pertinent to note that the Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry, India has also initiated an Anti-Dumping investigation on virgin paperboard imports . Indian Paper Manufacturers Association (IPMA) has also approached Ministry of Commerce for considering imposition of Minimum Import Price (MIP) on paperboards imports into India.

The Business had to contend with sub-optimal domestic wood availability and quality issues even as wood prices witnessed sharp escalation during the year, exacerbated by heavy cyclonic rainfall in core plantation areas and spurt in demand from other wood based industries. The Business continues to focus on accelerating plantations in core areas, developing new areas, collaborating with other wood-based industries and implementing satellite-based plantation monitoring systems, among others.

The Business continues to engage with policy makers to address key industry challenges including increasing wood availability through collaborative public-private plantation models to strengthen the competitiveness of domestic industry and arrest the rapid increase of low priced imports of paper & paperboard into the country.

Packaging and Printing Business continues to be acknowledged as a ‘first choice packaging partner’ by several reputed FMCG companies in the country for providing superior and cost-effective packaging solutions. Amidst sluggish consumer demand and heightened competitive intensity in the packaging and printing industry, the Business continues to aggressively pursue new business development across various segments. The recent capacity addition at Nadiad, Gujarat, with state-of-the-art equipment to cater to markets in the Western region, has further augmented the Business’ capabilities in Cartons packaging. Capacity utilisation at the facility was progressively ramped up during the year.

The sustainable paperboards/packaging solutions portfolio continues to witness strong growth leveraging cuttingedge innovation platforms and has grown appx. 2.4x over the last 3 years. During the year, the Business launched 'FiloBev Mini,' an innovative plastic substitute designed specifically for small cups (less than 90ml), with an objective to replace traditional plastic cups with a sustainable and environmentally friendly alternative.
 

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