Europe’s circular economy initiatives and export restrictions will further limit the availability of waste paper, according to Mr. Abiali Jani of Jani Sales

Europe’s circular economy initiatives and export restrictions will further limit the availability of waste paper, according to Mr. Abiali Jani of Jani Sales

-Export opportunities and product innovation will be key to mitigating overcapacity and maintaining profitability
-In the upcoming PM2 project, Jani Sales is set to launch a brand-new tissue line, targeting a GSM range of 11.5 to 42. This 100 percent pulp-based product will include facial tissues, toilet tissue, kitchen towels, and napkins.
In an exclusive interview with The Pulp and Paper Times, Mr. Abiali Jani, Director of Jani Sales Pvt. Ltd., shares his insights on several topics, including paper prices, demand forecasts, overcapacity issue and waste paper scenario. He also discusses Jani Sales’s future growth strategy, expansion, and product quality. Here is the full interview:

The Pulp and Paper Times:

Q: Can you provide a brief introduction to Jani Sales Pvt. Ltd.?

Founded in 1979 as a small trading firm, our PAPER journey began with distributing Kraft paper and gradually expanded into the recycled board segment in dealership with the NR Group. By the 1990s, we diversified into virgin paper grades, establishing a significant presence across India through strategic partnerships, including with ITC, and opening branch offices nationwide.

As pioneers in introducing Indian paper mills to the Middle East, we successfully ventured into exports, focusing on Kraft, Duplex, and Writing & Printing grades. Our forward integration strategy led to international success, while backward integration allowed us to efficiently supply raw materials like waste paper to mills across India and the Far East.

Today, we trade over 3.5 lac metric tons of waste paper annually across the globe. Our latest achievement, the addition of a lower GSM MG machine just FOUR years ago, has positioned us as one of the largest MG machine operators in the country, with a capacity of 100 MT. We manufacture Kraft paper, posters, and tissues, catering to both local and international markets.

Q: Recently, Jani Sales commissioned the PM-2 for tissue production. Could you elaborate on this expansion, including its capacity, raw material furnish, product mix, and marketing plan?

In the upcoming PM2 project, Jani Sales is set to launch a brand-new tissue line, targeting a GSM range of 11.5 to 42. This 100 percent pulp-based product will include facial tissues, toilet tissue, kitchen towels, and napkins. The PM2, operational from Q3 2024, boasts a capacity of 60 tons a day and will cater to both domestic and international markets. With a strong export focus, Jani anticipates a significant production of facial grades from the PM2 project.

Q: How do you assess the current tissue market in terms of demand, pricing structure, and future projections?

The tissue market is a dynamic and growing segment of the global paper industry, driven by various factors such as population growth, urbanization, rising hygiene awareness, and increased consumer demand for premium and eco-friendly products.

the tissue market is experiencing healthy demand driven by both consumer and institutional use. While rising input costs are pushing prices higher, market competition and innovations are helping to balance it out. Long-term growth is expected, particularly in emerging economies, with sustainability playing a key role in shaping future products and production processes.

Q: Jani Sales Private Limited is a 45-year-old company, known for trading packaging boards and duplex board mills in India. How do you evaluate the current Indian paper industry in terms of demand and pricing? What is your view on the excess capacity in the kraft segment?

The Indian paper industry’s demand outlook remains positive, especially in the packaging and tissue paper segments, with moderate recovery in writing and printing paper. Growing e-commerce, sustainability initiatives, and hygiene awareness will continue to drive demand in the coming years.

Pricing will remain subject to input cost fluctuations, especially raw materials and energy. Packaging paper prices, including kraft, are likely to stay resilient but could face pricing pressures due to overcapacity.

The kraft paper segment, while facing overcapacity issues, will benefit from the continued growth in packaging demand. Export opportunities and product innovation will be key to mitigating overcapacity and maintaining profitability.

In conclusion, the Indian paper industry is navigating a phase of transformation, with opportunities for growth, especially in packaging and hygiene-related segments. Managing overcapacity in the kraft paper segment through consolidation, export strategies, and product diversification will be critical for the segment's long-term health.

Q: Jani Sales is involved in the trade of 400,000 MT of waste paper. How do you foresee the imported waste paper scenario, considering the new capacities emerging in Southeast Asia, Europe, and Brazil?

The imported waste paper scenario is likely to face tightening supply and rising prices due to the new paper production capacities emerging in Southeast Asia, Europe, and Brazil. These regions are ramping up their demand for waste paper, intensifying global competition, especially for high-quality grades. Europe’s circular economy initiatives and export restrictions will further limit the availability of waste paper. For India, this could lead to supply constraints and higher costs, particularly for kraft paper producers reliant on imports. The situation underscores the need for India to improve domestic waste paper recovery to reduce import dependency.

Q: Do you have any message for the paper industry and trading community?

the paper industry and trading community should embrace a forward-looking, innovative mindset that adapts to the growing demand for sustainability, while leveraging digital transformation and new market opportunities to stay competitive in a challenging but opportunity-rich landscape.
 

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