Supreme Paper aims to dominate Eastern region's converted tissue products market, installing 50 TPD tissue capacity, and unveiled ‘SOFMAX’ tissue brand in the market

Supreme Paper aims to dominate Eastern region's converted tissue products market, installing 50 TPD tissue capacity, and unveiled ‘SOFMAX’ tissue brand in the market 

Key Highlights:

-The newsprint markets are extremely volatile and it is very difficult to predict future market in India
-India is totally dependent on the import of waste paper; therefore, we are at a significant cost disadvantage compared to Southeast Asian countries. 
-We are also planning to scale up our operation of the Tissue Converting Unit as all our products have received very good response  in the market

SUPREME PAPER MILLS LTD was founded in the year 1982 and is one of the leading manufacturers of Writing Printing , Kraft Newsprint & Tissue papers  in West Bengal. For over three decades we have always delivered quality and perfection which is a reflection of our core culture of value addition and a constant strive for excellence. Today SPML , is the leading manufacturer of quality paper and note books including converted Tissue products  in West Bengal and has a strong market presence across the eastern part of India.

In an exclusive interview, Mr. Raj Kumar Todi, Chairman and Managing Director, Supreme Paper Mill Limited,  discusses the various issue of the industry including waste paper crisis, demand, market growth of converted tissue products and newsprint scenario etc.. Here are his views:

The Pulp and Paper Times:

Q: How do you evaluate your journey in the paper industry since your establishment?

Our journey was not very smooth as in line in the cyclical nature of the paper industry.  It was seen that there were lots of ups and downs in the paper market.

Q: Excess capacity and export decline have hit hard to Kraft and Duplex segment across India. How, would you analyze the present state of Kraft Market in view of sluggish demand?  

Yes, there is a lot of excess capacity for the packaging sector in our country i.e. Kraft & duplex segments and the capacity built up is extremely high as compared to the actual market demand in our country. 

Q: Supreme Paper Mills also produces newsprint, can you throw some light on the newsprint market in the context of post lockdown?

Yes, Post lockdown, the Newsprint prices started coming down as gradually imports got stabilized , the Newsprint was selling at a very high price during COVID situation as because of supplies from abroad had completely dried up at that time. 

In the current scenario the Newsprint prices has crashed abroad and therefore once again India has become a dumping ground for Newsprint. However, the newsprint markets are extremely volatile and it is very difficult to predict future market in India. 

Q: New capacities in South East Asia , China and in GCC have really turned down the export from India. Do you think this export decline will remain permanently ? Or if not then why?

Exports have definitely declined from India and shall continue to decline in near future. The reason is again that India is dependent totally on other countries for import of Waste Paper as there is a deficiency of local Waste papers in India and it has to depend on imports. Therefore, we are at a huge cost disadvantage as compared to South East Asian countries. 

Q: How do you project the growth of the Kraft paper segment in the coming 2 to 3 years?

It is directly related to consumer spending and it is very difficult to predict the future. It can only grow in line with our economy

Q: Supreme Paper Mill is undergoing expansion, setting up Tissue Paper Production.   Please  shed some light on your expansion like capacity , products basket, expected date of commencement and other details. 

Yes, we have already started  setting up of our Tissue Mill. We hope to start up our Tissue production by end of 2025 beginning 2026. We are installing 50 TPD capacity machine and shall be producing high quality  of various types of  Tissue papers  which includes all types of Facial Tissue, Toilet , Napkins and Kitchen Tissue Rolls& Bed Rolls. 

Q: Supreme Paper Mills has already installed a converted Tissue Machine which is in Operation producing various Tissue products like Napkin, Toilet Rolls and other Tissue products in the brand name “SOFMAX. Please the market opportunities behind this move. How do you prompt for forward integration. Also how would you ensure the raw materials supply for this converting line ?

Yes, we have already started marketing of our Tissue products in full swing in our own brand “SOFMAX” . We are also planning to scale up our operation of the Tissue Converting Unit as all our products have received very good response in the market and we have already started generating very good sales in Eastern Region 

Q: What is Supreme Paper planning to do to establish its position in the converted tissue products market among other branded players?

Supreme Paper is planning to be a Leader in the converted Tissue products markets of entire Eastern region where it has its local presence. Supreme Paper Mills would be the  1st Unit in the entire region to not-only market the converted Tissue products , but also in the production of Tissue paper as it is in advance stage of implementation of Tissue Paper mill

Q: Recently APRIL Group enters India’s growing Tissue market by acquiring Origami. How do you see this acquisition from a market perspective? 

Yes, it is going to be difficult for the Indian Tissue Industry going forward. April Group  is a giant group of Indonesia and has lot of  financial & technical resources at its disposal. It has  long experience  in the paper industry , hence it would be a challenge to all the Established and upcoming  producers  in the  Tissue paper industry.

Q: How do you analyze tissue paper made from wood or Agro pulp vs Waste paper ? Do You think Indian paper mills are producing at par Tissue quality in comparison to Europe or USA? 

Individual segments will have their own demand patterns, hence I reserve my comments on this. No. We are not producing good quality Tissue, not at all at par in terms of quality as compared to Europe or USA and other Asian Countries.

Q: The EU Commission has issued a proposal for the new legislation on the export of waste( Proposal for regulation by the European Parliament and the Council on shipments of waste) which will also rule the exports of waste paper. This proposed regulation will be implemented by 2025 with certain trade obstacles. It will restrict waste paper export to India and other countries. The situation is going to be worse. Recycled paper mills are heavily dependent on imported OCC. What solution does Supreme paper think about this problem ?

Yes, the Recycled Paper mills in India are heavily dependent on imported Waste paper. The  availability of good quality fibre in adequate quantity in India is not available. The price of Imported waste paper is already very high and going forward the situation is going to be worst. The geo political situation  worldwide has affected shipping movements to a great extent resulting in hike of shipping freight abnormally. We have to keep a close watch on the situation. Moreover, every Country is establishing big paper making capacity based on waste paper , causing exportable  surplus to decline. 

Availability of good quality fiber is declining every day in India and its really challenging for the mills to procure adequate  raw materials. 
 

Web Title: Supreme Paper aims to dominate Eastern region's converted tissue products market, installing 50 TPD tissue capacity, and unveiled ‘SOFMAX’ tissue brand in the market