"While imports offer cost advantages, we remain focused on maintaining the quality and reliability of our products (MG Poster)," says Mr. Amit Mittal of Chandpur Paper

"While imports offer cost advantages, we remain focused on maintaining the quality and reliability of our products (MG Poster)," says Mr. Amit Mittal of Chandpur Paper 

Key Points of the Interview:
-MG Poster falls under the uncoated category and is emerging as a significant player in India’s packaging market,
-With relatively higher input costs and smaller production capacities, we face pressure on pricing, which can make it difficult to compete”
-Currently, paper prices are at their lowest, and with most mills operating at minimal margins, there is limited room for further cost reduction
-By enhancing the drying process, the new dryers improve the smoothness, finish, and overall quality of the MG Poster Paper
-we plan to introduce a production line for high-strength, low-GSM paper to meet evolving market demands

In an exclusive interview with The Pulp and Paper Times, Mr. Amit Mittal, Founder and MD of Chandpur Enterprises Limited, shares his insights on several topics, including paper prices, demand forecasts, and the import and export of paper. He also discusses Chandpur Paper’s future growth strategy, expansion, and commitment to product quality. Here is the full interview:

The Pulp and Paper Times

Q: Please give us a brief introduction to Chandpur Enterprises Limited (CEL).

Chandpur Enterprises Limited (CEL), founded in 1998 and headquartered in Chandpur, Uttar Pradesh, is a prominent name in India's paper manufacturing sector. The major specialty of CEL is in producing MG Poster and Chromo (C1S) paper with exceptional quality and consistency across these products in the last 25 years, built on an enviable level of precision and innovative reliability within product offerings. With a focus on meeting the evolving demands of the market, CEL has successfully earned the trust of customers and established itself as a leader in the paper manufacturing sector, continuing to deliver superior solutions across various industries.

Q: As a reputed paper manufacturer, could you provide us with a quick overview of the current paper trade market scenario, particularly regarding the demand and supply dynamics of various segments of packaging paper?

The paper trade market, particularly within the packaging segment, is seeing evolving demand and supply dynamics. The packaging segment is primarily divided into three categories: Kraft, Duplex, and Specialty Papers. While Kraft and Duplex papers are traded as commodities, driven by industrial and bulk packaging needs, the Specialty segment is more nuanced, offering both coated and uncoated grades. MG Poster falls under the uncoated category and is emerging as a significant player in India’s packaging market. As India moves toward more sustainable alternatives, MG Poster is gaining popularity, especially as a replacement for plastic in various packaging applications. This trend reflects the growing demand for eco-friendly solutions in the packaging industry.

Q: As a prominent manufacturer of MG Poster Paper, which falls under the specialty paper category, how do you assess the specialty paper market? Is the low-price import of paper impacting the specialty paper market?

The specialty paper market, including MG Poster Paper, is witnessing steady growth, driven by the rising demand for sustainable and specialized packaging solutions. However, the influx of low-price paper imports presents a significant challenge for local manufacturers like us. With relatively higher input costs and smaller production capacities, we face pressure on pricing, which can make it difficult to compete. While imports offer cost advantages, we focus on maintaining the quality and reliability of our products to meet market demands. Our strategy is to continue innovating and improving operational efficiencies to stay competitive in this evolving market landscape.

Q: Excess capacity and declining exports have hit Kraft and Duplex paper mills across India hard. Many are operating at lower capacities or taking shutdowns. What factors do you think are contributing to this scenario?

The challenges faced by Kraft and Duplex paper mills in India, including excess capacity and declining exports, stem from several underlying factors. One of the primary reasons is the overexpansion of production capacity in this segment, driven by overly optimistic demand projections. Additionally, many mills were not built to meet the required technical standards and quality benchmarks, resulting in lower-quality products. This compromised quality, combined with higher production costs, has made it difficult for mills to remain competitive both domestically and internationally. Consequently, many are operating at reduced capacities or resorting to shutdowns to manage their operations.

Q: MG Poster Paper is made from recycled fiber, with or without the addition of wood pulp. However, one significant variable has been the cost of wood, resulting in a steep increase in raw material costs. How do you foresee the impact of wood prices on finished products? Could the price of specialty paper rise in 2025?

The rising cost of wood, a crucial raw material in the production of MG Poster Paper, is set to significantly impact the price of finished products. Currently, paper prices are at their lowest, and with most mills operating at minimal margins, there is limited room for further cost reduction. As the cost of wood continues to climb, the price of raw materials will inevitably increase, leading to higher production costs. Consequently, the price of specialty papers, including MG Poster, is expected to rise in 2025. The current market situation, coupled with rising input costs, suggests that price adjustments are imminent, particularly as mills look to preserve profitability while addressing the growing pressure from raw material costs.

Q: Please shed some light on CEL’s infrastructure, product portfolio, and the unmatched quality it offers in the market.

Chandpur Enterprises Limited (CEL) boasts advanced infrastructure that supports efficient production processes and high-quality standards. With a strong commitment to sustainability, CEL integrates environmentally responsible practices throughout its operations, ensuring minimal ecological impact. The company’s product portfolio includes a diverse range of premium paper products, with a special focus on MG Poster and Chromo Paper, which meet the highest quality standards in the industry. CEL's dedication to innovation and precision has earned it a reputation for delivering exceptional products that cater to various sectors, while its sustainable practices further reinforce its position as a responsible leader in the paper manufacturing market.

Q: Please tell us about the technology CEL uses to manufacture MG Poster Paper. Recently, Chandpur Enterprises started operating two highly advanced TT SYD MG Steel Yankee Dryers. How will these upgrades enhance the final products?

We utilize cutting-edge technology to manufacture MG Poster Paper, ensuring superior quality and performance at Chandpur Enterprises Limited. Recently, we upgraded our production line by installing two highly advanced TT SYD MG Steel Yankee Dryers. These dryers play a critical role in the treatment of fiber, directly impacting the final paper quality. By enhancing the drying process, the new dryers improve the smoothness, finish, and overall quality of the MG Poster Paper. Additionally, these upgrades have increased the production capacity of our machines, allowing us to meet growing market demands while maintaining the high standards our customers expect.

Q: Could you share insights on future expansion plans and technology upgrades at CEL?

At Chandpur Enterprises Limited, we are committed to continuous growth and technological advancement to maintain the highest standards of product quality and process efficiency. We consistently invest in the latest technologies to ensure the consistency of our products while optimizing production processes. Looking ahead, we plan to introduce a production line for high-strength, low-GSM paper to meet evolving market demands. Our forward-thinking approach is centered on setting new industry benchmarks and adapting to changing customer needs. With ambitious plans to become a leading brand in packaging paper solutions, we are focused on innovation, superior quality, and delivering exceptional value to our customers across diverse industries.

Q: Sustainability is a growing concern for both consumers and businesses. What steps is CEL taking to remain a leader in environmentally responsible practices?

Sustainability is at the core of our operations. We are dedicated to minimizing our environmental footprint through responsible practices across all stages of production. Our commitment to sustainability includes utilizing recycled fibers, implementing energy-efficient technologies, and ensuring that waste management processes are eco-friendly. Additionally, we continuously explore innovative solutions that support the shift toward greener alternatives in the paper industry. By delivering high-quality, sustainable products tailored to the evolving needs of diverse sectors, CEL aspires to lead the way in providing innovative and environmentally responsible paper solutions that align with the priorities of an eco-conscious world.

Q: Do you have any message you’d like to convey to the paper industry?

To the paper industry, I would like to emphasize that our competition extends far beyond local markets; we are now part of a highly competitive global landscape. To remain relevant and grow, it is essential that we continually upgrade our technologies and processes. Innovation, quality, and sustainability must be at the forefront of our strategies. By adapting to global trends and embracing advanced practices, we can position ourselves as leaders in the industry and ensure long-term growth and success. Let us rise to the challenge and embrace the opportunities that the global market offers.
 

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