Indian Kraft paper mills are expecting export orders from China; buoyancy in demand anticipates
New Delhi | The Pulp and Paper Times | 5 Feb. 2023:
The import of Kraft paper from India may once again be viable given the improvement in the COVID cases in China. Manufacturers and waste paper suppliers have been harmed by the recent sharp fall in kraft paper exports. The recovered paper costs decreased to a minimum in 2022, ranging from Rs 17 to 19 per kg.
The current market trend, according to Mr Naresh Singhal, president of the Indian Recovered Paper Traders Association (IRPTA), is "With the improvement in weather conditions, the market trends in finish kraft paper demand and also waste paper indicate and settle the direction of movement of Kraft paper in the coming week starting from February 6th for the rest of the month."
Mr. Singhal informed us that Indian Kraft paper mills, especially from Gujarat and South India are expecting export orders from China at higher prices compared to the previous orders received in December 2022.
According to Fastmarkets report, Demand for US old corrugated containers (OCC) ticked up in January as recycled pulp mills in Southeast Asia seek more fiber at the start of the year, yet pricing for recycled brown pulp (RBP) remained unchanged at $340/tonne net CIF to China for the third consecutive month, according to Fastmarkets’ PPI Pulp & Paper Week January 18 pricing survey and market report. Contacts reported that market demand met supplies.
Some sellers reported RBP trades in January at higher prices, up slightly to $350- 360/tonne net CIF to China. However, the majority told of firm prices that held at $340/tonne net CIF to China.
On January 1, China lowered import taxes on 1,020 commodities, including 67 kinds of paper and paper converting products. Among them are corrugating medium, recycled linerboard, virgin and recycled boxboard, and both coated and uncoated freesheet paper. China has decided to waive the standard most-favored-nation (MFN) tariffs of 5-6% on imports of these grades until the end of this year.
China’s Ministry of Finance said that the tariff cuts would increase supply, and help its industrial chains and supply chains in China.
"Prices for recovered Kraft waste paper have increased by about Rs 2500/pmt in North India over the past 20 days, particularly in western Uttar Pradesh and Uttarakhand. In the same time frame, finish Kraft paper prices increased by Rs 3 per kilogramme. On January 10, 17, and 24, Kraft paper mills raised the price of finished paper by Rs. 1 per kg, for a total increase of Rs. 3. Due to the weak finish paper demand, these prices were accepted by the dealers about 4 to 5 days after the rate increase announcement date as Mr Singhal explained.
Kraft paper mills have further announced one more time price increase of Rs 1 per kg on 31 January 2023, The price of corrugated waste paper, Kraft waste paper has already touched level of Rs 20500/ in North Indian market. Paper Mills in and around Bengaluru Recovered Kraft Waste Paper rate ruling presently at ₹ 17/- per kg.
Mr. Singhal added, “As you are well aware of the price increase in imported OCC. I also want to share the information received from some of our association's member that the rates of imported European OCC quality 95/5 seems to be higher by approx $15 than earlier.
As reported by Fastmarkets, Buyers and sellers of recycled brown pulp (RBP) told P&PW that business is “better” in Southeast Asian countries, and the anticipation of China’s return after many months of lockdowns due to the pandemic that has kept workers and residents at home. As restrictions are lifted, the economy is expected to pick up again.
Andhra Paper intends to invest INR 2000 Cr. in a new Paper Board machine with a 175,000 TPA capacity
Rajamahendravaram | 31st January 2023 | The Pulp and Paper Times:
Indian packaging industry is expected to report a CAGR growth of 5-6% between 2022 to 2027. Packaging is a fast-growing industry catalysed by rising disposable income, growing consumer awareness and rise in processed food offtake.
Gauging the growing demand for board market in India, One of the largest integrated paper and pulp manufacturers in India- Andhra Paper Limited (APL) has accorded an in-principle approval to prefeasibility report to exploit opportunities in Paper Board Segment through expansion and capacity addition by setting up an integrated Green Field Project at Unit Kadiyam.
Pursuant to the provisions of Regulation 30 (4) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 ('SEBI LODR Regulations"), we wish to inform that the Board of Directors at their meeting held on January 31, 2023 have accorded an in-principle approval to prefeasibility report to exploit opportunities in Paper Board Segment through expansion and capacity addition by setting up an integrated Green Field Project at Unit Kadiyam.
The submission to SEBI says, It is proposed to install approximately 175,000 Ton per annum board machine (KA#4) along with ancillary and support infrastructure concerning the project. The existing production capacity is 87,000 TPA. The proposed capacity addition is 2,21,000 TPA (Pulp) and 1,56,000 TPA (Paper Board). In this regard, the Company will file necessary applications with the Ministry of Environment & Forest for Climate Change (MOEF) for Environment Clearance and further approvals concerning the project shall be sought from concerned regulatory authorities including local, state and central authorities as may be necessary for the proposed project. The final approval for the project shall be granted by the Board subject to the Company obtaining the requisite approvals from concerned authorities.
The project commencement will be subject to approvals from MOEF & other concerned authorities and thereafter a comprehensive final proposal will be put up to Board for approval.
In India, Paperboard demand is expected to grow sharply 9-11% CAGR over fiscal 2022 to fiscal 2026. E-commerce boom, Super markets, Ban on single use plastic, packaging of processed food stuff, better quality packing, environment friendly measures has led to opportunities in the paper Board segment where the Company sees a good opportunity for capacity expansion through investment in new Machinery and requisite infrastructure subject to necessary approvals.
In volume terms, the Indian paper and packaging board market is expected to have grown by 13% in 2021-22 compared to a de-growth of 17% in 2020-21. The printing and writing paper segment is expected to have grown by 23% in 2021- 22 compared to a de-growth of 34% in 2020-21. The packaging board segment is expected to have grown by 31% in 2021- 22 compared to a contraction of 20% in 2020-21. The coated paper segment is expected to have grown by 28% in 2021-22 as against a contraction of 39% in 2020-21.
DPIIT: 532 mills are in operation with a total operating capacity of around 24.32 million tonnes
- In India, per capita consumption of paper is about 16.71 kg, which is far lower than the world average (57 kg. in 2020).
- Out of 125 newsprint mills, 46 mills have stopped making newsprint chiefly due to demand-related reasons.
- Department for Promotion of Industry & Internal Trade (DPIIT)’s Annual report on Indian Paper Industry for FY 21-22
The Pulp and Paper Times | 2022
Indian paper industry accounts for about 5% of the world production of paper, paperboard and newsprint. Govt. of India’s policy for discouraging the use of single use plastic has had a positive impact on the fortunes of the paper sector, particularly the packaging segment. Demand for paper also continued to be fuelled by requirement of quality packaging for FMCG products, ready to eat food and various macroeconomic initiatives being taken up by the government Indian paper industry is a de-licensed sector and 100% FDI inflow is allowed on the automatic route. The FDI equity inflows in the sector for FY 2020-21 is Rs. 166.66 crores. The industry structure comprises of more than 900 paper units, with an installed capacity of nearly 29.11 million tonnes out of which 5.51 million tonnes lies idle for various reasons.
As on date around 532 mills are in operation with a total operating capacity of around 24.32 million tonnes. In the year 2020-21 total capacity utilization stood at around 89% and total consumption of paper, paperboard, and Newsprint stood at 21.21 million tons. Total production for the year of 2020-21 stood at 21.70 exhibiting an increase of 5.28% on YoY basis.
There have been few moves of consolidation within the sector, but Indian paper industry remains largely a fragmented sector. It consists of small, medium and large paper mill having production ranging from 5 to 2000 tonnes per day. The sector uses wood, agro residues and waste paper as input substrates for production. Presently, in the total production, the share of wood, agro and waste paper-based mills stand at 18%, 6% and 76%, respectively. It has been recorded that most of the new green or brown field projects are coming in Packaging Grade Sector and most of them are based on Recycled Fibre (Waste Paper). Hence, total share of RCF paper-based mills are exponentially increasing.
The newsprint sector in India has a prime role as an information carrier in cities as well as in village hinterlands. Looking into its importance, the government has put in place a Newsprint Control Order (NCO) 2004 in place which ensures fair trade and equitable availability of Newsprint to all printers and publishers. At present, the newsprint can be imported in to the country at 5% BCD subject to an actual user condition.
At present, there are 125 mills registered under the Schedule to the NCO with a total installed capacity of 3.30 million tons. However, as per INMA, currently out of 125 newsprint mills, 46 mills have stopped making newsprint chiefly due to demand related reasons as over 50% of the newsprint demand is being met by imports. Therefore, present domestic installed capacity of newsprint is 2.2 million tons, whereas production of newsprint in 2020-21 has been reported to be only about 1.0 million tonnes, which is stagnant since last two years. As per industry sources, this stagnancy in the newsprint production comes due to increase in cheap imports of Newsprint from overseas countries.
However, the import of Newsprint in 2020-21 stood at 0.66 million tons, which is almost 51% lower than volumes imported in 2019-20.
Impact of COVID—19
The paper industry faced tough times as the first wave of COVID hit the country. Due to the lock down, there was complete disruption in inwards and outbound supply chains. (In particular, the domestic supply chain of recovered which reflected its impact in Import of Waste paper).
This impacted over 70% of the production in one go. Initially, only 30% industry started their operation with 70% capacity utilization. But, as on date (December 2021) it has been informed by the industry source that a V shaped recovery has been achieved by the paper industry, particularly the writing/printing segment. One of the quickest segments to recover from the pandemic effect was the packaging sector. However, there were some very important take a way for industry stakeholders presented by the pandemic. The industry used this to its benefit during the second phase of the
‘Our Hydraulic Jet headbox is designed and manufactured with the latest European standards, running successfully at Emami Paper Mills’ – Scan Machineries
- Scan Machineries is also doing a 400 TPD project for Suvarna Durga Paper Mills in Hyderabad
- Recently, supplied a complete Hydraulic Jet Headbox to Emami Paper mills.
- We are the only supplier offering the highest quality and cross-directional uniformity of paper web in the market with our headboxes
- We also partner with European companies to update our machines and give rise to new product offerings with immense value for our customers.
The ED of Scan Machineries Pvt. Ltd., Mr Vinod Nargunam, recently spoke with The Pulp and Paper Times. Mr Nargunam talks about the paper machine market scenario, new advancements & product developments, new projects and technological up-gradation in paper machine manufacturing. This is the complete interview:
August 2022 | The Pulp and Paper Times:
Q: Please give us a small introduction of Scan Machineries
Scan Machineries engineers, designs and manufactures complete paper machine production lines and undertakes turnkey paper mill projects for paper mills present around the globe. Scan also designs and manufactures Hydraulic Jet headbox, Rectifier Roll Jet headbox, Swimming Calendar Rolls and High Speed Winders and Rewinders. We undertake rebuild projects and have also been offering our consultancy services for Paper Mills around the globe. Our Passion for Paper has always been our motto and we strive to offer supreme quality and engineering of Paper Machines, it’s parts and services for our customers.
Q: Please shed some light on the Paper Machinery Market post-COVID, What is the situation?
After the COVID, demands of paper have increased on many fronts and now the writing printing paper market has also come back and there are more and more packaging demands. The market is going up and we as machinery manufacturers have got good orders at the moment. The customers want the best technology at a very cost-effective price which we at Scan Machineries are able to meet that expectation. Recently, we have supplied a complete Hydraulic Jet Head box with Emami Paper mills. We already commissioned a new 200 TPD plant at Siliguri. We are also doing a 400 TPD project for Suvarna Durga Paper Mills in Hyderabad. So all these projects are with the latest technologies and the one with Suvarna Durga is a completely closed draw starting from the wire section to the unirun section. Customers can also inbuilt a shoe press with very little modification in the future. There are more products that we are developing, and today there is no need for Indian paper mills to import anything second-hand. Previously about 10-15 years back customers were importing everything from Europe (second hand) and now we as manufacturers have increased our technology to the latest standard. We have improved our technology to the state of art and we are able to meet all our customers’ demands.
Q: Please share your success stories of engineering execution and its delivery.
Scan Machineries constantly updates and improves the designs of our paper machinery to the latest standards and quality. We also partner with European companies to update our machines and give rise to new product offerings with immense value for our customers. We are manufacturing many Hydraulic Jet headbox and Rectifier Roll Jet headbox completely in-house in our production facility. Our Hydraulic Jet headbox is designed and manufactured with the latest European standards and is presently running successfully at Emami Paper Mills offering the best cross-sectional profile with a uniform fiber jet in the market currently. Our Rectifier Roll Jet headboxes have been sought after in the market for it’s high performance and we have received orders from many Paper Mills both in India and for exports such as Waraq Paper Mills, Saudi Arabia. Our high speed winders and rewinders are located at various places all over the globe with new technology offerings such as automatic splicing and automatic slitter positioning systems for increased safety and productivity. Our swimming calendar rolls which have been manufactured in house are running excellently in our customers locations. One such customer had decided to replace their Chinese bought calendar with ours and is extremely satisfied with the quality. Our execution of Turnkey Paper Mill projects have been implemented at various Paper Mill locations such as Kenya and Zambia. All in all, if a person decides to setup a Paper Mill project. They just have to send us an enquiry or give us a call and our team will guide you in every step of your new Paper Mill project journey.
Q: Does technology play an important role in successful delivery? Are you open to any Joint venture for the development of better engineering delivery?
Definitely, it does play a vital role. Scan Machineries is known for the engineering and technology quality of Paper Machinery and the services that they bring to the table. Many of our customers have been witnessing our product offerings and benefits and this has become one of the sole reasons Paper Mills decide to place an order on us. Scan being an engineering company always find ways to constantly update and improve to the latest standards of technology by partnering with European companies. This is the main reason why we are open to Joint Ventures which enable us to offer paper machinery with the highest quality and value for our customers.
Q: What obstacles do you see in paper mill operations which stop a paper mill to grow with better margins?
One of the major obstacles is the non-availability of raw materials and the price factor involved in the raw materials. Financing at low-interest rates also helps Paper Mills grow with better margins whereas high-interest rates would hinder their growth. Non-availability of water within a close proximity is also an issue for Paper Mills. Paper Mills not adopting to the latest technology and expanding their production rate can also hinder the margins. Also better forestry cultivation by allocating separate lands to Paper Mills by a government initiative can help the margins grow on the other hand.
Q: Recently, many paper mills have faced the heat of the waste paper crisis. Now most of paper mills are thinking to shift to the alternative raw material such as agro residues. Are you planning to launch any agro residue machine or rebuild the existing machine?
Yes we are rebuilding the machines in the market for our customers but we are not into the pulping sector of the agro waste. We want to specialize in the paper machine and we want to be the best at it and offer the latest technology in the paper machines to the Indian customers. So our focus is only on that right now.
Q: Any new technology on which you are working and will deliver to Paper Industry in the coming time?
Right now, we are working on the headboxes. Our Hydraulic Jet headbox works very well with significant increase in paper sheet quality. Currently, in India we are the only supplier offering the highest quality and cross directional uniformity of paper web in the market with our headboxes. We are using a different kind of technology which we have improved upon in which we were able to get very good results of the end paper sheet quality with our customers such as Emami Paper Mills and we are also having two or three orders on the pipeline. In India, right now most of the headboxes are imported from other countries. Scan Machineries resolves that issue now by offering the best headbox quality in the market. Our Hydraulic Jet Headbox and Pressurized Rectifier Roll Jet Headbox come along with the most advanced automation in the market. We are exporting our latest pressurized rectifier roll headbox to one of the leading Paper Mills in Saudi Arabia and this will be a significant step for our market growth to other countries and continents.
Q: Apart to head box, any other product you are offering?
Our product offering to our customers have increased significantly. We manufacture High Speed Winders and Rewinders. We are doing very well in winder portfolio, our rewinders are operating at 2000 MPM and we have received a lot of export orders as well. Our current highest we will be able to meet is a deckle of 5.5 meters also at 2000 MP speed. Now our winders come with automatic splicing and automatic slitter positioning systems for increased safety and productivity. We manufacture both Hydraulic Jet headbox and Pressurized Rectifier Roll headbox. Our customers such as Emami Paper Mills have witnessed the significant difference in their paper sheet quality and cross directional uniformity using our headbox. We also manufacture swimming calendar rolls at our own production facility. Our next project Suvarna Durga Paper Mills at Hyderabad will have a fully closed draw Paper Machine supplied by us. With this, the paper mill will be able to produce both lower GSM as well as higher GSM in a very efficient way as there's no open draw from the press section up to the unirun and there is very little modification to be done when the customer decides to in built a shoe press on to the press. This will significantly improve the runnability of the machine and we'll be the first manufacturer in India to offer that to our customers.
Q: There has been a perception among the top paper mills of India that the international paper technology suppliers are better than the domestic suppliers. What reason behind do you see?. Why do our domestic suppliers even they are nowadays working on international orders, are not at par to the international supplier?
Firstly I would like to point out that International suppliers invest heavily in their Research and Development projects to better their state of the art technology. This is much higher than what the domestic suppliers can invest with. That being said, we at Scan Machineries are always finding ways to update our technology to the current state of art by partnering with international companies and increasing the value we bring to our customers. We manufacture almost all the imported products customers used to procure from other countries within our production facility now such as Hydraulic Jet headbox, Pressurized Rectifier Roll headbox, High Speed Winders and Swimming Calender Rolls with internals. Our customers feel the tremendous value we bring to them by our product offerings compared to our competitors in the domestic market and because of this reason leading Paper Mills in India and other countries place orders on Scan Machineries.
Q How do you execute the training and support post-sale of your delivery to the paper mill?
Earlier we used to offer training of our products at the customer’s locations but now we see a sharp rise in offering training to our customers via online applications with webcam flexibility especially in cases of our export clients. One of our commissioning and execution teams also arrives at our client’s Paper Mill location to demonstrate and train their team on our delivered products. We train them in running the machines smoothly and efficiently on a day-to-day basis. Our post sale can be done in both online and in presence where our team is deployed to attend and solve the issues faced by customer.
Q: What is the future of paper industry do you see in next five years?
I have a feeling in next five years, paper industry will have significant growth. Packaging papers and Board and Hygiene Papers are going to be the major sectors at which we will witness tremendous growth. Graphic Papers will not have as much growth compared to Packaging papers but will be a very interesting paper segment which leads to rise of newly adopted particular types of paper.
INR 1385 Cr.: TNPL unit-II commenced production, avoiding the need to buy or import hardwood pulp
- Project consisting of Hardwood Pulp Plant with a capacity of 400 MT and Chemical Recovery Boiler with 20 MW TG
- Project will create direct and indirect employment opportunities for 500 persons.
- TNPL Unit 2, with a production capacity of 2,00,000 MT per annum.
Tiruchirapalli | 29th December 2022 | The Pulp and Paper Times:
Leading the Paper Industry by Adopting Cutting-Edge Sustainable Solutions, Tamilnadu Newsprint And Papers Limited (TNPL) has commenced its Unit-II with state-of-the-art infrastructure of producing hardwood Pulp with a capacity of 400 MT. TNPL is aiming to reduce its dependency on purchase or import of hardwood pulp in order to remain more competitive in the paper market.
Phase 1 of the Mill Expansion Plan of Tamilnadu Newsprint And Papers Limited (TNPL) Unit 2 was inaugurated by Hon’ble Chief Minister of Tamil Nadu Thiru M.K. Stalin, today (29.12.2022) at Mondipatti Village, Manaparai Taluk, Tiruchirapalli District. The Project consisting of Hardwood Pulp Plant with a capacity of 400 MT and Chemical Recovery Boiler with 20 MW TG and its accessories, was implemented at a capital outlay of Rs.1,385 crore.
The Hardwood Pulp Mill and Chemical Recovery Plants installed in the Expansion project are equipped with modern technology. As always, this expansion project also was implemented in a short period, despite passing through epidemic like COVID 19. Further, good quality of pulp was produced within short period of commencement of the trials. Upon commencement of this plant, TNPL Unit II has transformed into an integrated pulp and paper board mill. This project will create direct and indirect employment opportunities for 500 persons.
The multi-layer double coated board plant of TNPL Unit 2, with a production capacity of 2,00,000 MT per annum, commenced the production on 29.01.2016. As a next phase of growth, TNPL had proposed a Mill Expansion Plan (MEP) at a capital outlay of Rs.2,520 Crore, to be implemented in two phases. Now, Unit 2 Mill Expansion Plan Phase 1 has been implemented and commenced its production. The Phase 2 of MEP consisting of Board Machine / Paper Machine with TG shall be taken up after financial closure.
The commencement of the Hardwood Pulp production at TNPL Unit 2 would avoid purchase / import of Hardwood Pulp required for Board production. All the plant and machinery installed in the project are being operated with state-of-the-art control system to produce pulp with consistent quality.
The project will result in overall enhancement product quality,at a reduced cost of production. The installation of these Units will increase the efficiency and productivity of the Paper Board Unit. This project was undertakento fulfil the requirement of Hardwood Pulp.
During the inauguration ceremony, The following were present Thiru. Gangadhar Bandi, IPS, Chief Vigilance officer; Thiru. Nishanth Krishna IAS, Executive Director, SIPCOT; Tmt. E Sundaravalli IAS, Managing Director, SIPCOT, Thiru. SVR. Krishnan, Executive Director, Dr. M Sai Kumar, IAS, Additional Chief Secretary /Chairman and Managing Director, TNPL; Thiru. Ma.Subramanian. Health, Medical Education and Family Welfare; Thiru. S. Krishnan, IAS, Industries, Investment Promotion and Commerce Department; Thiru. Thangam Thenarasu, Hon'ble Minister for Industries, Thiru. M.K. Stalin, Hon'ble Chief Minister, Thiru. K.N. Nehru, Hon'ble Minister for Municipal Administration; Thiru M. Pradeep Kumar, IAS, Collector, Tiruchirappalli District.
Survival concerns for paper mill operations: complete ban on Coal in Delhi-NCR from 1st January 23
New Delhi | 27th December 2022 | The Pulp and Paper Times:
In order to curb air pollution in the National Capital Region (NCR), Commission for Air Quality Management (CAQM) had issued a policy of complete ban on heavily polluting fossil fuels including coal in the entire NCR w.e.f. 01.01.2023.
The Commission through its direction No. 65 dated 23.06.2022 had also issued the approved fuel list and prescribed a complete ban on heavily polluting fossil fuels including coal in the entire NCR.
In this regard, Coal India Limited, vide letter dated 16.12.2022, has provided a list of entities/units/industries to the Commission, those may be involved in using / acquiring / stocking / selling / trading of coal in NCR.
Few days back, Paper Industry association laments the non-equitable coal supplies and urged Prime Minister’s intervention to resolve the issue. The coal availability to paper mills has aggravated to such a level that it is compelling many mills to cut down their production or force closure.
This step by the government will impact several paper mills in Meerut, Muzaffarnagar, Shamli, and Yamuna Nagar. Already paper mills are facing sluggish demand and price drops on finished paper, this ban will add more difficulties for paper mills in order to remain commercial viable against other mills outside NCR.
According to notification, any kind of usage / acquiring / stocking / selling/ trading of coal in entire NCR, except in Thermal Power Plants (TPPs), will be viewed as serious non-compliances/violations of the statutory directions issued by the Commission.
Paper mills use coal in the boiler to generate steam used to dry the wet paper. For past one year, coal is short in supply, affecting work at paper mills. A single paper mill employs around 300 people, of which majority are on contract basis.
The coal procurement indigenously by the pulp and paper industries has been affected forcing them to rely on imports and grid power to produce the paper products. The cost of paper and paper board have skyrocketed due to reliance on costly imports.
Century Pulp & Paper is focusing on the development of multiple products & innovating different forms of pulp
-Clocked a revenue of INR 2,818 crore in FY21-22
-CPP is focusing on the development of multiple products including straw paper for use as replacement of plastic straw, honeycomb or kraft paper used as cooling pads in coolers, water resistant eco-friendly barrier coated board as well as anti-fungal board.
Lalkuan | 22nd July 2022 | The Pulp and Paper Times:
Globally, last financial year was one of the toughest periods for Paper industry. Paper consumption points were not operational for major part of the year. Timely availability of key raw materials remained a challenge. Due to disrupted supplies, cost of couple of these raw materials touched their life-time high levels. In turn, paper manufacturing players passed these increased costs to their end customers.
Century Textiles and Industries Ltd’s chairman Mr. Kumar Mangalam Birla said in its annual report that The pulp & paper industry has been under pressure due to increasing raw material prices, shortage of key inputs like wood and coal, supply chain challenges and short-term demand hurdles due to COVID-19 variants. At the same time, the pandemic has brought focus on cleanliness, creating new opportunities for tissue and toilet paper. The e-commerce boom over the last two years has led to a surge in corrugated and container board demand. Demand is also expected to pick up in FMCG, healthcare & pharma, packaged foods, and the textile sectors, especially for eco-friendly packaging options. The reopening of educational institutions across the country and the implementation of the National Education Policy (NEP) 2020 should also contribute to the demand for writing and printing paper. The proposed ban on single use plastic is expected to further fast-track the adoption of alternative, environmentally conscious options.
Century Pulp & Paper (CPP), India’s leading integrated pulp & paper company who provides comprehensive and innovative writing and printing paper, tissue, multi-layered packaging board and rayon grade pulp (RGP) products to a wide range of customers across the globe. CPP, India’s only integrated single-location manufacturer of writing and printing paper, multilayered packaging board, tissue and Rayon Grade Pulp with a capacity of 4.81 MTPA at our unit in Lalkuan, Uttarakhand.
“We believe that the need to innovate is greater than ever for achieving our vision. We are focusing on improving our process and product portfolio in a sustainable manner. Our focus on innovation and ability to deliver on our commitments helps us to not only stay relevant in fast changing environment but also to become a trusted partner of our customers. Going forward, we are focusing on the development of multiple products including straw paper for use as replacement of plastic straw, honeycomb or kraft paper used as cooling pads in coolers, water resistant eco-friendly barrier coated board as well as anti-fungal board. Our R&D team is also looking at ways to substitute different forms of pulp like wood base, agro base and re-cycle base to formulate new recipes that help reduce per ton pulp usage of paper production,” said Mr. Vijay Kaul, CEO, Century Pulp & Paper
Despite the challenging environment, Century Pulp and paper has grown over pre-Covid levels, with near 100% capacity utilisation. Going forward, the expected increase in demand from multiple downstream industries and the government’s focus on eco-friendly options opens up a host of possibilities for the business. We will be strategically working on expanding our portfolio and our manufacturing and integration capacity to capitalise on the available market opportunities.
“The business reached the pre-covid level despite multiple restrictions being in place in application industry for larger part of the year. The production capacity was fully utilised with average capacity utilisation at 99%, to meet consumer demand. We clocked a revenue of INR 2,818 crore in FY22 as compared to the INR 1,774 crore in FY21, marking a substantial growth of 58.8%. EBITDA also saw a strong growth of 91.9%, growing to INR 424 crore in FY22 as compared to the INR 221 crore in FY21. Efforts to re-align the product mix and increase efficiencies enabled robust performance, partially mitigating the impact of increasing raw material cost. We also took multiple efforts to manage the volatility in the inputs cost, including usage of substitute inputs, inventory management, and induction of new supply partners in addition to re-negotiations with the existing suppliers,” said Mr. J. C. Laddha, Managing Director, Century Textiles and Industries Ltd in the annual report for fy 21-22.
He further says that the demand in this segment is expected to considerably go up. We are applying the pareto principle and looking for machines which provide us increased flexibility and innovative offerings to meet the demand. We are also working on strengthening our raw material sourcing to manage volatility in input markets. Our proficient and visionary R&D teams are in the process of innovating different forms of pulp with the aim to cut down on per ton pulp usage in paper production. Keeping sustainability at the forefront, we are continuing our efforts to come up with unique and eco-friendly methods of using paper products – paper straw to counter plastic straws, turning honeycombs and craft paper into cooling pads and the development of biodegradable water-resistant barrier coated boards. In line with our sustainability commitments, we are looking to increase our local raw material sourcing. As we work on securing our place as industry leaders in each of the segments, we will be looking at both organic and inorganic growth options.
Product highlights FY22:
PE free antifungal ARSR
In line with changing dynamics, the emphasis on replacing plastic in packaging products has been increasing. We recently replaced the PE coating which is treated as plastic in our ARSR products. The new product is used primarily in soap wrappings. In addition to being sustainable, it also has antifungal characteristics, improved quality and a nonstick feature. We see the product gaining significant market share over the next couple of years, as reflected in the market response.
Century Prima MR board
A leading FMCG Company, who are in an elite segment in their industry, approached us with a demand for a customized product. They wanted to commission base board which could be used as a mosquito repellent after chemical treatment at their end. Our R&D team set to work, and we successfully launched the product, meeting all the compliance requirements at the customer’s end. We foresee the monthly demand potential to increase over the next three years from the current levels.
A list of innovations:
It is a unique product, manufactured only by us in the whole country. It has a high and dry wet strength and serves as a transfer and cover sheet for absorbent fluff pulp in diapers and feminine hygiene products.
HIGH BF KRAFT
After a series of experiments in the design lab, we have been able to develop high BF kraft paper by using virgin, unbleached pulp. The eco-friendly, food grade product passes compliance of heavy metal content, pentachlorophenol (PCP) and polychlorinated biphenyls (PCBs) by FSSAI. The product is currently used by some of the major food chains in India.
DISPOSABLE BED ROLL
Our disposable bed roll, launched last year to meet the demand for disposable OPD products, have gained traction in the health care industry. Made of high-quality virgin tissue paper, these rolls offer an eco-friendly, bio-degradable, OBA-free (Optical Brightening Agents) hygiene solution. We are further studying the product to expand its market potential application.
CENTURY GREEN PULP
This pulp is made from agro-waste of sugarcane i.e. bagasse, a completely bio-degradable and compostable product. The pulp is being used to make eco-friendly tableware through moulding technology as a replacement of plastic plates, plastic bowls, thermocol glass and thermocol plates. Tableware thus made from Century Green Pulp are FDA complied and meet the requirements of FSSAI guidelines for packaging products for food.
EXPANSION & MODERNISATION:
During the year, the New Tissue Plant (TM7), to manufacture Prime Grade Tissue paper with a capacity of 100 tons per day has been capitalized. However, due to the ongoing pandemic during Q4, international travels were banned throughout the world. As a result, there was delay in getting visa approvals from the Government of India, for the entire technical team of the OEM supplier. Therefore, couple of teething issues are still pending to be sorted out.
At present, CPP are manufacturing paper from Paper Mill 3 (Bagasse base) & Paper Mill 4 (Recycle base) both having monthly capacity of 7,200 Mt each. We are making technical upgradation, removing bottlenecks and balancing the plants, post which our monthly paper manufacturing capacity will increase to 8,500 Mt from each Machine (PM 3 & 4 individually). This expansion, will also help in reducing overall manufacturing cost (of these two machines) and quality improvement.
As reported last year due to Covid-19 no erection and commissioning activities could be undertaken during 2020-21 for upgradation of Paper Machines 3 and 4 and for installation of a new evaporator. Necessary steps are being taken for completion of erection and commissioning of the said Paper Machines and installation of evaporator by June, 22 and July, 22 respectively.
By 2025, Asia Pulp & Paper intends to begin its enormous capacity in India to produce WPP, tissue, and packaging boards
- India Project is a strategic way forward for us to support APP’s operations in Indonesia.
- APP to produce 1.2 million MT of paper products including printing paper, tissue and packaging board.
- A state-of-the-art facility with technology considered the most advanced in India.
Jakarta, 1 December 2022, The Pulp and Paper Times
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.
The letter of allotment and the incentives offer letter were granted to APP by the Chief Minister of Maharashtra Eknath Shinde and Deputy Chief Minister of Maharashtra Devendra Fadnavis to company representatives on November 29th. “We would like to assure that the state is very much in support of investors coming into Maharashtra and are helping us by opening up more employment opportunities for the people of the state,” said Chief Minister Eknath Shinde. The company was offered various incentives and the exclusive permission to receive 100% of its investment back by way of multiple incentives offered, with provision of a 40 year timeline for receiving the incentive benefits, he added.
A feasibility study is currently being undertaken by APP to ensure the facility meets operational requirements and global sustainability standards including social and environmental impact assessments. The company adds that the production facility in India will source its material from Indonesian operations and it will invest INR 10,500 CR (USD1.2 billion) to develop a state-of-the-art facility with technology considered the most advanced in India.
An APP representative commenting on the company’s decision to establish a production facility in India said: “The India Project is a strategic way forward for us to support our operations in Indonesia while marking our presence in the Indian market which offers bright prospects with its strong growth. With the support of the government we are sure to deliver positive impact to the communities and the industrial ecosystem.”
The facility is expected to benefit the local economy and positively impact 7,000 members of the community through direct and indirect employment. Infrastructure such as roads will also be created or enhanced to facilitate movement of goods and employees accessing the facility.
Once the feasibility study is completed and all necessary approvals are in place, the mill is expected to be operational in stages, beginning from 2025 to full functionality by 2027.
Started in 1972 with Tjiwi Kimia producing caustic soda, now APP run operations across Indonesia and China with an annual combined pulp, paper, packaging product and converting capacity of over 19 million tons per annum. Asia Pulp & Paper (APP) Sinar Mas is a trade name of pulp and paper manufacturing companies that delivers quality products to meet the growing global demand for tissue, packaging and paper
GPMA: The demand position has improved and the market sentiment reversed
-Excess production leads to a price drop of finished paper
The sluggish demand scenario and surge in the price of key inputs like Coal, chemicals, etc. The Pulp and Paper Times takes a sneak view of the current situation and puts our questions before Mr. Sunil Agarwal, President of Gujarat Paper Mills Association (GPMA). Here is his view of the situation:
August 2022 | The Pulp and Paper Times:
Q. What is your current Kraft paper market review? Demand is sluggish in core sector, and prices of finished paper have dropped. Paper Mills are taking a silent shutdown to balance their production with demand. How do you take this situation?
Yes, Market Demand is sluggish in the Core sector and prices of finished Paper have dropped. But it is due to excess production. In my view this market depends on sentiments. Before one-month Sentiments were negative but after 5th July 2022 market sentiment reversed, and demand position improved. And now there is no issue of demand. I am of the opinion that only Sentiments Play major role. Now finished prices are also corrected.
Q: The domestic & imported waste paper price has come down due to sluggish demand for the finished paper, how do you see the next three months for waste paper prices? Would it see a 'surge' again?
Waste paper price comes down drastically in the whole world. In the Month of March - 22 Suppliers said that there is no waste paper material and in my view a major role played by the shipping line. Container availability was low and container freight was high. Now container availability is high and also freight price is down. In the last three-month Paper Mill bear heavy loss due to higher price of imported waste paper. Next three months the Market will be good due to the Festival seasons.
Q: Spike in coal prices, chemical and logistics has escalated the operating cost of paper mill, how does member paper mills of GPMA managing day- to- day operations amid the low demand?
Coal prices are very high from June - 21 till today, chemical and Logistics are also very high. Due to this Conversion cost is drastically high, and Members of GPMA incurred huge losses during this Period.
Q: The EU Commission has issued the 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 is expected to 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 do GPMA think about this problem?
If Waste Paper is banned, the Indian Paper industry will face a problem. In India Our Collection rate of waste paper is very low. But our Government will also try to improve the collection rate of waste paper. This rule will be implemented in 2025. We have three years in our hands. We request our government to improve the collection rate of waste paper to overcome the above situation. Also, the paper industry buys an imported waste paper from USA & Other countries where this rule is not applicable.
Q: Single-Use Plastic ban has been effective from July, amid the paper import monitoring system; do you think India has enough capacity to meet the demand of paper arising out of the ban? Is this benefiting the Kraft paper industry also?
Yes, the Single-Use Plastic ban definitely benefits Kraft Industries, and India has enough Capacity to meet the demand. Right now in a western Region our capacity is around 5 Million tons and total demand including export of kraft is around 3.5 million tons, so we have excess capacity of 1.5 million tons which can be utilized due to this ban.
Q: Any other comments, you would like to mention here for Traders, Raw Material Suppliers, and Corrugators?
Paper Industry future is very bright So traders, RM Supplier and Corrugators I request them to Support Paper Industry. If the paper industry does well it is better for all in my view, I always think to do business in a win-win position.
JK Paper invests INR 578 crore to expand its corrugation business and buys the majority stake
New Delhi | 27th November 2022 | The Pulp and Paper Times:
JK Paper, one of India’s largest Paper & Packaging Board Companies, entered into Share Purchase and Shareholders’ Agreements (SPSHAs) for the acquisition of 85% shares of Horizon Packs Private Ltd. (HPPL) and Securipax Packaging Private Ltd. (SPPL), and the balance 15% within a period of 3 years as per the respective SPSHAs.
JK Paper said it will acquire Horizon Packs Private Ltd and Securipax Packaging Private Ltd in phases for about Rs 578 crore.
HPPL and SPPL together are India’s largest Corrugated Packaging manufacturers with seven (7) plants across the country. In FY 2021-22, HPPL and SPPL had a consolidated Revenue of Rs. 832 Cr. Corrugated Packaging is a rapidly growing segment in the Indian Paper & Packaging industry driven by growth in end-use industries such as Food & Beverage, FMCG, etc.
Speaking on the occasion, Mr. Harsh Pati Singhania, Vice Chairman and Managing Director, JK Paper Ltd. said, “It is a privilege to join hands with India’s largest player in the Corrugated Packaging segment. This together with JK Paper’s upcoming corrugated facility in Ludhiana will establish it as the largest player in the corrugated packaging industry.
The shift in consumer preferences are driving demand for superior quality, eco-friendly packaging. This acquisition gives us an opportunity to benefit from the existing strengths of HPPL and SPPL. HPPL and SPPL’s customers, employees, vendors and partners will benefit from JK Paper’s strong manufacturing knowledge and experience, its high standards in operational excellence, financial management and corporate governance.”
JK paper will acquire 26.92 crore equity shares in HPPL for Rs 19.33 per share and 4.63 lakh equity shares for Rs 1,256.95 apiece in SPPL -- representing an 85 per cent stake in each company.
Waste Paper Procurement: Be Prepared for Evidence, Documentation, and audit Process
17th November 2022 | The Pulp and Paper Times
European recyclers are making an urgent plea to shadow rapporteurs as revised EU rules threaten to severely impact trade of recycled materials risking irreversible economic damage and job losses to Europe’s leading circular economy industries.
Talking to The Pulp and Paper Times over a phone call, Mr. Marc Ehrlich, CEO, VIPA Group says, the new EU Waste Shipment Regulation has been under development for many years now and is under final stages at the EU Parliament level. We believe it could pass the vote at the EU parliament in early 2023. There will be after that some further process between the parliament and the EU Commission, which makes it difficult to predict the date of implementation of the new law and the transition period which is also under discussion.
He further says that the new law will make it extremely difficult to ship recovered paper from Europe into India. This will combine three levels, first - All streams are considered as “waste”. There is no favorable treatment for non problematic streams (recovered paper that can not harm the environment, copper with a value of USD 10’000/to) as compared to problematic streams like mixed waste plastic. Everything is “waste”.
Second, the country of destination (India for example) will need to demonstrate its ability to receive the “waste” and need to prepare all the appropriate evidence and documentation on that. This will be reviewed and evaluated by the EU Commission. I would like to underline that the same administration took about 6 months in 2022 to correct in their database a typing mistake done by the Indian government. We can with no doubt say that we are in the “right” hands !
“And last, the receiver of the “waste”, the paper mill will need to be audited to attest broadly equivalent standards. We do not know what those standards are exactly. Will that cover also CO2 emissions for example ?, he informed.
Mr. Marc emphasises that in order to find a suitable solution for paper mills, the Indian Government should be urged by the Paper Mills Association in India to evaluate this law and consult with the EU authorities.. He added, “all that is known for months already and I am still very surprised of the lack of reaction of the recycling industry (paper mills and metal smelters) in India on that. India will be the most hit country with this legislation and nobody is asking the government to react and liaise with EU authorities”
"At the same time, the collection in Europe will collapse, as the lack of exports will lead to low prices, discouraged investments and we will see job losses. Recovered paper will go more and more to landfills. Nobody is reacting, all will loose, including the Environment !!!" he adds.
Current proposals for the revision of the EU Waste Shipment Regulation threaten to "decimate" the European recycling industry, warns the umbrella organisation Euric. Almost 80 per cent of metal recyclers and more than 70 per cent of recovered paper recyclers expect a decrease in turnover as a result of the provisions currently under consideration. As many as half expect to have to cut jobs, the European Recycling Industries' Confederation (Euric) reported in September. According to the association, the industry as a whole currently provides more than 300,000 green jobs that cannot be offshored, and has an annual turnover of around €95bn.
Century Pulp & Paper: SUP ban will give momentum to WPP demand, subdued forecast for board segment
-Sales have increased by 37% to Rs. 942 Cr. in Q2 FY23 as compared to Rs. 686 Cr. in Q2 FY22.
-Sales realization has increased by 45% in Q2 FY23 as compared to the same quarter of FY22.
-The board segment market is expected to be subdued due to lower demand
Lalkuan | 10th November 2022 | The Pulp and Paper Times:
The largest manufacturer of Paper, Board, Tissue and Pulp, Century Pulp and Paper has registered a 37 percent growth in its sales revenue inQ2 of FY23. Situated at the foothills of Himalayas in Lalkuan, Uttarkhand, Century Pulp and Paper is a producer of excellent quality writing and printing paper, and a leading manufacturer of tissue and board, as well as Rayon Grade Pulp products.
Commenting on the Q2 FY23 results, R K Dalmia, Managing Director, Century Textiles and Industries Limited (CTIL) said, "Building upon the momentum initiated in the previous quarter, the company performed even better in this quarter, especially due to increased market demand during the festive season, favourable impact of the single-use plastic ban as well as several cost-reduction initiatives implemented across our production facilities.
The Pulp and Paper business delivered stellar performance backed by increased demand across all segments with timely price corrections and cost reductions.
Sales have increased by 37% to Rs. 942 Cr. in Q2 FY23 as compared to Rs. 686 Cr. in Q2 FY22. Sales realization has increased by 45% in Q2 FY23 as compared to the same quarter of FY22. The plant achieved overall capacity utilization of 96%.
Writing & Printing paper (WPP) demand is expected to increase on account of the single-use plastic ban despite heavy cost pressure in the domestic market due to imports and price corrections by lower-grade mills. The tissue segment is expected to perform better in Q3, with major tissue consumption centres being fully operational. The board segment market is expected to be subdued due to lower demand and competitive low-priced imports. With the reopening of most paper consumption centres and subsiding high input prices, the short to medium-term outlook for the Indian paper industry appears to be positive.
Satia Industries: better product mix and higher sales realization drive increased revenue in Q2FY23
- Current order book in hand stands at 55 days with attractive price realization
- Profit After Tax stood at INR 508 Mn; up 151 % YoY
- Satia Industries expects to produce 80K tonnes additional paper from PM4 in FY23
Punjab | 28th Oct 2022 | The Pulp and Paper Times:
One of the leading Wood and Agro-based paper manufacturer in India, Satia Industries Limited (SIL) announced its consolidated results for the Second Quarter and Half Year ended September 30, 2022.
SIL has registered revenue from operations increased by 146% on YoY basis from INR 1,867.7 Mn in Q2FY22 to INR 4,592.8 Mn in Q2FY23, mainly driven by better product mix and higher sales realization.
Commenting on the financial results, Executive Director Mr. Chirag Satia, said, “We are pleased to deliver an excellent quarter and fiscal in terms of volume as well as increased profits. The Revenue from Operations has increased by 10.1% in Q2 FY23 vis-à-vis Q1 FY23 mainly on the back of robust demand leading to higher sales volume with better realization. With the commitment and persistent efforts of the management and better utilisation of resources, we have recorded a growth in EBITDA margins by 338 bps in the current quarter as compared to the EBITDA margins in Q1 FY23.
Despite key raw materials like agro, wood chips, and waste paper (Indian) witnessing a significant rise in H1 FY23, SIL’s locational advantage of being in India's wheat belt has given us an edge over other players. This, along with cheap fuel from rice straw & other biomass, and strong backward integration from power to chemical requirements, aided in limiting the impact of macro headwinds and retaining relatively healthy margins for H1FY23.
“We are elated to share that with the successful commissioning of PM4, we have added 100,000 TPA to our installed capacity, taking our total installed capacity to 205,000 TPA. We have imported this machinery from France, and it is one of the most advanced paper machineries in India. We estimate our revenues to grow by more than 90% with increase in profits for FY23” Mr. Satia added.
The Educational sector along with increased exports lead the demand of paper across the nation and our strong association with the various State Textbook corporations provides us a competitive edge. The current order book in hand stands at 55 days with attractive price realization.
Mr. Satia anticipates that the management expect further growth in volumes for H2 FY23 as compared to H1 FY23 and expects to produce 80,000 tonnes additional paper from PM4 in FY23 contributing incremental revenue of INR 7000 million in FY23. The management expects that the EBITDA margins to expand by 100 bps in FY23.
The PM4 has commenced commercial production from 7th February 2022 and has an installed capacity of 100,000 TPA. The new PM4 will enable SIL to have an additional capacity of 300 TPD taking its’ total capacity to ~700 TPD.
SIL had procured three orders one of 11000 MT from NCERT, the second from Textbook production, Bhubaneswar for 9000 MT paper, and third from MP Textbook Corporation for 7,000 tons.
Satia Industries Limited (SIL), is one of the largest Wood and Agro-based paper manufacturer in India. SIL was incorporated by Dr. Ajay Satia in 1980 and commenced its operations in 1984 with a small capacity of 4,850 tonne per year. It surprisingly overtook many of its peer in production, to achieve 1,41,525 MT in FY22 implying a capacity utilization of ~117%. SIL has successfully commissioned their PM 4 and has augmented its total installed capacity to 205,000 MTPA. In last three decades, SIL has witnessed a complete transformation in its operations, and it has become fully backward integrated having integrated pulping, chemical recovery, and power self-sufficiency. SIL has 540 acres of eucalyptus plantations, developed as per Karnal Technology, consumes total treated water discharge, and also compliments the future wood raw material requirements. SIL has a strong Pan-India distribution network with 70+ dealer and 3 branch offices located in Delhi, Chandigarh & Jaipur with total Employee strength of 2,019+.
A major paper production facility will be built in India by Asia Pulp & Paper
Mumbai | 21st October 2022 | The Pulp and Paper Times:
Indonesia's one of the largest paper-making companies Asia Pulp & Paper (APP) which is marketing its products in more than 150 countries across six continents, has got the approval from Maharashtra Government to set up a paper-making unit in Raigad. The Cabinet Sub-Committee of industries department was held on Thursday in which a project worth Rs 20,000 crore of Sinar Mas Pulp paper manufacturing project in Raigad district was approved along with some other projects.
The MoU for the project was signed earlier during the Maha Vikas Aghadi (MVA) government.
According to officials, Sinar Mas Pulp and Paper Pvt. Ltd. (Asia Pulp and Paper) is the largest paper manufacturing industry in Asia and it will be making an investment of Rs 20,000 crore for the first time in India and that too in Maharashtra.
The Rs 20,000 crore will be invested in two phases and accordingly, 300 acres of land has already been allotted for this project at Dherand in Raigad district, and the government intends to provide more land as per the demand of the project.
APP had been seeking land in India since 2017 to increase its presence on Indian soil. In January 2018, APP entered into an MoU with Andhra Pradesh Government for the establishment of one of the biggest paper-making units in Prakasam district. It was one of the biggest Foreign Direct Investments in the country till date amounting to approximately Rs 24,000 crore for a greenfield pulp and paper plant in the state.
According to Media reports, APP decided to withdraw its investment from Andhra Pradesh due to newly elected government of Jagan Reddy’s animosity against his bête noire TDP chief Chandrababu Naidu seems to have got the better of him in his penchant for reversing or scrapping the earlier government's initiatives, in the process upsetting the business applecart.
According to the information by APP’s senior official to The Pulp and Paper Times in 2018, The proposed plant was expected to have 3 to 5 million tonnes per annum capacity with the State-of-Art plant and machinery structure. This will be fully automatic and modernized plant generating 5000 to 7000 direct employments in India. APP was planning to manufacture 10,000 to 50,000 Tonnes-per-day (TPD) Writing-Printing, Kraft, Copier, and Paperboards of all segments
The official informed in 2018 that APP will purchase some Hi-tech equipment from overseas suppliers and some from Indian suppliers, like dryers to save the import duty. As concern to raw material availability, APP would source virgin pulp from Indonesia and waste paper from all over the world.
Started in 1972 with Tjiwi Kimia producing caustic soda, now APP run operations across Indonesia and China with an annual combined pulp, paper, packaging product and converting capacity of over 19 million tons per annum. Asia Pulp & Paper (APP) Sinar Mas is a trade name of pulp and paper manufacturing companies that delivers quality products to meet the growing global demand for tissue, packaging and paper
WPRPC will give flip to waste paper recovery and utilization scenario: CPPRI
- A new Waste Paper Recycling Promotion Center at Delhi set up by CPPRI
- WPRPC center will also be helpful in providing authentic information and data to various stakeholders about waste paper.
- SWOT analysis of this sector for further policy/guideline formulation
- According to Industry estimates, waste paper imports have easily crossed 110 billion rupees mark
New Delhi | 12th October 2022 | The Pulp and Paper Times:
Central Pulp and Paper Research Institute (CPPRI), Saharanpur has been awarded a project on “setting up of Waste Paper Recycling Promotion Center (WPRPC) at New Delhi and Chennai”. The WPRPC-Delhi Centre was inaugurated on 12th October 2022 at Patpadganj industrial area, New Delhi. This is the extension centre of Central Pulp and Paper Research Institute Saharanpur, which will cater the need of pulp and paper Industry including recycled paper collection and promotion activities.
The Chief Guest on the occasion, who also formally inaugurated the center, was Mr. T. Balakumar, CMD- Subam Papes Pvt. Ltd. Tirunelveli ,Tamilnadu, who has recently been nominated as the Chairman of DCPPAI(Development council of Pulp, paper Allied Industry), by Ministry of Commerce and Industry, Government of India. Expressing his satisfaction on this step in the right direction, he emphasized the need of a concerted strategy to be put in place for the benefit of the paper sector at large.
Addressing the gathering from paper industry, Mr. Satpal Gupta, Managing Director of Narsingh Dass & Company stressed the need of improving the waste paper recovery rate in India, he added, “As per the estimates, the present recovery rate in India for waste paper is of the order of more than 50 percent. The recovery rate is fast catching up but is much below as compared to the developed nations like Japan-81%, Europe-71.4 % and USA-68% and is at par with new emerging paper destination South Africa which is at 60%”
The systematic and scientific knowledge about collection, sorting, grading and recyclability will certainly help our paper industry in meeting raw material shortage as well as achieving the future projected paper demand of our country.
Mr. Satpal informed that the domestic paper industry produced 24 million tons of paper in the financial year 2020-2021. 4.32 million tons of paper contributing 18% of total production uses wood chiefly from social forestry. Agricultural residues like bagasse and wheat straw are used to produce 2.4 million ton, contributing 10% of the total production. 17.28 million tons contributing 72%share of the total production was produced from recovered paper and or waste paper. The recovered paper presently constitutes as the major raw material base for the domestic paper industry.
The waste paper requirement taking into consideration of an average of 80-85% yield in the papermaking process, the consumption of recovered paper amounts to 20 million tons per annum.
The event was inaugurated by the Shri T.Balakumar, CMD Subam Papers Pvt. Ltd. Tirunelveli,TN, and Chairman of DCPPAI (Development council of Pulp, paper Allied Industry), ,DPIIT, Ministry of Commerce and Industry, Government of India. The inaugural ceremony was attended by Director of Central Pulp and Paper Research Institute Dr. M. K. Gupta, and the leaders of paper fraternity of India.
India needs more such programs for improving waste paper collection, segregation and utilization. In this perspective, setting up of this WPRPC center is a right step, the objective of this center are:
-Promotion, collection and increased use of waste paper
-Study on Stable Supply Chain and reliable volume of waste paper
-Quality monitoring and improvement
-Data network to ensure quality
“According to 2019 statistics available, the waste paper imports in India have jumped 3.5 times of 2011 level. The imports of waste paper in FY2011 were to the tune of 28.31 billion rupees and reached 91.86 billion rupees in FY2019. According to the Industry estimates, this has easily crossed 110 billion rupees mark, taking into account the rupee devaluation and increase in recovered fiber demand by the industry. It goes to show the dependence of the domestic paper industry on imported waste paper,” Mr. Satpal shared.
Citing the example of Confederation of European Paper Industries (CEPI), Mr. Satpal added that CEPI has unveiled, the updated version of its European harmonized recyclability test method, developed in collaboration with stakeholders in the entire paper value chain, including specialized testing laboratories. The goal of this exercise is to make all paper packaging recyclable by 2025 and reach a recycling rate of 90% by 2030.
The updated CEPI harmonized recyclability test method offers a solid basis for this work and allows paper products across Europe to be tested for their recyclability in identical conditions.
Mr. Jori Ring man, Director General –Confederation of the European Paper Industries, is thus correct, when he said, “To optimize recycling, product design is just as important as the final collection and processing after usage.”
WPRPC center will also be helpful in providing authentic information and data to various stake holders, specifically on –
-Waste price, supply and demand
-Benchmarks on various aspects related to raw material availability, paper production and quality along with different geographical areas
-SWOT analysis of this sector for further policy/guideline formulation
-Development of transaction-based recycled fibre price benchmark to help the industry in reducing the volatility and uncertainty in waste paper procurement prices
-Tracking and understanding market movements over time to correlate price changes
-Segmentation of apparent contract vs spot to understand market dynamics and get insight into where the market is headed
The data and knowledge base generated by WPRPC will help the industry to make fact-based decisions and protect the interest of the sector.
The success of this promotion center shall be depended on the participation of all stakeholders in value chain including paper traders, waste paper suppliers, paper mills and paper users.
Proper strategies and key interventions are required for enhancing the waste collection in the country. CPPRI with the collective support and effort by all the stake holders can make positive contribution towards increasing the waste paper collection, thus contributing to the Govt initiative for Atma Nirbhar Bharat, in context of making indigenous fibrous raw material available to the domestic paper manufacturers and saving valuable foreign exchange.
It is also proposed RCF based integrated mother pulp mills may be promoted from various regions of the country which can provide high quality RCF based pulp to the paper mills in the country. This will help in reducing the production cost, energy cost and ETP operation cost.
Pramod Agrawal CMD Rama paper mills ltd and President IARPMA, Shri R.C.Rastogi MD Khateema Fibres, Director IIP Dr.Tanweer Alam, and Joint Director Dr. Madhab Charkraborty, Dr. B.P. Thapliyal Secretary General IARPMA, Shri Rohit Pandit Secretary General IPMA, Shri Vijay Kumar Secretary General INMA etc.. Senior Scientist of Central Pulp and Paper Research Institute Saharanpur Dr. Kawaljeet, Dr.Priti Shivharelal, Dr. NitinEndlay, Dr.SanjayTyagi, Shri Alok Goel also attended the inaugural ceremony.
CPPRI: Paper Industry contributes Rs. 8000 Crores to the National exchequer with a turnover of Rs.70000 Crores
- The proposal for leasing of degraded forest lands for pulpwood plantations needs to be fast tracked by the Ministry of Environment, Forests and Climate Change (MoEF&CC).
- Urgent need to invest the CSR funds into Research and Development; Gujarat has the maximum paper making units
- The total operating installed capacity in the sector is 23.99 million tons per annum and the production is 21.36 million tons per annum.
2022 | The Pulp and Paper Times :
The annual report of Central Pulp & Paper Research Institute for FY 20-21, reveals that the year 2020-21 will be remembered as historical year of fight against pandemic Covid19. Indian Pulp and Paper Industry has also faced a number of challenges due to Covid 19. Central Pulp and Paper Research Institute returned swiftly to its normal working from June 2020, after the lockdown period of March 24th to till 31st May 2020.
In the area of product development CPPRI has been consistently working and has successfully completed two different projects for production of fluff pulp from bamboo and production of high purity dissolving pulp from bamboo and whole jute. In addition to this consultancy was provided to a number of startups companies for utilization of cellulosic biomass for production of pulp for table wares or paper crockery.
Indian paper industry is one of the most fragmented sector with production capacity ranging from 5 TPD to 1650 TPD and geographically highly dispersed. During the decade 2010 to 2020 Indian Paper Industry registered a substantial growth which resulted in a two fold increase in production from 10.99 Million Tons (2010) to 21.36 Million Tons (2020).
This growth story of Indian Paper Industry has been hampered due to the pandemic situation. Every sector of the industry was forced to stop operations due to nation wise lockdown imposed after March 2020. Initially, Indian Paper Industry also shutdown the operation but after few weeks, paper sector was recognized as an essential service in many states and was allowed to operate with strict COVID Norms.
Upon resumption of operations, strong demand of pharmaceutical sector, FMCG sector, online shopping, and increase use of hygienic paper products etc., gave the momentum to the packaging segment. But, on the other side, due to closure of professional premises, academia, institutions, etc., the demand for writing and printing paper.
In the fourth Quarter of 2019-20 most of the well known paper units reported downfall in the turnover figures.
In FY 2020-21, mills were forced to close down on an average of 50 days and as a result most of the mills did not file performance report and are still doing compilation of turnover and production figures. In the mid of 2020, industry was facing immense shortage of raw material mainly because of logistics interruption, shortage of containers, labor issues, etc,. After June 2020, all units resumed their process with 60% to 70 % capacity utilization. However, due to ongoing demand of pharma and FMCG sector the packaging sector did not loose its pace and registered almost same production levels as that exhibited in 2018-19.
Strong demand of packaging grade paper provided support to the industry and therefore, 71% production share of market remained largely unaffected by the pandemic impact. Further, some green field as well as brown field projects also started their commercial production of packaging grade paper, which covered up the loss of production wiped out the loss of production figures of the writing and printing sector.
Today there are about 900 paper mills spread across the country. The total operating installed capacity in the sector is 23.99 million tons per annum and the production is 21.36 million tons per annum. Table -1, presents a snapshot of the Indian paper sector. Nationally, paper sector is one of the core entities in terms of providing employment in the Indian hinterland. Overall, 2.5 million persons are directly and indirectly getting their livelihood from this sector.
At the national level, this sector contributes Rs. 8000 Crores to the National exchequer with a turnover of Rs. 70000 Crores. Fueled by the National Priority of a knowledge-based economy, the sector is likely to emerge as a significant contributor to the Government's target of achieving an overall growth of 8% in manufacturing.
A STATISTICAL BACKGROUND NOTE ON INDIAN PAPER INDUSTRY:
The consumption of paper in India increased from 16.91 million tons in 2016-17 to 22.83 million tons in 2019-20. During this period India's paper consumption registered CAGR of 6% compared to the global growth of 3% making India one of the largest growing paper markets in the world. Relevant figures are placed in Table 2.
Paper industry has three broad categories of products i.e. Writing & Printing Paper, Packaging Grade paper (Kraft paper, duplex paper, board and paperboard) and Newsprint. Table 4 gives the category wise production figures. As can be seen, the newsprint sector continued to be affected by the low cost imports, thereby this sector clocks the production figure higher only to Tissue Paper segment. Further, all the production of Newsprint is coming from the waste paper based mills. Production of writing and printing paper gets contribution from the mills using all the three type of raw materials.
In spite of sufficient domestic capacity of packaging grades paper manufactures, imports under HS code 4804 & 4805 are taking place in India. Industry sources ascribe these imports to the zero to zero tariff regimens under various free trade agreements.
In 2020-21, steep hike can be seen as nationwide lockdown affected the local production and where for, to fulfill the domestic demand almost double imports were recorded in the month of April & May, 2020-21. But, as industry resumed its operations, dependency on the imported kraft paper reduced to pre-covid level.
If the numbers alone are considered, then Gujarat has the maximum paper making units. However, most of these units are recycle fibre based. The state of UP has the second largest number of paper mills. Most of these are in the Muzaffarnagar and Meerut clusters. Most of the major players are in Tamilnadu, Andhra Pradesh and Maharashtra. The major pulp and paper mills clusters are in and around Muzaffarnagar, Vapi, Muzaffarnagar, Kashipur, Coimbatore, and Ahmedabad.
Major achievements of CPPRI during 2020-21:
Production of Fluff Pulp from Jamaica Bamboo
Cellulosic fibre (pulp) is the raw material for a number of end products. One of them is hygiene products like adults and baby diapers and sanitary napkins. Conversion of cellulosic pulp for production of super absorbent fluff material to utilize in diapers and sanitary napkins is not only a substantial value addition but also an environment friendly solution too. Cellulosic pulp helps in reduction of synthetic super absorbent material used in these products. The process has two steps:
- Kraft pulping of bamboo and TCF bleaching of optimization of unbleached pulp.
- Hammering of TCF bleached bamboo pulp into fluff.
The fluff prepared from bleached kraft pulp of bamboo is comparable to the pulp available in market. The project has open the possibility to explore other long fibre raw materials like jute, banana etc to utilize in production of fluff pulp.
Production of Dissolving Grade pulp from Bamboo and whole jute
The fibrous raw material has not only one end use i.e. pulp and paper. Basically pulp is the cellulosic source of raw material for many other end products. Higher the purity of cellulose after pulping and bleaching, higher will be value addition which may turn into better economic viability.
Government of India aims to support the farmers, the growers of the crops like whole jute, bamboo.
National Jute Board has sponsored a project on production of high purity dissolving grade pulp from whole jute and bamboo. Whole jute has higher silica and initially it took numbers of experimental trial to remove silica from pulp in different process stages viz. pre-hydrolysis, pulping and bleaching. After sustained efforts we succeeded to produce bleached pulp with +94% alpha cellulose and all other characteristics in the desired accepted range dissolving grade pulp. The trial of conversion of pulp to viscose and to fibre was carried out successfully at Aditya Birla Science and Technology Co. Ltd., Mumbai, Maharashtra. Further work is in progress on feasibility and pre pilot scale trials.
The Indian paper sector has performed fairly well over the years even though it was confronted with factors internal to the sector as well as due to externalities. The sector has unutilized capacity primarily due to acute fiber shortage in the country. Another reason for low capacity utilization has been the ever-increasing input costs particularly for energy inputs (both coal and non-coal).
The sector is very capital intensive –the ROI in its case is five to seven years. This fact has been reflected over the decades that almost all capacity addition have occurred largely through brownfield expansions. Further, most of these expansions have been in the waste paper based segment and due to de-bottlenecking measures taken by individual units, as low investment options.
Even in the above scenario, the Indian paper sector has taken notable steps to maintain smooth operations and remain competitive to the maximum extent possible in the post globalization era. The work carried out in raw material augmentation and its utilization by the sector is very commendable. Nearly all wood-based paper mills have robust plantations programs in place wherein they can source the major volumes of the required raw material. The agro based segment has mastered the art of paper making from what are known as short fiber and inferior raw material. India is one of the few countries that produce writing/printing paper from bagasse and other agro residues.
Time is now ripe for the Industry to look beyond the medium term and invest in R&D for long term sustainability. There is an urgent need to invest the CSR funds into R&D which not only help the sector but also will impact the communities that are directly or indirectly involved with the paper sector.
There is a pressing need to ensure a sustained availability of quality lignocellulosic raw material for paper making in the country. In this reference the proposal for leasing of degraded forest lands for pulpwood plantations needs to be fast tracked by the Ministry of Environment, Forests and Climate Change (MoEF&CC). If the industry is assured of availability of quality raw material well into the future, it can plan investments and expansions with a long-term vision.
Also, urgent interventions are needed for revising the ITC-HS codes for paper (Chapter 48) at the eight-figure level in order to reflect the needs of the current trade of paper in India. This is needed to reduce the increasing imports of these items under the “Others” category. Also, certain varieties such as copier paper needs to be given a specific code under Chapter 48.
Energy is clearly the most important parameter that needs to be monitored after the raw material availability. The industry needs to shift to energy efficient technologies, but it needs funds for the same which are difficult to be available on commercial terms in view of the long ROI. Whereas the Bureau of Energy Efficiency has made some efforts to help the industry move towards energy efficiency under PAT -2 and the National Motor Replacement Program (NMRP) through its subsidiary, Energy Efficiency Services Ltd. ( (EESL), direct funding may have to be planned for inducting energy efficient unit operations in the pulp and paper sector.
Currently, the paper sector is moving towards an era of new opportunities driven by introduction of biorefinery approach and possible ban on Single Use Plastic. These opportunities will open new avenues for utilization of all possible unique products from the constituents of ligno-cellulosic raw materials produced in a biorefinery. This would have the potential to change the face of the Industry. The sector may well look into the future where pulp and paper would actually be the by-product of the biorefinery operations, and the other value-added eco-friendly products will become the main stream products contributing substantially to the bottom line.
Central Pulp & Paper Research Institute, a National level Institute was established in 1980 as an autonomous body under the administrative control of Department of Industrial Policy & Promotion, Ministry of Commerce and Industry, Govt. of India to promote R&D in the field of pulp & paper. The origin of CPPRI dates back to the year 1975 when the UNDP-GOI Project became operational. After the conclusion of the UNDP Project, the facilities thus created were utilized to fulfill the long felt need for R&D needs of Indian Pulp and Paper Industry. Thus after the approval of the Cabinet, Central Pulp & Paper Research Institute (CPPRI) came into existence in November 1980. Existing R&D facilities were continuously upgraded with the aid of Plan Funds received from the Government of India.
Sappi Limited announced today that it has concluded an agreement with AURELIUS Investment Lux One S.à.r.l. (“AURELIUS”) regarding the divesture of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland (the “Transaction”).
Sappi Limited announced today that it has concluded an agreement with AURELIUS Investment Lux One S.à.r.l. (“AURELIUS”) regarding the divesture of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland (the “Transaction”).
Steve Binnie, CEO of Sappi Limited commented: “We are very happy to have reached agreement with AURELIUS to take ownership of the three mills. Although they no longer fit in Sappi’s portfolio, they are strong assets with good people.
“The decision to sell these mills follows a detailed and thorough strategic review by Sappi in line with our group Thrive25 strategic focus. This includes reducing exposure to the graphic paper segment while expanding Sappi’s presence in segments including packaging and speciality papers, pulp and biomaterials. Recent investments across our South African, American and European operating businesses demonstrate this priority.”
Sappi received binding offers from several parties. Following due process, the board of Sappi agreed to proceed with the offer from AURELIUS, a pan-European multi-asset manager group. The sale will be subject to various standard suspensive conditions. The sale is expected to close in the first calendar quarter of 2023 once all these conditions have been fulfilled. A transitional services agreement will also be entered into to ensure a smooth transition of the businesses between the parties.
The enterprise value of the sale amounts to approximately €272 million. The consideration consists of cash proceeds and retained receivables (€212 million) as well as retained liabilities (€60 million). The proceeds will be used to reduce debt further and continue to increase Sappi’s focus on the identified growth segments. The net loss after tax attributable to the net assets of the three mills for the last twelve months ended 31 March 2022 was €6,5 million. Given the current volatile market conditions the EBITDA for the same period for the three mills was €58 million. As a comparison, the EBITDA for the pre-Covid period of twelve months to September 2019 for the three mills was €40 million.
Marco Eikelenboom, CEO of Sappi Europe explained: “Going forward Sappi’s focus in Europe as regards graphic paper will be on the stronger commercial print market. In addition, in the packaging and specialities segment, the European business will predominantly focus on the flexible packaging, functional papers, self-adhesives including glassine, labels as well as dye-sublimation categories. “We believe this sale will help unlock potential value at each mill which would be best pursued by a new owner.
Our strategic focus is on market segments not served by these mills.” “The market for pulp and paper products is of particular interest to AURELIUS considering our industrial sector expertise. We combine a proven track record in complex carve-outs with a deep understanding of how to identify and unlock value creation potential. Given these key traits, this transaction offers ample opportunity to unleash the full potential of these production sites”, states Dr. Dirk Markus, Founding Partner of AURELIUS.
The mills included in the sale: Sappi Maastricht Mill produces 260,000 ton per annum (tpa) of coated woodfree paper and paperboard mainly sold to printers and packaging converters globally Sappi Stockstadt Mill is an integrated pulp and paper mill located in Germany, producing 145,000 tpa of pulp which is used to produce 220,000 tpa of coated and uncoated woodfree paper mainly sold into the European print market. Sappi Kirkniemi Mill is an integrated pulp and paper mill located in Finland, producing 300,000 tpa of bleached mechanical pulp which is used to produce approximately 750 000 tpa of a variety of coated mechanical paper grades used in the print publication industry globally.
A global leader in dissolving pulp and paper-based solutions, Sappi Limited is headquartered in Johannesburg, South Africa; has over 12,000 employees; manufacturing facilities on three continents, in ten countries (ten operations in Europe, four operations in North America and five operations in South Africa) and customers in over 150 countries worldwide Sappi works closely with customers to provide relevant and sustainable dissolving pulp, paper (speciality, packaging and graphic), paper pulp, and biomaterial products and related services and innovations. Our market-leading range of paper products includes: flexible packaging, label, release liner, containerboard, graphic papers, casting release papers and in our Southern African region newsprint, uncoated graphic and business papers. These products serve the fashion, FMCG and industrial sectors.
Our dissolving pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products. Sappi drives product innovation and the development of new uses for its renewable resource (woodfibre) as well as for the biomass and other residues from its production processes. One such area is in the field of biomaterials (cellulose composites, nanocellulose and lignins), biochemicals including hemi-cellulose sugars and bio-energy forest products materials which Sappi believes will play a key role in its future range of products, both as commercial products and for applications within Sappi. We continue to grow into a profitable and cash-generative diversified business with an exciting future in woodfibre, a renewable resource. www.sappi.com
About AURELIUS Group
AURELIUS is a pan-European alternative investment firm. Deep operational expertise and experience enable AURELIUS to accelerate value creation within its portfolio companies. The Group has offices in London, Luxembourg, Munich, Amsterdam, Stockholm, Madrid, Milan, and Dusseldorf.
“Surging exports of paper will most certainly keep the domestic prices quite high”: Mr. A. Annamalai, Director – RFC
- Many Paper mills seem to have accepted fairly large orders from overseas markets.
- Domestic regulations are good enough to prevent any unfair practices by the big players.
June 2022 | The Pulp and Paper Times:
Recently, The Pulp and Paper Times got the opportunity to interact with Mr. A. Venkat Annamalai, Director- Rose flower Company Papers P Ltd and past president of Federation of Paper Traders’ Associations of India ( FPTA), over various issues related to paper trade, Import, Export, and growth of Indian paper industry. Here is his full interview:
Q: Please give us a brief introduction of Jeyam & Company and Rose Flower Company Papers Pvt Ltd (RFC)
Jeyam & Company is a 77-year-old family-held firm and we are the third generation in this business. We are one of the oldest Paper trading company in Tamil Nadu.
Our Associate Company “Rose Flower Company Papers P Ltd.,” was incorporated about 45 years ago for the purpose of exclusively handling the business of the Products manufactured by ITC Ltd., (Paperboard and Specialty Papers Division). We have been associated with ITC (PSPD) right from its inception as their Whole Sale Dealer.
Q: Being a past president of FPTA and active in Paper Trade for last four decades, what is your quick review of the present paper trade market scenario? About demand and supply dynamics of various grades of paper especially Coated, duplex, Newsprint, and Kraft paper segment.
I guess the current scenario is one of a kind which I have not experienced ever since I joined business ! I have heard from much more experienced elders that they have not experienced such a situation in their experience as well! We have witnessed an upswing of prices ranging from 30% to 70%. This ub normal sharp spike in prices was coupled with acute shortfall in supplies to the domestic markets due to the prior commitments made by the Industry to the Government sector as well as exports.
Demand and supply dynamics:
- Coated: prices have more or less stabilized after an upswing of about 30%. The prices are likely to be stable at the current levels for the near future. Though the sea freight has reduced substantially, the prices are remaining firm due to the increase in the pulp prices and lower than normal arrivals. The demand is expected to be stable.
- Duplex/Kraft: with improvement in the availability of recycled fibers, these grades have witnessed a fall in prices. The demand too seems to be subdued.
- Virgin Grades: the Market for virgin grade boards seems to be steadily growing with more and more segments preferring these grades of boards. The prices have also been firm and are likely to be firm in the near future.
- Newsprint: After witnessing a steep increase in price peaking at about 75000 per ton, Newsprint prices have softened by about 15% recently. However, the demand seems to be stable at the revised prices.
The current situation is unique in the following aspects:
- There has been a spurt in prices in the last 60 to 75 days. The increase ranges anywhere between 30% to about 70% depending on the product. The probable reasons being:
- The offtake from all convertors engaged in servicing the requirements of the educational sector had been sluggish upto March 22. Normally the publishers commence their sourcing activities during the month of October where as the note book convertors commence their sourcing from January. For the current season, the convertors were unable to predict the demand (due to the fear of Covid striking again) as a result of which the orders were not flowing upto February after which there was surge of orders from March, once there seemed to be some clarity on the normal functioning of the Education sector.
- Not withstanding the sourcing by the various Text Book Corporations who normally source paper as early as December/January also got delayed their sourcing activities due to the same reasons mentioned above. All this delay has led to steep increase in the demand of W & P grades of paper since March 22.
- Due to increased overseas demand for paper from India (at much better prices) many Paper mills seem to have accepted fairly large orders from the overseas markets.
- Poor arrivals of imported of both coated and uncoated grades due to multiple reasons like higher prices, higher ocean freight, longer lead times have also been a reason for the spurt in prices.
- The robust demand for all packaging grades of paperboards due to increased economic activities post-COVID-19 has also been a factor in the prices firming up in the recent past.
Q: Paper & paperboard exports from India hit an all-time high of Rs 13,963 crore in FY21-22, up nearly 80% year-on-year, What factors do you see working behind these jumps in export?
1. Bullish trend in Pulp prices.
2. The demand for paper and paperboards are witnessing an upswing due to the waning effects of COVID and the consequent opening of the economy
3. China has been in the backfoot due to the impact of COVID.
Q: Do you think excessive export of paper is good for the domestic market? Don’t you think that export opportunities will create price pressure in the domestic market?
Exports at the cost of domestic market is not a good sign for the domestic convertor/consumer/trader. However, we understand that most of the Paper mills have increased their share of exports. If the current international trend continues, exports will continue to surge which will most certainly keep the domestic prices quite high.
Q: Russia –Ukraine War has increased the prices of imported newsprint up to 80 percent. This is paving a way for local manufacturers to revive their newsprint production. How do you see this situation?
True. Looks like the war will be a long drawn affair! Prices of newsprint have closed to doubled and many paper mills have shifted a substantial volume to Newsprint due to better realization and benefits of economies of scale while producing newsprint. Though prices of domestic Newsprint have softened and may witness further softening in the future, the demand is likely to be stable.
Q: Govt. of India has brought the Import of Paper under Paper Import Monitoring System (PIMS) from 1st October. This order shall be applicable to a range of paper products, such as newsprint, handmade paper, wallpaper base, duplicating paper, coated paper, uncoated paper, and other grades of paper. Do you think this step will bring relief to domestic manufacturers? What is Government's intention behind PIMS?
There seem to be more negatives than positives in PIMS!
- Additional paper work
- Possible harassment by Government departments.
- Infringement into free trade by genuine Traders.
- Un-necessary compliances.
- Government will have a tab on dumping of goods into India
- Unscrupulous trading activities will be restricted.
Q: Do you think that regulating the paper import may lead to market monopoly by some big paper manufacturers in the future?
No. Personally, I do not think this regulation will in any way enable large domestic manufacturers to have a monopoly. I am quite confident that the domestic regulations are good enough to prevent any unfair practices by the big players.
Q: The surge in the price of waste paper domestically is making the price of a finished paper uptick. How you do overall analyze the waste paper crisis in India? What should be the paper mill strategy in procuring the waste paper from abroad?
We have been speaking on this for quite some time. The percentage of waste paper which comes back for recycling in India is one of the lowest in the world. There is a lot which the industry can do in this regard. The industry incentivizes local bodies/NGOs to collect waste paper and reward them suitably. May be they can use the CSR funds for this purpose by which not only the community is benefitted, the industry will also stand to gain.
This apart the association of recycled mills should conduct a sustained campaign and educate the common man on the importance of ensuring waste paper comes back for recycling. They should also have a robust collection mechanism. If possible, a national recycling policy, similar to the Extended Producer responsibility implemented for plastics/e-waste to be implemented for paper as well. The producers and the government to work hand in hand to frame simple but effective laws on disposal/collection of waste paper.
It may seem a difficult task, but with the co operation of all the paper mills, local bodies, NGO, and the Government we can achieve what we desire.
Q: RFC deals in various Specialty Paper and board grades along with packaging grades, how is market growth for these grades in the coming six months, especially when Govt. is committed to banning single-use plastic from 1st July 2022?
The demand for Packaging and Speciality grades are quite robust and is likely to stay there for a long time to come.
The new central regulation on usage of single use plastic products which is likely to come in force from 1st July 2022 is likely to be a game changer. Though many states have their own legislation in this regard, there seems to be a lot of disparity between the laws of various states and there seems to be very poor implementation of these laws. With the central regulation, we are expecting more clarity and uniformity. This coupled with strict implementation will most certainly open up new avenues for consumption of paper/paperboards. In this aspect, the Paper industry is likely to face stiff competition from other substrates such as cotton, jute, glass etc., The industry should work overtime at an extremely fast pace to improvise paper in such a manner that we are able to produce relevant and practical variants that will be the best substitutes for the single use plastic products that are likely to be banned.
Q: Any message for the paper industry
Paper is and will always be a Sunrise industry. The demand will continue to increase, only that the nature of usage will keep changing continuously. The industry should be fast in adapting to the changing needs and the traders should also vigilant and align themselves with the changing trends.
USE PAPER – IT IS BIO DEGRADABLE, SUSTAINABLE AND BIO DEGRADABLE.
PAPER IS THE PRODUCT OF THE FUTURE
Waste Shipment Regulation: It's not a ban, but it could potentially become a trade obstacle
-Paper mills have to give a proof of a broadly equivalent standard to the recycling process in Europe
-You’re (Paper Mill) looking for a sustainable supply and we as Europeans are looking for sustainable outlet
Recently, The Pulp and Paper Times interacts exclusively with Mr. Andreas Otto, VP- European Recycling Industries' Confederation during his visit to India. Mr. Otto spoke about various issues related to recovered paper export to India, the Proposed Ban of EU, and other burning issues. Here is his full Interview:
Q: Ban on the export of OCC has been lifted by the European Union, what trend do you see in price of OCC in the coming time?
Well from the Europe point of view you always have to benefit various factors. We are seeing huge demand, be it in Europe, be it in overseas. India is the major overseas market for Europe. The main factor from my perspective is the logistic costs. The ocean freight market is still disrupted, and now we are seeing freight rates from Europe into India which are three times of what used to be prior to Corona times. Of course, it will hardly be back to where it was but once the freight rates are dropping, once the ocean freight market is getting back to what I would consider a “newnormal” the OCC prices should drop accordingly. There's already light at the end of the tunnel. The question is just how long the tunnel is and if I should make an educated guess, very difficult to guess in these times, I would see a drop maybe by end of this year latest beginning of next year.
Q: The President of the World Packaging Organization has said that plastic bag has seven times less environmental impact compared to paper because paper making involved energy-intensive resources, what do you think about his claim?
Well, we have the overall trend worldwide that plastic bags are being replaced by paper bags. Let me put it this way from the paper perspective, I do appreciate the trend, of course. On the one hand side, you're right the energy costs are much higher for the production of paper versus plastic. On the other hand, if you have an outlook to what happens to plastic vs. what happens to paper from an environmental sound manner? May be paper is the better solution.
Q: How do you compare the recovered paper collection rate of India with European recycling industry?
if I'm right, the collection rate over all Europe, the average rate is like 55%, If I'm correct, in Germany it's even up to 80% and versus India where it is just above 30%. We have a different system in Europe as you're having in India. Of course, from the environmental point of view it is visual but also the collection rate in India is increasing. We have seen over the last years a high increase on the imports of recovered paper. I think in 2021 It was like 8.5 million tons. Of course, one of the reasons is that you're having a flourishing paper industry, which is very good. Congratulations for that. On the other hand, the collection rate remains on a relatively low level and of course, from an environmental point of view it is wishful that the collection rate could be any higher. So maybe the system needs to be adjusted somehow.
Q: The EU Commission has issued the proposal for the new legislation on the export of waste (Proposal for a regulation by the European Parliament and the Council on shipments of waste), which will also rule the exports of recovered paper. This will mean that European paper mills will have access to unlimited supplies of very cheap recovered Paper. How will this regulation be going to affect the paper mills?
The European Union is revising the Waste Shipment Regulation under the so called “EU Green Deal”. The European Commission has published a draft revised regulation last November but the legislative process is still ongoing and may be finalised in the course of next year. Additionally, there will be a transition period which takes about another three years. So maybe by 2026 you will see the implementation of that new regulation. It's not a ban we are talking about, but it could potentially become a trade obstacle. What will come is what is being called a “broadly equivalent standard”, which means that countries overseas where recovered paper is being shipped to plus the paper mill itself have to give a proof of a broadly equivalent standard to the recycling process in Europe. There will be some kind of an audit to prove that but we just don't know how the audit process will exactly look like. The devil is in the detail and no one can tell how difficult the audit process will be as per today. If you compare it with the UK’s packaging recovery notes (PRNs) system, for instance, it will not be that easy, but maybe at the end of the day it's just another certificate like ISO what the paper mills need to get.
As everyone is concerned about that I would simply suggest that actually the Indian Associations is keeping an eye on that issue and please keep in mind that you're having friends in Europe, which is like the Association I'm representing, which is ERPA, the recovered paper branch of EuRIC, and I strongly suggest keeping close contact to make sure that we all on the same page. And once there's anything new, we are glad to inform the Indian associations accordingly.
Q: Indian Paper industry is highly dependent on the European OCC material, how does ERPA ensure the long-term sustainability in the supply of the OCC to the Indian contingent?
India has turned into the major overseas market for the export of recovered paper. In Europe we do have a generation of 56 million tons of recovered paper per annum overall. Out of that, 8 million tons are being exported of which two to three million tons are being exported into India nowadays. It's a market at the end of the day and the overseas market must compete with the domestic markets in Europe. At the same time, you have to keep in mind that recovered paper is something which is difficult to store for a longer period of time. So, on the one hand side, we are having the surplus and even though new capacity is coming up in Europe, still being estimated five, maybe 6 million tons will still be exported. Therefore, Europe needs a good sustainable outlet overseas. So, you're looking for a sustainable supply and we as Europeans are looking for sustainable outlet. And since the paper industry in India is as I said, flourishing and new capacities coming up, we're looking forward in a long-term sustainable supply. And we have been long-term partners already, I remember that the first time I attended the Paperex was back in 2002 when other markets were not even in the picture. Long story short I’m very optimistic since there will be a surplus of recovered paper in Europe seeking for a reliable and sustainable outlet which is India from my point of view.
Q: There is a 6% to 7% growth per annum in the Indian Paper industry, where do you see the Indian Paper industry in next ten years?
I would say that looking to India, I'm having like more than I don't know 400 paper Mills in mind which is more than impressive. India relies a lot on the domestic market, but I think to keep this growth continuously, it's important that Indian finished paper is more exported in large volumes. So taking the6% to 7% growth per annum, I do see this increase over the next five years and don't get me wrong, but to make an estimate for more than five years, it´s a little bit difficult.
Q: There is a thought of us, that can all the paper mills form a collegiums / or induct a central nodal agency who will actually buy the imported OCC on behalf of paper mills with negotiable or at lower price?
A: It is a very smart question. Let me put it this way, the idea behind your question is to get a better grip on the market for the sake of sustainability and price. First, you need to consider that we have different market pattern in the domestic European market. It is more based on long-term contracts, whereas in the overseas market, India, Southeast Asia…, is more like a spot market in the sense that material is committed monthly. It is generally in the interest of the European vendors to have long-term contracts rather than short-term contracts, be it one year, half year, be it three months. European contracts are based on fixed prices or linked to an index. In addition, when it comes to overseas trade you must balance various volatile factors such as the ocean freight market, exchange rate € against US$ etc. which also needs to be fixed for the validity of the long-term contracts. If there's some willingness at the Indian paper mills side, I would also suggest that you may think of long-term contracts with European vendors maybe in addition to short-term contracts in the first place. Maybe this is the key for a sustainable supply in future.
Q: Any message for the Indian Paper industry?
Future Sustainable Supply Key: Think of a long term contract for 3 months or 6 months. I'm glad to be here. I wish you all the luck since we're on the same boat here so the better the Indian paper industry is doing the better for us so I'm looking into a bright future. Thanks for being here. Thank you.
Single Use Plastic ban spikes the price of paper, INR 15 per kg hike in last three months
Kuantum Paper to reach revenue potential of Rs 1100 Cr by year-end: Mr Pavan Khaitan
The paper industry witnessed a price rise of around Rs15 per kg in the last three months. We are looking at our margins reaching close to 30% from the current 22% by the end of the year. We are at full capacity utilization and forecasting revenue potential to reach Rs 1100 Crores by the year-end.
13 September 2022 | The Pulp and Paper Times:
The tailwinds and increased paper demand have propelled the paper stocks anywhere between 100 – 200% in the past year. The question is, how long will it sustain? And what is the future of these stocks? Mr. Pavan Khaitan, Vice-Chairman and Managing Director, Kuantam Paper, shared his insights with CNBC- TV18 on the demand and value outlook for the paper industry.
Speaking about the tailwinds that the paper industry is facing, Mr. Jiten Parmar, Co-Founder of Aurum Capital, shared, “In my opinion, the sector is doing well, and with the help of tailwinds, the sector will continue to perform well for another few months. With the increase in per capita income, paper usage in India will grow. Also, with imports restricted, this sector would perform well for at least two more quarters.”
Echoing the words, Mr. Khaitan, when asked to quantify the realization and share the price increase in the last two quarters, he added, “The prices of paper has increased quite dramatically in the current quarter when compared to the first. We have noticed a quite anti-gravity-defying kind of price rise from July onwards. The paper price rose by almost Rs5-8 per kg in July, followed by Rs 4-5 in August. In September, so far, it has risen by Rs5. One of the major reasons for the price rise is the ban on single-use plastic, which has posed a huge opportunity for the paper industry to tap. Paper is the clear front-runner to replace all types of plastic packaging applications.”
He said that the paper industry witnessed a price rise of around Rs15 per kg in the last three months, and their realizations are comparatively better than their peer set because of market orientation. He opined, “Most of our products go to the printers, publishers, and other wide applications. We are also into special papers which cater to higher price margins. Our net realization would be around Rs 95,000 per ton.”
While sharing information about Kauntam Paper’s overall revenue mix and source of raw materials, he added, “Around 15% of the mix comes from the specialty segment. As we are in the R&D stage, we do not cater much to single-use plastic replacement. We source our raw materials locally, and all the suppliers are within 100 km of our mill. We have developed long-term relationships with our suppliers. One particular raw material we use is Sarkanda grass, which grows abundantly in the government forested areas.”
Talking about the cost-saving measures that Kauntam Papers have taken, he added, “Our backward integration project was installed and commissioned in March 2021, and it is giving us benefits in terms of reducing chemical, power, steam costs, and replacing the imported wood pulping by our wood pulping in particular. It has benefitted us quite substantially. We are looking at our margins reaching close to 30% from the current 22% by the end of the year. We are at full capacity utilization and forecasting revenue potential to reach Rs 1100 Crores by the year-end.”
--Excerpts from CNBC-TV18
A new paper mill in Assam to meet packaging demands, strategically located near upcoming Multi Modal Logistics Park
Goalpara | 7th April 2022 | The Pulp and Paper Times:
The evolution of the packaging industry across India acts as one of the major factors driving the growth of kraft paper market. The increase in demand for sustainable and recyclable material from packaging and various other end-use industries, and advancements in packaging and wrapping applications accelerate the market growth.
“The rise in demand for more environment friendly and effective packaging materials and solutions from end-use industries such as foods & beverage, building and construction, automotive, pharmaceuticals, cosmetics & personal care, aerospace, and electronics, and rise in consciousness regarding environment among population further influence the market. Additionally, change in consumer preference, increase in incidences of pollution, rapid urbanization, growth in awareness, breakthrough in new technologies and high disposable income positively affect the kraft paper market,” said Mr. Ajay Agarwal, Director of new paper mill Purbanchal Paper Mill LLP (PPM).
The new paper mill is situated at Industrial Growth Centre, Matia, Dist. Goalpara, Assam. “We are feeling very proud to be associated with Indian Paper Industry. We are setting up a state-of-the-art infrastructure for producing 150 TPD kraft paper with a approx total outlay of INR 70 to 80 Cr. (including working capital). This quality paper will be suitable for the manufacturing of corrugated boxes and other packaging applications” Mr. Ajay Agarwal exclusively informed to The Pulp and Paper Times.
Purbanchal Paper Mill LLP is Promoted by Ajay Agarwal Founder & MD, Nipco Group (India) & M/s M.P Agarwal Group, Bokakhat.
Mr. Agarwal further says that North East region is developing fast for corrugated packaging also, and Goalpara is very strategic location to cater the demand of local corrugators and as well as export gateway to Bangladesh, Bhutan and other nearby countries. “Our new mill just 30 KM far away from upcoming Multi Modal Logistics Park, Jogighopa & close to the international borders of Bhutan and Bangladesh which will provide an opportunity to export to these two neighboring country markets in future” he said.
PPM will focus more on the domestic corrugation market to sell its paper. It will manufacture paper between 16 to 24 BF under 80 to 200 GSM range.
“Our civil construction has been completed and the erection of machine is in full swing. We are expected to start the commercial production by July 2022,”
“The new paper mill would have Paper Machinery supplied by DS Engineers & Pulp Mill By Parason Machinery, Rolls, Boiler, and ETP from Ashoka Rolls, Cheema Boilers Ltd., and Chemical Kraft, respectively” Mr. Agarwal informed.
PPM will have a 4.1 m deckle machine with 3850 mm as a finished paper deckle.
On the question of future expansion, Mr. Agarwal says, we have already acquired extra land for our Phase- 2 Expansion Plan & Our Plant is designed in such a way that In Phase 2 we will expand our Capacity from 150 Ton to 225 Ton in the same plant & set up integrated Captive 4 MW Power Project.
PPM is contemplating to make high BF paper in phase -2 expansions on the same machine after some modifications. The purchase of waste paper will start after 15th May 2022
Mr. Agarwal also reveals that in Guwahati, we have already two corrugation units belong to our sister concerns which lead us for in-house consumption of paper. Apart to that, we have also planned to set up a 1000 tonnes automatic corrugation unit at the same location in Industrial Growth Centre within a year. We have already acquired extra land for this purpose.
400 crore capex plan: Andhra Paper to re-build & upgrade pulp plants
29th August 2022 | East Godavari District, Andhra Pradesh | The Pulp and Paper Times:
One of the largest integrated paper and pulp manufacturers in India- Andhra Paper Limited (APL) has approved the INR 400 Capital expenditure plan to improve the efficiency of the pulp mill.
In a regulatory filing, the company said, we wish to inform that the Board of Directors have on August 26, 2022 approved a capital expenditure amounting to INR 400 Crores to re-build and upgrade the existing Pulp plant to improve the reliability and efficiency of the Pulp Mill. This will help sustain the current levels of production, improve efficiency in Pulp Mill processes and lend flexibility in operations, augment pulp production capacity from existing 550 Tonnes per day to 600 Tonnes per day. The expected completion timeline is November 30, 2023. The proposal shall be funded through mix of debt and internal accruals.
Andhra Paper manufacture writing, printing, and cut-size papers for both local and international markets, and offers a comprehensive range of high-quality speciality grade materials for a variety of uses. The papers are created with elemental chlorine free (ECF) pulp technology and come in the best-in-class brightness. APL understand our responsibility towards the environment and invest in sustainable business growth and innovate products that enable us to reduce not only ours but also our customers’ environmental footprints.
Out of the total capex of INR 400 crores, an estimated amount of INR 113 crores shall be towards equipment reliability & sustainability of the current levels of production. The balance amount of INR 287 Crores shall be towards upgradation of Pulp Mill.
APL revenue from operations stood at INR 1,38,023 lakhs in FY22 as compared to INR 88,675 lakhs in FY21, registering a robust growth of 56%. It registered an EBITDA of INR 26,581 lakhs with a strengthened margin of 19% as against H7,170 lakhs with a margin of 8% in FY21. APL profit after tax for the year stood at INR 13,973 lakhs as against loss of INR 460 lakhs in the previous year.
Single-Use Plastic Ban: Everything, at each level, alternative for plastic will be expected from paper
-Packaging contributes to almost 50 % of plastic waste generation, and 77 % of that is single-use plastic.
-Single-use plastic ban has opened up the requirement for Kraft paper, Sack Kraft Papers, Maliptho, MG poster, coated and uncoated paperboards, greaseproof and glassine paper, etc
- The food packaging business is seeing an upward trend of around 500 billion dollars in the coming five years
24th July 2022 | The Pulp and Paper Times:
The Federation of Paper Traders Association (FPTA), India, organized a webinar discussing the opportunity that has arisen for the paper and paperboard manufacturers due to the ban imposed by the Government of India on single-use plastic items.
Mr. Deepak Mittal, President of FPTA, said, "The transformation from plastic to paper is an opportunity for Paper boards and molded fiber products. The association believes the shift from plastic to paper could be the next mega trend in the next decade. It could propel the current growth rates from 6-7% to double digits. This step will make India one of the fastest growing paper markets in the world."
He added, "It is noticeable that the city's drainage system has already clogged with single-use plastics. Also, the rivers are overflowing with plastic waste, and the seas and oceans are washing ashore. Over the years, the environmental damage has increased manifold with the increasing usage of single-use plastic items. In line with that, our honorable Prime Minister, Mr. Narendra Modi, imposed a ban on single-use plastic from July 1, 2022. The Ministry of Forest and Environment Climate Change notified on August 12, 2021, the plastic waste management amendment rules 2021 for it to become law from July 1, 2022."
"The adverse impact of littered single-use plastic on our ecosystem has been globally recognized. It has become a challenge for all the countries across the globe. With the efforts of the people and stakeholders, the ban will succeed. Banning plastic is one thing, but being in the paperboard business is another, and it creates an opportunity for all to make a change," Mittal added.
Mr. Ved Krishna, Strategy head of Yash Pakka, shared his insights over the ban and how Yash packaging and Yash Pakka are creating a difference in making the new paper for the food industry. He said, "All this comes to scaling the food packaging industry." He and his company have a dream that goes way beyond the idea of a plastic ban.
"The idea is to leave a cleaner planet for future generations. To achieve that, the idea for us, as an organization, is to provide regenerative and sustainable packaging. Our company focuses on the goal to achieve sustainable packaging and give back more than we take to nature. Packaging contributes to almost 50 % of plastic waste generation, and 77 % of that is single-use plastic. On average, the life of single-use plastic is 12 minutes, which means it is used only for 12 minutes. The food packaging business is seeing an upward trend of around 500 billion dollars in the coming five years. We, currently, are focusing on three types of food packaging Compostable paper-based flexible material, Compostable mineral-based pellets for carrying the food, and food serviced Compostable molded pulp-based materials."
Mr. P.N Shreedhar, DGM, Sustainable Products and Packaging, ITC-PSPD, shared how the plastic ban will impact the industry in the next couple of years. "Plastic waste processing is emerging as a big business opportunity. The road map for all manufacturers for the next five years is to incorporate a certain quantum of recycled plastics into production. The government is planning to give environmental compensation or recycling certificates. On the other hand, the manufacturer will also be penalized if they fail to manage the plastic they put out on the market," he added.
"We have started working as far as paperboards are concerned on a certain application, where we have removed the LDPE. The plastic ban will impact more or less everyone in society as they move forward. Everything, at each level, alternative for plastic will be expected from paper. Already there is a jump in the manufacturing of paper, sticks, straws, cups, and bags, and we will witness many alternatives for secondary packaging. We will see traders turning into MSME converters for emerging paper-based applications in the future," he opined.
Dr. Ashok Kumar, Executive Director, Pudumjee Paper Products Ltd., spoke about the opportunities the ban will create. He shared that the idea to ban single-use plastic was discussed since 2010 but got delayed for some reason or other. There will be National and state-level control room setup to ensure effective enforcement. The government is taking measures and initiatives to eliminate and create awareness towards reducing the use of single-use plastic by bringing together entrepreneurs and start-ups with the industrialists, State, and Local governments.
"I think there is an opportunity for paper and paperboard manufacturers as the single-use plastic ban has opened up the requirement for Kraft paper, Sack Kraft Papers, Maliptho, MG poster, coated and uncoated paperboards, greaseproof and glassine paper, etc. All paper mills have an opportunity to take advantage of this single-use plastic ban, but we have to remember that we have to manufacture suitable quality paper."
"The research and development of these new products need tremendous efforts. There is a need for close interaction with paper converters/paper dealers to develop solutions to replace plastic. It is the responsibility of the manufacturer or traders to provide the right quality of paper for different applications. Paper manufacturers/traders/converters must get together and put in their best efforts to develop products. Some solutions are already available, but we need to develop the remaining," he shared.
He added, "There is an opportunity for paper traders as the market will evolve and grow more than we can imagine. Paper traders will have to put in a lot of effort to stay aware of all the new regulations and certifications."
FACT & FIGURE:
-Global Plastic Waste Production: Approximately 400 million metric tons
-Approximately 36 % of all plastics produced; are used for packaging of Which 85% ends up in landfill or as unregulated waste.
-Total Plastic Demand in India for the financial year 19-20 was 16 million metric tonnes.
-Plastic waste generation in India reached around 3.4 million metric tonnes in 2019-20.
-As per CPCB's 2015 report, India has produced 25940 metric tons of plastic waste per day, of which 60% is recycled, and the rest 40% is disposed of.
-Around 1000 trucks per day are needed to transfer this waste which clogs drains, rivers, and seas.
A New Paper Mill in Absorbent, High BF and sack Kraft Paper segment
Kheda | 6th April 2022 | The Pulp and Paper Times:
Paper Industry is a core industry that plays a vital role in the economic growth of our country. The industry is expected to grow in the range of 12-15% in the coming year due to increased economic activities. Infrastructure spending and rural growth being the focus areas of this budget — all industries like FMCG, pharma, health and hygiene are expected to grow significantly.
“More than 75% of the paper industry producing packaging paper and board is also expected to witness a high growth opportunity. Consumer awareness concerning eco-friendliness, sustainability, replacement of plastic, rise of e-commerce and growth in retail are again big boosters for the demand of packaging paper and paper board.” said Mr. Anand Agarwal, Director at Shree Rudra Lamkraft Pvt. Ltd. a newly established paper mill in Gujarat.
Situated at Kheda district in Gujarat, Shree Rudra Lamkraft is all set to take a trial production in February 2022, “Yes, We have invested around INR 40 to 50 Cr in setting up a 150 TPD state-of-art infrastructure for the production of various grade of paper on a single machine. Currently, we are undergoing the trials and go for commercial production from April end,” Mr. Agarwal informed.
Mr. Agarwal further added that, “We are driven by an ambient passion to contribute towards a better world with the manufacturing of multi grades of paper comprising Absorbent, High BF and sack Kraft Paper that is renewable by design. We strive to represent new methods and ideas to efficiently reduce our environmental footprints and deliver exceptional paper products. Our endeavors are also focused on making a difference to lives.
Shree Rudra Lamkraft will manufacture all three grade of paper under 60 to 200 GSM range with maximum BF between 22 and 24. “Our deckle is one the largest in paper industry which is 4 meters finished.” He said.
The new paper mill will have mix combination of India and China Machinery, it has bought headbox, suction press, suction couch, dryers, wire part system from China and Pulp mill section has been installed by Parason Machinery. “We have engaged D.M. Engineers for machine supplying and framing activity” he informed.
New Paper will have ETP from Ishan Paryavaran Pvt ltd.
Mr. Agarwal unfolds his production plan says, “Initially, we will start producing absorbent kraft paper as we have robust knowledge of laminate market. Our few directors are already working in lamination industry and we hope to consume our 20 percent production in-house and rest will go to open market”
“We are also floating with good inquiries of sack kraft paper, and if we able to receive order of 400 tonnes paper in a month, we can reel out sack kraft also” He added.
Moreover, rise in the growth of the E-commerce and retail sectors and increase in the product premiumization will further create new opportunities for the sack kraft paper market. A steady rise in demand in the construction industry, owing to infrastructure projects, has also contributed to the increase in the use of sack kraft paper.
New paper mill has designed the machine in a way that it can produce quality paper from first day, “we have also installed size press which will enable us to manufacture High BF paper, we invested in best technology to provide quality paper for our buyers”he said.
He further explained that the growth of the absorbent kraft paper market is primarily driven by the increasing application of decorative laminates in the construction industry. In addition, the low maintenance and installation costs of decorative laminates are also expected to fuel the market growth. Furthermore, the technological advancements in printing techniques and manufacturing environmentally-friendly laminates are likely to offer immense growth opportunities for the market players. However, the volatile raw materials prices are expected to hamper the growth of the global decorative laminates market in the coming years.
Bashundhara Paper has planning to incorporate new machineries; Reports 43 percent growth in Net profit in FY 20-21
- During the year the BPML confirmed 8.63% revenue growth comparing to previous year and its exporting destination stood in 50nos.
Dhaka | January 2021 | The Pulp and Paper Times:
Having positioned in a fast-growing market set, Bashundhara Paper Mills Ltd. (BPML) has been relentless over two decades to offer its diversified products ranging from different types of Paper, Tissue & Hygiene portfolio, thereby it has rightly been entrusted from customers’ fraternity of home and abroad. Despite the pandemic restriction, BPML has managed to secure its growth path by registering 43 percent growth in net profit after tax for the year ended on 30th June 2021.
“Standing with an unpredictable hard wind of global pandemic Covid-19 situation for last two financial years, your company engaged all its efforts to overcome the global challenges. This unpredicted public health crisis soon morphed in to an economic upheaval, as governments enforced stringent lockdowns the world over to contain the spread of the virulence. Such shutdowns crimped trade and commerce mostly severely in the year 2021 and resulted in major global economic declaration. In spite of such limitation of global activities the company has taken it’s an opportunity to improve its business strategy, risk and crisis management to sustain in the global race.” Said Mr. Ahmed Akbar Sobhan, Chairman – BPML in the Annual report for FY 20-21
At present, Bashundhara Paper is the trusted source of volume Paper-needs of both Government level and, while keep general consumers pace of exporting to over 50 different global destinations.
With the theme of this report Retention to Success, the Bashundhara Paper Mills Limited has come in to fourth year in the capital market of Bangladesh. The company takes the pride of its 28 years’ glorious track-record.
As the leading industry in the Bangladesh, BPML has designed a business model for sustainable growth and continues to develop its presence in the markets, particularly in the paper, tissue and allied products. In its paper and tissue and allied businesses, the company sees a huge opportunity to develop by leveraging the competencies in both mature and emerging markets. Sustainable development is integral to the success of the business and its ability to create value.
Mr. Ahmed Akbar Sobhan further stated that, at the same time, the team paying its highest attention to develop the quality of products with an affordable price for all segments of our customers even this global pandemic and introduced some new product for the customers. During the year the company confirmed 8.63% revenue growth comparing to previous year and its exporting destination stood in 50nos. destinations around the world. It takes as the responsibility to engage itself to ensure the strategic planning in alignment with the customer’s needs and demand in competitive market so that, can possible to ensure the return on investment to the shareholders and achieve the ultimate organizational goal.
Mr. Safwan Sobhan, Managing Director – BPML said, “Despite the affected by the global pandemic the production capacity of BPML has increased around 8% than previous year, and we ensured the quality of products considering the demand. The Bangladesh economy managed to experience a moderate 5.47% GDP growth in FY 2020-2021 while the BPML has contributed an industry highest BDT 1,069.98 million to the national exchequer during the year under review.”
Disclosing BPML’s future course of action, Mr. Ahmed informed the shareholders that BPML has planning to incorporate new machineries for its production, which expecting the product quality will increase and have a positive impact in product pricing. The R & D division also engaged its full effort to introduce new products with the existing. The company also emphasized to discover the new export destinations for its products.
“By changing our business strategy and efficacy the Net Profit After Tax stood in 43% growth by adding BDT 125.35 million then previous year. The uninterrupted production and timely delivery are the tradition of this company. On the other hand, our export revenue has increased around 38% by adding BDT 270 million comparing to previous year.” Said Mr. Safwan Sobhan, Managing Director – BPML in the report
Some core products of this company Bashundhara Paper, Bashundhara Tissue, Bashundhara Diapant has awards as the honor of excellence “Superbrand” during the year. Bashundhara Tissue has honored as “Asia’s Greatest Brand and Leaders for 2020-2021”. And it was possible for tremendous efforts and support of our resilient workforces and strategic decision of the board in this tumultuous period.
Production and Sale:
In spite of challenge of Covid-19, the product line of BPML was on full swing except the lock-down period and able to produce 98,790 MT finished goods of papers, sack, sludge, board & tissue papers and in the hygiene segment the production was around 3,644.26 MT during the period under review which was the 68% average of production capacity.
In FY 2020-2021, BPML was able to earn the net revenue by sale of paper and paper products amounting to BDT 9,282 million which was BDT 8,544.46 million in the FY 2019-2020 which was increased by 8.64% from previous. BPML also engaged its expert team to monitor the emergence of new competitions and risk issues. Although the global crisis, the export of this company increased by 37.07% than previous year and the export was 10% considering domestic and foreign revenue.
JK Paper reports 152% jump in Profit after Tax for Q1 (Fy 22-23), robust paper demand remained strong
New Delhi | 29th July 2022 | The Pulp and Paper Times:
JK Paper Ltd., one of India’s largest Paper Companies recorded its best ever quarterly consolidated Turnover at Rs.1,508.05 Crore (up 109%), an EBITDA of Rs.458.09 Crore (up 104%) and Profit after Tax (PAT) of Rs.261.98 Crore (up 152 %) for the quarter ended June’22 (Q1) as compared to corresponding quarter of previous financial year.
Commenting on the results, Mr. Harsh Pati Singhania, Vice Chairman & Managing Director, said, “the Company was able to deliver strong performance on a quarter to quarter and YoY basis on the strength of higher production and sales volume and enhanced sales realisation coupled with an enriched product mix. This is inspite of adverse impact of substantial increase in major input costs in the recent period. Demand for Paper and Board continues to remain strong. The new Packaging Board Line has stabilised well and achieved high capacity utilisation.
The Sirpur Paper Mills Ltd., a step-down subsidiary, continued to contribute to the Company’s overall profitable growth.”
During the quarter, Unit JKPM, Odisha, has been awarded with Platinum (First) Prize in Overall Digitalisation Category of FICCI Industry 4.0 award. The Company continues to pursue its social farm forestry initiatives aggressively in the areas close to the Plants.
Packaging grade paper demand plummeted; silent shutdown by paper mills, the headwind is expected to continue for a couple of months
- Price of Imported OCC from Europe and US has come down to $250 PMT from $ 350 pmt in March.
- Prices of Kraft waste paper is hovering between approx Rs 19/ per kg to a maximum of Rs 21.50 per kg.
- Paper mills all across Gujarat are taking silent shutdown ranging from one week to ten days in a month.
- New Capacities in Kraft and duplex may also cause overproduction in the market.New Delhi | 23rd June 2022 | The Pulp and Paper Times:
Growth in the eight infrastructure sectors of the economy slowed in March after recovering to a four-month high in the previous month after supply-side disruptions caused a contraction in coal and crude oil output and a slowdown in some others.
The slow growth is mostly due to soaring prices and the subsequent hit to consumer spending and investments, according to analysts.
At present, the main reason for the continued decline in the market is the huge reduction in the demand of both finished paper and waste paper in the market. The decline in domestic waste collection has been due to the reduction in consumption and use of consumer goods at the domestic level.
â€œThe market is in a very struggling position for the last one or two months, according to me, the world economy is getting disturbed and changes are taking place, and the sales of the products in the core sector have decreased like you see in steel, edible oil, Automobile, and other sectors. The slowdown in demand of core sector is also impacting the packaging grade paper. Recycled Kraft and Duplex demand have seen a significant decrease by registering a price drop of Rs. 10 to 12 per kg in last two months,â€ says Indian Recovered Paper Traders Association (IRPTA)â€™s President Mr. Naresh Singhal.
The Price of Imported OCC waste from Europe and US have dropped to $250 PMT from $ 350 pmt in March. In the current scenario, the price of OCC is expected to be more plummeted to compete with Indian domestic recovered paper market, where the prices of Kraft waste paper is hovering between approx Rs 19/ per kg to a maximum of Rs 21.50 per kg. In March, the Domestic price of waste paper had touched to Rs 32 to Rs 34 per kg in march month.
â€œThe situation is very worse in Gujarat, due to lack of demand, most of the paper mills are not willing to discharge their imported OCC from the port, few indenters and shipping line are selling these goods at a cheaper price say $ 200 or $ 210 pmt to clear the port congestion,â€ said Mr. Bhavesh Rajput an Indentor of Imported OCC at Gujarat.
Mr. Singhal further says that Packaging paper distributors, dealers, paper converting industry like box manufacturers, and printers reduced their stocks and inventory expecting more rates declination and also heavy money crunch in the market. It has been observed that all stakeholders in paper trade like paper mills, paper dealers, paper conversing units and also recovered paper traders everyone is passing through the process of price correction since long. Since last week the rates of All grades of recovered paper have declined a lot. There is a number of reasons behind this, but none of them is specific.
There will be no significant change in the demand for kraft paper as there is no possibility of any increase in the demand of consumer goods in July month. Due to short supply of duplex in the market by duplex mills in the past, the demand may remain higher than the current month in July as the stock of duplex is available in very controlled quantity in the market due to good understanding of duplex mills.
â€œMost of the Duple and Kraft mills Uttar Pradesh and Uttarakhand have taken a shut down since last week to control the damage due to price decrease, and also to hold the price of finish products uptick,â€ Mr. Singhal pointed out.
Mr. Rajput informed that due to liquidity crunch and demand decrease, paper mills in all across Gujarat are taking silent shutdown ranging from one week to ten days in a month.
â€œPaper Mills are not interested to place new order for imported OCC at a higher price which is not proportionate to local waste price. Domestic waste paper price is hovering between Rs. 19 to 21 per kgâ€ Mr. Rajput says.
In this regard Kraft paper and duplex board manufacturers have reduced the rates of bottom grade recovered paper up to 10% only in last week
â€œMonsoon season is running in most of the parts of the country and has to reach soon in rest parts of the country. As per our past track record, we observe that monsoon season is always poor time for recycled paper and recovered paper bothâ€ he says.
As the monsoon is approaching, a paper mill does not want to keep the goods in the open, there has been apprehension of catching moisture due to rain.
Sluggish demand of finished has further dropped the US and Europeâ€™s OCC prices by $30 per metric ton.
â€œAs per our past observations, I feel, market trends will almost remain same or can very within the range of+_4/5% till the end of the first week of August. It's my personal opinion.â€ Mr. Singhal said
While the readings have broadly come In line with expectations, the outlook remains clouded with uncertainties especially with escalating crude oil prices. Further, weak labor markets, limited ability on additional fiscal spends, reduced corporate margins due to rising input prices and weaker global demand remain a concern,"" said Upasna Bhardwaj, economist at Kotak Mahindra Bank, reported in leading daily.
Recovery in Indiaâ€™s domestic macros have been resilient to risks arising from global developments; however, supply-side challenges and inflation spikes, which could dampen consumption and investments in the economy, poses near term risk to Indiaâ€™s economic growth
Vietnam, India Look at Greater Trade In Paper Products
HCM City (VNA) - Trade in paper between Vietnam and India is quite low and there is significant potential for growth, a meeting between Indian and Vietnamese paper companies heard in HCM City on February 9.
K Srikar Reddy, the Indian consul general in the city, said bilateral trade had grown more than 60 fold in the last two decades to 10.13 billion USD in 2016-17, noting that India is now among the top 10 trading partners of Vietnam. However, India exported paper worth 38.17 million USD to Vietnam last year, only 3.26 percent of its global exports, he said.
India imported paper worth 2.7 billion USD, with just 7.78 million USD from Vietnam, he said.There is thus much scope to promote bilateral investment and trade ties in the sector, he added.
Hoang Trung Son, vice chairman of the Vietnam Pulp and Paper Asso-ciation, said the paper industry has seen outstanding growth of 11 percent a year and can meet 64 percent of demand.Last year Vietnam imported around two million tonnes of paper at 1.7 billion USD, mainly from Asian economies such as China, Taiwan, Indonesia, the Republic of Korea, and Japan.
According to Son, Vietnam has started importing paper from India with the volume increasing year after year. Thanks to the Free Trade Agreement between ASEAN and India (AIFTA), the import tax on main paper lines is decreasing gradually, increasing the competitiveness of Indian paper.
Son said the association believes that there is plenty of opportunity for cooperation between Vietnam and India in both paper production and trading. The meeting was attended by delegation of 44 Indian companies belonging to the Federation of Paper Traders Association (FPTA).
According to the FPTA, India's paper demand is expected to grow by 6-7 percent in 2016-22 and reach 19.9 million tonnes a year by 2022. A shortage of raw materials and higher costs are preventing the industry from increasing production and the country has to rely on imports to meet demand, it said. Shekar Chandak, leader of the visiting business delegation, said the main purpose of the visit is to explore opportunities for both exporting paper to Vietnam and buying from it.
â€œIndia imports a lot of wood chips also for the paper industry. We are importing from Australia, Japan, and South Africa. â€œAnd Vietnam is a big producer of wood chips, so there is a huge opportunity for importing wood chips also,â€ Shekar Chandak said. He added that India also has some special paper which it can export to Vietnam. -VNA