India's Paper Production Capacity on Pace to Reach 20 Million Tonnes by 2020
Harsh Pati Singhania, JK Paper's vice chairman and managing director, says the Indian paper industry is growing at over 7% and projected to grow at over 4% per annum until 2030.
Sept. 27, 2016 (PrintWeek - India) - The 55th AGM and Conference of the Federation of Paper Traders Associations hosted its magnum opus celebration at the Grand Hyatt, Mumbai. The event which was attended by more than 800 paper traders across India saw JK Paper's vice chairman and managing director Harsh Pati Singhania address the gathering as the chief guest at the conference.
Singhania was quite unequivocal that India is the fastest growing paper market globally. He said, the Indian paper industry is growing at over 7 per cent and projected to grow at over 4 per cent per annum till 2030. This is translated into 20 million tonnes in 2020 and 27 million tonnes by 2030.
He reassured the audience that the Indian paper mill industry has made suitable investments to cope with the demand. He said, "Indian paper mills have invested over Rs 20,000 crore in the last five years. But it needs investments of Rs 90,000 crore to add new capacities by 2030."
He said, digital India is not a threat to the paper industry but an opportunity due to the additional usage of paper and paper materials. He added, the paper industry has huge potential to grow as the per capital consumption of India is only 11 kgs as compared to 26 kgs in Asia and 56 kgs globally.
Today, the Rs 50,000 crore paper industry in India provides employment to four lakh people directly and 15 lakh people indirectly, Singhania said.
Demand for better quality packaging of FMCG products marketed through organised retail, rising healthcare spends, over-the-counter medicines and increasing preference for ready-to-eat foods are the key demand drivers for paperboard.
Singhania gave the government programs a thumbs up. He felt the 'Make in India' project by the government of India will boost the demand for packaging.
The market for writing and printing paper is expected to grow by about 6 per cent annually over the next five years. As a result, market for printing and writing paper will expand from the current 4.8 million tonnes in 2015-16 to about 5.8 million tonnes per year by 2018-19.
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SOURCE: PrintWeek India