The demand for paper consumption would grow for the next 20-25 years, irrespective of digitisation and technological advancement.
Digitisation is not going to affect the Indian paper industry, as the current consumption of paper in India is only 10 kg per capita, as against 300 kg per capita in developed countries, according to Madhukar Mishra, president, Indian Paper Manufacturers Association (IPMA).
“We still have room to grow from 10 kg to 200 kg per capita,” said Mishra, who is also managing director of Star Paper Mills Limited. He was speaking on the sidelines of PaperTech 2011– an event to promote energy efficiency in the paper industry – here recently.
The paper industry was growing much faster than the country’s economy. If the economy grows at 8 per cent, than the industry grows at 9-10 per cent, said KS Venkatagiri, principal counsellor, Confederation of Indian Industry.
According to IPMA data, India’s consumption of paper and paperboard will increase to 20 million tonne by 2020 and 40 million tonne by 2030, from the current consumption of 10 million tonne.
In terms of market value, the domestic market will double by 2020, from the current Rs 40,000-crore, Mishra said. Around 2 million tonne capacity was added in the last three years and around Rs 10,000 crore investment went in the industry during the same period.
“India is emerging as a knowledge capital and with a huge market potential. The Indian paper sector has the potential to become the global leader,” TS Appa Rao, principal secretary — industries & commerce department, said
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Focus on recycled papers
The speakers said recycled papers were the need of the hour, as the industry was facing huge raw material shortage. Only 10 per cent of the Indian paper industry was coming from recycled papers and 0.6 million tonne of waste paper was being imported every year.
“Issues like insufficient scientific mechanisms for recycling, transportation and logistics are the major drawbacks,” he added.
Some of the major manufacturers have already taken initiatives in this direction, they said, adding ITC Paper Mills at Bhadrachalam has tied up with NGOs to collect waste papers.