According to Crisil, it expects the credit quality of domestic paper companies to remain stable over the short to medium term, barring any sizeable merger or acquisition activity.
The paper industry can boast of an improved price outlook for most product categories, thge credit rating agency said. It also expected steady demand growth of around 5-6 per cent per annum.
At the same time, capacity addition in the sector was likely to be limited owing to a cutback in capital spending.
Crisil felt this was partly on account of environmental considerations. In Crisil
