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| The year 2004 is likely to augur well for the paper industry, especially the speciality segment which is growing at a compounded annual growth rate of 7.3 per cent. |
| Paper prices have started moving up following increased domestic demand and uptrend in pulp and paper prices in international markets. |
| Frontline companies have reported higher third quarter (July to September) earnings and net profit. This is despite the fact that the companies have been able to raise paper prices only moderately. |
| Internationally, the demand for speciality papers is increasing and Indian companies are gearing up to increase exports. |
| Recently, Speciality Papers bagged export orders from Iran and Australia for supply of base paper for one time carbon paper which is a high value special grade paper. |
| At home too, the demand from fast moving consumer goods segment was on the rise. There existed a huge market for sectors like electric winding, packaging, chocolate, cigarette packing, jewellery, biscuits and bread wrapping, etc. |
| Overall, the domestic paper industry was witnessing a favorable trend in terms of improved realisation since April this year. |
| Per capita consumption was at 5kg of paper in India, one of the lowest in the world. This was expected to increase to 7kg by 2010 at a growth rate estimated at 10- 12.5 per cent per annum. |
| The cumulative installed capacity of the paper sector was approximately 6.5 metric tonne and expected to increase in the next year. |
| Consolidation within the industry was also under way while existing ones were chalking out expansion plans through debottlenecking. |
| Companies like Ballarpur Industries, Tamil Nadu Newsprint, JK Paper, Seshasayee Paper and West Coast Paper were best placed to leverage growth opportunities. |
| Speciality Paper also is in the process of adding two new manufacturing machines, for manufacturing MF paper with a capacity of 50 MT per day suitable for manufacturing industrial, speciality and security grade paper. |
| Another machine for manufacture of MG papers with a capacity of 20 MT per day suitable for grades like passport paper, sensitised and un-sensitised paper for cheques, impressed stamp base paper, postal stamp base paper, etc was in the pipeline. Both these plants will be commissioned by April-May 2004. |
| Consolidation in the paper industry through acquisitions in the last two years have resulted in a decline in the number of major players. However, benefits will flow in the coming years. |
| The consolidation process began with the merger of ITC Bhadrachalam Paperboards with ITC followed by merger of JK Corp and Central Pulp Mills, West Coast Paper |
