Paper Industry

Paper industry body flags below-cost imports, demands level playing field

Indian Paper Manufacturers Association (IPMA) has expressed concerns over rising imports of virgin fibre paperboard from countries like China and Chile, saying that below-cost shipments are hitting local producers and threatening their investments. The IPMA said that imports of virgin fibre paperboard (VFP), mainly used as packaging material for pharma, FMCG, and cosmetics products, have grown more than three-fold to 21,233 tonnes per month in the first six months of 2024-25 compared to the average 6,337 tonnes per month in 2021-22. "In August and September of the current fiscal, imports have been over 30,000 tonnes per month, which is over 20 per cent of the total domestic demand," IPMA said in a statement while demanding a level-playing field for local manufacturers. The situation is getting exacerbated by the rising imports from China and Chile and the impending threat of large-scale imports from Indonesia due to the recent capacity expansion of 1.2 million tonnes per annum mainl

India remains fastest growing paper market in world with 8.2% rise: Report

India remains the fastest-growing paper market in the world with domestic consumption of packaging paper and paperboard growing at 8.2 per cent in 2023-24, a report said on Wednesday. According to the report by Indian Paper Manufacturers Association (IPMA) for 2023-24, packaging paper & paperboard market is growing at an annual rate of 8.2 per cent in the country. The domestic packaging paper & paperboard market stands at about 15 million tonnes which is nearly 65 per cent of the total paper, paperboard and newsprint market of 23 million tonnes in the country, the report said. Demand for better quality packaging of FMCG products, textiles, pharmaceuticals, among others, as well as, booming e-commerce and rising healthcare spends are among the factors that are driving the growth of packaging paper & paperboard market in India, it said. The ban on single-use plastic, with paper offering a sustainable environment-friendly option, has also emerged as a key demand driver for ...

JK Paper Q1 results: Net profit declines 55% to Rs 140.79 cr as prices fall

JK Paper Ltd on Wednesday reported a 55 per cent decline in consolidated net profit to Rs 140.79 crore in the June 2024 quarter, hit by a fall in market prices coupled with a surge in wood cost. The company posted a consolidated net profit of Rs 312.56 crore in the corresponding period of the last fiscal, JK Paper said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at Rs 1,804.47 crore against Rs 1,663.97 crore in the year-ago period, it added. During the quarter, total expenses were higher at Rs 1,549.21 crore compared to Rs 1,238.34 crore in the year-ago period. "The results have been adversely impacted due to a significant drop in market prices coupled with a surge in wood cost compared to the corresponding quarter," JK Paper Chairman & Managing Director Harsh Pati Singhania said. The company, however, increased sales volume driven by higher utilisation in the packaging board business, he added. JK Paper said in order to mitigate

Paper industry urges govt to allot degraded land for pulpwood plantation

The Indian paper industry has urged the government to provide degraded land on a long-term lease to paper mills for pulpwood plantation to address raw material shortage and boost rural employment. The industry has highlighted that a large chunk of degraded land is available in the country, and even if a small fraction of that is allotted on lease to paper mills for pulpwood plantation, it can be a game changer for industry growth and greening of India. The paper industry has faced shortage of wood, the key raw material, and it is the biggest concern for mills in India, the Indian Paper Manufacturers Association (IPMA) said in a statement on Saturday. While the paper industry is continuing with agro forestry efforts, pulpwood plantations need to be enhanced rapidly to meet the requirements of domestic industry, the IPMA stated. "Even if a fraction of the degraded land available in the country is provided on lease to the industry for pulpwood plantation, the same can be a game change

Imports of paper, paperboards rise 37% in Apr-Dec FY23, says IPMA

Imports of paper and paperboards have increased by 37 per cent to around 1.47 million tonnes in April-December this fiscal, which have hit the local paper mills, an industry body said on Sunday. Paper and paperboard imports were around 1.07 million tonnes in the corresponding period of the last fiscal year, the Indian Paper Manufacturers Association (IPMA) said while citing DGCI&S data. The import of the commodity had seen a 25 per cent jump to 1.44 million tonnes in FY23 in volume terms and April-December figures have crossed that also, IPMA said in a statement. Imports of paper and paperboard in huge volumes and worth Rs 10,000 crore in nine months are impacting the Make-in-India drive as well as depriving employment to 5 lakh committed farmers who are aligned with the domestic Paper Industry through agro, farm forestry, IPMA President Pawan Agarwal said. There is more than adequate domestic capacity in India to manufacture almost all grades of paper and such indiscriminate ...

JK Paper Q3 results: Net profit falls 29% to Rs 236 cr on raw material cost

JK Paper Ltd on Thursday reported a 29.13 per cent decline in its consolidated net profit to Rs 236.36 crore for the third quarter ended December 2023, impacted by the rise in raw material cost and weak demand scenario. The company had posted a net profit of Rs 333.54 crore in the October-December quarter a year ago, according to a regulatory filing from JK Paper. The company is engaged in branded copier paper, coated paper and packaging boards. Its total income rose 4.15 per cent to Rs 1,762.32 crore during the quarter under review. It was Rs 1,692.06 crore in the corresponding quarter a year ago. "The results have been impacted due to an overall drop in sales realisation and a substantial increase in wood cost. The selling prices have been under pressure for some time due to rising trend in imports, coupled with weaker demand scenario," said Vice Chairman and Managing Director Harsh Pati Singhania. The total expenses surged 20.66 per cent to Rs 1,497.55 crore in the December 202

Increase import duty on paper, paperboards to 25% in Budget: Industry body

Domestic paper and paperboard manufacturers have demanded a hike in import duty to 25 per cent on paper products and the imposition of a quality control order in the upcoming Budget to discourage cheap inward shipments. The Indian Paper Manufacturers Association (IPMA), in a statement on Monday, said that in its pre-budget submissions to the government, it has urged for increasing the basic customs duty on the import of paper and paperboard from 10 per cent to 25 per cent as India's WTO Bound rate is 40 per cent on these products. The association has also asked for the issuance of quality control orders (QCOs) for different grades of paper to ensure the supply of quality products to Indian consumers and check the import of sub-standard products into the country. IPMA President Pawan Agarwal urged the government to keep paper and paperboard on the negative list while reviewing the existing FTAs (ASEAN, South Korea and Japan) and formulating new ones. He mentioned that any increase i

Paper imports surge 43% in Apr-Sept fueled by jump in Asean shipments

Paper imports into India surged by 43 per cent in volume terms in the first half of 2023-24, fueled by a more than two-fold jump in imports from ASEAN countries, according to official data. The Directorate General of Commercial Intelligence and Statistics (DGCIS) data showed that imports of paper and paperboard jumped to 959,000 tonnes in April-September 2023-24 from 672,000 tonnes in the first half of FY2022-23. Imports from ASEAN countries shot up from 81,000 tonnes in the first half of FY23 to 288,000 tonnes in the first half of FY24. Imports from China were almost flat at 186,400 tonnes in the period under review. In value terms, total paper imports rose to Rs 6,481 crore in April-September 2023-24 from Rs 5,897 crore in the year-ago period. Imports from ASEAN countries more than doubled to Rs 1,509 crore in the first half of FY24 from Rs 715 crore in the year ago period. Paper imports from China were worth Rs 1,629 crore in the first half of this fiscal against Rs 1,919 crore

India to set emission reduction mandates, start carbon trading from 2025

Companies which exceed their targets earn carbon credits that can be sold to firms which fall short of their goals

Paper industry revenue may dip 8-10% in FY24 despite volume gains: Crisil

Paper manufacturers' revenue may decline 8-10 per cent in the current fiscal despite gains in volume, as the average realisations are likely to soften on lower raw material prices and intense competition, rating agency Crisil said in a report. For FY24, the industry's total volume is expected to rise 5-7 per cent, similar to the last fiscal, and the operating margin will remain healthy at 18 to 19 per cent, ensuring a stable cash flow generation, it added. Moreover, modest capex spending undertaken -- mostly for debottlenecking and routine modernisation -- will help sustain credit risk profiles, as per the report. The Indian paper industry had reported revenue growth of 30 per cent a year before in FY23. "Indian paper manufacturers could see revenue decline of 8-10 per cent this fiscal, compared with a steep 30 per cent growth last fiscal, with average realisations expected to soften in keeping with lower raw material prices, and given intense competition," it said. The report is

Paper firms cut water use by 80%, invest in sustainable processes: IPMA

The paper industry in the country has cut down water consumption by 80 per cent and looks to reduce it further as investments of Rs 25,000 crore have been made in sustainable production processes in the last few years, an industry body said on Monday. The Indian Paper Manufacturers Association (IPMA) in a statement said that several industry players have taken environment-friendly measures to reduce their carbon and water footprint. The players have deployed modern technology solutions and captive power generation to achieve water and energy efficiency, it said in a statement. "Integrated paper mills have reduced water usage to 40 cubic meters to produce a tonne of paper from the earlier 200 cubic meters. There is a concerted effort to bring it down further," IPMA President Pawan Agarwal said. "Indian Paper Industry has invested to the tune of Rs 25000 crore in sustainable production processes and capacities in the last few years," Agarwal said. Agarwal said the paper industry has

JK Paper Q3 profit more than doubles to Rs 329 cr on robust demand

JK Paper Ltd reported its profit more than doubled in the third quarter, on the back of higher demand for copier papers and packaging boards from schools and offices post-pandemic

Costly imports, Russia Ukraine war hit India's paper supplies, prices surge

The Ukraine-Russia war has put a strain on global supply chains and while transportation of various commodities have been severely impacted, India's paper imports were hit

Another anti-trade action

Govt must avoid protectionist measures

Govt brings import of paper under compulsory registration from Oct 1

Move addresses dumping concerns of domestic paper industry and also checks re-routing of goods through other countries in lieu of trade agreements, says govt

India's paper consumption to touch 30 million tonnes by FY27: IPMA

Paper consumption is likely to witness 6-7% annual growth and will reach 30 million tonnes by FY 2026-27, largely driven by emphasis on education and literacy coupled with growth in organised retail

Shares of West Coast Paper rise over 3% on firm outlook, JK Paper up 34%

Despite the absence of boards in its offerings, West Coast Paper has large capacities and is a formidable player with a positive outlook going forward, an official at LKP Securities said

Margin pressure may hit paper cos in near-term despite price hike: Analysts

The rally in paper stocks began early September when states eased Covid-19 related restrictions and announced re-opening of schools and offices

Paper stocks see strong investor interest as biz cycle turns favourable

Improving demand and likely consolidation in the industry are key triggers

Paper & paperboard imports surge 10% on nil customs duty after ASEAN FTA

The share of paper imports from ASEAN in total paper imports for India has risen more than four times from about 5 per cent in 2010-11 to about 21 per cent in 2019-20