Kraft Paper Industry - Investment Project Opportunity for Startups and Entrepreneurs: Poised for Continuous and Rapid Growth in the Coming Years, Kraft Paper from Waste Carton Boxes, Sack Kraft Paper, Brown Craft (Kraft) Paper, Packaging Paper

Thursday, February 23, 2017

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Kraft Paper Industry - Investment Project Opportunity for Startups and Entrepreneurs: Poised for Continuous and Rapid Growth in the Coming Years, Kraft Paper from Waste Carton Boxes, Sack Kraft Paper, Brown Craft (Kraft) Paper, Packaging Paper, Agro & Recycled Paper Mill, MG Kraft Paper, Papermaking, Pulp and Paper Industry, Paper from waste Paper, Paper Recycling, Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, Plant Layout, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis


Kraft paper, Brown paper or wrapping paper is made from variety of raw materials, e.g. Bagasse, ground wood, straw, waste paper, in various combinations or alone, waste carton boxes etc. 'Kraft' mean strength and that is why its name. It is leading paper for wrapping heavy bundles. After corrugation it is used in many types of packing and it is an important packaging material.

Kraft papers or brown papers are strong and flexible and quality Kraft paper are made by the 'Kraft' chemical process or also known as sulphate process. They are normally sized with sizing agents & additives are added, and not bleached. The colour is only a natural colour. They are used in wrapping paper bags, linters corrugated sheets.

Kraft paper exists in many grades. Here colour and surface finish are of secondary importance and the main requirements are that the paper should be strong and that it should provide some protection to wrapped goods, especially the rain this protection is achieved mainly by engine sizing. The fibres should be long, strong & beaten to give a sheet having maximum strength. Bleaching is avoided since it tends to reduce strength and is normally unnecessary for such paper and strong brown Kraft pulp is widely used. Brown wrapping papers are frequently machine-glazed (abbreviated MG) by allowing them to dry with one side in contact with a polished, beated cylinder, much as a photographer glazes his prints. The side in contact with the heated cylinder receives a bright glossy finish, while the other side remains rough. Paper is a biodegradable material; this means that when it goes to landfill it will rot; bacteria will form and produce methane.  This is a powerful greenhouse gas that is 23 times more potent than CO2 (carbon dioxide) and contributes to climate change.  We currently recycle 66% of the paper we use.

Manufacturing virgin (brand new) paper uses more energy than making recycled paper, but varies dependent on the grade or type of paper being made. By using waste paper to produce new paper disposal problems are reduced. Moreover producing recycled paper involves between 28 - 70% less energy consumption than virgin paper and uses less water.

Kraft paper or Kraft is paper produced from chemical pulp produced in the kraft process. Kraft paper is ideal for a variety of packaging uses. The market is well established in North America and western countries, and it is expected to grow linearly over the forecast period. Growing economies such as China, India and Brazil are expected to emerge as most attractive geographical segment in global Sack Kraft Paper Market.

Sack Kraft paper is distinguished by elevated elasticity and it can be easily customized depends on end-user requirement. Based on its elasticity, sack kraft papers are commercially available in market which includes natural kraft paper, semi-extensible kraft paper, extensible kraft paper and coated kraft paper.

The Indian economy is growing and so is the Paper Packaging industry. As growth rides on increased industrial production and international trade, demands on package converters have become more intense and sophisticated.

The packaging industry in India has been registering a constant growth rate of 15%. The Corrugated packaging industry is however finding itself at the crossroads. Increasing prices of kraft paper, non availability of international standard papers at affordable prices, resistance of corrugated box user industry to offer sustainable prices, increasing competition, non viability of automatic plants are proving to be hurdles in the growth path.

The total demand for paper is estimated to be around 6 mn tones, of which about 40 percent is consumed by the packaging industry.

The Indian paper industry accounts for about 3% of the world’s production of paper. The estimated turnover of the industry is INR 50,000 crore (USD 8 billion) approximately and its contribution to the exchequer is around INR 4,500 crore. The industry provides employment to more than 0.5 million people directly and 1.5 million people indirectly.

Paper consumption in India is expected to grow to 14m tpa by 2015. The major growth sectors will be in container board (to 3.9m tpa), uncoated wood-free grades(to 3.6m tpa), carton board (to 2.8m tpa) and newsprint(to 3m tpa).

Total Paper Consumption is about 1.50 Million Tons per annum. Approx 5.00 Lacs Ton High Burst Kraft Paper is used in Corrugation. Approx 10.00 Lacs Ton Semi-Kraft and Low BF Paper is consumed annually. Overall Capacity Utilization is only 70%

Indian FMCG sector is growing ata rapid rate due to strong demand from a large and growing middle class. As a result, the packaging industry, growing by more than 15 percent annually, will likely increase demand for corrugated boxes, leading to increased demand for kraft papers, and the key raw material.

The Current demand of Corrugation packaging is in line with the industrial growth. Presently corrugation industry is growing at the rate of 10% per annum and is expected to grow at 12% per annum in near future.

There is a very good scope and ample space for new entrants in this field.


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