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Paper Manufacturing Industry

Paper Manufacturing Industry. How to Start a Profitable Paper Mill Business. Production of Writing and Printing Paper Paper is one of the basic needs of modern life. It is a well-known product, which is the only media of communication through writing. It is used in every part of life, i.e., education, office, researches, engineering, art, book printing, magazine, newspaper, etc. Paper is an important material, usaed daily for many purposes worldwide. Used in a wide variety of forms, paper and paperboard are characterized by a wide range of properties. Papers are used for writing purpose and printing purpose. Books are created using papers and newspapers etc. Now most of them used computers for creating notes but if computer get damaged also disappeared, where the note in paper permanent and reading is a good habit and its increase our knowledge level, reading lots of book is good habit but Reading things in computer decrease power of eye. Papers are made from some kind of trees. Uses and Applications: • Media Kraft Paper: This is used in corrugated box manufacturing and by all the industrial packaging units. The main market lies in Chennai, Madurai, Coimbatore, Virudhunagar and Sivakasi. • Plain/Ribbed Kraft Paper: This is used as wrappers for books and notebooks and also in all packaging industries. • White Poster and Color Poster: These are consumed by the printing presses for wall posters and also for printing tickets, vouchers, etc. The main market is at Chennai and Sivakasi where there number of printing presses exist. • Manila paper: This is made out of No.1 white cutting, used for making envelopes and will be marketed in Chennai and Sivakasi. • Tea Yellow Posters and Blue Match Paper: These are low grammage papers extensively used in packing match box and crackers. The main market is in Chennai, Sivakasi. • Grey poster and grey poster superior: This is extensively used in match industry where match boxes are manufactured in automation process. This type of match boxes can be seen in luxury hotels, airlines etc. Market Outlook Indian paper industry is poised to grow and touch 25 million tonnes from 20.37 million tonnes to 2019-20 from 2017-18 at rate of 10% per annum. India produces many varieties of papers, namely, printing and writing paper, packaging paper, coated paper and some speciality paper. Varieties under printing and writing paper are creame wove paper, super printing paper, maplitho paper (non-surface and surface size), copier paper, bond paper and coating base paper and others. The varieties under coated paper are art paper/board, chromo paper/board and others. There are approximately 600 paper mills in India, of which twelve are major players. Paperboard & industrial packaging paper, paper stationery, newspaper print and speciality paper altogether creates the overall paper market. As paper industry of India are become more competitive by adding improvements of key ports, roads & railways and communication facilities, revision of forest policy is required for wood based paper industry so that plantation can be raised by industry, cooperatives of farmers and state government. Paper demand in India has risen on the back of several key growth drivers. The country's rising literacy rate has increased the demand for books and textbooks. While India's booming e-commerce and retail sectors have accelerated consumption of paperboard & packaging. Furthermore, growing concerns about plastic packaging and the recent plastics ban in Maharashtra has provided an additional fillip to paper-based alternatives. At the same time, premiumisation is driving industry growth as consumer product companies seek to differentiate through higher quality packaging that requires premium papers. Across the board, rising disposable income is increasing both direct and indirect paper demand. In addition, growing Indian economy, the rising disposable income of consumer, higher literacy rate, growth of FMCG market, etc. encourage the use of paper for writing, printing, newspaper, packaging and much more. Among them paper for paperboard and packaging is used in highest ratio of total paper market. And secondly largest share is contributed by stationery. Altogether both segments are anticipated to sale more than 15 million tonnes (MT) at the end of forecasted period. Currently, the industry has seen an increasing demand for household paper items apart from educational demand. These are tissue paper, facial tissues, face wipes, paper towel, paper napkins, paper cup saucers etc. Household paper products are used for maintaining proper hygiene and cleanliness. Health concerns regarding infectious diseases and allergy have been a major factor in the growth of household paper products market. India’s share in global paper demand, though small is growing as demand in the western nations contracts, while domestic demand in India grows at a steady pace Globally over 400 million tonnes of paper and paper products are consumed. The world's three largest paper producing countries are China, the United States, and Japan (these three countries account for approximately half of the world's total paper production), while India accounts for a small but growing share of the global market. The global paper and pulp mills industry has contracted slightly over the past five years, primarily due to the shift to digital media and paperless communication across most developed economies. However, demand in emerging markets has partially offset the decline by driving increased demand for paper used in packaging materials. India is a large under-penetrated country, as despite the sustained growth witnessed by the industry, the per capita paper consumption in India stands at a little over 13 kg, behind the global average of 57 kg. For the Indian paper industry, strong economic growth has been accompanied by equally robust demand for paper. The demand drivers and growth triggers have come from a combination of factors such as rising income levels, growing per capita expenditure, rapid urbanization and a larger proportion of earning population which is expected to lead consumption and there is enormous potential for the paper industry in the country. CARE Ratings expects that the overall paper demand growing at a CAGR of 6.6% is likely to touch 18.5 million tonnes in 2018-19. The individual segments are expected to grow as follows: Printing and Writing segment demand is expected to grow at a CAGR of 4.2% and reach 5.3 million tonnes in FY19. The demand is expected to grow on account of an anticipated pick-up from the education sector with improving literacy rates and growing enrolment as well as increasing number of schools and colleges. Packaging paper & board segment caters to industries such as FMCG, food & beverage, pharmaceutical, textiles, etc. Demand for Packaging Paper & Board segment is expected to grow at a CAGR of 8.9% and reach 9.7 million tonnes in FY19 due to factors such as increased urbanization, requirement of better quality packaging of FMCG products marketed through organized retail, and increasing preference for ready-to-eat foods. In this digital era, the demand for the paper is still increasing. The global paper industry experienced stable growth during the last five years and is expected to continue its growth momentum. According to the industry experts, it will reach approximately US $256 billion in 2017 with a CAGR of 5.9% over the next five years. The paper industry is highly fragmented. A combination of factors such as demographic condition, economic condition, and environmental regulations have a significant impact on the industry dynamics. Printing and Writing Papers Market The global printing and writing papers market draws a high demand from the use of tissue and packaging products. The need for printing and writing papers of the tissue and packaging industry has specifically sprung from the elevating demand from containerboards. However, the environmental regulations related to the paper and pulp sector could act as a major constraint. Howbeit, with emerging markets welcoming novel packaging techniques, the global market is projected to witness a great opportunity from cementing its growth. If the leading applications are concerned, commercial printing has primarily stole the spotlight from other application segments. Printing and writing papers also find extensive usage in digital printing, catalogs, magazines, stationeries, and office reprographics. The demand is expected to grow on account of an anticipated pick-up from the education sector with improving literacy rates and growing enrolment as well as increasing number of schools and colleges. The global paper industry is undergoing rapid transformation and plays significant role in the global packaging industry. In addition to manufacturing of packaging products such as corrugated boxes, paperboards or envelopes, papers are also used for the production of printing paper for printing purposes. Rapid transformation of graphics industry is expected to hamper growth of the global Printing paper market. Furthermore, as the digital technology increases, there will be growth in acceptance towards reading and writing work on the screen, which might affect growth of printing paper market. Emerging markets such as Asia Pacific and Latin America are expected to push growth of global Printing paper market due to rise in population as well as disposable income. MEA is expected to witness steady growth in printing paper market due to deficient technology in this region. Overall, the global Printing paper market is forecast to enjoy moderate growth in the forecast period. 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