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Indian Paper & Pulp Industry
T&A Consulting
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1400 A, Devika Towers,
6 - Nehru Place,
New Delhi 110019, India
www.insideindiatrade.com
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Political Map of India
India is a federal union comprising twenty-nine states and seven union territories. The states and
union territories are further subdivided into districts and further into smaller administrative divisions.
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List of Abbreviations
ASEAN
Association of Southeast Asian Nations
AV
Assessable Value
Bn
Billion
CAGR
Compound Annual Growth Rate
CBEC
Central Board of Excise & Customs
CIF
Cot, Insurance and Freight
CVD
Countervailing Duty
e.g.
For example,
EXIM
Export Import
FDI
Foreign direct investment
FMCG
Fast-Moving Consumer Goods
Fiscal Year, a period that a company or government uses for accounting purposes
FY
and preparing financial statements, which is also a Financial Year starts from 1st
April to 31st March in India
GBP
Great Britain Pound
GDP
Gross Domestic Product
Govt.
Government
HS
Harmonized System
IEC
Import Export Code
INR
Indian Rupee
IPMA
International Primary Markets Association
IT
Information Technology
ITC
Indian Trade Classification
KG
Kilogram
LTD
Limited
Mn
Million
OGL
Open General Licence
Pref
Preferential
Pvt, (P)
Private
R&D
Research & Development
Spl. CVD
Special Additional Duty of Customs
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TPA
Tonnes Per Annum
UAE
United Arab Emirates
UK
United Kingdom
USA
United States of America
USD
United States Dollar
w.e.f.
With effect from
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Understanding of the Brazilian Pulp and Paper Sector
Brazil is one of the world’s leading producer and exporter of pulp and paper. The industry has over
200 companies (mostly private owned) and employs over 65,000 people. Brazil is the 9th largest
producer of paper, and the 4th largest producer of pulp across the world wherein the major
production is from states of São Paulo, Paraná and Santa Catarina.
The pulp and paper supply chain in Brazil comprises both domestic and international elements. The
majority of virgin fibre inputs for the industry is produced in Brazil with comparatively small volumes
of imports of fibre, pulp and paper from a number countries.
Key facts
Pulp production
1,646 million tons
Paper production
1,040 million tons
Forest Productivity
70 m3/ha/year
Major Players
Fibria, Suzano and Klabin
Pulp Production by Type
Paper production by Type
4%
11%
7% 1%
3%
11%
52%
25%
86%
Hardwood
Softwood
High Yield Pulp
Packaging & wrapping
Tissue
Newsprint
Printing & Writing
Cardboard
Others
Source: Industry Report (www.business-sweden.se/globalassets/factpack_pulppaper_20160621.pdf)
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EXPORT DESTINATION & PRODUCTS
Brazil is a key exporter of pulp and paper products worldwide, wherein Europe remains the main
destination for Brazilian pulp, and accounted for approximately 38.5% of the revenue, followed by
China and United States, respectively responsible for approximately 33.2% and 17.6%. Brazil is also
one of the largest exporters of recycled paper products estimated at 17% of total global recycled
paper.
Major Export Destinations
6% 3%
39%
24%
28%
Europe
China
United States
Country
Product Exported
Europe
Pulp
China
Pulp
United States
Pulp, Paper, wood panels
Argentina
Paper
Others
Pulp, Paper, wood panels
Source: Industry Report (www.businesssweden.se/globalassets/factpack_pulppaper_20160621.pdf)
Argentina
Others
Domestic
000 Tonnes
Imports
Fibre – Industrial round wood
82
268,090
292
Pulp for Paper
330
12,697
7,057
Paper & Paper Board
1,268
8,977
2,592
Total
1,680
289,764
9,941
Top 5 trading countries
production
USA,
Canada,
Argentina,
Finland,
-
Germany
Exports
China, Japan, USA, Portugal
and Turkey
Source: T&A research
Brazil is a major player in the global pulp and paper industry due to its comparative advantage in
forestry production, hence, most pulp output is exported.
According to the Brazilian Association of Pulp and Paper, Brazil is looking to invest approximately
USD 20 billion in its forest base and in building new mills over the coming years. By the end of 2017,
pulp production in Brazil is expected to increase to over 20 million tons. Paper production is also set
to increase from 9% to over 12%.
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Executive Summary
The primary objective of the report is to provide an overview of the Indian Paper & Pulp sector. The
research is geared to highlight opportunities for Brazilian Pulp and Paper companies looking to enter
India as a target market.
The report highlights the following key points:
▪ Market size estimation and growth rate
▪ Key sub-segments of the sector
▪ Key drivers of the industry
▪ Competitive landscape in the industry
▪ Brief Regulatory Framework
▪ Export import trends in the sector
▪ Opportunity assessment for Brazilian companies in India
The Pulp & Paper industry in India has witnessed rapid growth over the last decade as the companies
operating in this segment have continued to upgrade capacities and technologies. The elevation in
this industry has taken place in spite of challenges such as shortage of raw material, high capital
intensive nature of the industry as well as threat of cheaper imports from ASEAN countries.
As per Indian Paper Mill Association industry, the paper industry is expected to see an average growth
of 7% by 2020. The paper sector is dominated by small and medium size units; number of mills of
capacity 50,000 tons per annum or more is not more than 25. As per industry sources about 66% of
the paper mills are small scale, 24% are medium scale and only 10% fall under large scale mills.
However, going by global scale, only about 10-15 Indian paper mills would fall into the large-scale
category. These mills are involved in manufacturing various grades of paper i.e. from writing & printing
to packaging, tissue making and news printing.
According to T&A research, majority of the foreign companies operating in this segment are present
either by way of partners/ distributors or have entered the market by acquiring paper mills operating
in the packaging or speciality paper segment in India.
The Indian Government permits up to 100% FDI in this sector to promote domestic production and
reduce dependence on imports for imported pulp / raw material for paper production.
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The share of imported wood fibre for the pulp industry accounted for almost 10% of total consumption
of wood fibre in 2014, and this share is expected to increase in the coming years. India has limited
forest resources and it is not able to meet the growing domestic demand for processed forest products
like Pulp and Paper. Therefore, the country's pulp mills and sawmills are mostly dependent on import
of wood raw material both in the form of wood chips and logs.
Since domestic supply of pulp is not sufficient, there may be substantial opportunities for Brazilian
companies towards exporting paper and pulp products into India.
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Table of Contents
1.0
Market Overview ...................................................................................................................... 11
1.1
Market Size and Growth Rate ............................................................................................... 11
1.2
Market Segmentation & Market Share Analysis ................................................................... 14
1.3 Challenges ................................................................................................................................... 17
2.0
Competitor Analysis .................................................................................................................. 19
2.1 Major Indian & Foreign Players .................................................................................................. 20
2.2 Current Status – Import Dependence ......................................................................................... 25
3.0
Regulatory Framework & Import Policy.................................................................................... 27
3.1 Regulations & Procedure and Import Policy ............................................................................... 27
3.2 Import and Export Trends ........................................................................................................... 29
3.3 Share in India’s Total Foreign Trade ........................................................................................... 34
3.4 Import Tariff and Duties, Antidumping duty............................................................................... 35
3.4.1 Antidumping duty ................................................................................................................ 37
4.0 Opportunities for Brazilian Companies in India .............................................................................. 39
5.0 Potential Distributor Mapping ........................................................................................................ 42
6.0 Major Industry Influencers.............................................................................................................. 44
6.1 Major Regulatory Bodies............................................................................................................. 44
6.2 Industry Associations .................................................................................................................. 46
7.0 Major Trade Events ......................................................................................................................... 48
Appendix ............................................................................................................................................... 49
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1.0 Overview of Paper & Pulp Industry
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1.0 Market Overview
1.1 Market Size and Growth Rate
India has a large forest resource with over 68 million hectares of forest, equivalent to 23% of the
country’s landmass. The forest industry contributes 1.7% to India’s GDP of which the pulp and paper
sector is comparatively small but dispersed. At present, the paper industry in India has a capacity of
producing approx. 13.9 million tonnes that accounts for about 3% of the world’s production of paper.
However, the production capacity of the paper industry is expected to grow to about 20 million tonnes
with a Compound Annual Growth rate (CAGR) of 7% by 2020.
Paper Industry Statistics
Annual Capacity of production
~ 13.9 million tonnes
Industry Turnover
USD 8 Billion
Compound
Annual
Growth
rate 6%
(CAGR)
Per capita consumption
~ 11 KG
Number of Mills
750-800
Employment
0.5 million (Directly) and 1.5 million (Indirectly)
Key Segments
Printing & Writing, Packaging and Paper Board and
Newsprint
Source: T&A research
Forest Ownership (State vs
Private)
India does not have an industry-friendly
forestry policy and so mills cannot get an
access to forest land, and they are not even
7%
allowed to use a part of the huge track of
17%
wasteland for growing trees. As availability
of forest-based raw material such as wood
76%
and bamboo, in India is rather limited, pulp
and paper companies have to depend on
Government Administered
Community Administered
also started importing wood chips in addition
Individual/Firm Administered
to waste paper.
Source: United Nations Forum on Forests, 2012
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imported pulp. The companies in India have
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The Indian paper industry has highly fragmented structure consisting of small, medium and large sized paper mills
having capacities ranging from 10 to 1,150 tons per day. At present, there are over 850 paper mills manufacturing a
wide variety of items required by the consumers. These paper mills are manufacturing industrial grades, cultural
grades (for writing and printing purposes) and other specialty papers. The paper industry in India could be classified
into 3 categories according to the raw material consumed.
1.
Wood Based
2.
Agro Based
3.
Waste Paper Based
Mills in the Northern and Western regions of India depend heavily on agricultural residues and waste paper as their
raw material. More than 50% of the total paper produced from wastepaper is produced in Western India.
Pulp & paper production in Southern and Eastern regions uses wood and bamboo as raw materials. South India has
11 large scale forest-based mills producing all of the rayon grade pulp and 50% of the wood and bamboo pulp.
While the number of wood based mills are around 14 and balance 836 mills are based on non-conventional raw
materials (Agro Residues and Recycled fibre - waste paper). The Govt. of India has relaxed the rules and regulations
and also delicensed the paper industry to encourage investment and Joint Ventures in the sector. The paper industry
in India is looking for state-of-art technologies to reduce its production cost and to upgrade the technology to meet
the international standards.
The Paper industry is a priority sector for foreign collaboration and foreign equity participation up to 100% is
allowed though the automatic route. Several fiscal incentives have also been provided to the paper industry,
particularly to those mills which are based on non-conventional raw material.
In India, paper consumption in the current fiscal year (2016-17) is estimated to be 16.5 million tonnes
which is further expected to increase to 25.3 million tonnes by next decade.
2016-17
2026-27
(Million Tonnes)
(Million tonnes)
Paper consumption
16.5
25.3
Paper Production
16.7
39.7
Import (mostly newsprint)
1.7
4.3
Projected Growth
Growth
Projection
Source: T&A research
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The major states contributing in the growth of the
paper sector are Gujarat, West Bengal, Orissa,
Andhra Pradesh, Karnataka and Maharashtra i.e.
about 70% of the total installed capacity of paper
production in India is accounted by the abovementioned states. However apart from the abovementioned states Uttar Pradesh, Tamil Nadu,
Haryana, Kerala, Bihar and Assam also together
account for about 25% of the total paper production
in India.
Estimated Domestic Market Size & Growth in 2015-16
S. No.
Paper Grade
1.
2
3.
4.
5.
6.
Newsprint
Writing & Printing
Packaging paper & Board
Tissue
Poster
Other Paper
Domestic Market Size
(Metric Tonnes)
2,500,000
4,600,000
7,500,000
100,000
200,000
200,000
Growth rate
(%)
2.33
4.98
9.42
16.63
1.83
8.00
Source: T&A research
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1.2 Market Segmentation & Market Share Analysis
The Indian paper industry can be broadly classified into three segments:
Printing & writing (P&W):
•Includes office stationary, textbooks, notebooks. This segment forms ~31% of domestic
paper industry. Government focus on Right to Education, Sarva Shiksha Abhiyan, rise in
service sector are key factors contributing to the growth of this segment
Packaging & Paper Board
Includes industries catering to tertiary and flexible packaging such as FMCG, food, pharma,
textiles etc. This segment forms ~47% of the domestic paper industry. Key drivers
comprises rising urbanization, increasing penetration of organized retail, higher growth in
FMCG, and pharmaceutical industry
Newsprint
•Newsprint serves the newspaper & magazines industry. This segment forms ~18% of
Indian paper industry. Currently, India's consumption of newsprint currently is around 2.7
million tonnes, wherein the contribution from the domestic mills is approx. 2 million
tonnes. This emphasises the fact that a large quantity of newsprint consumed in India is
still imported
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KEY DEMAND DRIVERS
Given the low per capita consumption of paper and paper board in India
i.e.11-12 kg vis-à-vis China (69 kg), the size of the Indian industry is much
lower. However, growth drivers such as enhancement in government
spending on education (6% of GDP), rising literacy rate, improvement in
standard of living, booming retail sector, construction boom, growth in
industries like food, pharmaceuticals and apparels, increase in packaging
and advertising expenditure etc. would be the key drivers to reach to the
target of 20 million tonnes by 2020.
a.) E-commerce growth to provide support to the paper industry
E-commerce boom in the country is expected to help paper industry enter a new phase of growth.
Increasing number of Internet users and rising middle-class in the society with higher disposable
income* has boosted the demand for paper packaging products in the shipment industry. Indian ecommerce market is expected to grow to USD 228 billion by 2030, as it is still significantly below
(approx. USD 15 billion) the size of the market today in China (USD 328 billion) and the US (USD 281
billion).
Source: T&A research
b.) Increasing FDI in Paper and Pulp (Including Paper Products)
The paper and pulp industry (including paper products) attracted Foreign Direct Investment (FDI)
worth USD 1,087.39 million between April 2000 and December 2015, which is 0.39% of total FDI. From
October- December 2015, the industry attracted FDI worth USD 46.43 million as compared to USD
13.53 million attracted in same period of 2014.
Source: T&A research
FDI in Paper & Pulp - USD Million
110
120
100
80
60
45.67
40
9.55
20
3.43
0
Jan-March 2015
April to June 2015
July to Sept 2015
Oct - Dec 2015
Source: T&A research
*a brief description of India’s average annual household income is provided as an Appendix at the end of the report.
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Listed below are some of the other factors that have led to the increased demand of pulp and paper
industry in India
Economic and income growth, population growth, changing demographics (urbanization,
young population), rapidly changing lifestyles, improving living standards
Greater emphasis on education & literacy by the government
Growth in organized retail and demand for better quality paper are driving the demand
for writing and printing paper
Demand for better quality packaging of FMCG products through organized retail, rising
healthcare spends, ready to eat foods are driving the demand for paperboard
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1.3 Challenges
The Indian paper and paperboards industry has the potential and capability to service the growing demand in
domestic and international market and create substantial employment avenues in rural-India through
Agro/production forestry and at mills, provided the competitiveness of the value chain is encouraged by the
government. According to IPMA, even though the demand for paper is expected to double to 20 million tonnes
by 2020, raw material shortage would remain as one of the major hurdles of the industry. Moreover, only 10%
of the Indian paper industry is coming from recycled papers and 0.6 million tonne of waste paper that is being
imported every year. Hence, insufficient scientific mechanisms for recycling, transportation and logistics are the
major drawbacks in the Indian paper industry.
a.) Shortage of Raw Material
India is a wood fibre deficient country and inadequate raw material availability domestically is a
major constraint for the paper industry. Around 90% of the wood demand is met through industry
driven Agro/ social forestry (1 million hectares), while 10% through government sources and imports.
Currently, demand for the pulpable wood by paper industry is around 11 million TPA, while domestic
availability is 9 million TPA. This demand is projected to rise around 15 million TPA by 2024-25. Hence,
there is a significant demand-supply gap with regards to the availability of primary raw material for
the wood industry.
Some of the other major constraints in the Indian paper industry are as follows:
Problem of delay in environmental clearance due to the lack of infrastructure
Modern technology to remain competitive which comes with high scale of production
Inadequate availability of skilled workforce, technicians, shop-floor and managerial staff
Availability of raw material at higher price
High interest rate is another constraint coming in the way of modernisation: the paper and paper
board industry is highly capital intensive and has a long gestation period
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2.0 Competitor Analysis
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2.0 Competitor Analysis
The Indian Paper industry is an integral part of
country’s economic growth and however, the
industry in India is highly fragmented with a
number of unorganized players. As most of the
paper mills are in existence for a long time, the
manufacturing technologies used by these
companies are outdated. However, companies
operating in this segment are continuously
making efforts to upgrade their capacities and
technologies to meet the demand of the paper
industry in India. With regards to share in total
production, approximately 24% companies are
using wood based technologies, 65% are
dependent on recycled fibre and 11% on
agricultural residues.
Source: T&A research
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2.1 Major Indian & Foreign Players
➢ 750 - 800 paper mills, spread across organized
& unorganized sector
➢ 12 large units account for 30% of production
share, balance mostly comprising of medium
(Agro-based) and small (waste paper based)
paper mills with production share of 70%.
➢ Capacity-wise, Industrial Paper accounts for
about 40%, Printing & Writing Paper 35%,
Speciality Paper 6% and Newsprint 19% of total
production.
➢ Large Integrated paper mills from private and
public sector have a product mix of writing,
printing, packaging, speciality, paperboards and
newsprint
Source: T&A research
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Mentioned below are 20 major Indian companies shortlisted based on the production capacity:
S.
Production Capacity
Company
Website
1
The Ballarpur Group
www.bilt.com
2
ITC PSPD
www.itcpspd.com
6,00,000
Secunderabad
3
JK Paper Limited
www.jkpaper.com
4,55,000
New Delhi
4
Khanna Paper Mills
www.khannapaper.com
3,30,000
Amritsar
www.westcoastpaper.com
3,25,000
Bangalore
www.rainbowpapers.com
3,05,000
Ahmedabad
www.centurypaperindia.com
3,00,000
Nainital, Uttaranchal
www.orientpaperindia.com
3,00,000
Kolkata
www.tnpl.com
2,45,000
Chennai
www.hindpaper.in
2,33,000
New Delhi
www.tridentindia.com
1,75,000
Sanghera (Punjab)
www.nrail.com
1,70,000
Mumbai
www.emamipaper.in
1,45,000
Kolkata
www.ramanewsprint.com
1,44,000
Mumbai
www.sirpurpaper.com
1,38,000
Gurgaon
www.laxmipaper.com
1,20,000
Mumbai
www.spbltd.com
1,15,000
Erode
No
5
6
7
8
The West Coast
Paper Mills
Rainbow Papers Ltd.
Century Pulp &
Paper
Orient Paper Mills
(TPA)
8,00,000 to
10,000,000
Location
Gurgaon
Tamil Nadu
9
Newsprint & Paper
Ltd.
10
11
12
13
14
15
16
17
Hindustan Paper
Corporation Limited
Trident
NR Agarwal
Industries Ltd
Emami Paper Mills
Limited
Sree Rama
Newsprint
The Sirpur Paper
Mills
Laxmi Board and
Paper Mills Ltd
Seshasayee Paper &
Boards Limited
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18
19
20
The Mysore Paper
Mills Ltd.
Hindustan
Newsprint Ltd
KR Pulp and paper
Limited
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www.mpm.co.in
1,05,000
Bangalore
www.hnlonline.com
1,00,000
Kottayam(Kerala)
www.krpapers.com
1,00,000
Shahjahanpur, Uttar
Pradesh
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Mentioned below is a list of 12 Foreign companies with a presence in India either by way of
Acquisition or Greenfield investment or by way of Distributor
S.
No
1
Foreign Company
International Paper
Acquired Company
Andhra Pradesh Paper
Mills
Mode of Entry
Acquiring Business
Segment
Acquisition
Packaging
Acquisition
Flexible Packaging
Positive Packaging
Webtech Labels Private
2
Huhtamaki - PPL
Ltd.
Valpack Solutions Pvt.
Ltd.
3
4
Asia Pulp & Paper
APP India Traders PVT.
Group
LTD
MeadWestvaco
Corporation (MWV)
Ruby Macons
Branch office
Acquisition
Tissue, Packaging and
Paper
Corrugated
Packaging
Manufacturing and
5
Oji Holdings
Corporation
Oji JK Packaging Pvt Ltd
Manufacturing
Plant
sales of corrugated
box, corrugated
sheet board, paper
pallets etc.
6
UPM Paper
Anika International Pvt.
Ltd.
Publication Paper
Distributor
(magazines,
newspaper etc)
Paper, Packaging,
Wood Products and
7
Stora Enso OYJ
-
Branch Office
Biomaterials (for
paper, board and
tissue production
8
APRIL Fine Paper
KCT Paper
Distributor
Printing
9
Burgopak
Parksons Packaging Ltd.
Licensing
Packaging
10
Nippon Papers
Acquisition
Paper Container
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Plus Paper Foodpac Pvt.
Ltd
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11
Kondopoga Newsprint
Paper
Prashanthi Agencies
Distributor
- Excel Enterprises
12
Mondi Papers
- Shah Devji Shivji &
Co.
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Distributor
Newsprint
Office & Professional
Printing Paper
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2.2 Current Status – Import Dependence
Country Wise Imports % in FY 2015
23
28
7
7
4
5
5
20
China
Indonesia
S. Korea
Sweden
Finland
Others
USA
Germany
The share of paper & related products in the overall import in first 11 months of FY16 (April- February)
stood at 1.86%. Import of paper & related products for first eleven month of FY16 stood at USD 6.40
billion (Provisional), down marginally by 0.93% as compared to USD6.44 Billion in first eleven month
of FY15.
The country imported highest in the month of September 2015 at USD 699 Million followed by USD
626 million and USD 623 million in December and October respectively. Of total, Paper, Paper Board
and Product imports were 33.62%, followed by Other Wood and Wood Products (21.91%), Plywood
and Allied Products (15.33%) and Pulp and Waste Paper (13.16%).
Source: Care Ratings: 1st July 2016
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3.0 Regulatory Framework and Import Policy
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3.0 Regulatory Framework & Import Policy
The Pulp and Paper industry in India is regulated by the Ministry of Environmental and Forest and
Climate Change. It is the nodal agency in the administrative structure of the Central Government for
the planning, promotion, co-ordination and overseeing the implementation of India's environmental
and forestry policies and programmes.
Further, the Development Council for Pulp, Paper & Allied Industries is the highest body constituted
by the Government of India to look in to the affairs of the pulp, paper and allied industries. The Council
monitors the health of the industry at a macro level and helps the Government in formulation of policy
and related rules for the benefit of the pulp & paper industry.
Government delicensed the paper industry with effect from 17th July, 1997. The entrepreneurs are
now required to file an Industrial Entrepreneur Memorandum with the Secretariat for Industrial
Assistance for setting up a new paper mill or substantial expansion of the existing mill in permissible
locations.
3.1 Regulations & Procedure and Import Policy
India’s import and export system is governed by the Foreign Trade (Development & Regulation) Act of
1992 as well as India’s Export Import (EXIM) Policy.
The primary duty of every importer in India is to obtain a registration with their regional licensing
authority. An Import Export Code (IEC) is given by the Director General of the Foreign Trade Office to
the importer, based on which all customs clearances shall be granted to the importer. This process to
become an importer is a one-time process but renewal might be required of the same depending on
the by-laws laid down by the regional licensing authority.
The Indian Trade Classification (ITC)-Harmonized System (HS) classifies goods into three categories:
1.
Restricted
2.
Canalized
3.
Prohibited
Any good not specified in the above categories can be freely imported, if the importer has obtained
a valid IEC.
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Restricted Items
Canalized Items
•Can be imported only after
•The items which can only be
obtaining Import License
•They must also be disposed
in the manner specified by
the Licensing Authority.
•An import license is valid for
24 months for capital goods
and 18 months for all other
goods
Prohibited Items
•These goods are strictly
imported using specific
prohibited from being
methods or procedures of
imported to India.
transport.
•These goods can be
imported only through
•Some examples of such
items include: wild animals,
unprocessed ivory, etc
canalizing agencies.
•Petroleum based products
are mostly canalized items
All paper and pulp products may be imported into India under an Open General Licence (OGL), which
means no specific licence is required to import plastic? into India. However, as applicable for any
general imports, the import company must get an Import Export Code (IEC) issued by the Director
General of Foreign Trade, Ministry of Commerce.
The value of goods imported is determined based on the Customs Valuation (Determination of Value
of Imported Goods) Rules, 2007. The Tariff Value on such imported goods are fixed by the Central
Board of Excise & Customs (CBEC) for the different class of goods imported.
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3.2 Import and Export Trends
The paper and pulp industry’s imports and exports can be bifurcated based on “Pulp” and “Paper
Products”. India’s growing demand for paper products has resulted in an increase in imports of paper
and pulp in the recent years.
Pulp: On analysing the pulp import and export trend, a vast gap is observed, as India is a major
importer of pulp.
The import/export trend for Pulp in India from 2013-15 is as charted below:
Pulp Import Export Trend
100%
100%
100%
99%
99%
99%
99%
2013
2014
2015
Exports
159
4,707
10,932
Imports
1,370,354
1,656,701
1,608,822
Imports
Exports
Source: Ministry of Commerce, Trade map
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Analysing the pulp imports with respect to the import of paper products in India, it is observed that
pulp imports are almost 50% of the Paper Products Imported in Financial Year 2015-16. A comparison
of the imports of both “Pulp” and “Paper Products” in the Financial Years 2012-13 to 2015-16 are as
per the table below.
Paper and Pulp Imports
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2013
2014
2015
Pulp Imports
1,370,354
1,656,701
1,608,822
Paper Products Import
2,364,880
2,610,041
2,424,070
Pulp Imports
Paper Products Import
Source: Ministry of Commerce, Trade map
Paper Products: India’s paper products can be grouped into three categories primarily, which are
“Packaging and Paper Board”, “News Print”, “Printing and Writing”, the remaining products are
grouped into “Others” category.
The majority portion of India’s imports are segmented between “Packaging & Paper Board” and “News
Print”.
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The detailed segmentation of the imports for these products is as charted below:
Paper Products Import Bifurcation
Others
2%
Printing & Writing
3%
Packaging & Paper
Board
48%
News Print
47%
Products
Packaging & Paper Board
News Print
Printing & Writing
Others
Source: Ministry of Commerce, Trade map
Paper Products - Import/Export Comparison: On comparison of the import and export for the
paper products segments in India, it can be observed that India has a higher dependency on imports
and a comparatively limited export potential.
Paper Products - Import/Export Trend
An overall import/export trend from Financial Year 2012-13 to 2015-16, of the paper products
highlights the gap observed in the import and export of paper roducts in India. Review sentence
Paper Products: Import Export Trend
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2013
2014
2015
Exports (USD '000s)
1,139,895
1,115,993
1,127,620
Imports (USD '000s)
2,364,880
2,610,041
2,424,070
Exports (USD '000s)
Imports (USD '000s)
Source: Ministry of Commerce, Trade map
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Country-wise Import/Export:
Paper Products: Import - In the Financial Year 2015-16, the top 10 countries accounting for at least
4% of the country’s imports were China, Korea, USA, Russia, Canada, Indonesia, Sweden, Italy,
Germany. All the other imports have been categorized under the “Others” category.
A bifurcation of the paper product imports, country-wise is as follows:
Paper Products - Import: Country-wise
China
14%
Others
32%
Korea
11%
USA
10%
Germany
4%
Italy
4%
China
Korea
USA
Sweden
5%
Russia
Indonesia
5%
Canada
Russia
8%
Canada
7%
Indonesia
Sweden
Italy
Germany
Others
Source: Ministry of Commerce, Trade map
Paper Products: Export - In the Financial Year 2015-16, the top 10 countries accounting for at least
3% of the country’s exports were UAE, Sri Lanka, USA, Nepal, UK, Iran, Kenya, Vietnam, Nigeria, Saudi
Arabia. All the other exports have been categorized under the “Others” category.
A bifurcation of the paper product exports, country-wise is as follows:
Pulp:
Import - In the Financial Year 2015-16, the top 10 countries accounting for at least 2% of the country’s
imports were USA, South Africa, Canada, Sweden, Indonesia, UAE, Chile, UK, Saudi Arabia, Sri Lanka.
All
the
other
imports
have
been
categorized
under
A bifurcation of the paper product imports, country-wise is as follows:
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the
“Others”
category.
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Pulp Import - Country wise
Others
20%
USA
29%
Sri Lanka
2%
Saudi Arab
2%
Chile
4%
UAE
5%
USA
South Africa
South Africa
10%
UK
3%
Canada
Indonesia
7%
Sweden
Indonesia
Sweden
8%
UAE
Canada
10%
Chile
UK
Saudi Arab
Sri Lanka
Others
Export – India exports nearly 92% of its pulp to Iran and around 5% to Ukraine, as per the Financial
Year 2015-16 data. The remaining exports of pulp are to varied countries, which individually constitute
less than 1% of the total exports.
Source: Ministry of Commerce, Trade map
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3.3 Share in India’s Total Foreign Trade
Pulp
Imports in FY 2015-16:
USD 1,608 Million
Exports in FY 2015-16:
USD 10.9 Million
Paper Products
Imports in FY 2015-16:
USD 2,424 Million
Exports in FY 2015-16:
USD 1,127 Million
Source: Ministry of Commerce
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3.4 Import Tariff and Duties, Antidumping duty
There are different types of duties in India, which are levied on the imports in India. The three primary
duties levied under The Customs Act,1962 in India are: Basic Duty, Countervailing Duty and Special
Additional Countervailing Duty.
All ‘paper based products’ are categorized under Chapter 48 of the HS Code under the Customs Act.
While pulp is categorized under Chapter 47 of the HS Codes.
A ‘Landing Charge’ of 1% is added to the Cost, Insurance and Freight (CIF) value to determine the
assessable value for customs duty purposes.
The customs tax rate applicable on the Chapter 48 and its sub HS Codes is as follows:
HS Code
Basic
Description
Duty
CVD
Special
E & SHE
Total Import
CVD
Cess
Duty (%)
Newsprint as specified in Note 4 to
4801
chapter 48, in rolls of a width > 36
10
0
4
3
14.86
10
6
4
3
21.93
10
12.5
4
3
29.58
10
6
4
3
21.93
10
6
4
3
21.93
10
12.5
4
3
29.58
10
6
4
3
21.93
cm or in square or otherwise
Uncoated paper and paperboard,
4802
of a kind used for writing, printing
or other graphic purposes
Toilet or facial tissue stock, towel
4803
or napkin stock and similar paper
for household or sanitary
Uncoated
4804
kraft
paper
and
paperboard, in rolls of a width > 36
cm or in square or rectangular
Other paper and paperboard,
4805
uncoated, in rolls of a width > 36
cm or in square or rectangular
Vegetable
4806
greaseproof
parchment,
papers,
tracing
papers and glassine and other
glazed transparent
Composite paper and paperboard
4807
"made by sticking flat layers of
paper or paperboard together
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Corrugated paper and paperboard
4808
"with or without glued flat surface
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
6
4
3
21.93
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
6
4
3
21.93
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
12.5
4
3
29.59
10
12.5
4
3
29.59
sheets", creped, crinkled
Carbon paper, self-copy paper and
4809
other copying or transfer papers,
including coated or impregnated
Paper and paperboard, coated on
4810
one or both sides with kaolin
"China clay" or other inorganic
Paper,
4811
paperboard,
cellulose
wadding and webs of cellulose
fibres,
coated,
impregnated,
covered
4813
Filter blocks, slabs and plates, of
paper pulp
Cigarette paper, whether or not
4814
cut to size or in the form of
booklets or tubes
Wallpaper
4816
and
similar
wallcoverings of paper; window
transparencies of paper
Carbon paper, self-copy paper and
4817
other copying or transfer papers,
in rolls of a particular width
Envelopes, letter cards,
4818
plain
postcards and correspondence
cards, of paper or paperboard
Toilet paper and similar paper,
4819
cellulose wadding or webs of
cellulose fibres, of a kind used
Cartons, boxes, cases, bags and
4820
other
packing
paper,
containers,
of
paperboard,
cellulose
account
books,
wadding
4821
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Registers,
notebooks, order books, receipt
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books, letter pads, memorandum
pads
Paper or paperboard labels of all
4822
kinds, whether or not printed
10
12.5
4
3
29.59
10
12.5
4
3
29.59
Bobbins, spools, cops and similar
4823
supports of paper pulp, paper or
paperboard, whether or not
The customs tax rate applicable on the Chapter 47 (pulp) is common across its sub HS codes. The tariff
duty on import of pulp in India is as follows:
HS
Code
47
Basic
Description
Duty
Pulp of wood or of other fibrous
cellulosic material
5
CVD
6
Special
E & SHE
Total Import
CVD
Cess
Duty
4
3
16.31
3.4.1 Antidumping duty
The antidumping duty in India is not subjected to the import of pulp. However, in a bid to protect the
domestic market from increasing imports, the Central Board of Excise and Customs (CBEC) has levied
an Antidumping Duty on the import of “Thermal Sensitive Paper” originating from Japan, Republic of
China, European Union, Germany and Chinese Taipei.
The detailed antidumping rates applicable on the above countries and their exporters are as follows:
S.No.
Country
Exporter
Amount
1
Japan
All Exporters
0.03865 (USD per square meter)
2
Republic of China
All Exporters
0.967 (USD per Kg)
3
European Union
All Exporters
2947.92 (USD per metric tonne)
4
Germany
M/s
Papierfabrik
Koehler Ag
August
0.0439 (USD per square meter)
Also, there is an antidumping duty on “Green Veneer Tape” from Chinese Taipei at USD 0.13334 per
Square Meter.
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4.0 Opportunities for Brazilian Companies
in India
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4.0 Opportunities for Brazilian Companies in India
Based on T&A research, an opportunity assessment table presenting an overview of Indian paper &
pulp sector has been prepared below.
Export Potential
or Value Segment
High Potential
Packaging &
Wrapping
Medium Potential
Low Potential
✓
Printing & Writing
✓
Specialty (Tissue)
✓
✓
Newsprint
Potential for Local
Manufacturing
Entry Barriers
✓
Medium Barrier
Market Insights
•
According to the research conducted by T&A consulting, it has been observed that the
potential for packaging and speciality paper is significant as compared to the other
segments operating in the pulp and paper industry. These segments offer long-term
growth potential
•
Constant increase in the consumption of pulp and paper in India has augmented the
demand for wood fibre for the domestic pulp industry in the country. This is mainly due
to lack of domestic pulpwood plantations. Therefore, pulp manufacturers in the last few
years have been continuously looking at overseas markets such as South Africa, Brazil,
Australia and Southeast Asia to meet the demand for raw materials
•
The cheaper imports as well as low profit margins has forced the industry players to
rethink about their growth strategy and as result either they have deferred from their
expansion plans or have scaled down their operations. This in-turn could provide an
opportunity for Brazilian companies who may look at India for potential exports
•
W.E.F 1st Jan 2014, as per the terms of the free trade agreement with the Association of
Southeast Asian Nations (ASEAN), the customs duty on paper in India has been brought
down to zero from earlier rate of 2.5%. As a result, there has been a rise in paper
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imports. Earlier only few special grade paper and newsprint were imported but now,
printing & writing paper is too being imported.
•
Majority of the foreign companies are entering the Indian market either by way of
appointing distributors for their products or else by completely/partially acquiring the
assets of an existing player operating in the similar industry segments
•
Government has taken various initiatives to promote the paper industry in India. Other
driving factors are sustained focus on literacy, increased consumerism and expansion in
organised retail sector.
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5.0 Potential Distributor Mapping
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5.0 Potential Distributor Mapping
20 importers and distributors of paper and pulp products in India have been identified who could be
potential partners for Brazilian companies. These are presented below.
S. No
Company Name
Website
City
1
KCT Trading Pvt. Ltd.
www.kctpaper.com
Kolkata
2
Neelam Global Pvt. Ltd.
www.ngpl.in
Mumbai
3
India Paper
www.indiapaper.com
New Delhi
4
Maharashtra Paper Company
www.mpaper.co.in
Pune
5
Ambica Group
www.ambicagroup.net
Mumbai
6
Sumpap India
www.sumpapindia.com
New Delhi
7
Shree Paper Company Pvt. Ltd.
www.shreepaper.com
New Delhi
8
Ratna Overseas
www.ratnasoverseas.com
New Delhi
9
Anand Pulp Impex Pvt. Ltd.
www.anandpulp.com
New Delhi
10
JML Paper & Waste Corporation
www.jmlpaperwaste.com
Punjab
11
Shailja Papers Ltd.
www.shailjapapersltd.com
New Delhi
12
Sigma International
indianpaperimporters.com
New Delhi
13
Allied Paper
www.alliedpapers.com
Thane
14
Infinity Industries Pvt. Ltd.
www.einfinity.in
Mumbai
15
Maimoon Impex L.L.P.
www.maimoonimpex.com
Mumbai
16
Fine Paper Source Pvt. Ltd.
www.finepapersource.com
Chennai
17
Million Papier (P) Limited
www.millionindia.com
Chennai
18
B.J Bhandari Papers Pvt. Ltd.
www.bjbhandaripapers.com
Pune
19
Amit Papers
www.amitpapers.com
Kolkata
20
Sun Fine Papers Pvt. Ltd.
www.sunfinepapers.com
Mumbai
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6.0 Key Influencers
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6.0 Major Industry Influencers
Regulatory bodies, research institutes, government departments and industry organizations play an
important role in policy formulation and adoption of new technology. Provided below is a list of key
influencers in the pulp & paper industry of India:
6.1 Major Regulatory Bodies
A brief profile of the below mentioned regulatory bodies along with their contact details has been
provided below:
1)
Ministry of Environment and Forest
Brief Profile
-
The Ministry of Environment & Forests is the nodal agency in the administrative structure of the Central
Government for the planning, promotion, co-ordination and overseeing the implementation of India's
environmental and forestry policies and programmes
-
The primary concerns of the Ministry are implementation of policies and programmes relating to
conservation of the country's natural resources including its lakes and rivers, its biodiversity, forests and
wildlife, ensuring the welfare of animals, and the prevention and abatement of pollution
-
The broad objectives of the ministry comprise conservation and survey of flora, fauna, forests and wild
life, prevention and control of pollution, afforestation and regeneration of degraded areas, protection
of the environment and ensuring the welfare of animals
-
These objectives are well supported by a set of legislative and regulatory measures, aimed at the
preservation, conservation and protection of the environment
Address
Paryavaran Bhavan, CGO Complex, Lodhi Road, New Delhi- 110003, India
Tel: 91-11- 24361669
Website: envfor.nic.in
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2)
Department of Industrial Policy & Promotion
Brief Profile
-
The Department of Industrial Policy & Promotion was established in 1995 and has been reconstituted in
the year 2000 with the merger of the Department of Industrial Development
-
The key focus areas of the department are formulation and implementation of India's industrial policy,
formulation and amendment of the FDI policy, industrial promotion and formulation and
implementation of intellectual property rights policy
-
The department of Industrial Policy & Promotion is responsible for formulation and implementation of
promotional and developmental measures for growth of the industrial sector, keeping in view the
national priorities and socio-economic objectives
-
The department also monitors the industrial growth and production, in the industrial sectors, such as
cement, paper and pulp, leather, tyre and rubber, light electrical industries, consumer goods, consumer
durables etc.
-
The department is responsible for facilitating and increasing the Foreign Direct Investment (FDI) inflow
in the country
-
The Department plays a pro-active role in resolution of the problems faced by foreign investors in
implementation of their projects through Foreign Investment Implementation Authority
Address
Udyog Bhawan, New Delhi 110107, India
Tel: 91-11-2302486
Website: dipp.nic.in
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6.2 Industry Associations
S. No
Name
Website
1
Central Pulp and Paper Research Institute
www.cppri.org.in
2
Department of Industrial Policy and Promotion
dipp.nic.in
3
Development Council for Pulp Paper & Allied Industries
www.dcpulppaper.org
4
Federation of Corrugated Box Manufacturers
www.fcbm.org
5
Federation of Paper Trader’s Association of India
www.papertradeindia.com
6
Indian Agro and Recycled Paper Mills Association
www.inpaper.com
7
Indian Paper Manufacturers Association
www.ipma.co.in
8
Indian Pulp and Paper Technical Association
www.ipptaonline.org
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7.0 Major Trade Events
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7.0 Major Trade Events
A list of major industry events scheduled for 2017 in paper and pulp industry in India is presented
below.
S. Name of the
No Event
1
Printpack India
2
Paper Expo
Website
04-08 February
printpackipama.com
4
Packtech Today
Indiacorr Expo
2017
10-12, March
Paperexpo.in
N Printech & N
3
Date
2017
28-30 April
www.nprintech.com
2017
14-16, Sept
www.indiacorrexpo.com
2017
Cycle/
Frequency
Once in two
Noida
years
(February)
Annually
Ahmedabad (March or
April)
Annually
Chennai
(April)
Venue
Annually
Noida
or October)
01-04
5
Paperex
india.paperex-expo.com
November
New Delhi
2017
11-13
Paperex South
6
India
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southindia.paperex.in
November
2017
(September
Chennai
Annually
(November)
Annually
(November)
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Appendix
Indicative Average Annual Household Income in India
During FY*1 2015, there were around 55 million Indian households*2 in the middle-class category
(households with annual incomes of USD 10,000/- and above) with a total population of around 275
million, of which, only 5 million Indian households have annual income levels above USD 45,000/-. An
income pyramid representing the shift of income distribution in India (in terms of number of
households) is presented below.
Annual Income Levels
Millions of Households
Above USD
45,000
5
USD 15,000 - USD
45,000
20
USD 10,000 - USD 15,000
30
Between USD 7,500- USD
10,000
35
Between USD 5,000- USD 7,500
60
Between USD 2,500- USD 5,000
80
Below USD 2,500
40
Source: T&A research
The per capita income (at current prices) during 2015-16 was estimated at around USD 1,425/with a growth rate of 7.4 percent on year-on-year basis
Source: T&A research
This number of households in the middle-class category is expected to reach 100 million by 2020.
* 1 FY- Financial Year or Fiscal year is the period starting from 1st April 20xx to 31st March 20xx
*2 Indian Household- An average Indian household is assumed to have 5 people
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