Indian Paper Industry The Indian Paper Industry - Not out of the woods yet India is the fastest growing paper market in the world, growing at a CAGR of 6.7% over FY06-11. Indian paper industry demand is closely linked to economic activity as demand has grown at an average 0.9x multiple of GDP in the past 5 years. Indian Paper industry demand recovered strongly in FY11 compared to weak previous corresponding period (impacted by financial crisis) mainly due to government favourable excise policy, increased government spending on education and improved activity from service, print media, FMCG, consumer durables and pharmaceutical sector. http://www.bharatbook.com/detail.asp?id=205295&rt=Indian-Paper-Industry.html India paper industry is broadly classified into three segments – namely Printing & Writing (P&W), Newsprint and Paperboard & Industrial Packaging (Paperboard). Paperboard is the largest segment, accounting for 45% of total domestic paper demand, followed by P&W (35%) and Newsprint (20%). The industry is further categorized on the basis of raw-material used for manufacturing paper into forestbased (with a share of 21%), agro-based (23%) and recycled fibre-based paper (56%). While the industry demand outlook looks positive in the near-term, margin is expected to remain under pressure due to a) surge in raw-material costs and b) significant capacity additions in the recent past will limit domestic producers’ ability to pass on the full rise in raw-material cost to end consumers. However, slowdown in future capacity additions and positive demand outlook will improve the industry demand supply equilibrium and increase the bargaining power of producers over the medium term. CARE Research study indicates that many paper companies have abandoned/temporarily deferred their paper capacity expansion plan on account of funding issues, significant increase in domestic supply due to recent capacity additions, delay in procuring environmental clearances, etc. For more information kindly visit : http://www.bharatbook.com/detail.asp?id=205295&rt=Indian-Paper-Industry.html Or Contact us at : Bharat Book Bureau Tel: +91 22 27578668 Fax: +91 22 27579131 Email: info@bharatbook.com Website: www.bharatbook.com Follow us on twitter: http://twitter.com/#!/BharatBook
Related Articles -
India, paper, Industry, printing,
|