India Paper Industry
CONTENTS
Indian Paper Industry
Abstract 2
Introduction 3
Industry Analysis 3 Structure of the industry 3 Current paper market 3
SWOT Analysis 4
Economic Parameters 4
The demand supply 4
The cost structure 4
Cost competitive positioning 5
Focus on operating performance 5
Key Drivers 5 Change in Industry structure 5
Change in competitive conduct 5
Role of Central Government Purchasing 5
Impact of budget on paper industry 5
Forest policy main impacts 6
Emerging Global Issues 6
Summary 8
Appendix 1 9
Appendix 2 10
References 11 ABSTRACT
Indian paper industry is the 15th largest in the world and provides employment to 1.3mn people in the country contributing Rs25bn to the Government. The industry has recorded a volume growth of CAGR of 5.47% over the last 3 years. Indian paper industry has a 1:1 correlation with the economy. With the expected GDP growth of 6.9% for FY05 and 7-8% for FY06 as per RBI, the paper sector is expected to record a similar growth rate.
The domestic per capita consumption is the lowest at 6kg compared to the South Asian and the world average of 11kgs and 53kgs respectively. The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is estimated to be lower at 6.15mn tons.
The demand for paper is influenced by various macro-economic factors like national economic growth, industrial production, promotional expenditure, population growth and the Government's allocation for the educational sector. Domestic demand for paper is expected to grow at a CAGR of 6-7%. India's paper demand is expected to touch 8mn tpa by 2010. A leading global paper industry consultant projects a shortage of about 0.7mn tpa by 2010.
Capacity expansions (which cost 50% less than new capacities) have
Indian Paper Industry
Abstract 2
Introduction 3
Industry Analysis 3 Structure of the industry 3 Current paper market 3
SWOT Analysis 4
Economic Parameters 4
The demand supply 4
The cost structure 4
Cost competitive positioning 5
Focus on operating performance 5
Key Drivers 5 Change in Industry structure 5
Change in competitive conduct 5
Role of Central Government Purchasing 5
Impact of budget on paper industry 5
Forest policy main impacts 6
Emerging Global Issues 6
Summary 8
Appendix 1 9
Appendix 2 10
References 11 ABSTRACT
Indian paper industry is the 15th largest in the world and provides employment to 1.3mn people in the country contributing Rs25bn to the Government. The industry has recorded a volume growth of CAGR of 5.47% over the last 3 years. Indian paper industry has a 1:1 correlation with the economy. With the expected GDP growth of 6.9% for FY05 and 7-8% for FY06 as per RBI, the paper sector is expected to record a similar growth rate.
The domestic per capita consumption is the lowest at 6kg compared to the South Asian and the world average of 11kgs and 53kgs respectively. The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is estimated to be lower at 6.15mn tons.
The demand for paper is influenced by various macro-economic factors like national economic growth, industrial production, promotional expenditure, population growth and the Government's allocation for the educational sector. Domestic demand for paper is expected to grow at a CAGR of 6-7%. India's paper demand is expected to touch 8mn tpa by 2010. A leading global paper industry consultant projects a shortage of about 0.7mn tpa by 2010.
Capacity expansions (which cost 50% less than new capacities) have