Indian Paper & Pulp Industry

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Your Trade & Investment Connection with India … T&A

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New Delhi 110019, India

www.insideindiatrade.com

Indian Paper & Pulp Industry

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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

FY

Fiscal Year, a period that a company or government uses for accounting purposes

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 by Type Paper production by Type

Pulp production 1,646 million tons

Paper production 1,040 million tons

Forest Productivity 70 m3/ha/year

Major Players Fibria, Suzano and Klabin

86%

11%3%

Hardwood Softwood High Yield Pulp

52%

25%

11%

7% 1%

4%

Packaging & wrapping Printing & Writing

Tissue Cardboard

Newsprint 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.

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%.

Country Product Exported

Europe Pulp

China Pulp

United States Pulp, Paper, wood panels

Argentina Paper

Others Pulp, Paper, wood panels

000 Tonnes Imports Domestic

production Exports

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

USA, Canada,

Argentina, Finland,

Germany

- China, Japan, USA, Portugal

and Turkey

39%

28%

24%

6% 3%

Europe China United States Argentina Others

Major Export Destinations

Source: T&A research

Source: Industry Report (www.business-

sweden.se/globalassets/factpack_pulppaper_20160621.pdf)

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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:

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.

▪ 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

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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

(CAGR)

6%

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


India does not have an industry-friendly

forestry policy and so mills cannot get an

access to forest land, and they are not even

allowed to use a part of the huge track of

wasteland for growing trees. As availability

of forest-based raw material such as wood

and bamboo, in India is rather limited, pulp

and paper companies have to depend on

imported pulp. The companies in India have

also started importing wood chips in addition

to waste paper.

76%

17%

7%

Forest Ownership (State vs Private)

Government Administered

Community Administered

Individual/Firm Administered

Source: United Nations Forum on Forests, 2012

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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.


Projected Growth 2016-17

(Million Tonnes)

2026-27

(Million tonnes)

Paper consumption 16.5 25.3

Paper Production 16.7 39.7

Import (mostly newsprint) 1.7 4.3

Growth

Projection

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.

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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 above-

mentioned states. However apart from the above-

mentioned 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 Domestic Market Size

(Metric Tonnes)

Growth rate

(%)

1. Newsprint 2,500,000 2.33

2 Writing & Printing 4,600,000 4.98

3. Packaging paper & Board 7,500,000 9.42

4. Tissue 100,000 16.63

5. Poster 200,000 1.83

6. Other Paper 200,000 8.00


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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 e-

commerce 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).


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.



*a brief description of India’s average annual household income is provided as an Appendix at the end of the report.

9.553.43

110

45.67

0

20

40

60

80

100

120

Jan-March 2015 April to June 2015 July to Sept 2015 Oct - Dec 2015

FDI in Paper & Pulp - USD Million

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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:

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

Availability of raw material at higher price

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

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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.


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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

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Mentioned below are 20 major Indian companies shortlisted based on the production capacity:

S.

No Company Website

Production Capacity

(TPA) Location

1 The Ballarpur Group www.bilt.com 8,00,000 to

10,000,000 Gurgaon

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

5 The West Coast

Paper Mills www.westcoastpaper.com 3,25,000 Bangalore

6 Rainbow Papers Ltd. www.rainbowpapers.com 3,05,000 Ahmedabad

7 Century Pulp &

Paper www.centurypaperindia.com 3,00,000 Nainital, Uttaranchal

8 Orient Paper Mills www.orientpaperindia.com 3,00,000 Kolkata

9

Tamil Nadu

Newsprint & Paper

Ltd.

www.tnpl.com 2,45,000 Chennai

10 Hindustan Paper

Corporation Limited www.hindpaper.in 2,33,000 New Delhi

11 Trident www.tridentindia.com 1,75,000 Sanghera (Punjab)

12 NR Agarwal

Industries Ltd www.nrail.com 1,70,000 Mumbai

13 Emami Paper Mills

Limited www.emamipaper.in 1,45,000 Kolkata

14 Sree Rama

Newsprint www.ramanewsprint.com 1,44,000 Mumbai

15 The Sirpur Paper

Mills www.sirpurpaper.com 1,38,000 Gurgaon

16 Laxmi Board and

Paper Mills Ltd www.laxmipaper.com 1,20,000 Mumbai

17 Seshasayee Paper &

Boards Limited www.spbltd.com 1,15,000 Erode

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18 The Mysore Paper

Mills Ltd. www.mpm.co.in 1,05,000 Bangalore

19 Hindustan

Newsprint Ltd www.hnlonline.com 1,00,000 Kottayam(Kerala)

20 KR Pulp and paper

Limited 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 Foreign Company Acquired Company Mode of Entry

Acquiring Business

Segment

1 International Paper Andhra Pradesh Paper

Mills Acquisition Packaging

2 Huhtamaki - PPL

Positive Packaging

Webtech Labels Private

Ltd.

Valpack Solutions Pvt.

Ltd.

Acquisition Flexible Packaging

3 Asia Pulp & Paper

Group

APP India Traders PVT.

LTD Branch office

Tissue, Packaging and

Paper

4 MeadWestvaco

Corporation (MWV) Ruby Macons Acquisition

Corrugated

Packaging

5 Oji Holdings

Corporation Oji JK Packaging Pvt Ltd

Manufacturing

Plant

Manufacturing and

sales of corrugated

box, corrugated

sheet board, paper

pallets etc.

6 UPM Paper Anika International Pvt.

Ltd. Distributor

Publication Paper

(magazines,

newspaper etc)

7 Stora Enso OYJ - Branch Office

Paper, Packaging,

Wood Products and

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 Plus Paper Foodpac Pvt.

Ltd Acquisition Paper Container

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11 Kondopoga Newsprint

Paper Prashanthi Agencies Distributor Newsprint

12 Mondi Papers

- Excel Enterprises

- Shah Devji Shivji &

Co.

Distributor Office & Professional

Printing Paper

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2.2 Current Status – Import Dependence

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

23

7

4

2055

7

28

Country Wise Imports % in FY 2015

China Indonesia S. Korea USA Germany

Sweden Finland Others

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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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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.

Restricted Items

•Can be imported only after

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

Canalized Items

•The items which can only be

imported using specific

methods or procedures of

transport.

•These goods can be

imported only through

canalizing agencies.

•Petroleum based products

are mostly canalized items

Prohibited Items

•These goods are strictly

prohibited from being

imported to India.

•Some examples of such

items include: wild animals,

unprocessed ivory, etc

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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:

2013 2014 2015

Exports 159 4,707 10,932

Imports 1,370,354 1,656,701 1,608,822

99%99%99%99%

100%100%100%

Pulp Import Export Trend

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 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”.

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

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Paper and Pulp Imports

Pulp Imports Paper Products Import


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The detailed segmentation of the imports for these products is as charted below:

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

Packaging & Paper Board 48%News Print

47%

Printing & Writing 3%

Others 2%

Paper Products Import Bifurcation

Products Packaging & Paper Board News Print Printing & Writing Others

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

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Paper Products: Import Export Trend

Exports (USD '000s) Imports (USD '000s)



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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: 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 the “Others” category.

A bifurcation of the paper product imports, country-wise is as follows:

China14%

Korea11%

USA10%

Russia8%

Canada7%

Indonesia5%

Sweden5%

Italy4%

Germany4%

Others32%

Paper Products - Import: Country-wise

China Korea USA Russia Canada Indonesia Sweden Italy Germany Others


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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.


USA29%

South Africa10%

Canada10%Sweden

8%

Indonesia7%

UAE5%

Chile4%

UK3%

Saudi Arab2%

Sri Lanka2%

Others20%

Pulp Import - Country wise

USA South Africa Canada Sweden Indonesia UAE Chile UK Saudi Arab Sri Lanka Others

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3.3 Share in India’s Total Foreign Trade

Pulp

Paper Products

Source: Ministry of Commerce

Imports in FY 2015-16:

USD 1,608 Million

Exports in FY 2015-16:

USD 10.9 Million

Imports in FY 2015-16:

USD 2,424 Million

Exports in FY 2015-16:

USD 1,127 Million

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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 Description Basic

Duty CVD

Special

CVD

E & SHE

Cess

Total Import

Duty (%)

4801

Newsprint as specified in Note 4 to

chapter 48, in rolls of a width > 36

cm or in square or otherwise

10 0 4 3 14.86

4802

Uncoated paper and paperboard,

of a kind used for writing, printing

or other graphic purposes

10 6 4 3 21.93

4803

Toilet or facial tissue stock, towel

or napkin stock and similar paper

for household or sanitary

10 12.5 4 3 29.58

4804

Uncoated kraft paper and

paperboard, in rolls of a width > 36

cm or in square or rectangular

10 6 4 3 21.93

4805

Other paper and paperboard,

uncoated, in rolls of a width > 36

cm or in square or rectangular

10 6 4 3 21.93

4806

Vegetable parchment,

greaseproof papers, tracing

papers and glassine and other

glazed transparent

10 12.5 4 3 29.58

4807

Composite paper and paperboard

"made by sticking flat layers of

paper or paperboard together

10 6 4 3 21.93

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4808

Corrugated paper and paperboard

"with or without glued flat surface

sheets", creped, crinkled

10 12.5 4 3 29.59

4809

Carbon paper, self-copy paper and

other copying or transfer papers,

including coated or impregnated

10 12.5 4 3 29.59

4810

Paper and paperboard, coated on

one or both sides with kaolin

"China clay" or other inorganic

10 6 4 3 21.93

4811

Paper, paperboard, cellulose

wadding and webs of cellulose

fibres, coated, impregnated,

covered

10 12.5 4 3 29.59

4813 Filter blocks, slabs and plates, of

paper pulp 10 12.5 4 3 29.59

4814

Cigarette paper, whether or not

cut to size or in the form of

booklets or tubes

10 12.5 4 3 29.59

4816

Wallpaper and similar

wallcoverings of paper; window

transparencies of paper

10 12.5 4 3 29.59

4817

Carbon paper, self-copy paper and

other copying or transfer papers,

in rolls of a particular width

10 6 4 3 21.93

4818

Envelopes, letter cards, plain

postcards and correspondence

cards, of paper or paperboard

10 12.5 4 3 29.59

4819

Toilet paper and similar paper,

cellulose wadding or webs of

cellulose fibres, of a kind used

10 12.5 4 3 29.59

4820

Cartons, boxes, cases, bags and

other packing containers, of

paper, paperboard, cellulose

wadding

10 12.5 4 3 29.59

4821 Registers, account books,

notebooks, order books, receipt 10 12.5 4 3 29.59

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books, letter pads, memorandum

pads

4822 Paper or paperboard labels of all

kinds, whether or not printed 10 12.5 4 3 29.59

4823

Bobbins, spools, cops and similar

supports of paper pulp, paper or

paperboard, whether or not

10 12.5 4 3 29.59

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 Description

Basic

Duty CVD

Special

CVD

E & SHE

Cess

Total Import

Duty

47 Pulp of wood or of other fibrous

cellulosic material 5 6 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 August

Koehler Ag 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 Medium Potential Low Potential

Packaging &

Wrapping ✓

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

http://www.kctpaper.com/

http://www.ngpl.in/

http://www.sumpapindia.com/

http://www.shreepaper.com/

http://www.anandpulp.com/

http://www.maimoonimpex.com/

http://www.millionindia.com/

http://www.bjbhandaripapers.com/

http://www.sunfinepapers.com/

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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. No

Name of the Event

Website Date Venue Cycle/ Frequency

1 Printpack India printpackipama.com 04-08 February

2017 Noida

Once in two years (February)

2 Paper Expo Paperexpo.in 10-12, March

2017 Ahmedabad

Annually (March or April)

3 N Printech & N

Packtech Today www.nprintech.com

28-30 April

2017 Chennai

Annually

(April)

4 Indiacorr Expo www.indiacorrexpo.com 14-16, Sept

2017 Noida

Annually

(September

or October)

5 Paperex india.paperex-expo.com

01-04

November

2017

New Delhi Annually

(November)

6 Paperex South

India southindia.paperex.in

11-13

November

2017

Chennai 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.


This number of households in the middle-class category is expected to reach 100 million by 2020.

5

20

30

35

60

80

40

Above USD 45,000

USD 15,000 - USD 45,000

USD 10,000 - USD 15,000

Between USD 7,500- USD 10,000



Below USD 2,500

* 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

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


Annual Income Levels

Millions of Households

Indian Paper & Pulp Industry

Documents