Overview of Indian Paper Industry ppt

Presented by Dr. R.M.Mathur CPPRI Central Pulp & Paper Research Institute Saharanpur, U.P., INDIA Overview of Indian Paper Industry 1 PAPER INDUSTRY AT A GLANCE ¾Total number of Pulp & Paper Mills 666 Wood Based 34 Agro Based 165 Recycled Fiber Based Mills 467 ¾Pulp & Paper Mills in Operation 568 ¾Pulp & Paper Mills Closed 98 ¾Installed Capacity of Mills 9.5 million tonnes ¾Per-capita consumption 7.0 kg (Paper & Paperboard) ¾Production 6.5 million tonnes – P&B 0.9 million tonnes - Newsprint ¾Turnover Rs. 16000 crore ¾Exchequer Rs. 2500 crore ¾Employment Direct-3 Lakh / Indirect-10 Lakh The industry is fragmented with capacities ranging from 2 to 800 tonnes per day 2 GROWTH OF PAPER INDUSTRY … Contd… Paper capacity and production in India 1950-2006 0 2 4 6 8 10 1950 1960 1970 1980 1990 2000 2005 2006 Million Tonnes Capacity Production Nearly 1. 25million tones of capacity is closed ¾ Technological obsolescence ¾ Environmental issues Reasons for Closed Capacities Nearly 194 mills under the purview of the Board of Industrial and Financial Reconstruction (BIFR) and nearly 60 mills (with a capacity of 1,25 million tonnes is closed). With the implementation of ECF norms expected to involve higher cash outlays, the viability of smaller plants is an area of concern. High level of sickness in the industry 4 STRUCTURE OF PAPER INDUSTRY 34 165 467 0 100 200 300 400 500 Wood Based Mills Non Wood Based Mills RCF Based Mills Categorization of the Mills Based on Cellulosic Raw Materials Number of Mills 5 Structure of Paper Industry Paper Copier Coated Kraft DuplexMaplitho Creamwove Newsprint Paper & paper Board Writing & printing paper Industrial Paper Grey and white board and MG poster 6 Percent Share of products Indian Paper Industry 6.5 Million Tonnes Speciality Paper (4%) Coated (18.47%) Kraft (54.02%) Duplex (28.26%) Others (17.72%) Creamw ove (55.0%) Maplith o(inclb copier) (26.53%) Industrial Paper (58.1%) Writing Printing paper (37.9%) 7 Fiber Resources and their Availability Fiber Resource Sources of Resources Production Million Tonnes Proportion in Production (%) No. of Mills Proportion of Mills (%) Wood Eucalyptus, Coniferous and other broad leaves 2.08 32.0 34.0 5.1 Agri residues Bagasse, rice and wheat straw, cotton stalks, etc. 1.95 30.0 165.0 24.7 Waste paper Domestic and imported waste 2.41 38.0 467.0 70.2 Source: Federation of Paper Traders Association of India 8 PER CAPITA CONSUMPTION While India accounts for nearly 15 per cent of the world population, it consumes only 1 per cent of the world paper production. India.s per capita consumption of paper at about 7kgs is very low as compared to the world average of 50 kgs. Consumption Per Kgs 324 202 98 32 29 24 24 6 0 50 100 150 200 250 300 350 US A E U Ma l a y sia Th a ila n d China In d o n e s ia A sia I n d ia Kgs. 7 DEMAND & SUPPLY SCENARIO [...].. .Paper Industry to witness firm Demand Demand for paper industry is closely linked to the economic growth of a country The paper industry has grown at a steady 6.0 per cent over the last few years and it is expected to grow by 6.6 per cent over the next 2-3 years The increase in demand will stem from faster growing varieties of paper -coated paper, copier paper and duplex boards... STATUS Obsolescence of technology in most cases Lack of eco friendly state of the art processing technologies Uneconomic scale of operation In an international comparison, even the largest machines are mediumsize − The average capacity of paper machines is about 14000 t/a − Most of Indian paper machines have a trim width from 1.5 to 3.5 m − There are only 9 paper machines with trim width of 5 m or more... Australia Source : ICRA report to IPMA : 2000 19 Indian Paper Industry in Global Perspectives… Contd… World Paper & Board consumption is dominated by three major regional blocks- North America, Western Europe & Asia The Paper & Board and Newsprint production in India is nearly 7.5 million tons as against world paper production of 340 million tons PERCENTAGE OF WORLD PAPER PRODUCTION Europe, Rest, 9.0% 28.0%... 8741 9281 9840 6.6 11 Writing and printing paper Coated Paper Industrial Paper RECYCLED FIBRE - RECOVERY & RECYCLING Import of waste paper is continuously increasing At present more than 80% of consumption is met through imports 8 Million tons 6 4 2 0 1995 2000 Recovery 2005 Imports 2010 Consumption 12 COSTS AND PRICES Cost Structure The main costs for a paper manufacturer are raw materials and energy... SECTOR As compared to USA, Europe, the paper industry in India is far below the quality standards of the products It is not as competitive as in other Asian countries such as ; Japan, Indonesia, Thailand, Malaysia & China The paper industry in India is less competitive as compared to similar sectors such as; cement and capital goods The possible reasons which makes paper industry less competitive compared... 30 40 Miscellaneous/unaccounted/loss es 0.00 1.10 30 110 Total consumption 5.45 9.00 750 1300 Source: CPPRI n.a : Not applicable 17 INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES India is among the top fifteen global producers Paper & Board Capacity (2000) US China Japan Canada Germ any Finland France Korea Sw eeden Indonesia Brazil Russia United Kingdom Taiw... It is not possible to have very high speed paper machine, i.e >1500 mpm for type of raw material available in India Similarly for adoption of new papermaking technology quality of raw material and mill size are the major limitations Except the wood based integrated mills and few agro/RCF mills the level of automation and process control is very low in most of the mills 25 TECHNOLOGICAL STATUS IN OTHER... Stock making 18 25 - 58 Recycling chemicals 16 - 44 - 33 Paper making 40 40 35 42 40 11 12 Note In India, only 55-58 per cent of energy is used and the balance (42-45 per cent) is wasted However, international plants use 76-78 per cent of energy and waste only 22-24 per cent Source: CRIS INFAC, Industry 16 Energy usage pattern: International vs Indian Paper Mills Bleached varieties Steam t/t International... America, 31.0% Asia, 30.4% Indian Paper Industry in Global Perspectives… Contd… CONSUMPTION OF BASIC INPUTS Input Norms Mills in India (Wood Based) Mills Abroad 2.0- 2.4 1.8-2.0 Energy, GJ 23-37 18-22 Water, m3 120-200 20-60 Chemical Recovery,% 85-95 95-98 Manpower, no 14-20 5-7 Technical manpower, no 2 4 Fibre Recovery, % 15 40 (per tonne basis) Raw material, tonnes 21 COMPETITIVENESS OF THE SECTOR As compared... costs for a paper manufacturer are raw materials and energy These two account for nearly 60-70 percent of net sales Chemicals 10% Raw materail cost 27% Overheads 32% Personnel cost 11% Power & fuel 20% 14 Indicative Cost Structures Indicative cost structure per tonne of paper (Rs.) Rs / tonne Percent of total cost 5000 27 Sodium sulphate 320 2 Lime 800 4 Chlorine 700 4 3750 20 11637 57 Personnel costs . & Paper Research Institute Saharanpur, U.P., INDIA Overview of Indian Paper Industry 1 PAPER INDUSTRY AT A GLANCE ¾Total number of Pulp & Paper. cash outlays, the viability of smaller plants is an area of concern. High level of sickness in the industry 4 STRUCTURE OF PAPER INDUSTRY 34 165 467 0 100 200 300 400 500 Wood