Overview of Indian Paper Industry docx

Presented by Dr. T. K. Roy Director, 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 6.9 million tonnes ¾Per-capita consumption 6.0 kg (Paper & Paperboard) ¾Production 5.6 million tonnes – P&B 0.7 million tonnes - Newsprint ¾Turnover Rs. 16000 Crores ¾Exchequer Rs. 2500 Crores ¾Employment Direct-3 Lacs / Indirect-10 Lacs The industry is fragmented with capacities ranging from 2 to 800 tonnes per day 2 GROWTH OF PAPER INDUSTRY ¾ In the 1970s excise concessions were given to small agro based mills, which resulted in a rapid increase of small mills and capacity. ¾ In the late 1980s the industry was in a severe oversupply situation, capacity utilisation rates being around 60 %. ¾ In early 1990s the government reversed the policy, making large units more competitive (e.g. by removing excise concessions for agro based mills). ¾ First mill in the country was commissioned in 1812 in Serampur (W. Bengal). ¾ The initial development & growth of industry in the 19 th century was affected by shortage of wood (soft wood) in the country. ¾ In 1914 the development of pulp making processes based on bamboo lead to rapid growth of the industry and by the end of the 1950’s installed capacity increased to 137000 tonnes. 3 GROWTH OF PAPER INDUSTRY … Contd… Paper capacity and production in India 1950-2005 0.00 2.00 4.00 6.00 8.00 1950 1960 1970 1980 1990 2000 2005 Capacity Production Million tonnes Nearly 1.25 million tones of capacity is closed ¾ Technological obsolescence ¾ Environmental issues Reasons for Closed Capacities 5 Other varities 5% Industrial paper 55% Writing & printing grades 40% Writing & printing grades Industrial paper Other varities Total Paper and Paperboard demand in India CAGR of nearly 5.5% in the past 3 years. 6 Year Production Imports Exports Consumption 1995-96 3.81 0.42 0.09 4.14 1996-97 4.11 0.59 0.07 4.63 1997-98 4.58 0.65 0.06 5.17 1998-99 4.81 0.56 0.06 5.30 1999-00 5.5 0.55 0.10 6.1 2000-01 5.5 0.56 0.13 6.02 2001-02 5.57 0.56 0.29 5.98 2002-03 5.87 0.69 0.23 6.33 2003-04 6.24 1.01 0.23 7.0 2004-05 6.52 0.87 0.26 7.15 All figures in Million Tonnes Paper, Paperboard & Newsprint 7 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 8 PER CAPITA CONSUMPTION The per capita paper consumption in India is 6 kg compared to 324 kg in USA, 25 kg in Indonesia, 250 kg in Japan and 37 kg in China 0 50 100 150 200 250 300 350 P A K I S T A N INDI A L ATI N A ME RI CA EASTE R N E U R O PE IN D ON E S I A CH IN A WOR L D ( A v era ge WE STE R N E U R O P E JAPA N NORTH AMERI CA Per Capita Consumption Kg 9 FIBRE RESOURCES India is a fibre deficient country. Due to lack of wood resources, the paper industry is utilizing a wide verities of raw material for paper making ranging from forest based raw material to annual plant and recovered paper. Forest based Agro based Recycled fiber 7% 9% 84% 39% 31% 30% 34% 28% 38% 1970 2000 2005 [...]... Asia The Paper & Board production in India is nearly 5.5 million tons as against world paper production of 340 million tons India consumes nearly 5% of the Asian and 1.6% of the worlds consumption of paper and paper board PERCENTAGE OF WORLD PAPER PRODUCTION Europe, 28.0% India, 1.6% Rest, 9.0% North America, 31.0% Asia, 30.4% Indian Paper Industry in Global Perspectives… Contd… CONSUMPTION OF BASIC... include bagasse, straws Requirement by Paper Industry 7 4 Agro Residue 2003 2010 21 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 2003 Imports 2010 Consumption 22 INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES INDIAN PAPER INDUSTRY IN GLOBAL PERSPECTIVES India... 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 medium-size − 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... : Control of color and AOX discharge Control of release of Non Condensable Gases (NCG’s) Disposal of Solid waste viz Lime Sludge/Fly ash (CREP) for Paper Industry was introduced in the year 2003 by MoEF (CREP) to be complied by entire industry between 2005 to 2008 11 CREP – LARGE MILLS Environmental issues Implementation Schedule (from April 2003) Discharge of AOX kg/ tpaper AOX 1.5 kg/ tpaper within... Availability of good fibrous raw materials; (ii) Level of technology 27 INFRASTRUCTURE FACILITIES Lack of required infrastructure such as; roads transports, railways, communications and sustained power supply Main reason for lack of availability of desired infrastructure is Scattered location of paper mills Criteria for selection of site was raw material instead of infrastructure Ministry of Urban Development,... Compliance of standard of BOD, COD & Either achieve the discharge Standards AOX of BOD, COD & AOX by installation of chemical recovery system or utilization of black liquor with no discharge from pulp mill within 3 years or shift to waste paper Up-gradation of ETPs so as to meet Upgrade the ETP within one year so as to discharge standards achieve the discharge standards Waste water discharge/ tonne of paper. .. of paper Utilization irrigation of treated effluent Color Removal from the effluent < 150 m3/ tpaper within 3 years for Wherever possible IPMA to take up project with CPPRI 13 ISSUES BEFORE INDIAN PAPER INDUSTRY High cost of transportation and power Inferior pulp & paper quality Low scale of operation Low capacity utilisation High capital costs Issues & Challenges State of art equipment & machineries... Environmental issues High costs of raw materials Only 20% of the total used paper is recycled in India compared to a global recycling average of 40% 14 DEMAND & SUPPLY SCENARIO Projected Demand, Supply and Short fall of Paper & Paperboard 14 12 Demand Supply Shortfall 14.0 14.85 Demand Supply Growth @ 3.4%/annum 11.1 8.33 6.24 8.01 6.79 5.75 5.39 6 3.09 4 1.54 2 Paper Million Tonne Paper Million Tonne 8 Shortfall... COMPETITIVENESS OF THE 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 Indonesia, Thailand, Malaysia & China ; Japan, 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... AOX 1.0 kg/ tpaper in 5 years Installation of Lime Kiln Within 4 years Waste water discharge m3/ tpaper < 140 m3/ tpaper within 2 years < 120 m3/ tpaper within 4 years for units installed before 1992 < 100 m3/ tpaper for units installed after 1992 Odor Control by burning the reduced sulfur Installation of odor control system within 4 emissions in the boiler / lime kiln years Utilization of treated effluent . & Paper Research Institute Saharanpur, U.P., INDIA Overview of Indian Paper Industry 1 PAPER INDUSTRY AT A GLANCE ¾Total number of Pulp & Paper. rapid growth of the industry and by the end of the 1950’s installed capacity increased to 137000 tonnes. 3 GROWTH OF PAPER INDUSTRY … Contd… Paper capacity