Golden times for domestic paper mills as they hit 95% capacity utilisation

Domestic paper mills have achieved 95 per cent capacity utilisation of their installed plant and machinery. Despite increasing raw material prices, including pulp in the international markets and chemicals locally, domestic paper mills have been able to pass on the higher cost of production to consumers.  Rising local demand of writing and printing, newsprint and all other varieties of paper have yielded improved top line and bottom line for the paper mills. The depreciating rupee, however, has made imports costlier.

The country’s paper production has ramped up over the last few years. Ban on plastics has helped see a spurt in demand of paper bags and many mills in the unorganised sector have been revived to make them operational. Data compiled by apex industry body the Indian Paper Mills Association (IPMA) shows a sharp increase in the output of its member mills, which represent around a third of the country’s total production capacity.