Raw material sourcing biggest challenge for paper industry

The biggest challenge faced by the Indian paper industry is the uncertainty regarding the availability of uniform raw material, according to K S Kasi Vishwanathan, president, Indian Pulp and Paper Technical Association (IPPTA).

He was addressing mediapersons at the curtain-raiser of IPPTA's annual general meeting and seminar on 'Eco Friendly Technologies for Pulp and Paper Industry' to be held on February 26-27 in Chennai.

Vishwanathan pointed out that the issue of uncertainty over raw material availability is the major reason for large overseas players in the paper industry not entering India.

Raw material for making paper in India is sourced from wood, waste paper and agro residues, each one of them contributes 33.3 per cent of the total. However, world over wood accounts for 50 per cent of the raw material while waste paper accounts for 40 to 45 per cent and agro residues the remaining.

While India largely imports waste paper from the US and Europe, the sustainable option would be to develop extensive plantations in rural areas, he added. By developing plantations for solid raw material base, it also creates huge employment opportunities in the rural and semi urban areas.

The absence of scale in production is another challenge the industry has to deal with. The Indian paper industry is highly fragmented with capacities ranging from less than 10 tonnes to 600 tonnes a day. Currently there are about 450 paper mills operating in the country.

In comparison, paper mills in Indonesia, Brazil, Scandinavia and the US have a capacity range of 300 to 3,000 tonnes a day.

The objectives of IPPTA are to create awareness about the rapid changes in technologies happening the world over so to improve productivity and quality, and to promote the spirit of fraternity among its members in order to improve professional efficacy. V Krishnamurthy, chairman, National Manufacturing Competitiveness Council, will be the guest of honour for the conference.

N Gopalaratnam, chairman and managing director, Seshasayee Paper & Boards, will deliver the keynote address.