India Paper & Paper Products Industry Report - H2, 2013

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India Paper & Paper Products Industry Report - H2, 2013

This report profiles the paper and paper products industry in India, reviewing market trends and outlook and providing a snapshot of the leading companies in the sector, among them Ballarpur Industries, Tamil Nadu Newsprint and Paper, and Rainbow Papers.

While demand for paper remained subdued in the developed world during 2009–12, the Indian paper and paper products sector witnessed rapid growth. The sector saw consistent growth in consumption, in turn increasing production. This trend motivated the paper manufacturers in the country to move forward with capacity expansion and growth plans.

Following rapid consumption growth during 2008–2012, the Indian paper industry experienced a lull in FY13; for that matter, most sectors of the Indian economy experienced a slowdown during this period. The sector witnessed a marginal recovery in FY14. High inflation was a deterrent for consumption. Furthermore, rising debt levels forced the players in the industry to rethink their growth strategy. However, the long-term outlook for the Indian paper sector is stable because of existing low per capita paper consumption, rising literacy rate, and a young population. Government support and technology upgrades bode well for the sector.

Key Points:

• This report provides key statistics and financial highlights for the following leading firms in sector: Ballarpur Industries Limited (BILT), Tamil Nadu Newsprint and Papers Limited (TNNPL), and Rainbow Papers Limited.

• During 2009–2013, the value of paper and paper products production of Indian companies grew at a CAGR of 11%. After recording a peak y/y increase of 34.5% in FY11, the sector saw subdued growth in the last two years.

• India experienced rapid growth in annual consumption of paper and paper products during 2006–2011, which grew at a CAGR of 9.3%, much higher than the average global growth rate of around 3%. However, after peaking in FY11, the demand decelerated during FY12 and FY13.

• India was the 15th-largest consumer of paper as of FY13. However, per capita consumption of paper in India was extremely low compared to other developed countries. India consumed less than 2% of the world’s paper production as of FY13, a low figure for a country with 15% of the world’s population.

• The paper and paper products sector constitutes about 1% of industrial output represented by the Index of Industrial Production and grew at a CAGR of 4.2% during fiscal years 2007–2012. The paper sector was affected by the economic slowdown and recorded a growth of 0.5% in FY13 and 1% in 1HFY14, which was much lower than its historic growth rates.

Table of Contents

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators—India
2.2 Production trends
2.3 Installed capacity
2.4 Consumption trends
2.5 Paper imports
2.6 Paper exports
2.7 Paper prices
2.8 Raw materials
2.9 Industry forecast

3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 Ballarpur Industries Limited (BILT)
3.1.2 Tamil Nadu Newsprint and Paper Limited (TNNPL)
3.1.3 Rainbow Papers Limited (RPL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables & Charts

Table 1: Fiscal relief measures suggested by working group on paper sector
Table 2: Recent capacity additions by major paper companies
Table 3: Key financial ratios of leading players
Table 4: Market multiples of leading players

Chart 1: Production of paper and paper products in India
Chart 2: Share of Indian paper and paper products in global production
Chart 3: Indian paper production breakdown by type of raw material
Chart 4: Total production output of Indian paper and paper product companies
Chart 5: Share of sector segments by value
Chart 6: Cumulative FDI in paper sector in India
Chart 7: Share of Indian paper companies by installed capacity
Chart 8: Current account deficit and fiscal deficit
Chart 9: Indian literacy rate according to census
Chart 10: Quarterly GDP growth rate—India
Chart 11: Average Monthly USD to INR Exchange Rate
Chart 12: Inflation during FY14—India
Chart 13: Y/Y change in Index of industrial production
Chart 14: Annual production of paper in India
Chart 15: Y/Y change in index of production by segments
Chart 16: Installed capacity for paper production in India
Chart 17: Total consumption of paper and paper products in India
Chart 18: Ratio of paper and paper products demand to supply and capacity
Chart 19: Annual paper import in India
Chart 20: Total value of paper and paper products import in India
Chart 21: Annual paper and paper product exports from India
Chart 22: Trade deficit in the paper and paper products sector
Chart 23: Monthly wholesale price index—Printing and writing paper
Chart 24: Monthly wholesale price index—Newsprint
Chart 25: Monthly wholesale price index—Coal
Chart 26: Monthly wholesale price index—Pulp
Chart 27: Monthly wholesale price index—Bagasse
Chart 28: Pulp and waste paper—Imports
Chart 29: Forecast for paper consumption in India
Chart 30: Breakup of BILT’s revenue by segments
Chart 31: Total revenues of BILT
Chart 32: Profit margins of BILT
Chart 33: Breakup of TNNPL’s revenue by segments
Chart 34: Total revenues of TNNPL
Chart 35: Profit margins of TNNPL
Chart 36: Revenue breakup of RPL
Chart 37: Total revenues of RPL
Chart 38: Profit margins of RPL

Number of pages: 31
Release Date: Mon, 20 Jan 2014