The number of daily published newspapers in India is more than any nation in the world. Apart from this, 20 out of 100 of the world’s most-renowned newspapers are Indian. According to the Registrar for Newspapers in India, approximately 1,05,443 registered newspapers were published in 11 different languages in 2015. Constantly increasing population and rising literacy rates drive the demand for newspapers in India. However, the increasing newspaper demand trend in India contradicts the gradually declining global demand trend.
This is attributed to the comparatively lower penetration and adoption of digital media, rising literacy rates amongst all the states, and availability of newspapers in local languages. Literacy rates in India are rising every year owing to the availability of better education facilities and several government initiatives regarding free education. The growing dependence of the literate population on newspapers due to the scarcity of electric supply in many cities and towns in India is projected to support the growth of the GSM paper market during the forecast period.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The rising demand for GSM paper for medicine packaging is projected to bolster the growth of India’s paper market. The Indian pharmaceutical market is proliferating due to a large patient base, low manufacturing costs, entry of international players, and the prominent presence of healthcare companies. Apart from this, the government has taken many initiatives for providing free medical services and medicines, which propels the demand for GSM paper from medicine packaging applications.
Top global players, including Johnson and Johnson, Hindustan Unilever, GlaxoSmithKline, Pfizer, Sun Pharmaceutical Industries Ltd., and Merck and Co., among others, have a strong presence. In December 2018, Hindustan Unilever Limited announced a merger with GlaxoSmithKline for the distribution of consumer healthcare brands such as Horlicks, Maltova Boost, and oral healthcare brands such as Crocin, Eno, and Sensodyne. This merger would drive the demand for GSM paper further, as 30–60 GSM paper is used in the printing of pharmaceutical inserts, boxes, and leaflets. However, stringent government regulations have restricted the use of paper for work-related documents in India to avoid the excessive cutting of trees and improve data management. Along with this, the government is supporting other initiatives such as the clean India initiative by restricting the use of paper.
From 2014, the digital India program has been focusing on the digitalization of all forms of work-related documents. This initiation is supporting the country to improve basic government services at a high pace. Restricted use of paper in India has adversely affected market growth in the last few years and is likely to continue the same way in the coming years.
Based on the Region, the market is segmented into West, East, North, South, and Central. In India, most of the paper mills are concentrated in Andhra Pradesh, Tamil Nadu, Maharashtra, Punjab, Madhya Pradesh, West Bengal, and Gujarat. The Indian paper production industry is strongly supported by farming, as raw materials required for paper production are obtained from various agricultural practices. This allows paper manufacturers to have easy access to primary raw materials such as wood and wastepaper.
The 30–60 GSM segment is expected to grow at the highest CAGR during the forecast period on account of increasing demand for food wrapping, packaging, and printing paper. Printing and writing is the largest consumer of paper and includes all types of papers used for magazines, catalogs, books, commercial printing, business forms, stationeries, copying, and digital printing.
Prominent players in India’s paper market include
Some of the prominent players in the Indian paper market are generating high revenue, maintaining wealthy brand equity for products, witnessing less volatility in demand, and performing rigorous research and development activities. ITC Limited is one of the leading manufacturers and sellers of paper products in India, owing to its diverse product portfolio. The company dominates the value-added paperboards market and is also focusing on expanding the specialty paper portfolio by launching new grades of products to meet customer needs.
The FMCG business segment of the company is raising intersegment sales and strengthening the footprint in volatile market conditions. For instance, the writing and printing paper segment of the company is expected to continue growing by leveraging a strong forward linkage of the company’s education and stationery product segment. In 2017, the Paperkraft range of notebooks business scaled up using Forest Stewardship Council (FSC) certified paper manufactured at the company’s plant, which further contributed to the overall revenue.
An extensive network of 10 depots and 4 regional marketing offices, 188 wholesalers, and approximately 4,000 dealers are strengthening the market position of J K Paper. The company is the second leading player in India and is a leading provider of copier paper, coated paper, and packaging board paper. JK Paper has a large production capacity of 4,55,000 MT per annum. Moreover, in the year 2017–18, it reported the highest ever sale and profit due to its considerable investment in technology for improving the manufacturing process. For instance, in 2013, JK Paper invested approximately USD 291 million in modernizing and expanding its unit. In 2018, the company cross rate manufacturing capacity viz. 105% in Unit JKPM and 103% in Unit CPM.
Despite the challenging second half of 2017, Century Pulp and Paper achieved year-on-year growth of 5%–7% in terms of sales volume and revenue. This was achieved through a strong and effective dealer network in the country that indirectly enhanced product awareness and increased revenue. Moreover, the company has adopted product development and the launch of new value-added and quality products to target a new customer base and achieve a synergistic effect. Furthermore, extensive product portfolio and sufficient product availability in the market are helping the company in retaining existing customers, whilst also attracting new customers.