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Paper straws held together by adhesives.

Re-imagine and Re-invent the Indian paper converting market!

Posted 12/19/2018 by Harsh Gupta, Regional General Manager for the IMEE Region

A dynamic and growing market

The Indian paper industry has witnessed a dramatic increase in domestic demand from 9.3 million tons in 2008 to 17.1 million tons in 2018, and it is projected to increase to 20.8 million tons by 2021 with growth expected in all segments. The packaging paper and board segment is projected to grow at 8.9 percent to reach 11.1 million tons by 2021, while the printing industry is expected to show a growth rate of 4.5 percent, reaching 5.8 million tons.

This substantial change has been triggered by several factors, such as improvement in the education sector, demand for better packaging, increase in consumption of ready-to-eat products, rising disposable incomes, and growing e-commerce industry. Did you know that the growth of the e-commerce industry in India, at a whopping 51 percent is the highest in the world? Its revenue contribution is expected to grow from USD $39 billion in 2017 to USD $120 billion by 2020, boosting the growth of many related industries.

Another win for the paper industry is that the domestic paper mills are reported to have achieved 95 percent capacity utilization, a huge achievement in the face of a number of major challenges that have been further worsened by the steep devaluation of the Indian rupee (INR) and the increase in fuel prices.

So, despite these robust numbers, there remain challenges facing the industry, and these might be discouraging for converters in the region.

What needs re-thinking …

Now is the time to understand where you can make a difference and bring in the right changes. Have you thought about your challenges lately? Let’s take a look.

There is fierce competition from imported products offered at substantially reduced prices, due in part to low, concessional import duties. In addition, the cost of raw materials and energy continues to rise. Energy usage requirements and regulations continue to evolve. And, the hike in the clean environment tax on coal utilization in paper manufacturing, has had significant impact on domestic paper manufacturing capacity. These are areas where the industry is actively engaged with the government for bringing about necessary changes.

Time to re-imagine

The ban on plastics and subsequent move towards a cleaner environment is good for the paper converting industry. Paper and paper board products are attractive and clean alternatives to plastic. It is time to think beyond conventional substitutions, and explore new areas, such as paper straws or water-resistant, paper-based packaging.

Have you thought about adding starch additives to increase water resistance or improving technology to drive efficiencies in your production process and energy usage, to increase output, and to improve overall productivity? Are you collaborating with strong partners who can help you innovate for the future?

Packaging team for H.B. Fuller in India.

H.B. Fuller, your collaborative partners in innovation!

You need a partner with technical expertise that understands your product and processes, and can provide innovative solutions to help enhance performance and quality, while also increasing operational efficiency. Since 1887, H.B. Fuller has been a leading global adhesive provider, with proven commitment to innovation. We place at your disposal our team of technical experts, our state-of-the-art ISO 9001:2015 compliant manufacturing facility in Pune and our global network of R&D laboratories.

Meet our team of experts at the upcoming Printpack India 2019, and discover our wide range of market proven adhesives and other innovative solutions for all your paper converting needs. Visit us at booth F-7 in Hall 9 to leverage our global expertise and local resources to re-imagine and re-invent your future.

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