Challenges of Growing Paper Industry in India.
Over the last decade, paper industry in western countries is experiencing unimpressive growth and it is expected to continue in future despite its economy improvement. Leading manufacturers in industry are gearing their thoughts to overcome these challenges to get strategic shift by focusing their development in eastern countries. The consolidated deals in Asian paper industry have risen from 25 percent to nearly 30 percent in 2012. This is an obvious indication that western industry is intending to capture their market in countries which are emerged. Among the targeted ones India is the major one where 75 percent of acquisitions have made in India particularly in APPM (Andhra Pradesh Paper Mills). Here we discuss about Indian paper industry by focusing on its changing trends and future viewpoint.
Most of the Indian mills are privately owned and few have running under the government of India. The capacity addition players in those are like Ballarpur and West Coast Tamil Nadu industry which resulted in CAGR (Continuous Annual Growth Rate). The estimation of paper consumption will reach nearly 15 million tons by 2015-16.
The paper industry in India is growing in a rapid speed with demand increment and opportunity creation and attraction to the international players. The forecasted demand of Indian paper is 10 million tons and 33 percent of this demand is for P&W papers. Even though India has covered 15% of population in world, the paper consumption levels stands at very low which is 3 to 5 percent. Poverty, literacy, corporate spending will be the factors behind this low level consumption. The leading global paper manufacturers are gaining nearly 5% on average and it stands at 8% approximately among Asia. However, for Indian market it is 12% or above which sounds very lucrative for Indian paper industry.
There should be impact on the printing paper industry in India which is significant but unfortunately in India it is less. The impact on pace on digital spending is very low in India and has much difference compared to other countries. If we consider segmentation in advertisements industry, 25% share is consumed by the printing sector and online advertising consumes 2% in India. That too it is not an older statistics it is industrial estimation for 2015.
The key challenges to be met is market conditions which are poor and technology obsolete, lacking ability in achieving economy scale and lack of skilled labor . Enabling a overall management and the holistic change which can incorporate a better standards for the organizational efficiency.