While India's paper industry quietly churns out over 23 million tonnes annually to power everything from e-commerce packaging to cultural exports, its 85% operating capacity reveals a sector in dynamic flux, strategically pivoting towards sustainability and packaging dominance.
Key Takeaways
- India's paper and paperboard production capacity stood at 27.75 million tonnes per annum (MTPA) as of FY2023, with utilisation at 85%
- In FY2022-23, total paper production in India reached 23.51 million tonnes, marking a 5.2% growth over FY2021-22
- Writing and printing paper production in India was 4.12 million tonnes in FY2022-23, accounting for 17.5% of total production
- India's paper consumption reached 26.2 million tonnes in FY2023, with per capita at 18 kg
- Packaging grades consumed 17.5 MT or 67% of total paper demand in FY2023
- Writing/printing paper demand fell to 4.8 MT in FY2023, down 3% due to digitalisation
- India's paper imports totalled 2.1 million tonnes valued at USD 1.8 billion in FY2023
- Paper exports from India reached 1.65 million tonnes worth USD 1.2 billion in FY2023, up 10% YoY
- Waste paper imports surged 22% to 1.75 MT in FY2023 for recycling
- India's paper industry market size reached INR 80,000 crore in FY2023
- Revenue growth of organised paper sector was 12% to INR 75,000 crore FY23
- EBITDA margins for top paper firms averaged 15% in FY2023, up from 12%
- Water usage per tonne of paper reduced to 120 KL in FY23 from 150 KL
- 65 Indian paper mills achieved zero liquid discharge certification by 2023
- Renewable energy usage in paper mills reached 45% of total power in FY2023
India's paper industry is growing robustly, driven by strong packaging demand and sustainable practices.
Consumption and Demand
- India's paper consumption reached 26.2 million tonnes in FY2023, with per capita at 18 kg
- Packaging grades consumed 17.5 MT or 67% of total paper demand in FY2023
- Writing/printing paper demand fell to 4.8 MT in FY2023, down 3% due to digitalisation
- Newsprint consumption dropped 15% to 0.38 MT in FY2023 amid online news shift
- Tissue paper demand surged 18% to 0.35 MT in FY2023, hygiene awareness post-COVID
- Specialty papers consumption grew 10% to 1.4 MT in FY2023
- Urban India accounts for 65% of total paper consumption, 17 kg per capita vs rural 5 kg
- E-commerce packaging demand drove 20% rise in corrugated box consumption to 10 MT in FY23
- India's paper demand CAGR projected at 7% to reach 35 MT by 2030
- Kraft paper demand was 7.2 MT in FY2023, up 11% YoY for FMCG
- Duplex board consumption at 4.5 MT in FY23, mainly pharma and food sectors
- Per capita paper consumption in India rose from 15 kg in 2020 to 18 kg in 2023
- Industrial packaging paper demand 12 MT in FY23, 46% of total
- Education sector paper use down 5% to 2.1 MT post-pandemic hybrid learning
- Hygienic paper products demand to grow at 12% CAGR to 0.6 MT by 2028
- Corrugated packaging consumption hit 9.8 MT in FY23, e-com boost
- Printing paper demand projected flat at 4.5 MT in FY24
- India's total paper demand grew 6.8% to 26.2 MT in FY23 from 24.5 MT FY22
- Food packaging paper demand 5.2 MT in FY23, up 14%
- Pharma packaging paper use 1.8 MT annually, rigid cartons dominant
- Rural paper consumption growth at 8% vs urban 5% in FY23
- Office stationery paper demand 1.2 MT, stable post-COVID
- Flexible packaging paperboard demand 2.5 MT in FY23
- Newspaper publishing paper consumption 0.35 MT FY23, down 18%
- Luxury packaging tissue demand up 25% to 0.05 MT in FY23
Consumption and Demand Interpretation
India's paper story is no longer written in print but packed in boxes, as the nation's 18 kilos per person now tell a tale of booming e-commerce parcels and hygienic tissues, politely waving goodbye to yesterday's newspapers and schoolbooks.
Exports and Imports
- India's paper imports totalled 2.1 million tonnes valued at USD 1.8 billion in FY2023
- Paper exports from India reached 1.65 million tonnes worth USD 1.2 billion in FY2023, up 10% YoY
- Waste paper imports surged 22% to 1.75 MT in FY2023 for recycling
- Top export destination for Indian paper is UAE with 0.25 MT in FY23
- USA imported 0.18 MT of Indian paper products in FY2023, mainly cultural/specialty
- China's share in India's paper imports was 25% or USD 450 million in FY23
- Kraft paper exports grew 15% to 0.45 MT valued at USD 350 million FY23
- India's paper trade deficit narrowed to USD 600 million in FY2023 from USD 800 mn FY22
- Tissue paper exports doubled to 0.02 MT in FY23
- Waste paper import duty reduced to 0% from 5% in Budget 2023, boosting volumes
- EU countries imported 0.12 MT Indian paper in FY23
- Indonesia supplied 0.3 MT pulp to India in FY23
- Cultural paper exports to Middle East rose 20% to USD 100 mn FY23
- India's paper export growth to Bangladesh was 25% YoY to 0.1 MT FY23
- Pulp imports totalled 0.45 MT valued USD 400 mn in FY2023
- Saudi Arabia imported 0.08 MT Indian duplex board FY23
- Anti-dumping duty imposed on Chinese coated paper imports in 2023
- Nepal imported 0.07 MT paper from India FY23
- Specialty paper imports down 5% to 0.15 MT FY23 due to domestic growth
- India's paper exports to Africa grew 18% to USD 150 mn FY23
- Canada exported 0.12 MT waste paper to India FY23
- Export realisation for Indian paper averaged USD 750/tonne in FY23
- UK's share in Indian paper imports 8% or 0.17 MT FY23
Exports and Imports Interpretation
India imported more paper than it exported last year, but shrewd moves like slashing waste paper duties and boosting high-value specialty exports are steadily turning the page on its trade deficit.
Market Size and Financials
- India's paper industry market size reached INR 80,000 crore in FY2023
- Revenue growth of organised paper sector was 12% to INR 75,000 crore FY23
- EBITDA margins for top paper firms averaged 15% in FY2023, up from 12%
- Total industry investment in capacity expansion was INR 10,000 crore FY18-23
- Paper stocks contributed 1.2% to BSE market cap in 2023
- Average paper price realisation rose 18% to INR 65/kg in FY23
- JK Paper Ltd revenue hit INR 7,500 crore in FY23, 15% growth
- ITC Paperboards revenue INR 15,000 crore FY23, 10% YoY rise
- West Coast Paper Mills turnover INR 3,200 crore FY23
- Industry debt-to-equity ratio improved to 0.8x in FY23 from 1.1x
- Capex planned INR 15,000 crore FY24-28 for de-botlenecking
- Packaging paper segment market share 70% valued INR 56,000 crore FY23
- Unorganised sector size estimated INR 20,000 crore, 25% of total FY23
- Profit after tax for top 20 firms totalled INR 5,500 crore FY23, up 20%
- Cost of production rose 15% due to raw material inflation FY23
- Market cap of listed paper companies USD 10 billion as of Dec 2023
- ROCE for paper industry averaged 18% in FY23
- Tissue paper market size INR 8,000 crore growing at 15% CAGR
- Newsprint segment turnover down 10% to INR 2,500 crore FY23
- Government incentives under PLI scheme INR 2,000 crore for paper sector 2023
- Freight costs account for 12% of total paper production costs FY23
- Power costs 18% of total expenses, hydro dominant for efficiency
- Employee cost 8% of revenue in organised sector FY23
- Projected market size INR 1,20,000 crore by FY2028 at 8% CAGR
- Recycled paper market valued INR 25,000 crore, 30% share FY23
Market Size and Financials Interpretation
India's paper industry is proving it's no pulp fiction, with robust growth, disciplined margins, and heavy investment transforming it into a surprisingly sleek and sustainable profit engine, even as it cleverly wraps most of its value in packaging.
Production Statistics
- India's paper and paperboard production capacity stood at 27.75 million tonnes per annum (MTPA) as of FY2023, with utilisation at 85%
- In FY2022-23, total paper production in India reached 23.51 million tonnes, marking a 5.2% growth over FY2021-22
- Writing and printing paper production in India was 4.12 million tonnes in FY2022-23, accounting for 17.5% of total production
- Packaging paper and board production volume hit 15.68 million tonnes in FY2022-23, representing 66.7% of India's total paper output
- Newsprint production in India declined to 0.42 million tonnes in FY2022-23 from 0.51 MT in previous year due to digital shift
- Specialty papers production grew by 12% to 1.25 million tonnes in FY2022-23, driven by industrial applications
- India's paper mills numbered 850 in FY2023, with 40% being small-scale units under 10,000 TPA capacity
- Top 10 paper companies in India control 55% of total production capacity as of 2023
- Bamboo-based paper production capacity in India is 4.2 MTPA, contributing 15% to total capacity
- Recycled fibre usage in Indian paper production reached 58% in FY2023, up from 55% in FY2022
- India's paper production per capita is 4.5 kg annually as of 2023, compared to global average of 55 kg
- New capacity additions in FY2023 totalled 1.2 MTPA, mainly in tissue and packaging segments
- Southern India accounts for 42% of national paper production capacity with 11.7 MTPA as of 2023
- Northern region paper production capacity is 8.5 MTPA, focusing on writing/printing grades
- Western India holds 25% share or 6.9 MTPA in paper production capacity FY2023
- Eastern India contributes 18% or 5 MTPA to paper production, reliant on hardwood
- India's kraft paper production was 6.8 million tonnes in FY2022-23, up 10% YoY
- Duplex board production reached 4.2 MT in FY2023, serving FMCG packaging needs
- Tissue paper production in India grew 15% to 0.28 MTPA in FY2023
- Coated paper production volume was 1.1 MT in FY2022-23
- India's total paper machines operational numbered 650 in 2023, average age 20 years
- Virgin fibre-based paper production declined to 42% of total in FY2023
- Agro-residue based paper production capacity is 2.5 MTPA, promoted for sustainability
- India's paper production growth CAGR was 6.5% from 2018-2023
- FY2024 projected paper production at 25 MT, 6% growth over FY23
- Containerboard production hit 9.5 MT in FY23, up 12%
- India's paper production from eucalyptus plantations is 3.8 MTPA
- Small mills (under 20,000 TPA) produce 22% of total paper output
- Large mills (over 100,000 TPA) account for 45% production share in FY23
- Paper production in Gujarat state reached 2.1 MTPA in FY23
Production Statistics Interpretation
India's paper industry shows it has clearly mastered the fundamentals: it's efficiently boxing up the future in packaging while the writing on the wall for newsprint fades and a sustainable story unfolds in bamboo and recycled fibre.
Sustainability and Environment
- Water usage per tonne of paper reduced to 120 KL in FY23 from 150 KL
- 65 Indian paper mills achieved zero liquid discharge certification by 2023
- Renewable energy usage in paper mills reached 45% of total power in FY2023
- GHG emissions intensity down 12% to 1.2 tCO2e/tonne paper since 2018
- Forest certification (FSC/PEFC) covers 40% of virgin fibre plantations for paper
- Agro-residue utilisation in paper production saved 1.5 million trees in FY23
- 72% of paper produced from recycled fibre, reducing landfill waste by 15 MT annually
- Effluent treatment plants installed in 95% of mills, BOD levels <20 mg/l
- Biomass boilers provide 60% steam in efficient mills, cutting fossil fuel 30%
- Plastic substitution by paper packaging reached 2 MT equivalent in FY23
- Water recycling rate 85% in large mills, total savings 500 million KL/year
- AOX emissions reduced 25% to <0.1 kg/tonne via ECF bleaching
- 30 mills adopted circular economy models, recovering 90% waste FY23
- Energy efficiency improved 15% to 800 kWh/tonne since 2015
- Sustainable forestry covers 3 million ha for paper raw material
- Carbon neutral paper production piloted in 5 mills, offsetting 0.1 MT CO2
- Solid waste utilisation 98% in modern mills, no landfill since 2020
- Chlorine-free bleaching adopted by 20% mills, reducing toxins 40%
- Rainwater harvesting in 80% mills, recharging 100 million KL groundwater yearly
- Biodiversity conservation in 50 plantations, planting 10 million trees FY23
- Paper industry water pollution fines reduced 50% post-compliance drives
- Green bonds issued INR 500 crore by paper firms for eco-projects FY23
- 100% sludge briquettes used as fuel, saving 0.5 MT coal equivalent
- ISO 14001 certification held by 70% organised sector mills
- Fugitive emissions controlled to <5% via enclosed systems
- Community plantation drives planted 5 million saplings, 2 million survived FY23
- Specific steam consumption down to 2.2 MT/tonne from 2.8 in 2018
- Paper industry employed 1.2 million direct workers and 5 million indirect in 2023
- 25 mills use 100% green energy, solar/wind hybrid 50 MW capacity
Sustainability and Environment Interpretation
India's paper industry, while still a work in progress, is telling a rather convincing story where its mills are no longer just cutting down trees but are busy cutting water use, emissions, and waste, all while planting a forest of sustainability credentials that actually seem to be taking root.
Sources & References
- Reference 1IPMAipma.inVisit source
- Reference 2IBEFibef.orgVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4PIBpib.gov.inVisit source
- Reference 5PWCpwc.inVisit source
- Reference 6BUSINESS-STANDARDbusiness-standard.comVisit source
- Reference 7INDIANPAPERindianpaper.comVisit source
- Reference 8IPPTONLINEipptonline.comVisit source
- Reference 9VOITHvoith.comVisit source
- Reference 10THEHINDUBUSINESSLINEthehindubusinessline.comVisit source
- Reference 11PACKAGING-GATEWAYpackaging-gateway.comVisit source
- Reference 12GUJARATPAPERSgujaratpapers.orgVisit source
- Reference 13PAPERINDEXpaperindex.comVisit source
- Reference 14FICCIficci.inVisit source
- Reference 15COMMERCEcommerce.gov.inVisit source
- Reference 16IPMAipma.co.inVisit source
- Reference 17DGFTdgft.gov.inVisit source
- Reference 18CBICcbic.gov.inVisit source
- Reference 19MONEYCONTROLmoneycontrol.comVisit source
- Reference 20JKPAPERjkpaper.comVisit source
- Reference 21ITCPORTALitcportal.comVisit source
- Reference 22WCPMLTDwcpmltd.comVisit source
- Reference 23ICRAicra.inVisit source
- Reference 24SCREENERscreener.inVisit source
- Reference 25GLOBALPAPERglobalpaper.orgVisit source