The Indian Paper Industry is among the top 15 global players today, with an output of more than 6 millions tones annually with an estimated turnover of Rs. 150,000 millions. (approx. USD 3400 million).
Paper Industry in India is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tones by 2010 & 13 million tones by 2020.
A large number of expansion programme & expansion of capacities with an outlay of Rs. 10,000 crores have been announced covering the various sectors like paper, paperboard, newsprint etc.
The Indian Economy is progressing well and targeting 8%+ growth. The economic reforms coupled with the liberalized Government Policies, India today offers excellent business opportunity for investments.
One of the first FDI Projects may come through the proposed Finnish proposal to set up a 400000 tpa capacity plant with an investment of US$240 million.
The expanding Industrial Scenario calls for efforts to tackle related problems:
- Industry needs capital and technology.
- Since energy cost accounts nearly 25 per cent of cost of production there is an urgency to improve energy management and energy consumption.
- Quantum jump in production, called for by the demand projection is possible only by expansion of existing capacity and creation of additional capability. Upgradation of technology and new capacities also involve massive investment.
- Use of agro residues for preparation of pulp also throws up challenges like pollution control, recycling, use of cost effective technology for utilization of agro residues, etc.