India is the fastest-growing market for paper globally and presents an exciting scenario, where paper consumption is poised for a big leap in sync with the economic growth of the country. The percentage share in demand for paper in the country has shown impressive growth with increasing domestic demand on the back of impressive growth in the manufacturing sector and the requirement for better quality packaging usage in FMCG products.
Moreover, demand for other paper products such as tissue paper, filter paper, tea bags, lightweight online coated paper, and medical grade coated paper is expected to drive the demand for paper and paper products in the ensuing years. The Indian paper and paperboard industry is also considering providing affordable alternatives to make paper and paperboard usage as an alternative to containers.
Analysts tracking the paper industry project domestic consumption to rise to 23.5 million tonnes per annum with production hovering at around 22 million times per annum. Therefore, about 1 million tonnes per annum of integrated pulp and paper board capacity is required on an annual basis over the current capacity to meet the growing demand in the country.
Contribution by the packaging industry has been significant towards the growth of the paper and paper board industry due to an upsurge in e-commerce transactions, rising income levels among consumers, a singleuse plastic ban in India, and a sustainability and ecofriendly shift in customer behaviour.
The Indian paper industry currently valued at around Rs 80000 crores accounts for about 5% of the world’s production of paper and the consumption in the country is likely to witness around 7% annual growth with the production set to 30 million tonnes per annum over the next 5 years.
There are over 30 large and mid-sized paper manufacturers in the country and Kuantum Papers Ltd is a leading Agro and woodbased paper manufacturer having started its commercial activities in 1980 with an initial production capacity of 30 tonnes per annum. The company’s fully integrated facilities are located in an economically backward village of Hoshiarpur, Punjab spread across 259 acres helping it gain an advantage in terms of better operational efficiency and higher product offering. Being strategically located in the foothills of the Shivalik mountain range, the company is utilising agro residues like wheat straw, sarkanda and bagasse along with wood chips, veneer waste and bamboo to make high-quality paper.
Kuantum Papers Ltd product offering includes map litho, cream wove and value-added specialty products like thermal paper, bond paper, parchment paper, azure laid paper, cartridge paper, coloured paper, ledger paper, and cup stock base paper for straws and carry bag paper with a GSM range of 40-200. The company has an extensive portfolio of writing and printing paper which finds application in books, notebooks, annual reports, directories account books, envelopes, diaries, calendars, computers, and office stationery.
The Kuantum Paper stock currently quoted at Rs 190 on the bourses is fundamentally solid financially and can appreciate by over 50% in the next 18 months on the back of expansion plans and solid quarterly results.