"India stands as a ray of hope," says D’Silva

Emmy D’Silva, consultant, newsprint procurement, logistics and other allied services, presented an analysis of the global newsprint industry and how it has affected its Indian counterpart. D’Silva said, “If a company can maintain an inventory of one month, then the firm is doing a good job. Fluctuation in paper demand plays a key role in the price game."

 

D’Silva said, “India is the last bastion of demand in the world. India stands as a ray of hope in a situation where our counterpart in Europe is on a decline.” Today, India is the only consumption hub in the world and has steadily increased and is now at par with The US and Japan.

 

“Indian newsprint Industry is safe for another 50 years due to a literacy rate of 74% and growing population.” India’s per capita consumption of newsprint is 1.8kg when compared to Asia’s; which is 3.5kg and globally at 9kg. Hence, there is a scope for growth in the industry.

 

D’Silva informed, “In our country on 55% of the total capacity of the paper mill is utilised. The rest of the paper is imported.” Due to such under utilisation of capacity and price fluctuations; 21 mills have discontinued their operation whereas 22 mills have been shut down. Currently, only 76 paper mills are active in India. 

 

India current paper demand (2014-15) is met through imports (51%) and the rest is indigenously procured. “International paper prices in spite of being volatile is competitive than the domestic papers,” said D’Silva. 

 

The way a paper is produced plays an important role to derive at the cost. D’Silva said, “In India the paper collection which can be recycled is poor. It is essential for us to collect at least 65% but currently only 21% of the total paper waste is reused.”

 

In India, the newsprint is not looking for any expansion. “If we look at the paper price forecast, the paper price will remain the same till the second quarter of 2016,” said D’Silva.