Understanding paper and pulp value chain

Overview

India is recognized as one of the fastest-growing economies globally, with

a projected GDP growth rate of 8.2% for the fiscal year ending March
2024. This remarkable economic expansion has driven a heightened
demand for various goods and services, particularly paper and packaging
products.

The pulp and paper industry plays a vital role in the Indian economy,
offering employment opportunities to over 500,000 individuals. Their
labour contributes approximately 1.6% to India's total GDP.

In recent years, the country's paper production capacity has seen

consistent and significant growth. By the end of 2024, India is anticipated
to achieve a compound annual growth rate (CAGR) of 6.30% in pulp and
paper capacity since 2019, reflecting the industry's robust development in
response to rising consumption and market needs.

Key Segments

Pulp being a renewable, biodegradable raw material made from trees

is one of the most versatile materials around, uses for pulp range from the
everyday (e.g. tissues, books, and baby wipes) to the more innovative,
such as car filters, LCD screens, renewable fuel, and stickers.

Pulp-based products play a crucial role in the paper, packaging, and textile
industries. Globally, around 40-50% of pulp is used for paper, with
packaging accounting for a significant share derived from both virgin and
recycled fibers.

In India, approximately 65-70% of raw material in paper and packaging

comes from recycled fibers, while virgin fibers are reserved for high-grade
applications like food-grade packaging and hygiene products. In textiles,
wood-based fibers like viscose and lyocell make up 6-8% of global pulp
use, gaining traction as eco-friendly alternatives to synthetics. Major uses
of pulp are as follows -

 Writing, printing, and copier grades are currently performing

well compared to other paper grades. Increasing literacy rates,
particularly in rural areas, have significantly boosted the demand for
writing and printing paper.
The growing focus on education and learning is expected to further
drive the consumption of these grades.
 Packaging Paper - Driven by the growth of e-commerce and retail
sectors such as Amazon & Flipkart. Key companies in this space
include International Paper Company, WestRock Company, and
Mondi Group, which are leaders in providing sustainable packaging
solutions. In India, local players such as TCPL Packaging Ltd and
Parksons Packaging Ltd are also making significant strides.

 Recently, there has been significant growth in the demand for

recycled products for both household and commercial use. Items
such as toilet paper, paper napkins, and kitchen towels are
becoming increasingly popular. Investments in the tissue sector are
on the rise, targeting both local consumption and international
markets. Leading companies like GSPBL, APPM, and TNPL are at the
forefront of these efforts with new projects and advancements.

 In textiles, pulp-based fibers like viscose, lyocell, and modal

comprise about 6-8% of global pulp production. These fibers are
made from wood-derived cellulose and are valued for being
biodegradable and eco-friendly alternatives to synthetics. With
rising demand for sustainable fashion, these fibers are increasingly
replacing conventional, less sustainable materials. Global brands
like H&M, Zara, and Stella McCartney, and Indian names like
FabIndia and Raymond, use pulp-based fibers for sustainable
textiles.
 Stakeholders involved in Paper and Pulp Value-
chain
The paper and pulp industry involves a diverse range of stakeholders,
each playing a critical role in the production and distribution of paper
products. Below is the overview of stakeholders involved in the entire
paper and pulp value-chain.

1. Raw Material Sourcing

Stakeholders involved in raw material sourcing are:

o Landowners and Farmers - Supply wood from private lands,

participate in agroforestry or mixed-use practices.

At present, agroforestry meets almost half of fuelwood needs for the country, around two-thirds of
small timber, 70-80 percent of plywood, 60 percent of the raw material for paper pulp, and 9-11
percent of the green fodder requirement of livestock, as well as meeting subsistence needs of
households for food, fruit, fiber, medicine, etc. The sector finds increasing relevance in states
where wood-based industries are essential.

Agroforestry is undertaken throughout the country in all climatic regions. States like Uttar
Pradesh (1.9 million hectares), Maharashtra (1.6 million hectares), and Rajasthan (1.6 million
hectares) lead the coverage in terms of area. However, the area under agroforestry relative
to the net sown area of the state is highest among Jharkhand (21 percent), Andhra Pradesh
and Telangana (19 percent) and Bihar (14 percent).

Small and marginal farmers carry out the practice in rainfed conditions and large farmers
under irrigated conditions as the practice is suited to both. However, it is popular among
large and wealthy farmers with large enough landholdings to diversify income and
experiment with crops, while smallholder farmers find it more challenging to adopt. A rough
estimate by stakeholders consulted by CAFRI (Central Agroforestry Research Institute, Uttar
Pradesh) suggests the number of farmers adopting the practice is less than 5 million.

Popular species grown are Poplars, Eucalyptus, Dalbergia, Neem, Acacia, Melia, Tectona,
(Source - https://www.ceew.in/publications/sustainable-agriculture-india/agroforestry)
Ailanthus, Gmelina, Bamboo, Leucaena, Casuarina, and Mangium hybrid are some popular
 o Certification Bodies - Ensure sustainable forestry through
certification systems.
Examples: FSC, PEFC, Rainforest Alliance.

o Local Communities - Engage in forest-based livelihoods,

advocates rights in forest land usage and partners in reforestation
projects or community forestry programs.

o Government and Regulators - Examples: MoEFCC, FSI, State

Forest Departments, CPCB, NGT, and NBM, focusing on forest
management, pollution control, agroforestry, and sustainable
industry practices.

o Recycling Firms - Supply recovered paper for recycled pulp

production.
The Indian pulp and paper industry is the fourth largest paper producer in the World, producing around 5.7%
of the total paper and paperboard being produced globally which signifies an annual production of 24 million
tonnes of paper and paperboard (Aggarwal, 2022). Most of the share of production is from recycled fibres.
According to the Indian Pulp and Paper Technical Association, 80% of the domestic pulp production is based on
recycled paper, 6.38% on agricultural residues, and 13.61% based on wood. The breakdown is

Proportion (%) of Raw Material used for Pulp and Paper production (Source; IPPTA)

Challenges and Scope

Between 2015 and 2020, India ranked second globally in forest loss, with
668,400 hectares deforested, a significant rise compared to previous
decades. This increase is attributed to various factors, including
urbanization, industrial activities, and agricultural expansion.

 The loss of natural forests significantly affects biodiversity. Regions

like the Western Ghats and Northeast India, known for rich
 ecosystems, face threats due to land-use changes for plantations,
mining, and infrastructure development.
 While agroforestry and plantation systems are seen as sustainable
alternatives, they often require extensive land conversion and long-
term commitment. For instance, India has planted compensatory
forests over 9.3 lakh hectares since 2008, but these initiatives
frequently fail to replace the ecological functions of natural forests.

 The availability of raw materials is further complicated by climate

impacts. Droughts and irregular rainfall patterns affect plantation
yields, creating fluctuations in supply chains. For example,
eucalyptus and bamboo, commonly used in paper production, are
particularly sensitive to such changes

Actionable Scope

FSC certification promotes responsible forest management by

encouraging agroforestry systems that respect local ecosystems and
biodiversity. It includes guidelines to protect high conservation value
forests and restore degraded lands.

 Partnering with FSC-certified organizations ensures adherence to

global sustainability standards, creating a balanced approach that
benefits ecosystems and raw material availability.
Example: Tamil Nadu Newsprint & Papers Ltd. (TNPL) integrates FSC-
certified agroforestry by sourcing eucalyptus and acacia from small
farmers while maintaining biodiversity in plantation areas.

 FSC’s principle of community engagement ensures the inclusion of

local farmers in sustainable forestry practices, offering them
technical support, fair wages, and access to certified markets.
Establishes buyback arrangements and training programs for
smallholder farmers to cultivate FSC-certified raw materials,
enhancing livelihoods while meeting industry needs.
Example: ITC’s FSC-certified clonal seedling program has
empowered thousands of farmers to adopt sustainable forestry
while contributing to the company’s sustainable raw material
sourcing.
2. Pulp Production

Stakeholders involved in pulp processing and production are:

 Pulp Producers - Process raw materials into chemical, mechanical,

or recycled pulp. Examples: Sappi- India, International Paper, etc.

There are 759 paper mills in India with an operating capacity of 12.7 million
tonnes and consumption at 11 million tonnes with 9.3 kg per capita
consumption of paper. The annual pulp production is 2.71 3.3 million tonnes
using 9.83 million tonnes of wood.
Out of 410 million tons of paper consumed globally, India consumes 22.05
million tons of paper and paper board annually, putting the national paper
demand at 4.72% of the global demand. With steady growth in the country’s
economy since the early 1990s, India has witnessed a steady rise in the
consumption of paper. The consumption of paper in India increased from 13.96
Source - https://www.maximizemarketresearch.com/market-report/indian-paper-pulp-market/29044/

 Raw Material Suppliers - Provide wood chips, recycled fiber, or

non-wood fibers (e.g., bamboo, bagasse). Examples: ITC Limited,
Avantha Group (BILT - Ballarpur Industries Limited)

 Technology and Equipment Providers - Supply pulping

machinery, bleaching chemicals, and process optimization tools.
Examples: Valmet, Andritz.

 Environmental Agencies - Monitor compliance with environmental

standards for emissions, effluent discharge, and energy use.
Examples: CPCB & SPCBs

 Financial Institutions - Fund large-scale pulp mills. Examples:

NABARD

Challenges and Scope

The global pulp and paper industry consumes about 91 million cubic
meters of water daily, with the Asia-Pacific region accounting for nearly
half of this.
This high water usage is mainly due to the washing, bleaching, and
cooking stages of production. Efforts in developed facilities have focused
on reducing water usage through closed-loop systems, where water is
reused several times before being treated and discharged.

Actionable Scope

FSC promotes the use of sustainably sourced fibers, including recycled

materials and agricultural residues. These alternatives alleviate pressure
on forests and require less water-intensive processing compared to virgin
wood.
3. Paper Manufacturing

Stakeholders involved in manufacturing process are:

 Paper Manufacturers - Transform pulp into paper products such

as writing paper, packaging, or specialty paper. Examples:
WestRock, BILT, JKPM, etc.

 Chemical Suppliers - Provide additives like fillers, coatings, and

sizing agents.
Examples: BASF-India

 Energy Providers - Supply power for energy-intensive processes,

including renewable energy solutions. Examples: NTPC

 Labor Unions and Workforce - Advocate for fair labor practices

and safety in mills.

 Quality Assurance and Standards Organizations. Examples:

Indian Pulp and Paper Technical Association (IPPTA), Bureau of Indian
Standards (BIS), etc.

Challenges and Scope

Paper manufacturing is one of the most energy-intensive industries,

consuming about 2% of global industrial energy annually.
In India, the sector accounts for approximately 5.8 million metric tons of CO2
emissions annually, driven by fossil fuel-based energy sources.
Source - https://www.resourcewise.com/forest-products-blog/benchmarking-water-usage-an-increasingly-important-metric-for-pulp-and-paper-producers

Actionable Scope

FSC supports increasing the use of recycled fibers, aligning with its
Principle 10, which promotes reducing the environmental footprint of
certified products. Using recycled materials also ensures compliance with
FSC Chain of Custody standards that creates a closed-loop system that
minimizes waste and energy associated costs.
4. Conversion and Printing

Stakeholders involved in conversion and printing are:

o Converters - A paper converter is a company that transforms raw

paper rolls or sheets into finished products like envelopes, cartons,
or labels.
Example: TCPL Packaging Limited, Parksons Packaging. Below is the
list of Paper Converter companies in India

S.No Organization Location Product

Name Services
1 Huhtamaki Mumbai Food packaging
2 Navneet Mumbai Navneet has emerged
Education as the preferred
Limited brand for educational
products . The
immensely popular
products like Vikas
workbooks, Gala
practice books, YouVa
full-scapes, are hot
favourites amongst
the young segment of
India.
3 Classmate Delhi Classmate notebooks
(ITC) consist of more than
300 variants including
notebooks, long
books, practical
books, drawing books
and reminder pads.
ITC Classmate
notebooks use Ozone-
treated, Elemental
Chlorine Free Paper
which has lesser use
of chemicals in
bleaching stage.
Ozone treatment of
paper before
bleaching process
improves paper
quality and shelf life.
4 Origami India Bangalore Paper disposables,
Institutional supplies,
exports, promotional,
 party products and
private label
segments.
5 SUMEET Tamil Nadu Matches Inner Box
impex Board,
Matches Skillets,
Matches Packing
Paper and Match
Boxes, Tissue Paper
6 Astron Gujarat Corrugated boxes,
Packagin laminated cartons
g
7 Horizon Mumbai Corrugated boxes for
Packs e-commerce and
logistics

o Printers - Add value through custom printing (books, newspapers,

branded packaging). Example: Repro India Limited, Thomson Press
Ltd. Below is the list of Printing companies in India.

S.No Organization Name Location Product

Services
1 Thomson Press (India) Delhi Our product range
Limited include thin paper
products, multicolor
and monochrome
books, magazines
and periodicals,
brochures.
2 Replika Press Pvt Ltd Haryana Book Printing

3 Printo Bangalore Calendar, Diaries,

Magazines
4 Repro India Ltd. Mumbai Paperbacks,
Hardbacks, Journals
5 Security Printing and Madhya Security Papers
Minting Corporation of Pradesh
India (SPMCIL)
6 Tamil Nadu Newsprint Tamil Nadu Newsprint
and Papers Limited
(TNPL)

7 Khanna Paper Mills Gurugram Newsprint

 o Design and Branding Firms - Develop packaging designs,
branding, and labels Example: Landor & Fitch India, Elephant Design

o Packaging Companies - Supply specialized solutions for industries

like food, e-commerce, and pharmaceuticals. Examples: Amcor,
Smurfit Kappa. Below is the list of Packaging companies in India

S.No Organizati Locatio Product Services

on Name n
1 Polyplex Noida, Uttar PET films, BOPP, CPP
Corporation Pradesh films, and specialty
coatings
2 Balmer Lawrie & Kolkata, West Industrial packaging,
Co. Bengal greases & lubricants,
leather chemicals
3 Alpha Packaging Chennai, Tamil Specialized packaging for
Nadu automotive & pharma
4 PR Packaging Panipat, Custom printed boxes,
Haryana flexible laminates, and
paper bags
5 Huhtamaki India Mumbai, Consumer packaging,
Maharashtra decorative labels, and
flexible packaging
6 Amcor-India Mumbai, Produce high-quality
Maharashtra packaging for global,
regional and national food
and beverages, home and
personal care, medical
and pharmaceutical
businesses

Challenges and Scope

The conversion and printing processes in the paper industry often involve
the use of chemicals such as bleaches and inks, which can have adverse
environmental impacts if not managed properly. The chemical treatments
required for paper and printing materials, including those used for colour
and texture, can lead to water contamination and increased carbon
emissions.

Actionable Scope

Using FSC-certified paper in printing is a powerful way to ensure that the

paper used in conversion processes originates from sustainably managed
forests. FSC-certified paper also helps brands demonstrate their
commitment to sustainability, as consumers are increasingly demanding
transparency in sourcing.

5. Distribution and Retail

Stakeholders involved in distribution and retail are:

o Distributors and Wholesalers - Act as intermediaries to distribute

paper products to retailers or end-users.

o Retailers - Sell paper products directly to consumers (e.g., office

supply stores, supermarkets, e-commerce platforms). Examples:
Amazon, Flipkart, Myntra, etc.

S.No Organization Location

Name
1 Amazon India Bengaluru

2 Flipkart Bengaluru

3 Zomato Gurugram,
Haryana
4 BigBasket Bengaluru
5 Myntra Bengaluru

o Exporters and Importers - Facilitate cross-border trade of pulp

and paper products.

Challenges and Scope

The rise of online retailing has further boosted paper consumption.

E-commerce packaging, which uses corrugated and other types of paper,
is one of the fastest-growing segments. India’s e-commerce packaging
market alone is expected to grow at a rate of 15-20% annually,
contributing to higher demand for paper products. The Indian paper
industry further faces challenges in distribution due to fragmented supply
chains, with the top three producers holding only a 10% market share.
This fragmentation leads to inefficiencies and higher operational costs.

Actionable Scope
The rapid growth of e-commerce presents an opportunity for FSC-certified
companies to innovate in eco-friendly packaging. Utilizing FSC-certified
materials ensures sustainable sourcing, meeting both consumer demand
and regulatory standards. Technologies such as blockchain can be
leveraged to enhance supply chain transparency

6. Consumers and End Users

Stakeholders involved are:

o Consumers - Use paper products in everyday life (e.g., writing,

printing, packaging).

o Brands - Use paper as a raw material or packaging in sectors like

food, electronics, and healthcare.

o Corporate Buyers - Purchase paper for bulk use, especially in

publishing and commercial printing.

o Educational Institutions - Major users of notebooks, textbooks,

and educational stationery.

7. Waste Management and Recycling

Stakeholders involved in waste management and recycling are:

o Recycling Firms - Collect and process wastepaper for reuse.

Examples: DS Smith Recycling, Sappi Lanier-India. Below is the list
of paper recycling companies in India.

S.No Company Name Locati Material

on s
Accepted
1 Sri Ramadas Paper Boards Andhra Cardboard,
Private Ltd. Pradesh Waste Paper
2 Eco Tech Papers Assam Waste Paper

3 Patna Paper Mill Pvt. Ltd. Bihar Waste Paper

4 Ashoka Pulp & Paper Pvt. Delhi, UP & Waste Paper
Ltd. Assam
5 Khatema Fibres Ltd. Delhi Waste Paper

6 Shree Krishna Paper Mills & Delhi Cardboard,

Industries Ltd Waste Paper
7 B N Papers Gujarat Cardboard,
Waste Paper
8 Devang Paper Mills Pvt. Ltd. Gujarat Cardboard,
Waste Paper
9 Gujarat Packaging Gujarat Waste Paper
Industries
10 Khanna Paper Mills Ltd. Haryana Office Papers,
Cardboard,
Newspapers,
Magazines,
Books, Waste
Paper
11 Ruchira Papers Limited Himachal Waste Paper
Pradesh

12 Balaji Malts Pvt. Ltd. Karnataka Waste Paper

13 Susmit Paper Boards Karnataka Waste Paper

14 Nepa Limited Madhya Waste Paper
Pradesh
15 Ganga Papers India Ltd. Maharashtra Cardboard,
Newspapers,
Waste Paper
16 Gayatri Shakati Paper & Maharashtra Waste Paper
Boards Ltd.
17 Godavari Pulp and Paper Maharashtra Cardboard,
Mills Pvt. Ltd. Waste Paper

18 United Paper Maharashtra Waste Paper

19 S. N. Paper Mills Pvt. Ltd. Punjab Waste Paper
20 Seshasayee Paper and Tamil Nadu Waste Paper
Boards Limited

21 Om Sree Papertek Pvt. Ltd. Telangana Cardboard,

Waste Paper
22 Vijay Anand Kraft Papers Pvt Telangana Waste Paper
Ltd
23 Wings Paper & Board Mills Telangana Cardboard,
Pvt. Ltd. Waste Paper
24 Chadha Papers Limited Uttar Pradesh Waste Paper

25 JB Daruka Papers Limited Uttar Pradesh Waste Paper

26 Maruti Papers Ltd. Uttar Pradesh Cardboard,

Waste Paper
27 Sangal Papers Ltd Uttar Pradesh Waste Paper
28 Shree Bhawani Paper Mills Uttar Pradesh Waste Paper
 Ltd.
29 Silverton Pulp & Papers Pvt. Uttar Pradesh Waste Paper
Ltd.
30 Emami Papers Mills Ltd West Bengal Cardboard,
Waste Paper
31 Krishna Tissues Pvt. Ltd. West Bengal Cardboard,
Newspapers,
Waste Paper
32 Sapphire Papers Mill Pvt. West Bengal Waste Paper
Ltd.

o Waste Management Companies - Organize collection,

segregation, and disposal of paper waste. Example – ECOSYS, Re
Sustainability Ltd., etc.

o Municipal Authorities - Enforce regulations on recycling and

landfill management.

o NGOs and Community Organizations - Promote awareness and

drive recycling initiatives.
`

Challenges and Scope

India generates approximately 3.7 million tons of wastepaper annually,

yet the recycling recovery rate stands at only about 38%, well below the
global average of 56%. This inefficiency arises from gaps in the waste
collection system, including limited infrastructure for sorting and
segregating recyclable materials and minimal municipal involvement.

Actionable Scope

FSC-certified brands are leading efforts to promote consumer education

on responsible recycling. Campaigns by FSC-certified entities, such as
the "Forests for All Forever" initiative, encourage proper segregation
and disposal of recyclable paper, significantly contributing to improved
recovery rates .

8. Overarching Stakeholders

o Environmental Advocacy Groups - Advocate for reduced

deforestation, cleaner production methods, and better recycling
practices. Examples: Greenpeace, WWF.
Distribution of Paper and Pulp Industries across India,
Location wise

The mills included in the sample primarily rely on wood as their main raw
material. During the previous assessment, it was observed that large
integrated mills based on wood were the most resource-intensive and
polluting. Consequently, the performance of the mills in our sample over
time serves as a valuable indicator, reflecting not only their individual
advancements but also the overall progress of the industry.

Source - https://ipmaindia.org/wp-content/uploads/2023/06/CSE-Paper-Industry-Report-2013.pdf
Locations of the primary manufacturing facilities of Paper and
Pulp industries in India

S.No Organization Name Location

1 ITC Limited- PSPD(s Bhadrachalam,
Paperboards and Specialty Telangana
Papers Division)
2 Emami Paper Mills Ltd Kolkata, West Bengal

3 Ballarpur Industries Limited Chandrapur,

Maharashtra
4 Tamil Nadu Newsprint & Karur, Tamil Nadu
Papers Ltd.
5 The West Coast Paper Mills Dandeli, Karnataka
Ltd.
6 JK Paper Ltd. Raygada, Odisha

7 The Andhra Pradesh Paper Rajahmundry, Andhra

Mills Ltd. Pradesh
8 Century Pulp & Paper Lalkuan, Uttarakhand
9 NR Agarwal Industries Ltd. Vapi, Gujarat

10 Seshasayee Paper & Boards Erode, Tamil Nadu

Ltd.
11 Triden Ltd. Barnala, Punjab
12 Naini Papers Ltd Naini, Uttarakhand
13 Pudumjee Paper Products Pune, Maharashtra
Limited
14 Mysore Paper Mysuru, Karnataka
15 Orient Paper Bhubaneswar, Odisha

This table provides an overview of key players in the Indian paper

industry, including their locations. These companies play a vital role in the
country's paper production, catering to a wide range of industries
including packaging, printing, and stationery

The Indian paper and pulp industry exemplifies a synergy between

industrial operations and sustainable agroforestry. Companies like ITC
Limited, JK Paper Ltd., and Tamil Nadu Newsprint and Papers Ltd. actively
engage in plantation initiatives, sourcing raw materials such as
eucalyptus, bamboo, and casuarina. These companies work closely with
farmers by providing high-quality clonal seedlings, imparting technical
know-how, and establishing buyback arrangements, fostering a circular
and mutually beneficial supply chain.
Geographically, the industry aligns with agroforestry hubs in regions like
Telangana, Tamil Nadu, and Karnataka, ensuring proximity to raw material
sources.
Companies such as Trident Ltd. and Century Pulp & Paper incorporate
agricultural residues and recycled fibers into their production processes,
highlighting a growing trend toward sustainability. This collaboration
supports rural livelihoods, reduces deforestation, and ensures a consistent
supply of raw materials for the industry.

The pulp and paper industry in India employs 200,000 people directly and indirectly supports 1,000,000 people
and is nearly a $2 billion a year industry (Lal, 2005). Historically, the paper industry in India has grown
between 5 and 8 percent annually (Lal, 2005). As the global and domestic demand for paper products
increases, a large strain is placed on finding and procuring the supply of wood fiber for processing. Under this
situation, many pulp and paper manufacturers have turned to new cloning hybrid tree species, particularly
with those from the Eucalyptus family. These new clones reduce growing time, are better suited to the region,
produce higher quality fiber, have a high rate of survival, and have a much higher productivity than seed-
based planting (Lal, 1996,). These new advances have helped improve pulp and paper plant productivity, thus
lowering the cost per unit volume of paper product.
As one of the leading pulp and paper companies in India, the Indian Tobacco Corporation, Limited, (ITC) works
very closely with private farmers to grow the trees required for their mills.
Source - https://www.cabidigitallibrary.org/doi/pdf/10.5555/20123419806

The Indian paper industry has strong ties to agroforestry, with a lot of its
raw materials, like wood, coming from farmers. Agroforestry practices not
only enhance the economic viability of small-scale farmers but also
contribute to the industry’s long-term sustainability.