Paper Industry to face some tough year

Details: Category: Industry Overview

Indian Paper industry is to face a mismatch in demand-supply as large and small players are adding capacities. Around 4 lakh tonnes of capacity is being added this year where the demand may not be there, though the industry is growing at 5-6%. Importers are also wary in such a situation as larger players are lobbying for safeguard duty. Looking at export opportunities as prices have corrected largely in Europe and US. Locally, the prices have dropped considerably from Rs.50,000 /tonne to Rs.38000 /tonne where large mills could barely break even.