INDIA’S NEXT NUMBER ONE?
An investment in a new paper machine is to double the tissue paper production of Century Pulp and Paper. The next goal is to become the biggest in the entire paper and paperboard industry in India.
HEIDI HAMMARSTEN, photos CPP
A new tissue paper machine, which will double the pro- duction of Century Pulp and Paper (CPP) to 76,000 tonnes a year, is being set up in Uttarakhand, northern India, to be operational by the end of 2020. While this volume will make the company the biggest producer in the tissue paper market in India, it is not enough. “Our strategic plan is to be number one or two in the entire paper and paperboard market within the span of five or six years. We particularly aim to grow in the areas of packaging materials and hygiene products,” says J P Narain , the company’s CEO. Century has chosen the market segments with the fastest growth in India’s markets, and plans to take them on aggres- sively. The company aims for an annual growth rate of 15 per cent in tissue papers – even faster than the market average. “We are actively promoting our own Century brand of hygiene products across the country. Economic growth and an awareness of wellbeing are driving the growth in tissue paper products”, says Narain. Century exports as much as 50 per cent of the tissue paper products it produces. The destinations include the Persian Gulf countries, some African countries and Sri Lanka. The company is the only one in India producing a tissue paper grade used especially in hygiene products. “The paper we produce is very thin and extremely soft.” However, Narain says that environmental awareness is accelerating growth in packaging materials, with the aim of replacing plastic with renewable materials such as paper-
board and textile fibres. Century also makes Rayon Grade Pulp (RGP) products.
GOOD QUALITY, PRICE AND CUSTOMER RELATIONSHIPS Metsä Fibre sells pulp to the Indian market in cooperation with its Japanese partner, Itochu. “Customers appreciate overall quality,” says Krishnan Ananth from Itochu referring to Metsä Fibre’s markets in India. “This includes products that are also competitive in price, and good customer relationships. Long-term and confidential relations are a prerequisite for a seat at the negotiating table.” Century’s CEO Narain shares this view: “The cooperation between Metsä Fibre and Century began around seven years ago. It is now growing even stronger, thanks to the growth in production capacity brought about by the new paper machine.” “The quality of Metsä Fibre’s products is significantly better. When we use their pulp, the bulk or the ratio be- tween the paper’s thickness and grammage is higher than that of the competitors’ and gives an excellent strength to the products,” says Narain. Paper consumption in India, which has a population of roughly 1.3 billion, remains at a significantly lower level than in Europe. This means there is plenty of room for growth. According to the figures of the Indian Paper Manufac- turers Association (IPMA), the annual growth rate of the
J P (Jaiprakash) Narain CEO of Century Pulp and Paper, part of BK Birla Group, since 2012. His previous employers include Reckitt Benckiser India and PepsiCo India.
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