paper and paperboard markets prior to the COVID-19 pan- demic was between five and six per cent. In the writing and printing paper market, the growth rate was slower – between three and four per cent. “The growth was stronger in the paperboard market. Tissue papers also grew at an annual rate of roughly 12 per cent, even though the market is still small,” says A S Mehta , President of IPMA. He is also the CEO of JK Paper, one of the biggest companies in the industry. CHANGES MAY BE PERMANENT India’s biggest paper and paperboard companies have been in fully domestic ownership since International Paper sold its operations to Indian companies. Many of the opera- tors, including Century and JK Paper, are large, diversified groups listed on the stock exchange. According to Mehta, between 85 and 90 per cent of pro- duction stays in the domestic market. In the spring of 2020, COVID-19 brought India, as well as the rest of the world, to a halt. In the summer, only 30 to 40 per cent of workplaces were open, while every school and educational institution was closed. The resulting lack of demand was particularly visible in the writing and printing paper market. Mehta says that packaging materials were not as hard hit, and the market had recovered to between 70 and 80 per cent of the normal situation by late summer.
“We hope to be close to normal by the first quarter of 2021. But COVID-19 will still change people’s behaviour, and some of these changes may be permanent,” he adds. By “changes”, he is referring to the digitalisation of work furthered by the move to remote working, among other things. The move of notebooks, calendars and brochures to an online environment may become a phenomenon that permanently shrinks the writing and printing paper market. •
CENTURY PULP AND PAPER Produces writing and printing paper, tissue and board, as well as RGP (Rayon Grade Pulp) products. • Established in 1984 • Over 7,000 employees • Turnover EUR 270 million in 2020 • Annual production capacity with the new tissue line 5,23,000 tonnes • Collaboration with Metsä Fibre since 1995 www.centurypaperindia.com
Krishnan Ananth Working for Itochu India in New Delhi and representing Metsä Fibre on the Indian market.
A S Mehta President of the Indian Paper Manufacturers Association and the CEO of JK Paper Ltd.
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