The Indian paper industry is one ofthe traditional industries of India consisting of over 500 units with aninstalled capacity (excluding newsprint) of over 7.5 mn tonne per annum. Thecapacity utilisation in the industry has remained low at approximately 60% buthas lately picked up. This was owing partly to some 200 mills being small andmany of which were sick. Effectively, only 321 mills are operational. Out ofthese, 172 mills make up for 54% of the market, with the top ten claiming ashare of over 28%. The large segment consists of 21 large mills. The incidenceof sickness is high in mills with less than 15,000 tpa capacity.
The consumption of paper products isgrowing at a fast pace of around 6.5% and is expected to further go up infuture. The industry now uses three sources of raw materials - recycled paper,wood and agro based, and waste. The recycled paper, comparatively cheaper,comprises almost 40% of the total raw material requirements at present.
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