News and Views 09 - 12|JANUARY 2022 a Hyve event
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News and Views... December 22, 2021 a Hyve event 23 - 25|NOVEMBER 2022 09 - 12|JANUARY 2022 Chennai Trade Centre, Chennai, INDIA India Expo Centre, Greater Noida, Delhi- NCR, India
INDEX COVID NEWS AND UPDATE............................................................. 3-5 INDUSTRY NEWS............................................................................. 5-8 GLOBAL NEWS.................................................................................. 8-9 PAPER AND PACKAGING NEWS...................................................... 10 - 11 CXO’s SPEAKS................................................................................. 11 - 16 PAPEREX 2022................................................................................. 17 PARTNERSHIP OPPORTUNITIES...................................................... 18 LEADING COMPANIES AT THE EVENT.............................................. 19 - 20 2
increasing,” said Jain. The plan has levels of people not to panic because of the variant. COVID NEWS restrictions such as closure of restaurants, “The Omicron variant of the coronavirus has malls, offices, and educational institutes as now entered India. We are constantly AND UPDATE receiving news regarding patients being the positivity rate – proportion of samples that return positive – increases. Hospitals found in this region, that region, and even in Lockdown not on cards after Omicron have also been asked to scale up their Covid- Delhi. However, I would like to tell everyone case, says Delhi health minister Jain 19 infrastructure accordingly. The graded that there is no need to panic or lose sleep response action plan is a mechanism similar over it. I am constantly monitoring the to one used to fight air pollution. situation and progress being made to deal with the possible threat of the spread of It classifies outbreak severity into four bands Omicron,” he said in a digital press briefing – yellow, amber, orange and red – with each on Monday representing a more severe outbreak and, thus, stricter curbs than the one preceding it. “I held a review meeting last week as well in Private offices, malls, weekly markets and the relation to this, where we took account of all Metro will be shut down if the test positivity the necessary health facilities and their rate (TPR) rises above 2%, and the city will be status, from beds to oxygen to medicines put under a curfew if the number breaches 5%, and all other necessary equipment. We are The first Omicron case was detected in Delhi according to the action plan, which was prepared to provide all this and other on Sunday, and so far 23 cases have been approved by the Delhi Disaster Management required material in sufficient quantity and genotyped across the country. The variant Authority (DDMA). on time. So there’s no need to get stressed or was first detected in South Africa towards panic. But keep doing your part – continue the end of November and has since been Jain added that 27 people who are suspected social distancing and never step out without detected in several countries. to have been infected with the Omicron wearing a mask,” Kejriwal added. A day after the first case of the Omicron variant have been admitted to Lok Nayak hospital. Of them, 17 have been confirmed to On November 30, Kejriwal held a meeting to variant of the coronavirus was detected in have Covid-19 either through RT-PCR or Rapid review the state’s preparedness against the national capital, Delhi health minister Antigen Test. The results of genomic Covid in case a third wave emerges in the Satyendar Jain on Monday said a lockdown sequencing for the rest are awaited. country. Kejriwal had then announced that was not on the cards at the moment, and 30,000 Covid-19 beds are ready in Delhi, with that the graded response action plan to The first Omicron case was detected in Delhi 100 beds per ward to be arranged as and combat Covid-19 will come into action if the on Sunday, and so far 23 cases have been when required on a two-week notice taking number of cases starts increasing, as chief genotyped across the country. the total bed capacity of Delhi to over 64,000 minister Arvind Kejriwal urged residents of The variant was first detected in South Africa beds. Additionally, 6,800 ICUs will also be the city not to panic. towards the end of November and has since ready very soon. Medicine stocks are been detected in several countries. currently being added, and home isolation “There is no possibility of a lockdown at the Delhi chief minister Arvind Kejriwal urged arrangements are being strengthened. moment. The graded response action plan will be implemented if Covid-19 cases start 3
Oxygen supply and storage is being military planning teams deployed across State wise Omicron Cases in India bolstered, with extra storage facilities of 442 every region to set up additional vaccine The caseload of the Omicron Covid-19 variant MT, and production of 121 MT oxygen within sites. is rising each day in India. On Sunday, the tally Delhi. Additionally, telemetry devices to M r. J o h n s o n a l s o s a i d t h a t t h e U K rose to 38 after Andhra Pradesh, Chandigarh provide real time oxygen tracking are being government will provide additional support to and Kerala reported their first infections and installed in all oxygen facilities. Around accelerate vaccinations in Scotland, Wales Maharashtra and Karnataka also recorded 6,000 oxygen cylinders have been imported and Northern Ireland including extending one each of the latest coronavirus variants. and 15 oxygen tankers bought to prevent opening hours for clinics and training The World Health Organization (WHO) has oxygen shortage, the CM then said. thousands more volunteer vaccinators. said the new Omicron coronavirus strain has It comes as the spread of the new variant of been found in 63 countries and will surpass The Delhi government has issued a Covid coronavirus continues to accelerate rapidly, the Delta variant in spreading speed. helpline number – 1031, to help Covid with a further 1,239 omicron cases having 1) Chandigarh has reported its first case of patients during any problem. This helpline been recorded in the UK as of today - an the Omicron variant of coronavirus as a 20- number works 24x7. It employs employees increase of 65 per cent on the day before. year-old fully vaccinated man, who had come in three shifts, who can attend 600 to 700 According to the statement, early evidence from Italy to meet his relatives here, tested calls. shows that the new omicron variant is positive for the infection, Health department Jain added that more than 93.9% of people spreading much faster than delta. In addition, officials said on Sunday. have received the first dose of the Covid-19 it states that vaccine protection against vaccine and more than 61.3% both doses. symptomatic disease from omicron is 2) Kerala Health Minister Veena George said He also added that the chief minister had reduced. the first case of COVID-19 variant Omicron written to the Centre urging them to ban -Independent.co.uk has been confirmed in the state. In a video flights from affected countries for some posted on her Facebook page, the minister time to prevent the disease from spreading. Coronavirus Omicron India LIVE said that the patient was a Kerala native who -Hindustan Times Updates: Delhi CM Arvind Kejriwal recently came from the United Kingdom. The patient's condition is stable and there was no Covid omicron news – live: Booster says We're ready to tackle the Omicron need to panic as the government was taking vaccine for all adults by year’s end as threat. If required, we will impose all necessary steps to curb the spread of the UK PM warns of variant ‘tidal wave’ necessary restrictions. new variant of the virus, she said. The target of giving every adult a booster jab We're ready to tackle the Omicron threat. If has been brought forward to the end of this required, we will impose necessary 3) A man who had arrived from South Africa month as Boris Johnson warned that the UK restrictions. Currently, there is no such need became the third person to test positive for could be set to face an omicron “tidal wave” to impose any restrictions...A decision on re- the COVID-19 variant in Karnataka. that could cause “very many deaths”. opening of schools will be taken after winter He said everyone eligible aged 18 and over in vacation for schools end, says Delhi CM 4) A 40-year-old man tested positive after England will have the chance to get their Arvind Kejriwal returning to Nagpur in Maharashtra from a booster before the new year with the West African country, taking the state's tally “emergency operation” being assisted by -Moneycontrol of Omicron cases to 18. 4
INDUSTRY NEWS 5) On Saturday, Delhi had reported its generation, especially in rural areas. second case, a 35-year-old man with travel According to IPMA, the organised paper history to Zimbabwe and South Africa. Indian paper industry urges govt to allow industry has invested around Rs 25,000 pulpwood plantation in degraded land crore in the past few years but raw material State-wise Omicron Covid tally as on 13 constraints are putting a spanner in the NEW DELHI: The Indian paper industry, which works. Dec is facing inadequate raw material availability, "Current demand for wood, one of the key Maharashtra (18) has urged the government to offer degraded raw materials, by India's paper industry is Rajasthan (9) forest land and non-forest government land about 11 million tonnes per annum (TPA), Karnataka (3) near mills for pulpwood plantation, a move against domestic availability of nine million Karnataka (3) that will also help increase the green cover in TPA, and is projected to rise to 15 million TPA Kerala (1) the country. by 2024-25 at the current rates of growth," it Andhra Pradesh (1) Raw material security is necessary for the said. Union Territories of Delhi (2) paper industry to become self-reliant, said The paper industry has brought around 1.2 Chandigarh (1) the Indian Paper Manufacturers Association million hectares of land under plantations ‐Livemint (IPMA) in its pre-budget submission to the through industry-driven agro/ farm forestry, finance ministry, asking to consider its said IPMA adding that India's paper industry proposal for allowing pulpwood plantation in is wood-positive as it plants more trees than degraded land. it harvests. Being a wood fibre-deficient country, It may be recalled that under its Nationally inadequate raw material availability has Determined Contributions (NDCs), India emerged as a major constraint for the needs to bring an additional 25-30 million domestic paper industry in meeting the hectares of degraded land under forest and growing demand for paper led by drivers such tree cover to create an additional carbon sink as growth in the education sector and of 2.5-3 billion tonnes of carbon dioxide discouraging use of single-use plastic, said equivalent by 2030. an IPMA statement. "The government should consider making IPMA President A S Mehta, "We sincerely degraded forest land and non-forest want the government to consider our government land available to the paper proposal of offering degraded land to the industry in close proximity of the mills for industry for pulpwood plantation. plantation activities. Restoration of degraded land through "India's paper industry looks forward to plantation by the paper industry could help partnering in building Green India and India meet its target of increasing green contributing to the national objective of cover in the country and make India a world bringing 33 per cent of the landmass in India leader in paper manufacturing." under tree cover," it said. Terming it as a "win-win", he said this will also -Times of India lead to the greening of India, unlocking the significant potential for employment 5
Satia Industries to conduct trials on new a sustained growth demand with the re- opening of schools & colleges across the SIL says in a statement that, wood pulp Paper Machine from December; Reports digester automation is being done at a cost nation and with economic activities YoY 53% growth in Q2 net profit of 60 crores to optimize steam resuming normalcy; in the second half of the One of the largest Wood and Agro-based year with higher realizations. We have a consumption from present level of 1.6ton paper manufacturers in India, Satia strong order book in hand of 60 days at steam /ton of pulp to 0.6 ton steam/ton of Industries Limited (SIL) has registered attractive price realization. Our new pulp. Based on the present cost of steam @ remarkable growth in its Q2 FY 21-22 net production will come in this year only and we 2000/ton; it will lead to saving of minimum profit. SIL’s Net profit stood at INR 203.44 mn expect to get minimum one quar ter 300 ton steam costing 6 lacs /day and 22 in Q2 FY22, compared to INR 132.60 mn in additional production from the new Paper cr/yr. Besides saving steam consumption, it Q2 FY21. machine in this financial year. shortens the processing time thus leading to “With the re-opening of the economy in Q2 SIL continued its efforts to diversify into new increase in capacity by almost 50%. Higher FY22 post-Covid Lockdowns, SIL continues product line like wedding card base along in-house wood pulp production will reduce to receive regular orders from state textbook with increasing the share of Cup stock base dependence on imported pulp with boards and open market. We have been able and Copier paper in its total production substantial gains in cost and procurement to record a further growth in SIL’s production during the quarter. risk minimization. SIL will be the second level of 33,089.75 MT in Q2 FY22 as In close association with Zume, a US-based company to install this project in India. ROI compared to the production of 30,780.61 MT global brand, engaged in producing and for this project will be just 18 months. in Q2 FY21. SIL’s sustained and healthy outsourcing of moulded table cutlery -The Pulp and Paper Times relationships with the State Textbook Board products SIL has completed mechanical Corporations pan India has helped them trials and normal production should begin in secure orders at gross higher realization per Dec. 2021 ton,” said Mr. Chirag Satia, Executive “We are happy to report that we shall start Director of Satia Industries Ltd. commercial production of cutlery before the Informing about the SIL’s long-awaited end of this calendar year and thereafter we expansion plan, Mr. Satia says, 4th Paper also plan to scale up capacities in this machine has been fully erected and segment. This segment is expected to production trials shall begin in first week of generate attractive realizations and thereby Dec 2021, and commercial operation will be enhance our overall margins.” Mr. Satia said. started thereafter. Pulp mill, Soda recovery plant, Power generation plant along-with SIL’s management looks forward to achieve ETP have already been upgraded. Deinking over 1,50,000 tons of production this year plant too will start in this month only. and 50 – 60% increase in top line over the Management is confident to get minimum last year and at least 150 to 200 bps EBIDTA three months additional production coming margin accretion in full year FY22 compared from this expansion in this financial year to the current margins of Q2FY22; driven by only. change in product mix and higher Mr. Satia said in a statement that, we expect production. 6
Edicon Paper Product's new Packaging already planned to deploy the massive used to ship goods to consumers has Board plant started in Gujarat capacity of 350 Tons-per-day,” Mr. Dinesh substantially increased. However, we are exclusively discloses to The Pulp and Paper now seeing that this rise in e-commerce has The Indian packaging board market has Times. also allowed US paperboard producers to been growing rapidly on account of growing Edicon Paper has engaged the best paper turn recycled catalogs, boxes, and demand from the FMCG, food & beverage, technology supplier from China, “We have newspapers into new paper products. pharmaceutical and textile sectors. imported entire plant and machinery from Although the COVID-19 pandemic caused a China except for pulp mill section which is “The Americans are using a lot of their own paper demand decline, the paperboard supplied by Parason Machinery. We have recycled fibre right now to serve the new market strengthened on account of product invested around INR 200 crore in this new demand which is coming, just exploded in consumption growth. Indian paper mills will project, and will leave no stone unturned for the COVID time. So the availability of fibre continue to invest resources to develop achieving the quality packaging board and their willingness even to export paper sustainable packaging solutions towards production in one attempt,” Mr. Dinesh out of those countries is highly unlikely meeting the increasing drive from brand described. immediately,” said Mr. Manish Patel, owners for ‘reducing, reusing and recycling Edicon paper is expected to start the trial Managing Director at The South India Paper plastic packaging. production in October followed by Mills Limited during ICCMA’s Congress 2021 commercial production in November held at Greater Noida. “The emergence of online shopping or e- onwards. commerce has driven the growth for “We are going to install 450 TPD pulp mill With more people shopping online, there’s a cardboard and other packing materials. E- keeping in mind further enhancement of lot more cardboard in the recycling stream commerce companies require an extensive capacity, our GSM will be 120 to 380 GSM to these days. It wasn’t just you. Americans amount of packaging solutions for a wide be manufactured on 3.7 meters finished consumed more corrugated cardboard range of products. Among the varying deckle machine. boxes than ever last year. available packaging solutions, paper and -The Pulp and Paper Times paperboard container and packaging "Just about every consumer segment products have been gaining traction accelerated in the fourth quarter. We because of their environmental benefits” E-Commerce rise in US & Europe may continue to see strong double-digit growth in said Mr. Dinesh Kavar, Managing Director, create fibre ‘scarcity’ for Indian Paper Mills e-commerce, and we believe the vast Edicon Paper Product Pvt. Ltd. The effects of the stay-at-home orders and majority of e-commerce adoption is lockdowns that were set in place at the permanent," International Paper CFO Tim Situated in Morbi Gujarat, Edicon Paper is beginning of 2020 due to the COVID-19 Nicholls said in February. gearing up all the resources for setting up pandemic have created a number of changes the mega capacity of duplex board, “Yes, we in daily habits. The rise in e-commerce amid Outlining the e-commerce rise in US and have been working upon this mammoth the pandemic has been one of the most Europe, Ms Garima Aurora, Director at project for last one and a half year, significant changes to have occurred. This Unisource Papers explained the gravity of packaging Board is just like gold because change in shopping habits has been the situation during the event, she said that the demand of board seems to be beneficial for the pulp and paper industry as since the pandemic has changed the import sustainable in coming years, and we have demand for paper and packaging materials of containerboard to India been less than to 7
15 percent main reason is already highlighted that within the home market (US that E-commerce is going to consume a lot of packaging from our countries not only here GLOBAL NEWS & Europe) paper was consumed much but also those economies over the time. So more, corrugated box demand grew the availability of material (Fibre)is, I feel Stora Enso launches Bio-Based because of E-Commerce rise is one the going to be sustained high” Packaging Foam reason. Even the corrugators were stocking Ms Garima informed that Chain is going to much more paper because they were roll out coal phase-out policy, they want to Papira, a fiber-based monomaterial, is designed paranoid that prices might go up so they substitute coal with other cleaner forms of to be biodegradable and compostable and bought much more paper then requires. So energy like natural gas. Fibrease can be recycled in any paper or board the import to India was quite less. Mr. Manish anticipates that coal prices stream. With the bio-based foams, the Finnish should see a correction post-December. paper and packaging company is introducing Mr. Manish Patel said that there is huge New capacities coming on stream across “renewable and climate-friendly alternatives” spike in demand for corrugated packaging Europe - including in France, Germany, Italy, in the protective packaging segment. from the E-commerce sector in those and Turkey - will amount to almost 4 million Stora Enso is expanding its packaging countries and lot of new capacities in (US tons of annual additional output potential products with a new portfolio of bio-based and Europe) are coming up to use recycled over the next three years. foams – Fibrease and Papira – made from fibre. So the availability of recycled fibre for Replying on a question about the possible Forest Stewardship Council-approved wood. the Indian Market or elsewhere globally is drop of export level of recovered paper to The company says the FSC-cer tified likely to be difficult. South & South East Asia due to new products, which it has tested at real recycling capacities, Mr. Jean-Luc Petithuguenin, facilities, are fully recyclable and can be used “You will see higher prices of the benchmark PRESIDENT PAPER DIVISION, Bureau of for protective and thermal packaging. mixed waste grade” he said firmly. International Recycling(BIR) said that, If there Papira, a fiber-based monomaterial designed could be such drop, it will be due to high to be biodegradable and compostable, can be Corrugated cardboard makes up a large freight costs and/or lack of containers; the recycled with paper or cardboard, that way percentage of the paper that enters new capacities in Europe are not to consume the material can be used to make new paper recycling plants from homes, so the surge the same qualities as in India or Asia – and products and ensure optimal use of that has occurred due to the pandemic and when I say « qualities » I am referring to resources. Fibrease can be recycled in any the rise in e-commerce has significantly international standards such as the EN-643 paper or board stream. increased the value of mixed paper. New norm. tissue paper and cardboard is created from -The Pulp and Paper Times While Fibrease is already commercially the longer fibers in the discarded cardboard, available, the pilot plant producing Papira has which helps to strengthen mixed-paper pulp started operations at the Fors site in Sweden, and produce improved material. as a subsequent step to the investment While answering one of the questions, Mr. announced in August 2020. Firstly, the pilot Patel says, “e-commerce is becoming the plant is intending to evaluate and validate habit for buying things so the retail trade is Papira as packaging foam in customer tests. going to shift and stay there for a long time, Later on, the foams can be used for and we have to be ready to deal with the idea protecting fragile goods and will be optimal 8
for the thermal packaging of temperature- Kellogg’s planning to trial Recyclable forward. This could involve trying to sensitive products. Paper Liners in Cereal Boxes transition to recyclable at kerbside plastic According to Stora Enso, fossil-fuel-based liners – which are already available in Ireland packaging is a major contributor to Kellogg Company will determine how it transforms and Belgium – or rolling out fully paper- pollution, accounting for 40 percent of the its packaging further going forward, based on the based packaging. world’s plastics. “With Fibrease and Papira”, success of this pilot project. This could involve David Beardmore, Grocery Director, Kellogg the globally leading renewable solutions trying to transition to recyclable at kerbside Company, remarks, “We are committed to provider of packaging, biomaterials, plastic liners – which are currently available in working with our suppliers to remove, wooden constructions, and paper, says it is Ireland and Belgium. reduce, reuse, and recycle packaging, introducing “renewable and climate-friendly particularly plastic. It’s great to see that alternatives” to the fossil-fuel-based US-based food manufacturing company Kellogg is trialling a paper cereal bag in our protective packaging. Kellog’s, in partnership with Tesco, is going to stores – our customers will be pleased that pilot recyclable paper liners for its cereal they can easily recycle the bag at home.” A l s o R e a d : S to ra E n s o S t a r t s N e w boxes in a select number of stores from Previously, Tesco and Kellogg have worked Dispersion Barrier Line at Forshaga Site in January 2022. together on a few sustainability initiatives Sweden including a trial to collect cartons at in-store As per the multinational company, the plastic recycling points, which provided a short- Markus Mannström, Executive Vice inner liner in cereal boxes is not currently term recycling solution for the tube President of Biomaterials, Stora Enso, says, widely accepted in kerbside recycling. The packaging of Pringles. “With our bio-based foams, we help new paper liner is recyclable and will make Earlier this year, Kellogg’s also announced its customers create eco-friendly and circular Kellogg’s entire cereal packaging paper- plans to remove excess air from its cereal packaging solutions while also meeting based, as the cereal’s outer card packaging is packs, which could result in a 700-tonne material performance needs to protect and already fully recyclable. annual reduction in carbon from the insulate the goods.” Moreover, the new packaging, designed by company’s operations. Furthermore, Tesco -Papermart Kellogg’s packaging technologists, will be had launched its partnership with Loop to more suitable for the process of filling and offer customers a range of food, drink, sealing bags inside of cereal boxes that takes household, and beauty products in reusable place at the company’s factory, as well as for packaging. transporting the cereal to retailers. -Papermart Chris Silcock, Managing Director at Kellogg UK and Ireland, comments: “We know people want to do more to help the planet and that’s why we are working hard towards meeting our commitment of all Kellogg’s packaging being reusable, recyclable, or compostable by the end of 2025.” Kellogg’s says that the results of the pilot will determine how it adapts its packaging going 9
PAPER & PACKAGING NEWS hybrids, including improved solutions for farmers that are more resilient to strengthen Q2FY22 to 1,830 crore; while segment profits (at a profit before tax level) rose 24 To focus on value-added, high margin the value chain” Puri said. per cent YoY to 409 crore. offerings. The recyclable barrier paperboards ‘Filo’ Diversified conglomerate ITC Ltd is looking (used in QSR and exports) and Paperboard, paper and packaging divisions to up its play in the value-added paperboards biodegradable paperboards ‘Omega’ are contribute around 14 per cent to gross and speciality papers vertical as it ramps up “gaining customer franchise”; while other revenues and approximately 8 – 10 per cent on exports to existing countries like the launches include ‘Bioseal’ (compostable of the bottom line (before tax). Middle East, EU, UK, South East Asia, packaging solution), ‘Oxyblock’ (recyclable Import Substitution Australia and New Zealand; while focusing packaging solution for foods, edible oils) According to Vadiraj Kulkarni, Divisional on the high margin value-added and and ‘Antimicrobial coating’ (solution for Chief Executive, Paperboards and Specialty sustainable packaging solutions for both the germ-free packaging surface). Papers Division, ITC Limited, the segment domestic and export markets. Amongst in-house divisions – personal care witnessed a revival of demand across most Over the last few quarters, it has invested in foods and hotels (food delivery) – witnessed end-user segments apart from publications, innovative products while upping R&D in the conscious plastic substitution. These quick service restaurants and wedding card segment. Work is on towards solutions “that include Aashirvaad Instant Meals being segments (which remain subdued). are more resilient and strengthen supply packed using the in-house developed There was robust growth in value-added chain” thereby benefitting farmers, among ‘IndoBowl’ paperboard in place of used- products; strong performance in exports on others. plastic packaging. a high base, notwithstanding logistical Sustainable packaging solutions According to the Flexible Packaging challenges while realizations improved. Sanjiv Puri, Chairman and Managing Association, the beverage sector in the Investments were made in pulp import Director, ITC Ltd, during a recent interaction United States accounted for nearly 50 per substitution (at Bhadrachalam), cost- with BusinessLine said investments were cent of the packaging market. Currently, over competitive fibre chain, a sharper focus on being made towards “value-added segment” 30 per cent of Americans (nearly a third) operational efficiency by leveraging data with “sustainable packaging” as a focus. order food twice a week, which is expected analytics, and Industry 4.0 enabled margin For instance, the company has been actively to grow by 3 per cent in the coming years. expansion despite the escalation in key substituting plastics with the help of Market sources say many younger buyers input prices. sustainable packaging solutions developed are prepared to spend more on products “Our strategy is to develop new and superior at its Bhadrachalam unit in Telangana. packed sustainably. The move towards products, in collaboration with the value “We are a very clear leader in the value-added sustainable / non-plastic cutlery by food- chain par tners (customers, printers, segment in paperboards and speciality service providers is also an indication of converters etc.). And once we scale up, papers. There are new products that have growing consciousness in matters of these offerings will contribute significantly already been launched; more are in sustainability. to our top-line growth and will become development stages. We have developed a The company’s paperboards, packaging and margin accretive. We have ambitious growth sustainable fibre value chain which printing business performed well, driven targets,” Kulkarni said. strengthens our competitiveness. The ITC primarily by the cartons segment. -The Hindu Business Line Life Sciences and Technology Centre ITC’s paperboard, paper and packaging continues to work towards developing better division saw a 25 per cent jump YoY in 10
Warburg Pincus backed-Parksons “The plants bring high strategic value to Parksons Packaging and are significantly CXO’s SPEAKS Packaging acquires Manohar Packaging scalable for future,” it added. Shree Krishna Paper Mills: Innovating It had not revealed commercials associated Quality Products to Meet the Growing with the deal. Parksons Packaging has six manufacturing Warburg Pincus backed-Parksons plants located across Daman, Chakan, Demand Packaging Ltd on Monday said that it has Pantnagar, Guwahati ,and Sricity combined acquired leading producer of car ton with Manohar's presence in Goa and Punjab, packaging, Manohar Packaging. It has a which will further enhance the combined strong presence in the alcoholic beverages company’s reach and serve customers and confectionery packaging segment, and effectively across the country, said Kejriwal. the acquisition will help Parksons Packaging A d i t y a P a t w a r d h a n , C E O, M a n o h a r strengthen its pan-India footprint. Packaging said, "This is an outstanding opportunity to continue our growth journey The company did not reveal commercials as part of Parksons and build the country's associated leading folding carton manufacturer. Based Siddharth Kejriwal, Managing Director, on Parksons' values, core capabilities, Parksons Packaging said, "Parksons has excellent brand reputation, and backing by consistently been at the forefront of Warburg Pincus, it's a natural fit that delivering high service quality and reinforces our long-term vision and relationships with customers." In packaging, the future will be developing high innovation to our customers. Adding tear factor packaging papers with value-added Manohar's depth of services and domain -The Hindu Business Line solutions. I feel the industry will change from expertise strengthens our offerings in the using burst factor terms to tear factor terms, Food & Beverage segment and increases our having high tear is more important than footprint in North and West India.” having high BF Founded in 1994, Manohar Packing is one of Shree Krishna Paper Mills & Industries Ltd. India’s top producers of carton packaging (SKPMIL) was established in the late 70s. and the industry leader in the alcoholic The paper division was set up in the year beverages segment. “Manohar’s deep sector 2004 and since then, SKPMIL has been using expertise and long-standing relationships recycled fiber and virgin pulp to manufacture with its marquee customer base brings several varieties of industrial and specialty significant synergies to Parksons’ domain papers including newsprint, electrical expertise and depth of services.,” the insulation kraft paper, interleaving kraft statement added. paper, colour kraft paper, and absorbent kraft paper. The company recently entered the Through 2 state -of -the- art manufacturing packaging sector with kraft paper for the facilities across India, Manohar Packaging carry bags. In an interaction with Paper Mart, has the capacity to convert more than 100 Mr. Naynesh Pasari, Director, Shree Krishna million sheets annually and serve its Paper Mills & Industries Ltd. talks about the customers. 11
company’s achievements, manufacturing Rajasthan. The idea of the company was to supply consistently and that is exactly where capabilities, product portfolio, and R&D have our own papermaking capability and our USP lies. efforts. then do the coating on it and serve the With our efforts, we are indirectly supplying Paper Mart: Could you present a brief customers. our products to KFC, Taco Bell, and other overview and significant achievements of We had planned this plant as agro-based, but QSR brands that are using our papers Shree Krishna Paper Mills? unfortunately, we couldn’t get the required through converters. Naynesh Pasari: Shree Krishna Paper Mills license for it and also learned that agro units has been in the industry for more than 45 leave a lot of environmental waste. So we PM: Now that you have told us that you years. It was started by my father in the late went for waste paper-based manufacturing basically manufacture from recycled papers, 70s. Since then, the company has been set up. We have almost 90 acres of land do you face any challenges while procuring growing together with its customers, available for future expansion. If the waste paper? innovating and delivering quality products to situation becomes conducive, we look NP: Making ‘wealth’ out of ‘waste’ definitely meet the growing global demand for forward to utilizing that land. comes with a lot of challenges. different types of paper. We have the capability of manufacturing Unfortunately, India is highly dependent on We used to primarily produce C1S and C2S approximately 60,000 TPA in the GSM range imports of waste paper. The availability of paper for which we used to procure base of 30 to 150. Various grades are pulp or waste paper is limited in our country paper and then do value addition of coating manufactured under one roof. We have one but mills are in huge numbers. There are on it; we were also the first company in India paper machine and one coating machine. approximately 600 paper mills, out of which to introduce and manufacture thermal The paper machine has a two-stage deinking 70 percent are recycled paper-based. People paper. We give a lot of priority to R&D, and plant from Lamort, France and the machine set up their mills but the planning or strategy innovation and that’s now embedded in the itself is from the USA. required for waste paper in our country is not company’s DNA and culture. Our coating machine is India’s first and only something that anyone wants to do. It is a The biggest achievement has definitely been manufacturing machine which has the three- totally unorganized market. We are still living the introduction of thermal paper, back in the stage coating– first stage, second stage, in the age when most people simply burn 1990s. SKPMIL does not believe in turnover and back-barrier along with soft-nip calendar waste paper or pack food in it. India is a fibre or profits as achievement, our biggest online, with almost 700 tonnes per month of short country as neither we have pulp nor achievement is when our consumers give us manufacturing capability on the coating high strength waste paper. Hence, we are repeat orders. machine (offline coating). always dependent on imported fiber to run PM: You have launched kraft paper for the the 450 odd recycled paper mills our country PM: Describe the infrastructure, the product carry bags this year; tell us more about the is operating. People do not follow the portfolio, the manufacturing capabilities, product along with the USPs. practice of segregating the dry waste and and the machinery installed at your facility. NP: Initially, we had no idea how to make wet waste in our country and this is a major Has there been any upgradation or capacity kraft paper for the carry bags and started drawback. However, people now, at least, expansion in the recent past? with 5 tonnes. BF is one of the parameters have the basic fundamental knowledge on NP: In the early 2000s, we closed our but not the only parameter in this. If you want the importance of recycling. So, that is the Bahadurgarh division which was the coating to give good quality to the product, then you positive side. unit producing C1S, C2S, and thermal paper need to have minimum GSM variation, because of electricity issues and unviability minimum moisture variation, high-tear PM: Tell us about your new product and R&D in terms of small-scale industry. At the same factor, relatively speck-free paper, less dirt efforts. time, we invested in backward integration by count, and very little shade variation, so, it’s a NP: After undertaking extensive R&D setting up a paper manufacturing unit in complicated product to manufacture and activities, we developed shuttering paper 12
which has been a grade that we have NP: Various certifications are required to be never die. In packaging, the key is how fast developed in-house using our own R&D and able to produce food-grade papers which o n e c a n i n n ova t e w i t h va l u e - a d d e d trials. We believe in creating products using can be grease-proof paper or carry bag solutions, whether it is the normal paper or our own research and not copying other paper. There are certain factors that have to coated paper. The value-added items in mills, which recently has been the case with be especially focused on for producing such packaging are going to be a very big role some mills who have simply just copied our papers. player in the coming years. technology. For any paper, you need to keep The first thing starts with the quality of water in mind the quality, cost factor, and process. – the kind of investments you have made for M: Any improvement in terms of technology We are sure that because of our sincerity, water management at the mill, to recycle it, at your mill? consistent efforts in R&D, our adaptability to and so on because the paper is ultimately NP: In technology, if we say asset-wise or new things, and our acceptance to change, made from water. The second thing is that machinery-wise, we have always been we have been able to create this product out the food-grade kraft paper should be odour- investing. We have purchased some of scratch with our own technology. free. The paper should be free from heavy equipment for the pulp mill, out of which a Further, we are in the R&D stage of print- metals, chloroforms, there are certain other few have been imported and the remaining based decorative laminate paper. As we are chemicals which when coming in contact have been purchased from domestic already manufacturing shuttering paper, this with food create an impact on the food. Over suppliers. The paper industry is a highly is the complementary industry. So, this was a period of time, we have put a lot of effort capital-intensive industry. So, if you want to the right product for us to do R&D upon. We into this process. keep playing the game, you have to keep have reached a situation in this development PM: What has been the impact of the investing. where we are confident that we will be able to pandemic on your company? make it. In this also we have not taken any NP: I think everybody has been affected by PM: Anything else that you would like to add help from anybody or copied any mills the pandemic in some way or the other. The to the interaction? technology. It is our own painstaking real answer lies in how fast one can absorb NP: I think, overall, the industry has been research and development. and accept the change, and take corrective going through a very challenging time PM: Could you please shed some light on the actions. So, thankfully, we have already because raw material remains uncertain and various grades of food-grade paper taken corrective actions. What lies in the the prices are at an all-time high – be it raw manufactured by SKPMIL and what is the future is still a grey area for everyone; materials or logistics. India has to become market scenario of such papers? however, I am confident that packaging will self-sufficient in terms of generating and consuming waste. How to give the same quality finished goods to the consumer with quality waste paper that is never consistent and higher input costs is the challenge the industry is going through. -Papermart 13
Gayatrishakti Paper & Boards: Believing packaging paperboard manufacturing producing plants in India on a single in Technology and Dedicated Workforce company with its head office in Mumbai and machine with more than 12,000 MTPA. The two manufacturing facilities in Vapi and company has enhanced infrastructure at Gayatrishakti Paper & Boards: Believing in both the manufacturing facilities at Vapi and Sarigam, Gujarat. The company was Technology and Dedicated Workforce Sarigam. The use of the latest technology at founded by me in September 1996. Mr. Gayatrishakti Paper & Boards Limited both the manufacturing facilities helps in Nikhar Agarwal, the second-generation in (GSPBL), started in 1996, is a leading improving the quality of the finished product. the business, is also into the day-to-day manufacturer of a range of premium grades business of the company and is currently the of packaging boards and kraft paper. Their Executive Director. products are made out of 100 percent recycled waste paper and are completely The company manufactures premium biodegradable. The company sets out to quality duplex boards and kraft paper from undertake various innovations in both the 100 percent recycled waste paper pulp and product-development side as well as in has an installed capacity of 1,08,000 MTPA manufacturing processes on a consistent and 1,44,000 MTPA. In fact, we are one of the basis. Presently, GSPBL has invested in leading manufacturers of duplex boards and developing a 500 TPD brand-new pulp mill kraft paper in India. We constantly upgrade from the world-renowned ‘Kadant’ our manufacturing facilities with the latest technology implemented and is currently technologies in order to manufacture under final trial-run. superior quality duplex boards and kraft paper. In an interview with Paper Mart, Mr. Gajendra PM: Please describe the manufacturing N . A g a r w a l , M a n a g i n g D i r e c t o r, capabilities of the company along with an G a y a t r i s h a k t i P a p e r & B o a rd s L t d . , overview of the infrastructure of the unit. enlightens us about the business journey of Has there been any expansion at the the company, the manufacturing capabilities company in the recent past? along with the infrastructure of their production facilities at Vapi and Sarigam in GNA: Initially, the company had one Gujarat, and the enabling factors to process manufacturing facility of the duplex board a wide range of packaging board grades. with a production capacity of 96,000 MTPA Further, he also outlines the trends in the and product range from 230 GSM to 500 packaging industry and the future plans of GSM. The management felt the need to enter the company. in kraft paper packaging segment and thus, the company established a kraft Paper Mart: Could you please take us manufacturing facility in 2013 at Sarigam, through the journey of Gayatrishakti Paper & Gujarat. The project was completed within a Boards Ltd. and the notable milestones so span of 18 months and started commercial far? production in June 2015 with a production capacity of 90,000 MTPA. At the kraft facility, Gajendra N. Agarwal: Gayatrishakti Paper we manufacture kraft paper in the range of and Boards Ltd. started its business as a 18 BF to 35 BF. It is one of the largest kraft- 14
The company has a 4MW captive power have the best automation system from multinational giants taking rapid strides in plant at both facilities. We have made a huge renowned vendors in the industry. We also the food, beverages, e-commerce, and investment in upgrading the plants and have a competent and loyal workforce and pharmaceuticals space, are the key drivers using the latest technology that has helped executives at all levels that are well trained impacting the growth of paper and the company to increase the combined for their roles and are given individual paperboard packaging industry. The growth production capabilities in both the plants responsibilities in their respective areas. of this market is dependent on the demand from 1,86,000 MTPA to 2,44,000 MTPA. In for folding cartons and corrugated boxes the future, we intend to increase the PM: Rising consumer awareness and products in the e-commerce packaging production capacity in both plants from adoption of sustainable materials have sector. Moreover, the market is segmented 2,44,000 MTPA to 3,00,000 MTPA by FY23. rapidly increased in the past few years. How by the product and end-user verticals. Its would you describe the impact of this trend end-user segment is further segmented by PM: Kindly describe the product portfolio of on the Indian paper and paperboards food, beverage, healthcare, personal care & Gayatrishakti Paper and Boards. Also, shed market? household care, hardware & electrical some light on the kind of clientele, i.e. the products, other industries. different brands served by the Company. GNA: Consumers’ attitude towards minimising the use of plastic has changed PM: Describe your initiatives for attaining GNA: Our Company manufactures duplex the attitude of the paper and packaging superior quality, and enhancing efficiency in board and kraft paper at its manufacturing industry over the last decade. With the ban the overall production operations facilities at Vapi and at Sarigam in Gujarat. on plastic by governments and public The range of the duplex board is from 230 authorities around the world, the demand for GNA: We have always believed in adopting GSM to 500 GSM and the range of kraft paper packaging paper has increased significantly the latest technology for attaining the starts from 18BF to 35BF. We sell the over a period of time and is expected to superior quality of both the products viz. product through a network of dealers and increase at a steady pace in the future. There coated paperboard and kraft liner board. Our distributors. Due to our leverage on has been a growing interest from all company has continuously undertaken technology, the quality of our product has stakeholders to make packaging more various innovations from time to time in both been consistent over the years and it has sustainable and environment-friendly and the products and manufacturing processes been widely accepted in the domestic and paper is considered as the most and has successfully implemented them so international markets. Our end-users are environment-friendly material available. as to provide premium quality in the leading companies in the segments such as packaging market as well as enhance – MNCs, FMCGs, pharma, and e-commerce Impact on Indian paper and packaging efficiency in the production operations. players. industry PM: Outline the factors which enable you to Various technologies such as the process a wide range of grades in packaging The packaging industry in India is growing introduction of blade coating in the coated boards, while ensuring cost efficiency and rapidly, and it is spanning across various paperboard to get the highest printing enhanced product quality. end-user segments such as food and results, adding a hot disperser system in the beverages, healthcare, hygiene, and home kraft plant to make the final product of kraft GNA: Investment in the right technology and care, among others. Strong favourable paper specks- and smell-free and adopted competent workforce are the key factors demographics aside, factors such as jet cooking system for starch spray in kraft that enable us to process a wide range of growing disposable income levels, has made possible to provide the superior grades in packaging boards with cost increasing consumer awareness and quality. Presently, our company has invested efficiency and enhanced product quality. We demand for processed food, and the in developing a 500 TPD brand-new pulp mill 15
from the world-renowned ‘Kadant’ requirement for eco-friendly and sustainable production operations in the Kraft division of technology implemented and is currently packaging is steadily on the rise. With the company. The company is also in the under final trial-run. This is projected to several billion parcels delivered every year, process to develop premium products in further enhance the capabilities in attaining the threat of packaging waste is increasing near future to cater to the increased demand more superior quality and enhancing due to which, the need for recyclable for products, mainly ‘white top kraft liner e f fi c i e n c y i n t h e ove ra l l p ro d u c t i o n packaging material is on the rise. board’ and ‘kraft pulpboard’. operations in the kraft division of the company. Many e-commerce companies are focusing The company has an inbuilt manufacturing on sustainable packaging solutions to facility to produce uncoated white top kraft PM: E-commerce packaging is swiftly reduce plastic waste and move toward liner board and is shortly going for trial-run growing at an enormous pace within the paper-based packaging. Corrugated boxes production so as to get a response from both packaging industry – in this respect, how are very common and widely used domestic and international markets. In rigid is packaging positioned in the industry? packaging materials for the e-commerce addition, the company is also planning for industry in the apparel segment, as the manufacturing of partial quality of value- GNA: The retail e-commerce packaging material is very strong and highly durable. added product viz. kraft pulpboard mainly market is growing promisingly, with the rapid Accelerated demand for packaging boards required in the premium segment of growth in the online shopping ecosystem. for online purchases is expected on account corrugated boxes. Presently, such kraft Moreover, changing lifestyles of people led of the COVID19 pandemic. The market for pulpboard is being manufactured in very by rapid urbanisation, mainly in the packaging boards is likely to grow 9-10 small quantum in India and the balance developing regions, augment the demand percent annually in India, compared with requirement is being met through import for retail-e-commerce packaging solutions. around four percent globally. sources. The increasing consumption of retail-e- commerce packaging materials fosters the PM: What are the future plans of Further, the company aims to replace retail e-commerce packaging market Gayatrishakti Paper & Boards Ltd? imported kraft pulpboard with Indian kraft growth. With the spurring rise in the overall that will match international standards and retail industries worldwide, the market is GNA: At present, the company is focused on quality to promote domestic product usage projected to garner immense gains over the increasing the production capacity and as a in India. Both the products are mainly used in next few years. result thereof, the current installed capacity the premium segment of packaging and the of the company is 2,50,000 MTPA of both demand in both domestic and international The Indian e-commerce packaging market coated paper board and kraft liner board. markets is growing gradually. was valued at USD 13.8 million in 2020, and it The company has already undertaken the -Papermart is expected to reach USD 1109.26 million by CapEx program to enhance the capacity to 2026, registering a CAGR of 13.8 percent 3,00,000 MTPA where the major capacity during the period of 2021-2026. Owing to the enhancement is proposed in the Kraft rising population, increasing income levels, division. Developing a 500 TPD brand new changing lifestyles, and growing economy, pulp mill from the world-renowned ‘Kadant’ the demand for e-commerce packaging is technology is under final trial-run so as to growing in India. The country is focusing enable us to get better quality with required more on sustainable solutions, which is quantum more pulp presently which will increasingly becoming a business further add in attaining more superior quality imperative. With the growing awareness, the and enhancing efficiency in the overall 16
Business Festival of Business Connect Program Paper Industry Market News & Views, a weekly e news alert program covering Industry Updates , Launch of New Technologies , Partnership Opportunities , Industry Views, CSR activities 23-25 November 2022 Chennai Trade Centre, India International Business Networking Program a Hyve event A sneak Preview: (IBNP) a monthly webinar covering key industry Meet 250+ exhibitors who will display latest across Indian as well as some neighboring 09-12|JANUARY 2022 products & services from 18 countries countries including China, Taiwan, Bangladesh, etc India Expo Centre, Learn new trends by attending technical Greater Noida, Delhi- NCR, India conference by IARPMA Open Seminars during the event, a unique Paperex is the largest paper industry event Network with industry leaders at “Global Paper opportunity to have face to face interaction with in the world and it takes place in New Delhi, Technology Supplier” pavilion industry leader and knowledge transfer India. Delegation program to host international buyers It is a “A Unified Business Platform for Paper 5000+ trade visitors from 20+ countries Industry” for new business opportunities, joint ventures, investments and technology including 142 paper mills across India transfer in paper and allied industries. Visit “Paper Manufacturer” networking pavilion Engage with the leaders at “Exclusive Paper Paperex is always very well attended by Mills CEO/MD Conclave” large gathering of Paper Manufacturers to explore the New Technology., Machinery & Equipment and Raw Material for Paper & Board Manufacturing. Contact Us Hyve India Private Limited (CIN. U92490DL2004PTC124343) And the mass audience of Paper Traders, Innov8 , 2nd Floor, 44, Regal Building Printers, Publisher, Converter and Paper (Above Madame Tussauds Wax Museum) Outer Circle, Connaught Place, New Delhi-110001, INDIA Packaging Companies to explore the variety Email: ed.india@hyve.group of papers at the show Website: india.hyve.group, www.hyve.group 17
Partnership Opportunities There are many different ways of benefitting from the Paperex exhibition. You can increase your company's exposure by becoming a Partner of the show, advertising in the exhibition's promotional materials, or simply visiting the show and gaining first-hand information about the new developments in the market and latest technology advancements. Branding gives an excellent opportunity to stand out from the crowd, reinforce, enhance and establish corporate visibility amongst the targeted audience. Branding is a great way to reinforce your brand message with benefits including: Enhance your leadership status Educate and inspire a targeted audience with your products and services Raise brand awareness and create preference to a targeted audience Build leadership status in the industry Create positive PR and raise awareness of the organisation as a whole Build brand positioning through associative imagery Create internal emotional commitment to the brand Provide innovative solutions to the industry Provide revenue generating ideas 18
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