The Hindu Business Line : JK Paper to focus on packaging board

New Delhi, May 18 Riding on demand from sectors like media, manufacturing, retail and FMCG, JK Paper is upbeat on the growth of the paper industry. The company said it is consolidating its presence in the packaging board segment, one of the fastest growing categories.

“The total paper industry in India is estimated at 9 million tonnes. The organised retail and manufacturing sector is driving up the demand. The per capita consumption is also growing,” Mr Harsh Pati Singhania, Managing Director, JK Paper Ltd, told Business Line.

The per capita consumption of paper in India is estimated at 8 kgs, which is far lower than the world average of 55 kg. Even in countries such as Thailand, it hovers around 30 kg. The US is the largest with 300kg,” he added.

JK Paper, which undertook a Rs 300-crore capacity expansion at its plants last year, said its 60,000-tonne packaging board facility has started production.

“The market for packaging board is growing at an annualised rate of 12-15 per cent and we hope to be a major player in this segment. The photocopier segment is also growing at about 20 per cent annually. Coated papers — driven by the growing demand of corporates for brochures, pamphlets and annual reports — are growing at about 15 per cent”.

On the outlook for the company, Mr Singhania said the company had posted a turnover of Rs 932.55 crore for 2006-07. The company, which till recently followed a July-June financial calendar, will announce its results in June for the fiscal 2007-08.

Asked if the company is planning to increase the price of coated paper, he said JK Paper recently made a price revision. “We have increased the prices by Rs 2,000 a tonne. This is in tune with the inflationary trend. The international prices of coated paper have also gone up from as low as $850 last year to $950-960 at present.”.

JK Paper company is also eyeing the printing and writing segment, Mr Singhania noted. On challenges, he said pulp and wood prices were showing an upward march.

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