From President�s Desk:
First of all, I wish to express my grateful thanks to all members of IPMA to have considered me worthy of holding the office of President of IPMA.I hope I can live upto their confidence.
We are currently passing through new challenges posed by the global melt-down. While I do believe that the Indian economy is better off than many others, we can not avoid being impacted to some extent. I do hope that with co-operation and goodwill of all the stakeholders, we the Indian paper Industry will be able to take these challenges in our stride and move towards brighter days ahead.
Already over the last few years, a synergistic approach shown by IPMA member mills, has led to a transformation of sorts in the very way Indian paper industry is viewed internationally.
There have been major investments running in several hundred millions of dollars in setting up new capacities, modernization and introducing state-of-the-art technologies to increase global competitiveness of the industry. IPMA member mills have voluntarily adhered to the �Charter of Corporate Responsibility for Environment Protection� laid down by the Government of India and have demonstrated their commitment to follow ecologically sustainable practices.
Paper industry as represented by IPMA has emerged as agro-based industry from its earlier character of forest-based industry. Taking up the challenge of drying up of the raw material resource, IPMA member mills have scripted history by aggressively adopting the social/ farm plantations route. In association with farmers, more than 2.25 lac hectares of mainly degraded land has been brought under pulp wood plantations. This initiative has not only led to generation of large scale employment opportunities but has also helped in greening of India. However, much more is required to be done to develop robust raw material sources keeping in mind the potential of Indian paper industry. Our dialogue with the authorities towards use of Revenue waste lands and degraded forest land has been going on for some time. We do hope that some concrete decisions will emerge soon in implementation of Public � private �Partnership to utilize this valuable resource for the overall benefit of the society...
India has emerged as the fastest growing paper market globally with growth rates hovering between 8-10 %. However, there is a long way to go. The per capita consumption of paper in India is still amongst the lowest in the world. Therefore, with improvement in education and life style, the demand for paper is bound to grow substantially. While the Indian paper Industry is capable of meeting this growing demand, it will look forward to the Central and State Government authorities to put in place an enabling environment for its faster growth.
It is indeed a matter of satisfaction that there is a growing appreciation in Government of the needs of the paper industry in the evolving business environment. In the coming months, we plan to work closely with the government, the civil society, research organizations and trade bodies in planning initiatives that further sharpen the global competitiveness of the industry.
I wish you a very happy 2009.
M. L. Pachisia
From Secretary General�s Desk
In the 9th AGM of Indian Paper Manufacturers Association (IPMA) held at ITC Maurya New Delhi on January 09, 2009, the IPMA Committee has been reconstituted.
It gives me immense pleasure to welcome Mr M L Pachisia as the new President and Mr Madhukar Mishra as the new Vice President of IPMA.
As managing director of Orient Paper, a leading paper manufacturer in the country, Mr Pachisia has contributed significantly to the thought leadership at IPMA. In particular as Chairman of Marketing Sub Committee of IPMA over the last two years, Mr Pachisia spearheaded industry�s drive towards maximizing the value of its products both in India and abroad.
Mr Madhukar Mishra the new Vice President and Managing Director Star Paper represents the younger face of IPMA. Apart from being the Vice President, Mr Mishra has readily accepted the additional duties as the Chairman of IPMA�s Commercial Sub Committee.
The last two years under the Presidentship of Mr Pradeep Dhobale has seen paper industry attaining new landmarks. The resurgent face of paper industry in India represented by IPMA shone brighter. We are sure under the leadership of Mr Pachisia and Mr Mishra the association will scale new heights.
Post-August'2008 the Indian industries across sectors are facing some difficult situation emanating from financial melt down, globally. It is hard to sound too positive under these circumstances yet, I firmly believe that brave decisions taken in this moment of crisis could well re-define fortunes of our industry. The Government of India has taken remedial measures by unveiling a slew of stimulus packages and we in IPMA, earnestly hope that their positive impact on the macro-economic situation will benefit all.
R Narayan Moorthy
Economy and Paper Industry
-By R Narayan Moorthy
A survey by Federation of Indian Chambers of Commerce and Industry in January 2009 provides incisive insights into the state of economy as perceived by India Inc. Nearly 90 per cent of the 412 companies surveyed in the report feel that the economic situation has deteriorated over the last six months. Around 81 per cent of the companies have reported that their current industry performance is weaker as compared to the situation six month back in view of deterioration in the economic situation.
Even Prime Minister�s Economic Advisory Council (EAC) has downwardly revised its GDP growth projection during 2008-09 to 7.1%. In particular, the industrial sector is now projected to grow by only 5.1 % from earlier estimate of 7.5 %.
There are valid reasons for this downward revision. In October 2008, the Index of Industrial Production (IIP) posted a negative growth of (-)0.4 per cent as against a robust 12.2 per cent in the same month previous year. The fall in production in manufacturing sector in October was to the tune of (-)1.2 per cent against a growth of 13.8 per cent in October 2007.
In November the IIP Index has no doubt shown an increase of 2.4 per cent. However it is being stated that the growth has been achieved on a low base in November 2007.
In fact EAC has admitted that lowered overall growth is largely because of the second half of the fiscal being worse than expected.
There have been two fiscal stimulus packages announced by the government in the recent past. RBI is also continuing with the process of monetary easing through successive interest rate cuts. Somehow, these measures have not been able to reverse the slowdown as banks are apparently reluctant to lend money to people wanting to buy houses or automobiles.
Hopefully the decrease in inflation rates and increased public spending will provide the much-needed leg up to the sagging confidence.
Paper Industry:
The growth in paper industry in India has kept pace with GDP growth rates over the last few years at times even excelling it. Lowered projections of GDP growth rates would no doubt make a dent in the growth story of paper sector as well. So far, pulp and paper sector has managed to clock a healthy growth despite pessimism being experienced in many other sectors. Indian paper sector is not overtly dependent on export and that has help it overcome the onslaught of financial meltdown in world markets.
Over the last few years, the paper industry has faced several odds including absence of any industrial plantation policy of the government which the industry has overcome by developing large swathes of agro and farm forestry in association with farmers.
While the industry has resilience enough to ride the tough times, it is the threat of cheaper imports that needs to be watched out. With a large number of economies facing slowdown or even recession, large capacities have become idle. The international prices are coming down and a threat to Indian industry which is still battling with challenges such as obsolete technologies and expensive raw material sources.
|
IPMA Newsletter February 2009
