From President�s Desk:
My heartiest congratulations to IPMA Secretariat for the launch of IPMA website. The launch of a website was overdue but the end product with its scale and size, its design and imagery shows that it has been worth the wait.
There is little doubt that the paper industry in India is poised for a big leap forward. However lack of economies of scale and scarcity of raw material could play spoilsport in paper industry�s drive to meaningfully contribute to the economic growth India is witnessing. I believe the new website will address these issues emphatically.
And more than that, paper industry needs to fight the perceptions associated with it. While India�s paper industry, at least the organized sector, has changed its character over the years, it is still marred with age-old perceptions of an environmentally-detrimental industry. IPMA as a body of organized paper industry has shown how projects such as social forestry and farm forestry could help meet the twin objectives of raw material base for industry while supporting rural economy and eco system. The commitment to CREP, voluntary code on pollution amelioration agreed with MoEF in 2003, and subsequent major investments made by the IPMA member mills are testimony to the pursuit of sustainable development.
I am sure the IPMA website will help in making the issues of India�s paper industry better understood across a wider audience.
Looking forward to support from all visitors to website and suggestions for improvement.
Pradeep Dhobale
From Secretary General�s Desk
As an apex body of large integrated paper manufacturers, IPMA essays a multi-faceted role and over the years, has metamorphosed into a forerunning knowledge resource on the industry besides being an advocacy group. In that respect, in more than 100 year old history of IPMA, the launch of the website represents no less than a landmark event.
It gives me an immense pleasure to introduce IPMA Website to internet browsers particularly, to all those who are associated one way or the other, with pulp, paper and allied industries. This website has not been launched merely for web presence but to serve as a source of credible information on the industry, its concerns, aspirations, strengths and challenges. It showcases corporate identities of all Member Mills which in their own right, are major players in the Indian paper sector. IPMA site is dedicated to provide an active platform for all constituents to interact and to serve as the disseminator of hi-end information. Efforts have been made to extend its scope to incorporate some important project studies / reports, video clippings, sector specific Government rules and regulations, sectoral news, events, updates etc, which I trust will give the extra special feel to the visitors of IPMA website.
While our sincere endeavour has been to make the IPMA website comprehensive enough and also, as much updated as possible, we are conscious of the fact that there is always room for improvement. In that regard, your appreciation, comments, bouquets and brickbats will go a long way in making the website serve its purpose to the fullest. We firmly believe that IPMA website will go a long way not only in clearing a few age old myths and misconceptions about the paper industry but also, project its global face.
On behalf of IPMA Secretariat I thank you for visiting the website and welcome
you on board. Thank you once again and keep visiting.
R. Narayan Moorthy
Economy and Paper Industry
-By R Narayan Moorthy
After four years of sustained growth, Indian economy is witnessing economic slowdown. The GDP growth rate which was 9.2 per cent in the first quarter of last fiscal tumbled to 7.9 per cent in the first quarter of current fiscal. This represents the lowest growth rate since the year 2004. However major fall in growth has been seen in the manufacturing sector. According to Central Statistical Organisation (CSO) data released recently, growth in manufacturing during the first quarter of current fiscal dropped to 5.6 per cent down from 10.9 per cent last year.
While GDP growth rate and Industrial production rate have come down, Inflation rate and Interest rates charged by banks have gone up significantly. Tight monetary policy adopted by RBI to contain inflation has led to hardening of interest rates by banks and financial institutions. Global economic slowdown and volatility in prices of crude and raw materials used by the industry have led to the blip in growth patterns.
The hardening of the international crude oil prices poses a serious downside risk to the manufacturing sector growth during 2008-09, says the RBI Annual Report release end August this year.
Almost all the sectors of economy are feeling the heat of this slowdown. Earlier the sub prime crisis and recently the financial tsunami witnessed on Wall Street are likely to further dampen the growth prospects and dry up the sources of funds.
Despite a challenging environment, however, the paper industry continues to tread on its upward march. As all indicators show there is no slackening in the growth of paper sector so far and it continues to witness a growth of 7-8 per cent, much faster than the rest of the world.
A boom in print media, in particular launch of hordes of new magazines, rising disposable incomes, rising literacy rates, modern retail formats with emphasis on packaging have ensured that the paper industry�s growth story remains intact.
The current per capita consumption of paper in India is 8.3 kg compared to the global average of 49 kg. This shows a large potential for growth of paper industry in India.
However paper industry is well aware of the fact that there is no scope for any complacency. The challenges faced by the industry are many. Despite the fact that a segment of the paper industry is fast adapting state-of-the-art technologies to increase efficiency and reduce production cost, a large number of paper manufacturers in small and mid segment are still dependent on outdated technologies.
The competition in global pulp and paper segment is intensifying and India can not remain immune to international competition in view of globally integrated economy and a large number of trade agreements that India has signed with different trade groups.
There is urgent need to increase competitiveness of the industry and the same can be achieved by adoption of energy efficient and clean technologies, arranging a robust raw material base for the industry and increasing economies of scale.
On its part, the industry is taking initiatives to come at par with efficient global players. The recently held joint project by Confederation of Indian Industry and IPMA titled �Making Indian Pulp & Paper Industry World Class� will go a long way in helping pulp and paper plants achieve world class levels with thrust on energy, water and environmental management.
Fortunately macro level policy decisions are under consideration of the government to make industry globally competitive and ensure supply of raw materials on a sustainable basis.
|
IPMA Newsletter November 2008
