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Introduction
Paper is one of the basic needs of modern life. It is a well-known
product, which is the only media of communication through writing. It
is used in every part of life, i.e., education, office, researches,
engineering, art, book printing, magazine, newspaper, etc.
Paper is an important material, used daily for many purposes
worldwide. Used in a wide variety of forms, paper and paperboard are
characterized by a wide range of properties.
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Papers are used for writing purpose and printing purpose. Books are
created using papers and newspapers etc. Now most of them used
computers for creating notes but if computer get damaged also
disappeared, where the note in paper permanent and reading is a good
habit and its increase our knowledge level, reading lots of book is good
habit but Reading things in computer decrease power of eye. Papers are
made from some kind of trees.
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Uses and Applications:
 Media Kraft Paper: This is used in corrugated box manufacturing
and by all the industrial packaging units. The main market lies in
Chennai, Madurai, Coimbatore, Virudhunagar and Sivakasi.
 Plain/Ribbed Kraft Paper: This is used as wrappers for books and
notebooks and also in all packaging industries.
 White Poster and Color Poster: These are consumed by the
printing presses for wall posters and also for printing tickets,
vouchers, etc. The main market is at Chennai and Sivakasi where
there number of printing presses exist.
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 Manila paper: This is made out of No.1 white cutting, used for
making envelopes and will be marketed in Chennai and Sivakasi.
 Tea Yellow Posters and Blue Match Paper: These are low
grammage papers extensively used in packing match box and
crackers. The main market is in Chennai, Sivakasi.
 Grey poster and grey poster superior: This is extensively used in
match industry where match boxes are manufactured in automation
process. This type of match boxes can be seen in luxury hotels,
airlines etc.
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Market Outlook
Indian paper industry is poised to grow and touch 25 million tonnes
from 20.37 million tonnes to 2019-20 from 2017-18 at rate of 10% per
annum.
India produces many varieties of papers, namely, printing and writing
paper, packaging paper, coated paper and some speciality paper.
Varieties under printing and writing paper are creame wove paper,
super printing paper, maplitho paper (non-surface and surface size),
copier paper, bond paper and coating base paper and others. The
varieties under coated paper are art paper/board, chromo paper/board
and others. There are approximately 600 paper mills in India, of which
twelve are major players.
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Paperboard & industrial packaging paper, paper stationery, newspaper
print and speciality paper altogether creates the overall paper market.
As paper industry of India are become more competitive by adding
improvements of key ports, roads & railways and communication
facilities, revision of forest policy is required for wood based paper
industry so that plantation can be raised by industry, cooperatives of
farmers and state government.
Paper demand in India has risen on the back of several key growth
drivers. The country's rising literacy rate has increased the demand for
books and textbooks. While India's booming e-commerce and retail
sectors have accelerated consumption of paperboard & packaging.
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Furthermore, growing concerns about plastic packaging and the recent
plastics ban in Maharashtra has provided an additional fillip to paper-
based alternatives. At the same time, premiumisation is driving
industry growth as consumer product companies seek to differentiate
through higher quality packaging that requires premium papers. Across
the board, rising disposable income is increasing both direct and
indirect paper demand.
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In addition, growing Indian economy, the rising disposable income of
consumer, higher literacy rate, growth of FMCG market, etc. encourage
the use of paper for writing, printing, newspaper, packaging and much
more. Among them paper for paperboard and packaging is used in
highest ratio of total paper market. And secondly largest share is
contributed by stationery. Altogether both segments are anticipated to
sale more than 15 million tonnes (MT) at the end of forecasted period.
Currently, the industry has seen an increasing demand for household
paper items apart from educational demand. These are tissue paper,
facial tissues, face wipes, paper towel, paper napkins, paper cup saucers
etc.
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Household paper products are used for maintaining proper hygiene and
cleanliness. Health concerns regarding infectious diseases and allergy have
been a major factor in the growth of household paper products market.
India’s share in global paper demand, though small is growing as demand in
the western nations contracts, while domestic demand in India grows at a
steady pace
Globally over 400 million tonnes of paper and paper products are consumed.
The world's three largest paper producing countries are China, the United
States, and Japan (these three countries account for approximately half of
the world's total paper production), while India accounts for a small but
growing share of the global market. The global paper and pulp mills industry
has contracted slightly over the past five years, primarily due to the shift to
digital media and paperless communication across most developed
economies. However, demand in emerging markets has partially offset the
decline by driving increased demand for paper used in packaging materials.
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India's Share of the Global Market
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India is a large under-penetrated country, as despite the sustained
growth witnessed by the industry, the per capita paper consumption in
India stands at a little over 13 kg, behind the global average of 57 kg.
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Domestic Paper Demand (in Mn tonnes)
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For the Indian paper industry, strong economic growth has been
accompanied by equally robust demand for paper. The demand drivers
and growth triggers have come from a combination of factors such as
rising income levels, growing per capita expenditure, rapid urbanization
and a larger proportion of earning population which is expected to lead
consumption and there is enormous potential for the paper industry in
the country. CARE Ratings expects that the overall paper demand
growing at a CAGR of 6.6% is likely to touch 18.5 million tonnes in
2018-19. The individual segments are expected to grow as follows:
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Printing and Writing segment demand is expected to grow at a CAGR of
4.2% and reach 5.3 million tonnes in FY19. The demand is expected to
grow on account of an anticipated pick-up from the education sector
with improving literacy rates and growing enrolment as well as
increasing number of schools and colleges.
Packaging paper & board segment caters to industries such as FMCG,
food & beverage, pharmaceutical, textiles, etc. Demand for Packaging
Paper & Board segment is expected to grow at a CAGR of 8.9% and
reach 9.7 million tonnes in FY19 due to factors such as increased
urbanization, requirement of better quality packaging of FMCG products
marketed through organized retail, and increasing preference for ready-
to-eat foods.
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In this digital era, the demand for the paper is still increasing. The
global paper industry experienced stable growth during the last five
years and is expected to continue its growth momentum. According to
the industry experts, it will reach approximately US $256 billion in
2017 with a CAGR of 5.9% over the next five years.
The paper industry is highly fragmented. A combination of factors such
as demographic condition, economic condition, and environmental
regulations have a significant impact on the industry dynamics.
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Printing andWriting Papers Market
The global printing and writing papers market draws a high demand
from the use of tissue and packaging products. The need for printing
and writing papers of the tissue and packaging industry has specifically
sprung from the elevating demand from containerboards. However, the
environmental regulations related to the paper and pulp sector could
act as a major constraint. Howbeit, with emerging markets welcoming
novel packaging techniques, the global market is projected to witness a
great opportunity from cementing its growth. If the leading applications
are concerned, commercial printing has primarily stole the spotlight
from other application segments. Printing and writing papers also find
extensive usage in digital printing, catalogs, magazines, stationeries,
and office reprographics.
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The demand is expected to grow on account of an anticipated pick-up
from the education sector with improving literacy rates and growing
enrolment as well as increasing number of schools and colleges.
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Annual Paper Demand in Million Metric Tonnes, 2013-
2021
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The global paper industry is undergoing rapid transformation and plays
significant role in the global packaging industry. In addition to
manufacturing of packaging products such as corrugated boxes,
paperboards or envelopes, papers are also used for the production of
printing paper for printing purposes. Rapid transformation of graphics
industry is expected to hamper growth of the global Printing paper
market. Furthermore, as the digital technology increases, there will be
growth in acceptance towards reading and writing work on the screen,
which might affect growth of printing paper market.
Emerging markets such as Asia Pacific and Latin America are expected
to push growth of global Printing paper market due to rise in population
as well as disposable income. MEA is expected to witness steady growth
in printing paper market due to deficient technology in this region.
Overall, the global Printing paper market is forecast to enjoy moderate
growth in the forecast period.
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Machinery Photographs
Cylindrical Blow Tank
Johnson Type Vibrating Screen
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Black Liquor/Pulp Pump Dump Chest Agitator
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Project at a Glance
PROJECT AT A
GLANCE
(USD in
Thousands)
COST OF PROJECT MEANS OF FINANCE
Particulars Existing Proposed Total Particulars Existing
Propose
d Total
Land & Site
Development Exp. 0.00 100.00 100.00Capital 0.00 1924.09 1924.09
Buildings 0.00 1392.00 1392.00Share Premium 0.00 0.00 0.00
Plant & Machineries 0.00 4795.00 4795.00
Other Type Share
Capital 0.00 0.00 0.00
Motor Vehicles 0.00 32.00 32.00Reserves & Surplus 0.00 0.00 0.00
Office Automation
Equipments 0.00 395.00 395.00Cash Subsidy 0.00 0.00 0.00
Technical Knowhow
Fees & Exp. 0.00 100.00 100.00Internal Cash Accruals 0.00 0.00 0.00
Franchise & Other
Deposits 0.00 0.00 0.00
Long/Medium Term
Borrowings 0.00 5772.26 5772.26
Preliminary& Pre-
operative Exp 0.00 20.00 20.00Debentures / Bonds 0.00 0.00 0.00
Provision for
Contingencies 0.00 450.00 450.00
Unsecured
Loans/Deposits 0.00 0.00 0.00
Margin Money - Working
Capital 0.00 412.34 412.34
TOTAL 0.00 7696.34 7696.34TOTAL 0.00 7696.34 7696.34
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Project at a Glance
Yea
r
Annualised Book
Valu
e
Debt Divid
end
Retained
Earnings
Payo
ut
Probab
le
Marke
t Price
P/E
Ratio
Yield
Price/
Book Value
EPS CEPS Per Share
Per
Share Per Share
No.of
Times
Rs Rs Rs Rs Rs % Rs % Rs %
1-
2
484.2
3 991.97
494.
23
2400.
00 0.00 100.00
484.
23 0.00 484.23 1.00 0.00
2-
3
795.7
7
1233.0
4
1290
.00
1800.
00 0.00 100.00
795.
77 0.00 795.77 1.00 0.00
3-
4
1103.
02
1479.9
0
2393
.02
1200.
00 0.00 100.00
1103
.02 0.00
1103.0
2 1.00 0.00
4-5
1400.
54
1725.6
4
3793
.56
600.0
0 0.00 100.00
1400
.54 0.00
1400.5
4 1.00 0.00
5-6
1685.
17
1965.8
7
5478
.73 0.00 0.00 100.00
1685
.17 0.00
1685.1
7 1.00 0.00
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Project at a Glance
Yea
r
D. S. C. R. Debt
/ -
Depos
its
Debt
Equit
y as-
Equit
y
Total
Net
Worth
Retu
rn on
Net
Wort
h
Profitability Ratio Asset
s
Turno
ver
Ratio
Curre
nt
Ratio
Indivi
dual
Cumul
ative
Over
all
GPM PBT PAT Net
Contri
bution
P/V
Ratio
(Number of times)
(Number of
times) % % % % % %
Initi
al 3.00 3.00
1-
2 1.42 1.42 1.62 1.62 2.13
16.9
8% 8.57% 6.81%
8088.
16
59.12
% 1.55 1.00
2-
3 1.74 1.57 0.79 0.79 1.17
20.7
7%
14.04
% 9.59%
9277.
03
58.13
% 1.69 1.43
3-
4 2.12 1.74 2.11 0.35 0.35 0.65
23.3
2%
17.86
%
11.64
%
10598
.53
58.11
% 1.71 1.96
4-5 2.57 1.92 0.13 0.13 0.36
25.0
6%
20.57
%
13.13
%
11920
.03
58.09
% 1.65 2.55
5-6 3.12 2.11 0.00 0.00 0.19
26.2
1%
22.47
%
14.22
%
13241
.53
58.08
% 1.55 4.78
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Project at a Glance
BEP
BEP - Maximum Utilisation Year 5
Cash BEP (% of Installed Capacity) 57.02%
Total BEP (% of Installed Capacity) 61.10%
IRR, PAYBACK and FACR
Internal Rate of Return .. ( In %age ) 28.89%
Payback Period of the Project is ( In Years ) 2.986 Years
Fixed Assets Coverage Ratio ( No. of times ) 6.016
Major Queries/Questions Answered in the Report?
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1. What is Paper Manufacturing industry ?
2. How has the Paper Manufacturing industry
performed so far and how will it perform in the
coming years ?
3. What is the Project Feasibility of Paper
Manufacturing Plant ?
4. What are the requirements of Working Capital for
setting up Paper Manufacturing plant ?
5. What is the structure of the Paper Manufacturing
Business and who are the key/major players ?
6. What is the total project cost for setting up Paper
Manufacturing Business?
7. What are the operating costs for setting up Paper
Manufacturing plant ?
8. What are the machinery and equipment
requirements for setting up Paper Manufacturing
plant ?
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9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Paper Manufacturing
plant ?
10. What are the requirements of raw material for
setting up Paper Manufacturing plant ?
11. Who are the Suppliers and Manufacturers of Raw
materials for setting up Paper Manufacturing
Business?
12. What is the Manufacturing Process of Paper?
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13. What is the total size of land required for setting up
Paper Manufacturing plant ?
14. What will be the income and expenditures for
Paper Manufacturing Business?
15. What are the Projected Balance Sheets of Paper
Manufacturing plant ?
16. What are the requirement of utilities and
overheads for setting up Paper Manufacturing
plant?
17. What is the Built up Area Requirement and cost for
setting up Paper Manufacturing Business?
18. What are the Personnel (Manpower)
Requirements for setting up Paper Manufacturing
Business?
19. What are Statistics of Import & Export for Paper?
20. What is the time required to break-even of Paper
Manufacturing Business?
21.What is the Break-Even Analysis of Paper
Manufacturing plant?
22.What are the Project financials of Paper
Manufacturing Business?
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23. What are the Profitability Ratios of Paper
Manufacturing Project?
24. What is the Sensitivity Analysis-Price/Volume of
Paper Manufacturing plant?
25. What are the Projected Pay-Back Period and
IRR of Paper Manufacturing plant?
26. What is the Process Flow Sheet Diagram of Paper
Manufacturing project?
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27. What are the Market Opportunities for setting
up Paper Manufacturing plant?
28. What is the Market Study and Assessment for
setting up Paper Manufacturing Business?
29. What is the Plant Layout for setting up Paper
Manufacturing Business?
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Table of Contents
of the
Project Report
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1. PROJECT LOCATION
1.1. DISTRCT PROFILE & GEOTECHNICAL SITE CHARACTERIZATION
1.1.1. General
1.1.2. Climate
1.1.3. Map
1.1.4. Demographics
1.1.5. Places of Interest
1.1.6. Connectivity
2. INTRODUCTION
3. USES & APPLICATIONS
4. DIFFERENT TYPES OF PAPER
5. STANDARD AND TECHNICAL SPECIFICATIONS
6. COMPOSITION OF WASTE PAPER
7. WASTE PAPER GRADES
8. B.I.S. SPECIFICATIONS
9. MARKET SURVEY
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10.FINANCIALS & COMPARISON OF MAJOR INDIAN PLAYERS/COMPANIES
10.1. ABOUT FINANCIAL STATEMENTS OF CMIE DATABASE
10.2. PROFITS & APPROPRIATIONS
10.3. TOTAL LIABILITIES
10.4. TOTAL ASSETS
10.5. NET CASH FLOW FROM OPERATING ACTIVITIES
10.6. SECTION – I
10.6.1. Name of Company with Contact Details
10.6.2. Name of Director(S)
10.6.3. Plant Capacity
10.6.4. Location of Plant
10.6.5. Name of Raw Material(S) Consumed with Quantity & Cost
10.7. SECTION – II
10.7.1. Assets
10.7.2. Cash Flow
10.7.3. Cost as % Ge of Sales
10.7.4. Growth in Assets & Liabilities
10.7.5. Growth in Income & Expenditure
10.7.6. Income & Expenditure
10.7.7. Liabilities
10.7.8. Liquidity Ratios
10.7.9. Profitability Ratio
10.7.10. Profits
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10.7.11. Return Ratios
10.7.12. Structure of Assets & Liabilities (%)
10.7.13. Working Capital & Turnover Ratios
11.COMPANY PROFILE OF MAJOR PLAYERS
12.EXPORT & IMPORT: STATISTICS DATA OF INDIA
13.PRESENT MANUFACTURERS
14.RAW MATERIAL
15.MANUFACTURING PROCESS
16.SUPPLIERS OF PLANT & MACHINERY
17.SUPPLIERS OF RAW MATERIAL
18.PHOTOGRAPHS/IMAGES FOR REFERENCE
18.1. MACHINERY PHOTOGRAPHS
18.2. RAW MATERIAL PHOTOGRAPHS
18.3. PRODUCT PHOTOGRAPHS
19. PLANT LAYOUT
Project Financials
• Project at a Glance Annexure
• Assumptions for Profitability workings ………………………..1
• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & Building
Site Development Expenses
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• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)
• Other Fixed Assets………………………………………..........….......6
Furniture & Fixtures
Pre-operative and Preliminary Expenses
Technical Knowhow
Provision of Contingencies
• Working Capital Requirement Per Month……………………….…7
Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store
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• Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses
• Salary and Wages …………………………………………....……..9
• Turnover Per Annum ……………………………………….....…10
• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital
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• Annexure 1 :: Cost of Project and Means of Finance
• Annexure 2 :: Profitability and Net Cash Accruals
 Revenue/Income/Realisation
 Expenses/Cost of Products/Services/Items
 Gross Profit
 Financial Charges
 Total Cost of Sales
 Net Profit After Taxes
 Net Cash Accruals
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• Annexure 3 :: Assessment of Working Capital requirements
 Current Assets
 Gross Working Capital
 Current Liabilities
 Net Working Capital
 Working Note for Calculation of Work-in-process
• Annexure 4 :: Sources and Disposition of Funds
• Annexure 5 :: Projected Balance Sheets
 ROI (Average of Fixed Assets)
 RONW (Average of Share Capital)
 ROI (Average of Total Assets)
• Annexure 6 :: Profitability Ratios
 D.S.C.R
 Earnings Per Share (EPS)
 Debt Equity Ratio
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• Annexure 7 :: Break-Even Analysis
 Variable Cost & Expenses
 Semi-Variable/Semi-Fixed Expenses
 Profit Volume Ratio (PVR)
 Fixed Expenses / Cost
 B.E.P
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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume
 Resultant N.P.B.T
 Resultant D.S.C.R
 Resultant PV Ratio
 Resultant DER
 Resultant ROI
 Resultant BEP
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• Annexure 12 :: Shareholding Pattern and Stake Status
 Equity Capital
 Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
 Determined Capacity P.A of Products/Services
 Achievable Efficiency/Yield % of Products/Services/Items
 Net Usable Load/Capacity of Products/Services/Items
 Expected Sales/ Revenue/ Income of Products/ Services/ Items
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• Annexure 14 :: Product wise Domestic Sales
Realisation
• Annexure 15 :: Total Raw Material Cost
• Annexure 16 :: Raw Material Cost per unit
• Annexure 17 :: Total Lab & ETP Chemical Cost
• Annexure 18 :: Consumables, Store etc.
• Annexure 19 :: Packing Material Cost
• Annexure 20 :: Packing Material Cost Per Unit
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• Annexure 21 :: Employees Expenses
• Annexure 22 :: Fuel Expenses
• Annexure 23 :: Power/Electricity Expenses
• Annexure 24 :: Royalty & Other Charges
• Annexure 25 :: Repairs & Maintenance Expenses
• Annexure 26 :: Other Manufacturing Expenses
• Annexure 27 :: Administration Expenses
• Annexure 28 :: Selling Expenses
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• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P & M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV (Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV (P &
M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR
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Reasons for Buying our Report:
• This report helps you to identify a profitable project for investing
or diversifying into by throwing light to crucial areas like industry
size, market potential of the product and reasons for investing in the
product
• This report provides vital information on the product like it’s
characteristics and segmentation
• This report helps you market and place the product correctly by
identifying the target customer group of the product
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• This report helps you understand the viability of the project by
disclosing details like machinery required, project costs and
snapshot of other project financials
• The report provides a glimpse of government regulations
applicable on the industry
• The report provides forecasts of key parameters which helps to
anticipate the industry performance and make sound business
decisions
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Our Approach:
• Our research reports broadly cover Indian markets, present analysis,
outlook and forecast for a period of five years.
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• We use reliable sources of information and databases. And
information from such sources is processed by us and included in the
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Scope of the Report
The report titled “Market Survey cum Detailed Techno Economic
Feasibility Report on Paper Mill.” provides an insight into Paper
market in India with focus on uses and applications,
Manufacturing Process, Process Flow Sheets, Plant Layout and
Project Financials of Paper project. The report assesses the
market sizing and growth of the Indian Paper Industry. While
expanding a current business or while venturing into new
business, entrepreneurs are often faced with the dilemma of
zeroing in on a suitable product/line. And before
diversifying/venturing into any product, they wish to study the
following aspects of the identified product:
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• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period
We at NPCS, through our reliable expertise in the project
consultancy and market research field, have demystified the
situation by putting forward the emerging business opportunity
in the Paper sector in India along with its business prospects.
Through this report we have identified Paper project as a
lucrative investment avenue.
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New Delhi-110007, India.
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Tel: +91-11-23843955, 23845654, 23845886, 8800733955
Mobile: +91-9811043595
Fax: +91-11-23845886
Website : www.entrepreneurindia.co , www.niir.org
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For more information, visit us at:
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Paper Manufacturing Industry

  • 2. www.entrepreneurindia.co Introduction Paper is one of the basic needs of modern life. It is a well-known product, which is the only media of communication through writing. It is used in every part of life, i.e., education, office, researches, engineering, art, book printing, magazine, newspaper, etc. Paper is an important material, used daily for many purposes worldwide. Used in a wide variety of forms, paper and paperboard are characterized by a wide range of properties.
  • 3. www.entrepreneurindia.co Papers are used for writing purpose and printing purpose. Books are created using papers and newspapers etc. Now most of them used computers for creating notes but if computer get damaged also disappeared, where the note in paper permanent and reading is a good habit and its increase our knowledge level, reading lots of book is good habit but Reading things in computer decrease power of eye. Papers are made from some kind of trees.
  • 4. www.entrepreneurindia.co Uses and Applications:  Media Kraft Paper: This is used in corrugated box manufacturing and by all the industrial packaging units. The main market lies in Chennai, Madurai, Coimbatore, Virudhunagar and Sivakasi.  Plain/Ribbed Kraft Paper: This is used as wrappers for books and notebooks and also in all packaging industries.  White Poster and Color Poster: These are consumed by the printing presses for wall posters and also for printing tickets, vouchers, etc. The main market is at Chennai and Sivakasi where there number of printing presses exist.
  • 5. www.entrepreneurindia.co  Manila paper: This is made out of No.1 white cutting, used for making envelopes and will be marketed in Chennai and Sivakasi.  Tea Yellow Posters and Blue Match Paper: These are low grammage papers extensively used in packing match box and crackers. The main market is in Chennai, Sivakasi.  Grey poster and grey poster superior: This is extensively used in match industry where match boxes are manufactured in automation process. This type of match boxes can be seen in luxury hotels, airlines etc.
  • 6. www.entrepreneurindia.co Market Outlook Indian paper industry is poised to grow and touch 25 million tonnes from 20.37 million tonnes to 2019-20 from 2017-18 at rate of 10% per annum. India produces many varieties of papers, namely, printing and writing paper, packaging paper, coated paper and some speciality paper. Varieties under printing and writing paper are creame wove paper, super printing paper, maplitho paper (non-surface and surface size), copier paper, bond paper and coating base paper and others. The varieties under coated paper are art paper/board, chromo paper/board and others. There are approximately 600 paper mills in India, of which twelve are major players.
  • 7. www.entrepreneurindia.co Paperboard & industrial packaging paper, paper stationery, newspaper print and speciality paper altogether creates the overall paper market. As paper industry of India are become more competitive by adding improvements of key ports, roads & railways and communication facilities, revision of forest policy is required for wood based paper industry so that plantation can be raised by industry, cooperatives of farmers and state government. Paper demand in India has risen on the back of several key growth drivers. The country's rising literacy rate has increased the demand for books and textbooks. While India's booming e-commerce and retail sectors have accelerated consumption of paperboard & packaging.
  • 8. www.entrepreneurindia.co Furthermore, growing concerns about plastic packaging and the recent plastics ban in Maharashtra has provided an additional fillip to paper- based alternatives. At the same time, premiumisation is driving industry growth as consumer product companies seek to differentiate through higher quality packaging that requires premium papers. Across the board, rising disposable income is increasing both direct and indirect paper demand.
  • 9. www.entrepreneurindia.co In addition, growing Indian economy, the rising disposable income of consumer, higher literacy rate, growth of FMCG market, etc. encourage the use of paper for writing, printing, newspaper, packaging and much more. Among them paper for paperboard and packaging is used in highest ratio of total paper market. And secondly largest share is contributed by stationery. Altogether both segments are anticipated to sale more than 15 million tonnes (MT) at the end of forecasted period. Currently, the industry has seen an increasing demand for household paper items apart from educational demand. These are tissue paper, facial tissues, face wipes, paper towel, paper napkins, paper cup saucers etc.
  • 10. www.entrepreneurindia.co Household paper products are used for maintaining proper hygiene and cleanliness. Health concerns regarding infectious diseases and allergy have been a major factor in the growth of household paper products market. India’s share in global paper demand, though small is growing as demand in the western nations contracts, while domestic demand in India grows at a steady pace Globally over 400 million tonnes of paper and paper products are consumed. The world's three largest paper producing countries are China, the United States, and Japan (these three countries account for approximately half of the world's total paper production), while India accounts for a small but growing share of the global market. The global paper and pulp mills industry has contracted slightly over the past five years, primarily due to the shift to digital media and paperless communication across most developed economies. However, demand in emerging markets has partially offset the decline by driving increased demand for paper used in packaging materials.
  • 12. www.entrepreneurindia.co India is a large under-penetrated country, as despite the sustained growth witnessed by the industry, the per capita paper consumption in India stands at a little over 13 kg, behind the global average of 57 kg.
  • 14. www.entrepreneurindia.co For the Indian paper industry, strong economic growth has been accompanied by equally robust demand for paper. The demand drivers and growth triggers have come from a combination of factors such as rising income levels, growing per capita expenditure, rapid urbanization and a larger proportion of earning population which is expected to lead consumption and there is enormous potential for the paper industry in the country. CARE Ratings expects that the overall paper demand growing at a CAGR of 6.6% is likely to touch 18.5 million tonnes in 2018-19. The individual segments are expected to grow as follows:
  • 15. www.entrepreneurindia.co Printing and Writing segment demand is expected to grow at a CAGR of 4.2% and reach 5.3 million tonnes in FY19. The demand is expected to grow on account of an anticipated pick-up from the education sector with improving literacy rates and growing enrolment as well as increasing number of schools and colleges. Packaging paper & board segment caters to industries such as FMCG, food & beverage, pharmaceutical, textiles, etc. Demand for Packaging Paper & Board segment is expected to grow at a CAGR of 8.9% and reach 9.7 million tonnes in FY19 due to factors such as increased urbanization, requirement of better quality packaging of FMCG products marketed through organized retail, and increasing preference for ready- to-eat foods.
  • 16. www.entrepreneurindia.co In this digital era, the demand for the paper is still increasing. The global paper industry experienced stable growth during the last five years and is expected to continue its growth momentum. According to the industry experts, it will reach approximately US $256 billion in 2017 with a CAGR of 5.9% over the next five years. The paper industry is highly fragmented. A combination of factors such as demographic condition, economic condition, and environmental regulations have a significant impact on the industry dynamics.
  • 17. www.entrepreneurindia.co Printing andWriting Papers Market The global printing and writing papers market draws a high demand from the use of tissue and packaging products. The need for printing and writing papers of the tissue and packaging industry has specifically sprung from the elevating demand from containerboards. However, the environmental regulations related to the paper and pulp sector could act as a major constraint. Howbeit, with emerging markets welcoming novel packaging techniques, the global market is projected to witness a great opportunity from cementing its growth. If the leading applications are concerned, commercial printing has primarily stole the spotlight from other application segments. Printing and writing papers also find extensive usage in digital printing, catalogs, magazines, stationeries, and office reprographics.
  • 18. www.entrepreneurindia.co The demand is expected to grow on account of an anticipated pick-up from the education sector with improving literacy rates and growing enrolment as well as increasing number of schools and colleges.
  • 19. www.entrepreneurindia.co Annual Paper Demand in Million Metric Tonnes, 2013- 2021
  • 20. www.entrepreneurindia.co The global paper industry is undergoing rapid transformation and plays significant role in the global packaging industry. In addition to manufacturing of packaging products such as corrugated boxes, paperboards or envelopes, papers are also used for the production of printing paper for printing purposes. Rapid transformation of graphics industry is expected to hamper growth of the global Printing paper market. Furthermore, as the digital technology increases, there will be growth in acceptance towards reading and writing work on the screen, which might affect growth of printing paper market. Emerging markets such as Asia Pacific and Latin America are expected to push growth of global Printing paper market due to rise in population as well as disposable income. MEA is expected to witness steady growth in printing paper market due to deficient technology in this region. Overall, the global Printing paper market is forecast to enjoy moderate growth in the forecast period.
  • 23. www.entrepreneurindia.co Project at a Glance PROJECT AT A GLANCE (USD in Thousands) COST OF PROJECT MEANS OF FINANCE Particulars Existing Proposed Total Particulars Existing Propose d Total Land & Site Development Exp. 0.00 100.00 100.00Capital 0.00 1924.09 1924.09 Buildings 0.00 1392.00 1392.00Share Premium 0.00 0.00 0.00 Plant & Machineries 0.00 4795.00 4795.00 Other Type Share Capital 0.00 0.00 0.00 Motor Vehicles 0.00 32.00 32.00Reserves & Surplus 0.00 0.00 0.00 Office Automation Equipments 0.00 395.00 395.00Cash Subsidy 0.00 0.00 0.00 Technical Knowhow Fees & Exp. 0.00 100.00 100.00Internal Cash Accruals 0.00 0.00 0.00 Franchise & Other Deposits 0.00 0.00 0.00 Long/Medium Term Borrowings 0.00 5772.26 5772.26 Preliminary& Pre- operative Exp 0.00 20.00 20.00Debentures / Bonds 0.00 0.00 0.00 Provision for Contingencies 0.00 450.00 450.00 Unsecured Loans/Deposits 0.00 0.00 0.00 Margin Money - Working Capital 0.00 412.34 412.34 TOTAL 0.00 7696.34 7696.34TOTAL 0.00 7696.34 7696.34
  • 24. www.entrepreneurindia.co Project at a Glance Yea r Annualised Book Valu e Debt Divid end Retained Earnings Payo ut Probab le Marke t Price P/E Ratio Yield Price/ Book Value EPS CEPS Per Share Per Share Per Share No.of Times Rs Rs Rs Rs Rs % Rs % Rs % 1- 2 484.2 3 991.97 494. 23 2400. 00 0.00 100.00 484. 23 0.00 484.23 1.00 0.00 2- 3 795.7 7 1233.0 4 1290 .00 1800. 00 0.00 100.00 795. 77 0.00 795.77 1.00 0.00 3- 4 1103. 02 1479.9 0 2393 .02 1200. 00 0.00 100.00 1103 .02 0.00 1103.0 2 1.00 0.00 4-5 1400. 54 1725.6 4 3793 .56 600.0 0 0.00 100.00 1400 .54 0.00 1400.5 4 1.00 0.00 5-6 1685. 17 1965.8 7 5478 .73 0.00 0.00 100.00 1685 .17 0.00 1685.1 7 1.00 0.00
  • 25. www.entrepreneurindia.co Project at a Glance Yea r D. S. C. R. Debt / - Depos its Debt Equit y as- Equit y Total Net Worth Retu rn on Net Wort h Profitability Ratio Asset s Turno ver Ratio Curre nt Ratio Indivi dual Cumul ative Over all GPM PBT PAT Net Contri bution P/V Ratio (Number of times) (Number of times) % % % % % % Initi al 3.00 3.00 1- 2 1.42 1.42 1.62 1.62 2.13 16.9 8% 8.57% 6.81% 8088. 16 59.12 % 1.55 1.00 2- 3 1.74 1.57 0.79 0.79 1.17 20.7 7% 14.04 % 9.59% 9277. 03 58.13 % 1.69 1.43 3- 4 2.12 1.74 2.11 0.35 0.35 0.65 23.3 2% 17.86 % 11.64 % 10598 .53 58.11 % 1.71 1.96 4-5 2.57 1.92 0.13 0.13 0.36 25.0 6% 20.57 % 13.13 % 11920 .03 58.09 % 1.65 2.55 5-6 3.12 2.11 0.00 0.00 0.19 26.2 1% 22.47 % 14.22 % 13241 .53 58.08 % 1.55 4.78
  • 26. www.entrepreneurindia.co Project at a Glance BEP BEP - Maximum Utilisation Year 5 Cash BEP (% of Installed Capacity) 57.02% Total BEP (% of Installed Capacity) 61.10% IRR, PAYBACK and FACR Internal Rate of Return .. ( In %age ) 28.89% Payback Period of the Project is ( In Years ) 2.986 Years Fixed Assets Coverage Ratio ( No. of times ) 6.016
  • 27. Major Queries/Questions Answered in the Report? www.entrepreneurindia.co 1. What is Paper Manufacturing industry ? 2. How has the Paper Manufacturing industry performed so far and how will it perform in the coming years ? 3. What is the Project Feasibility of Paper Manufacturing Plant ? 4. What are the requirements of Working Capital for setting up Paper Manufacturing plant ?
  • 28. 5. What is the structure of the Paper Manufacturing Business and who are the key/major players ? 6. What is the total project cost for setting up Paper Manufacturing Business? 7. What are the operating costs for setting up Paper Manufacturing plant ? 8. What are the machinery and equipment requirements for setting up Paper Manufacturing plant ? www.entrepreneurindia.co
  • 29. 9. Who are the Suppliers and Manufacturers of Plant & Machinery for setting up Paper Manufacturing plant ? 10. What are the requirements of raw material for setting up Paper Manufacturing plant ? 11. Who are the Suppliers and Manufacturers of Raw materials for setting up Paper Manufacturing Business? 12. What is the Manufacturing Process of Paper? www.entrepreneurindia.co
  • 30. www.entepreneurindia.co 13. What is the total size of land required for setting up Paper Manufacturing plant ? 14. What will be the income and expenditures for Paper Manufacturing Business? 15. What are the Projected Balance Sheets of Paper Manufacturing plant ? 16. What are the requirement of utilities and overheads for setting up Paper Manufacturing plant? 17. What is the Built up Area Requirement and cost for setting up Paper Manufacturing Business?
  • 31. 18. What are the Personnel (Manpower) Requirements for setting up Paper Manufacturing Business? 19. What are Statistics of Import & Export for Paper? 20. What is the time required to break-even of Paper Manufacturing Business? 21.What is the Break-Even Analysis of Paper Manufacturing plant? 22.What are the Project financials of Paper Manufacturing Business? www.entepreneurindia.co
  • 32. 23. What are the Profitability Ratios of Paper Manufacturing Project? 24. What is the Sensitivity Analysis-Price/Volume of Paper Manufacturing plant? 25. What are the Projected Pay-Back Period and IRR of Paper Manufacturing plant? 26. What is the Process Flow Sheet Diagram of Paper Manufacturing project? www.entrepreneurindia.co
  • 33. 27. What are the Market Opportunities for setting up Paper Manufacturing plant? 28. What is the Market Study and Assessment for setting up Paper Manufacturing Business? 29. What is the Plant Layout for setting up Paper Manufacturing Business? www.entrepreneurindia.co
  • 34. Table of Contents of the Project Report www.entrepreneurindia.co
  • 35. www.entrepreneurindia.co 1. PROJECT LOCATION 1.1. DISTRCT PROFILE & GEOTECHNICAL SITE CHARACTERIZATION 1.1.1. General 1.1.2. Climate 1.1.3. Map 1.1.4. Demographics 1.1.5. Places of Interest 1.1.6. Connectivity 2. INTRODUCTION 3. USES & APPLICATIONS 4. DIFFERENT TYPES OF PAPER 5. STANDARD AND TECHNICAL SPECIFICATIONS 6. COMPOSITION OF WASTE PAPER 7. WASTE PAPER GRADES 8. B.I.S. SPECIFICATIONS 9. MARKET SURVEY
  • 36. www.entrepreneurindia.co 10.FINANCIALS & COMPARISON OF MAJOR INDIAN PLAYERS/COMPANIES 10.1. ABOUT FINANCIAL STATEMENTS OF CMIE DATABASE 10.2. PROFITS & APPROPRIATIONS 10.3. TOTAL LIABILITIES 10.4. TOTAL ASSETS 10.5. NET CASH FLOW FROM OPERATING ACTIVITIES 10.6. SECTION – I 10.6.1. Name of Company with Contact Details 10.6.2. Name of Director(S) 10.6.3. Plant Capacity 10.6.4. Location of Plant 10.6.5. Name of Raw Material(S) Consumed with Quantity & Cost 10.7. SECTION – II 10.7.1. Assets 10.7.2. Cash Flow 10.7.3. Cost as % Ge of Sales 10.7.4. Growth in Assets & Liabilities 10.7.5. Growth in Income & Expenditure 10.7.6. Income & Expenditure 10.7.7. Liabilities 10.7.8. Liquidity Ratios 10.7.9. Profitability Ratio 10.7.10. Profits
  • 37. www.entrepreneurindia.co 10.7.11. Return Ratios 10.7.12. Structure of Assets & Liabilities (%) 10.7.13. Working Capital & Turnover Ratios 11.COMPANY PROFILE OF MAJOR PLAYERS 12.EXPORT & IMPORT: STATISTICS DATA OF INDIA 13.PRESENT MANUFACTURERS 14.RAW MATERIAL 15.MANUFACTURING PROCESS 16.SUPPLIERS OF PLANT & MACHINERY 17.SUPPLIERS OF RAW MATERIAL 18.PHOTOGRAPHS/IMAGES FOR REFERENCE 18.1. MACHINERY PHOTOGRAPHS 18.2. RAW MATERIAL PHOTOGRAPHS 18.3. PRODUCT PHOTOGRAPHS 19. PLANT LAYOUT
  • 38. Project Financials • Project at a Glance Annexure • Assumptions for Profitability workings ………………………..1 • Plant Economics…………………………………………………..2 • Production Schedule………………………………………………3 • Land & Building……………………………………………….……4 Factory Land & Building Site Development Expenses www.entrepreneurindia.co
  • 39. • Plant & Machinery……………………………………………..……..5 Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.) • Other Fixed Assets………………………………………..........….......6 Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies • Working Capital Requirement Per Month……………………….…7 Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store www.entrepreneurindia.co
  • 40. • Overheads Required Per Month and Per Annum………….…….…8 Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses • Salary and Wages …………………………………………....……..9 • Turnover Per Annum ……………………………………….....…10 • Share Capital…………………………………………………….....11 Equity Capital Preference Share Capital www.entrepreneurindia.co
  • 41. • Annexure 1 :: Cost of Project and Means of Finance • Annexure 2 :: Profitability and Net Cash Accruals  Revenue/Income/Realisation  Expenses/Cost of Products/Services/Items  Gross Profit  Financial Charges  Total Cost of Sales  Net Profit After Taxes  Net Cash Accruals www.entrepreneurindia.co
  • 42. www.entrepreneurindia.co • Annexure 3 :: Assessment of Working Capital requirements  Current Assets  Gross Working Capital  Current Liabilities  Net Working Capital  Working Note for Calculation of Work-in-process • Annexure 4 :: Sources and Disposition of Funds
  • 43. • Annexure 5 :: Projected Balance Sheets  ROI (Average of Fixed Assets)  RONW (Average of Share Capital)  ROI (Average of Total Assets) • Annexure 6 :: Profitability Ratios  D.S.C.R  Earnings Per Share (EPS)  Debt Equity Ratio www.entrepreneurindia.co
  • 44. • Annexure 7 :: Break-Even Analysis  Variable Cost & Expenses  Semi-Variable/Semi-Fixed Expenses  Profit Volume Ratio (PVR)  Fixed Expenses / Cost  B.E.P www.entrepreneurindia.co
  • 45. • Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume  Resultant N.P.B.T  Resultant D.S.C.R  Resultant PV Ratio  Resultant DER  Resultant ROI  Resultant BEP www.entrepreneurindia.co
  • 46. • Annexure 12 :: Shareholding Pattern and Stake Status  Equity Capital  Preference Share Capital • Annexure 13 :: Quantitative Details-Output/Sales/Stocks  Determined Capacity P.A of Products/Services  Achievable Efficiency/Yield % of Products/Services/Items  Net Usable Load/Capacity of Products/Services/Items  Expected Sales/ Revenue/ Income of Products/ Services/ Items www.entrepreneurindia.co
  • 47. • Annexure 14 :: Product wise Domestic Sales Realisation • Annexure 15 :: Total Raw Material Cost • Annexure 16 :: Raw Material Cost per unit • Annexure 17 :: Total Lab & ETP Chemical Cost • Annexure 18 :: Consumables, Store etc. • Annexure 19 :: Packing Material Cost • Annexure 20 :: Packing Material Cost Per Unit www.entrepreneurindia.co
  • 48. • Annexure 21 :: Employees Expenses • Annexure 22 :: Fuel Expenses • Annexure 23 :: Power/Electricity Expenses • Annexure 24 :: Royalty & Other Charges • Annexure 25 :: Repairs & Maintenance Expenses • Annexure 26 :: Other Manufacturing Expenses • Annexure 27 :: Administration Expenses • Annexure 28 :: Selling Expenses www.entrepreneurindia.co
  • 49. • Annexure 29 :: Depreciation Charges – as per Books (Total) • Annexure 30 :: Depreciation Charges – as per Books (P & M) • Annexure 31 :: Depreciation Charges - as per IT Act WDV (Total) • Annexure 32 :: Depreciation Charges - as per IT Act WDV (P & M) • Annexure 33 :: Interest and Repayment - Term Loans • Annexure 34 :: Tax on Profits • Annexure 35 :: Projected Pay-Back Period and IRR www.entrepreneurindia.co
  • 50. Reasons for Buying our Report: • This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, market potential of the product and reasons for investing in the product • This report provides vital information on the product like it’s characteristics and segmentation • This report helps you market and place the product correctly by identifying the target customer group of the product www.entrepreneurindia.co
  • 51. • This report helps you understand the viability of the project by disclosing details like machinery required, project costs and snapshot of other project financials • The report provides a glimpse of government regulations applicable on the industry • The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decisions www.entrepreneurindia.co
  • 52. Our Approach: • Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years. • The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players • We use reliable sources of information and databases. And information from such sources is processed by us and included in the report www.entrepreneurindia.co
  • 53. Scope of the Report The report titled “Market Survey cum Detailed Techno Economic Feasibility Report on Paper Mill.” provides an insight into Paper market in India with focus on uses and applications, Manufacturing Process, Process Flow Sheets, Plant Layout and Project Financials of Paper project. The report assesses the market sizing and growth of the Indian Paper Industry. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line. And before diversifying/venturing into any product, they wish to study the following aspects of the identified product: www.entrepreneurindia.co
  • 54. • Good Present/Future Demand • Export-Import Market Potential • Raw Material & Manpower Availability • Project Costs and Payback Period We at NPCS, through our reliable expertise in the project consultancy and market research field, have demystified the situation by putting forward the emerging business opportunity in the Paper sector in India along with its business prospects. Through this report we have identified Paper project as a lucrative investment avenue. www.entrepreneurindia.co
  • 55. Tags www.entrepreneurindia.co #Papermaking, Paper Production Process, #Paper_Production, Paper Manufacturing Process, #Paper_Manufacturing_Process_Pdf, Paper Manufacturing Process Flow Chart, Paper Making Process Flowchart, Uses of Paper, Pulp and Paper Industry, Paper Manufacturing Process PPT, Paper Industry, Manufacture of Paper, Paper Mill Business Plan, How to Start Paper Making Business, Paper Manufacturing Business, Starting a Paper Mill, #I_Want_to_Start_a_Paper_Manufacturing_Business, How to Start a Profitable Paper Mill Business, Paper Business Ideas, Paper Manufacturing Business Plan Pdf, #How_to_Start_a_Paper_Factory, Paper Manufacturing Unit, Detailed Project Report on Paper Manufacturing Business, How to Start Paper Production, Paper Manufacturing, #Project_Report_on_Paper_Manufacturing_Industry, Detailed Project Report on Paper Mill, Project Report on Paper Production, Pre- Investment Feasibility Study on Paper Mill, Techno-Economic feasibility study on Paper Mill, #Feasibility_report_on_Paper_Mill, Free Project Profile on Paper Mill, Project profile on Paper Production, #Download_free_project_profile_on_Paper_Mill, How to Start a Paper Factory, #I_Want_to_Start_a_Paper_Manufacturing_Unit, How can I start my own Paper Manufacturing Industry? #How_to_start_my_own_Paper_Manufacturing_Business, Printing and Writing Paper, Production of Printing and Writing Paper, Printing and Writing Paper Production, Paper Mills or Paper Manufacturing, Manufacture of Printing & Writing Paper, Writing and Printing Paper, Writing Printing Paper Mill, Manufacturing of Writing & Printing Paper, Printing & Writing Paper Manufacturing
  • 56. Niir Project Consultancy Services (NPCS) can provide Detailed Project Report on Paper Manufacturing Industry. How to Start a Profitable Paper Mill Business. Production of Writing and Printing Paper See more https://goo.gl/tUzwWA https://goo.gl/XMgfgA https://goo.gl/MGfeTu www.entrepreneurindia.co
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  • 60. www.entrepreneurindia.co Free Instant Online Project Identification and Selection Service Our Team has simplified the process for you by providing a "Free Instant Online Project Identification & Selection" search facility to identify projects based on multiple search parameters related to project costs namely: Plant & Machinery Cost, Total Capital Investment, Cost of the project, Rate of Return% (ROR) and Break Even Point % (BEP). You can sort the projects on the basis of mentioned pointers and identify a suitable project matching your investment requisites……Read more
  • 61. www.entrepreneurindia.co Download Complete List of Project Reports:  Detailed Project Reports NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries. Our Market Survey cum Detailed Techno Economic Feasibility Report provides an insight of market in India. The report assesses the market sizing and growth of the Industry. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.
  • 62. And before diversifying/venturing into any product, they wish to study the following aspects of the identified product:  Good Present/Future Demand  Export-Import Market Potential  Raw Material & Manpower Availability  Project Costs and Payback Period The detailed project report covers all aspect of business, from analyzing the market, confirming availability of various necessities such as Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, www.entrepreneurindia.co
  • 63. www.entrepreneurindia.co Working Capital Requirement, uses and applications, Plant Layout, Project Financials, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis. The DPR (Detailed Project Report) is formulated by highly accomplished and experienced consultants and the market research and analysis are supported by a panel of experts and digitalized data bank. We at NPCS, through our reliable expertise in the project consultancy and market research field, have demystified the situation by putting forward the emerging business opportunity in India along with its business prospects……Read more
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