An understanding of the digital printing industry is vital in the strategic interest to those people who are either directly or indirectly connected to the industry. The views were taken to address specific issues like industry scenario in digital and office paper grades. With the market size of 4 lac TPA (approx) it is witnessing the growth of over 15%. It depicts the opportunity to expand in the industry as the consumer is shifting more towards the applications done through digital printing and the office printing is also increasing. These views were taken to make aware the industry as a whole vis-à-vis need to promote it. So, here are the views of the industry people.
Mr. S.N. Venkataraman
International Sales & Product Development Manager
ITC PSPD Ltd
The market for office and digital papers in India is witnessing 10% plus growth year on year, a trend which is likely to sustain based on forecasted economic growth and expansion in the number of installations of digital printing machines and photocopiers.
Increasingly print jobs like variable data printing, direct mailers, manuals, promotional leaflets and proofs are moving from short-run offset to digital printing. Copier papers including office communication papers are also growing at above average rate.
Indian paper manufacturer including ITC have expanded and upgraded their facilities to meet this demand of digital printing and office communication papers. By adopting clean technology like ECF bleaching with ozone treatment and sourcing wood from sustainable plantations we are able to offer our customers world class range of papers and paperboards linked with sustainable choice.
Mr. A.K. Ghosh
Vice President Sales
JK Papers Ltd
India’s economic growth has been driving the paper consumption in many ways. The rapid growth in the recent past has been accompanied by several structural changes. These include focus on literacy, greater urbanization, rise in disposable incomes, rise in infotainment, demographic shift, young aspirants, etc. These transformations are no longer confined to metros but have percolated to smaller towns as well.
There has been a significant change in terminology for cut-size A-4 Paper from ‘Copier paper’ to ‘Multiuse Office paper’. The term copier paper reflected the predominant use of this paper for photocopying but with various transformational changes the quality of this paper also improved sharply, this began to be known as multiuse office paper. The shift in terminology also reflects the growing consumerism and importance of young population both of which favor high quality paper.
The better quality A-4 size paper finds its use not only in modern and high speed printer & photocopiers but also in uses like letterheads and for graphic printing as also in high quality power point presentations. As the modern office shifts towards modern printing & copying medium the older ones have a ready-made second hand market especially in rural areas and tier 2 towns. The economy copier paper satisfies the growing demand for photocopying & desk top printing as a result of increase in literacy and more use of internet & thirst for infotainment.
The market now covers a wide range: from the low priced copier paper in the economy segment to top end premium priced branded copier. Today the branded copier paper market is growing at over 15% which is much faster than the overall growth of Indian paper market. In the present market of 3.9 Lac MT, JK’s copier brands enjoy the position of being a market leader with over 34% market share.
Mr. Jaspal Singh
Vice President Marketing
The APP Mills Ltd
Demand for paper is expected to be on its growth trajectory and consumption of paper is closely linked to the economic development. The writing and printing segment moves in line with GDP growth due to its strong correlation to population, literacy and other demographics. Amongst various varieties of paper which form the W&P segment, demand for coated and copier is expected to grow at a faster pace while demand for creamwove and maplitho grades are expected to slow down as they are mature segments and account for almost 70% of the W&P segment. Demand driver for copier is related to consumption of office stationery by SOHO, BPOs, KPOs and other such activities which have resulted in increasing demand.
Mr. M.S. Venkatasubramanain
General Manager Sales & Marketing
Khanna Paper Mills Ltd
The photocopy paper market size is estimated at 3,25,000 MT p.a. The Year on Year (YOY) growth is 22% approximately. Though the economic meltdown has taken a toll on this segment, but it will be temporary only. Economic growth, digital and variable data printing, thrust for education, export opportunities are the main growth drivers. We expect a growth of 2530 % p.a. over next three years.
Mr. S. Krishnamurthy
General Manager Marketing
Tamil Nadu Newsprint and Papers Ltd
In India, digital printing is making significant inroads into the conventional printing process which is evident from the demand growth of 25% per annum in cut size paper. Print on demand is becoming the order of the day. The major segments switching over to digital printing includes desk top publishing, variable data printing, SOHO, book publishing, on-demand printing, souvenirs & books.
However, every mill is trying to increase its capacity for digital paper considering the higher CAGR which is likely to result in over supply resulting in pressure on sales and prices temporarily. When the supply demand balance normalizes the scenario for the paper mills would improve. The CAGR in the digital printing and papers is likely to sustain around 15-20% for another 15 years on account of the economic growth in the developing countries namely Asia and Africa. Globally also, research has proved paperless office as a myth and there is no drop in consumption of paper even in developed countries except the form and size have changed to suit digital printing.
Parallel to the digital paper growth we also observe the growth in awareness towards environmental protection i.e. climate change, carbon trading, carbon footprint are some of the popular watch words among the consumers.
Mr. Sharad Dube
Abhishek Industries Ltd
Copier Paper is a growing market requiring quality product. Demand for mill cut and pack copier paper is growing at a fast pace, in tandem with growth in various segments of the economy. The customer has become very demanding and right quality product and services needs to be provided by copier paper manufacturers. Quality aspects among others include apart from good intrinsic quality of paper, other essential attributes like trouble free running on new generation high speed photocopying machines, desktop printing and other printing machines, good quality of prints, proper cutting and finishing, good packing from point of view of both functional value and aesthetics. On the other hand, optimum services include timely availability, deliveries, after sales services.
There has been a sharp increase in availability of copier paper in the country, which is poised for further increase. This poses a lot of challenge to marketeers in terms of product differentiation, distribution, branding, creating demand pull and effectively meeting needs and wants of the customer. The export market offers good opportunities for paper manufacturers provided they meet quality and service criteria.
Mr. V. Subbiah
Vice President Marketing
The West Coast Paper Mills Ltd
Paper industry is passing through a difficult phase due to additional bunch of capacity which had been already added up and is going to be added up to the extent of about 1.2 million TPA within a span of two years i.e. 2008-09 & 2009-10. This has naturally caused a kind of imbalance between demand and supply in printing and writing paper. But there is a slight ray of light we expect to see from current quarter starting Oct.09.
Paper Industry is no more a cyclical industry in view of the recent trend we have been experiencing for the last 4-5 years. Certainly, the global recession has impacted the paper industry slightly but the major impact on sales is because of the additional capacity mainly in writing and printing paper otherwise called office paper and copier paper. No major player manufactures the digital quality paper due to the technological constraints so far. But majority of the major manufacturers have upgraded or added world-class brand new machines wherein Indian paper industries now will compete with the any international players of any nature and quality of paper. The consumption and demand for printing and writing paper is expected to surpass the supplies by 2011-12 with increased thrust & spending by Government on literacy.