Adler Paper, established in 1975, is a pioneer indentor of waste paper & stock lot papers from all over the world. They were the first to import waste paper into break-bulk containers. The company has an extensive global market presence and provides long-term disposal and procurement solutions to the Indian paper industry. Recently, they developed a software called Adler Trace & Track which provides customers with a robust platform to trace and track their shipments. In a recent interaction with Paper Mart, Mr. Hrishikesh Vora, CEO, Adler Paper, talked about his company, products offered, and application areas. He also talked about its new software and the challenges faced by the paper industry.
Paper Mart: Please tell us about your company’s journey, major milestones, and crucial achievements.
Hrishikesh Vora: Embarking on its journey in 1975, our company stands as one of India’s oldest in the industry. In 1979, we were the first to import waste paper into break-bulk containers, marking a significant milestone. Over the years, we have expanded our reach into stock lot paper, establishing ourselves as a leading supplier of specialty grades. Sourcing from diverse corners of the globe, from Europe including UK, the Middle East, America, and beyond, the company has established a global presence. Its longevity and continuous growth stand as testaments to its remarkable journey and enduring success. With the fourth-generation CEO at the helm, I have a long-term vision for the future, and the company is poised to continue its legacy of excellence for generations to come.
PM: Kindly tell us about your product portfolio, and application areas.
HV: Our company provides a comprehensive range of waste paper products to paper mills across India. Our specialty lies in offering a diverse product portfolio that encompasses all types of waste paper grades, anything and everything under the sun, including specialty grades that are not readily available from other suppliers. This extensive product range is our unique selling proposition. Our waste paper products are utilized by various paper mills in India for all grades of papers such as kraft paper, duplex board, writing & printing paper, and newsprint etc.
PM: How do you go about adding value for the industry?
HV: One of the major things or major assets that our company has is that we have developed a specialized software which is called Adler Trace and Track, which very few, if not a couple of people in India have. Adler Trace and Track is a specialized software developed by the company to address the unique needs of the customers. It provides customers with a robust platform to trace and track their shipments, including pending shipments and those in transit. The company is committed to continuous improvement and plans to release an updated version of the app soon, offering enhanced features, improved visuals, and more comprehensive information. Technology and IT play a central role in the company’s operations, and Adler Trace and Track is a prime example of this commitment to innovation. The company is eager to explore further advancements in technology to enhance its products and services.
With the fourth-generation CEO at the helm, I have a long-term vision for the future, and the company is poised to continue its legacy of excellence for generations to come.
PM: How does Adler Paper contribute to environmental sustainability in the paper industry?
HV: Our company’s primary focus is on the movement of all types of waste paper grades, with a particular emphasis on specialty grades that are challenging to reprocess in Europe or specifically the UK. These specialty grades include foil grades, poly grades, aluminum-coated, poly-coated, and poly-laminated etc. We have established partnerships with paper mills in India that are capable of processing these specialty grades into high-quality fiber. By providing a comprehensive solution for our suppliers to manage both pre-consumer and post-consumer grades, we are not only contributing to the growth of the specialty grade market but also enabling our customers in India to utilize these grades effectively. Moreover, we ensure that suppliers have a consistent and reliable outlet for these grades, eliminating the need for disposal or landfilling. Our commitment to recycling specialty grades that are deemed difficult to process demonstrates our dedication to environmental sustainability.
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PM: How does Adler Papers view the current waste paper scenario for the Indian paper industry?
HV: The year 2023 has been a roller coaster ride for all of us involved in this industry. The market has experienced numerous ups and downs, with extreme highs and lows, and no clear trajectory. I believe that India will always remain fiber-short simply because we lack proper collection systems in place. Currently, we can only recycle a limited number of items in bulk grades, primarily OCCs and newspapers. The current situation prevents us from recycling mixed waste, commercial mixes, industrial mixes, soft mixes, or hard mixes. Most of this material ends up in landfills. Based on this, I believe that cardboard, newspapers, and all high grades, such as hard white shavings and soft white shavings, will continue to enter the system through the “Kabadiwala” as we call them, who collect it from your doorstep and put it into the system. However, as an industry, I feel that we will always be fiber-short and will always rely on imported waste to bulk up our tonnage. The current situation is not ideal. There is plenty of material available in India, which is why prices are at an all-time low. I believe that paper mills need to buy week in and week out to ensure that there is no shortage of waste paper in the system.
Our commitment to recycling specialty grades that are deemed difficult to process demonstrates our dedication to environmental sustainability.
PM: Please share your advice or some suggestions for the Indian paper industry, which can help them in formulating their strategy for long-term procurement of fiber or waste paper in specific.
HV: We are heavily involved in Europe including the UK with strategic partnerships established in that region, and we are expanding those partnerships to America as well. As I have observed from traveling extensively across these continents, there is a collection shortage. Raw material collections have dropped. Yards that were supposed to contain anywhere between 20 to 50 loads of OCC have only two to five loads in stock. We are seeing this trend more and more across Europe, the USA, and Canada.
I believe that paper mills worldwide need to realize that Turkey is becoming a major player in the market and will be taking more and more fiber away from India. The Far East continues to consume fiber, and America also continues to consume material domestically. Added capacities are not helping anyone; the material is simply being consumed domestically. I feel that this situation, coupled with the fact that there is a worldwide recession in many countries, including even Germany, one of the top countries in Europe, is making it difficult to get fiber back into the system. The UK is also officially in recession. I think Europe, America, and Canada are unofficially in recession, but they are coming out of it. If you don’t buy, how are you going to recycle? And if you don’t recycle, how are you going to get collections back into the system?
PM: What is your outlook on the international paper & recycled fiber industry?
HV: A significant decline of 30 to 40 percent in finished paper production is evident across the EU, the UK, and the US. This drop in finished paper production inevitably reduces the availability of fiber in the market. For instance, a paper mill operating at 100 capacity with a 30-40 percent drop in finished paper would now operate at 60-70 percent capacity. Consequently, the amount of waste paper entering the system increases to 60-70 percent. With lower collections at 30-40 percent and the remaining 60-70 percent available, everyone is eying for that limited supply.
These regions have adapted to survive with lower collections and have adjusted their waste paper intakes to match their production levels. However, the question arises – what happens to the remaining 60-70 percent, a significant portion of which is exported? This material, which everyone is fiercely competing for, is attracting interest not only from India but also from Far East countries like Indonesia, Vietnam, South Korea, Malaysia, and Thailand. Turkey is poised to become a major market, while domestic Europe has always been there and now, the US is also experiencing a surge in domestic orders, adding to the demand for waste paper. It is crucial for businesses to recognize the need to plan their waste paper purchases accordingly. I sincerely advise paper mills to adopt a consistent weekly purchasing strategy. For instance, if a mill has a purchasing capacity of 20 containers, it should consider buying 5 containers regularly, regardless of market price fluctuations, to maintain sustainability. Averaging costs is the key to survival in the long run.
If a mill has a purchasing capacity of 20 containers, it should consider buying 5 containers regularly, regardless of market price fluctuations, to maintain sustainability. Averaging costs is the key to survival in the long run.
PM: How do you foresee the future of the Indian paper industry? Would you like to add any further challenges for the industry regarding waste paper procurement?
HV: The next ten years undoubtedly belong to India, as we are poised for massive growth. The next decade will be a period of unprecedented growth. While 2023 was undoubtedly a challenging year for all, I believe it was also a time of readjustment. 2024 is likely to be a slight improvement over 2023. Paper mills are also beginning to recognize the intense competition in the industry. Hundreds of new traders are emerging daily, approaching the same sources that have supplied India for the past 40-50 years. The competition at the source level is so intense that when there are only 20 containers physically available, the general perception, fueled by numerous traders offering tonnage, is that there are actually 200 containers. This oversaturation of offers and marketing for the same tonnage keeps the supply side unchanged while the trading side becomes increasingly congested. This is also detrimental to paper mills, as they believe that the 10 traders offering them tonnage represent 200 containers, when in reality, it is the same material from the same sources, amounting to only 20 containers. Therefore, paper mills must be mindful of this fact and maintain consistent buying practices. While I understand the challenges of erratic buying and the current issues with finished paper orders, averaging costs and prices will be the key to success in 2024.
