Established in 1933, Mitthanjee Group comprising MLM India and MLJ Industries, has been a frontrunner in the global paper industry for over 90 years. Connecting mills to their end users, eliminating middlemen, and ensuring transparency is their key strategy. Their primary goal is to import 25,000 tons per month of forest products in India by March 2025. They supply raw materials like waste paper and pulp to paper mills in India and receive finished products in return which they then export or distribute to end users in India. They import high-quality paper into India which is challenging for the Indian mills to produce economically and sustainably. MLM Group has a strong presence in over 60 countries with offices in Hong Kong, Amsterdam, Ethiopia, and Nigeria etc, and is soon planning a representative office in the UAE to target the Middle East market. In a recent interaction with Paper Mart magazine, Mr. Chirag Jain, MLM Group, shared about the company’s journey, product portfolio, and market footprint. Alongside his education in the United States, Mr. Chirag Jain joined the family business and is carrying forward its legacy. Additionally, he also highlighted the expansion plans in MLJ Industries in the leadership of his brother Mr. Siddarth Jain targeting to increase the coating capacity from 4,000 tons per month to around 10,000-12,000 tons per month.
Paper Mart: Please provide a brief overview of your group, including its history, mission, and core values.
Chirag Jain: Our company, Mitthanjee Group, was established in 1933 and gained further recognition in 1948 post-independence period. From 1948 to 1994, our group primarily traded with local paper mills. In 1994, Mr. Vinay Jain went to the United States with the aim of identifying more valuable paper products compared to those available in the Indian market. Upon his return, he introduced these products to the Indian market, marking the beginning of our paper import business. We started importing paper of various grades from American markets in 1994. From 1994 to 1997, we faced significant challenges in developing and understanding the market for these products and their market share in India. However, in 1997-98, we began to establish a strong business presence, importing from American and European markets to the Indian market. By 2008, we emerged as the leader in imports and had a good market share in the Indian market, especially for products like SBS (Solid Bleached Sulphate). We started a new company in Hong Kong in the same year by the name of Material Sources International Limited (MSIL). MSIL contributed to our growing international presence, and through MSIL, we engaged in trading in more than 60 countries across the globe. Since the inception of the group, our main focus has been on diversifying into corrugation grades, packaging grades, publication grades, and specialty grades. We have a very strong database of customers, for paper products, within India and outside India. At MLM Group, we have been participating globally in various exhibitions, in the US, Europe, China, Africa, and the Middle East etc. We have participated in exhibitions like Drupa, Interpack, Paper ME, PapFor, Labelexpo, Paper Arabia, etc. Currently, our goal is to connect customers directly from mills to end users to eliminate the middlemen in the market.
Integrity and loyalty are very strong components of our culture, and we are committed to fostering customer and supplier loyalty. We strive to benefit our customers and suppliers both globally and domestically. Transparency is also one of our company’s main focuses. We believe in dedicated team work 24/7, 365 days a year. We are confident in our ability to provide our customers with the right paper for their specific needs.
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MLJ Industries in the leadership of Mr. Siddarth Jain is targeting to increase the coating capacity from 4,000 tons per month to around 10,000-12,000 tons per month.
PM: Please elaborate on your product portfolio, market footprint, and key clientele.
CJ: We are involved in trading all types of forest products. We supply raw materials like waste paper to mills in India and receive finished products in return. We then export these products or distribute them to end users in India. We have a strong market presence with customers across India, from North to South and East to West. We also have a global network, supplying from the major mills across the world Asian mills to European mills, Russian mills to US mills, and South American mills to Australian mills. We operate globally as a supply chain and have a customer base in 60 countries. Our key clientele is more on the converter side. We are focused on building a distribution network for certain grades, mainly in the digital grades or grades where customer service is required. In these cases, only a local distributor or local agent can provide the necessary support.
PM: What strategies do you employ to expand its market presence both domestically and internationally?
CJ: Connecting mills to their end users is one of our biggest strategies. We are bringing into India, paper that Indian mills are unable to produce due to their high reliance on pulp. We have distribution centers in the North and West and are establishing one in the South for stock and merchanting operations. Our distribution centers support our customers in addressing the delays caused due to shipping. Domestically, we are also trying to convert waste paper into finished paper. We have partnered with some mills in the north, where we supply waste paper/secondary fiber along with pulp to create products as per our customer needs. Internationally, we have offices in Hong Kong, Amsterdam, Ethiopia, and Nigeria, etc. This gives us a strong advantage in both the supply chain and marketing our products to different regions. We will also be opening a representative office in the UAE to target the Middle East market. We want to increase our local presence in various markets, particularly in Africa, the Middle East, and Asia, which are growing markets. In India, we have a comprehensive customer database, so this will not be a challenge.
Overall, the Indian paper industry holds immense potential for growth and development. By addressing the challenges of cyclical markets and fostering collaboration, India can solidify its position as a global leader in the paper industry.
PM: Kindly tell us about the recent developments along with future plans.
CJ: Recently, we have partnered with many major mills from different continents. It’s been only two years since we started importing pulp into India, targeting both models – stock & sell or high-sea. We supply pulp to companies in India, such as paper mills, the melamine industry, the pharmaceutical industry, and the hygiene industry for application in sanitary pads or diapers. Pulp is a significant development for us, and it has been performing well.
Additionally, the advantage of entering the pulp market is that it is irreplaceable. India primarily produces hardwood pulp, and only a few mills are pulp-integrated. Pulp and pulp substitute (waste paper) will always be an import-based product.
Our primary goal is to import 25,000 tons per month of forest products in India by March 2025. Currently, we have three main domains for forest products: pulp, paper, and waste paper. Within the pulp domain, we operate a large inventory and merchanting operation in the ports of India. This is because even mills with capacities of 100 or 200 or even 300 tons per day sometimes do not import pulp in significant quantities. They may require a local merchant to source pulp in order to develop new products. Importing pulp and storing it in warehouses involves substantial capital investment, which can be challenging for medium and small mills that are developing and producing new products.
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The demand for pulp in India is projected to rise as new mills are emerging, requiring virgin pulp to produce specialized products for flexible industries and packaging applications.
PM: As a raw material supplier to both domestic and international markets, what are your thoughts on the opportunities in the next five years in the Indian paper industry?
CJ: I believe the Indian paper industry is thriving and holds immense promise for future growth. Over the next five, ten, or even twenty years, India is well-positioned to become a major player in the global paper market, capitalizing on the opportunity presented by the “China Plus One” policy. Our Prime Minister, Narendra Modi, has been actively promoting India’s potential, and our country is steadily gaining recognition as a global leader. Africa, the Middle East, and Asia are expected to be particularly lucrative markets for the Indian paper industry. Unlike Europe and the US, which are mature markets the consumption patterns can fluctuate significantly due to market sentiments, Africa, the Middle East, and Asia, being developing regions, are expected to experience a steady increase in paper consumption. Moreover, the demand for pulp in India is also projected to rise as new mills emerge, requiring virgin pulp to produce specialized products for flexible industries and packaging applications. This growing demand is evident in the increasing number of mills manufacturing flexible packaging materials and packaging boards such as FBB, SBS boards, and C1S. India’s overall growth prospects in the paper market are very positive, with the corrugation sector alone expected to generate an annual growth rate of 12 percent to 14 percent IRR. This optimism is supported by the strong performance of the corrugation industry over the past five years, where production of corrugation-grade paper has doubled.
While the outlook for the Indian paper industry is promising, certain challenges need to be addressed. One challenge is the cyclical nature of the industry, where paper products often transition from specialty items to commodities within a few years. This volatility can make it difficult for producers and traders to maintain consistent profit margins. Additionally, stable government policies are crucial for sustaining growth. I believe that there is a need for greater collaboration within the Indian business community. While the start-up ecosystem thrives on a culture of collaboration, this mindset is often lacking in traditional industries like paper manufacturing and trading. Fostering a more collaborative approach could lead to greater innovation and growth. Overall, the Indian paper industry holds immense potential for growth and development. By addressing the challenges of cyclical markets and fostering collaboration, India can solidify its position as a global leader in the paper industry.
It’s been only two years since we have started importing pulp into India, targeting both models – stock & sell or high-sea.
