Orient Paper & Industries Limited, with a production capacity of approximately 1,72,000 TPA including paper, tissue and chemicals including 60,000 TPA especially for tissue paper, has established a strong pan-India presence and hold a dominant 35% share in domestic tissue. In an exclusive interview with Paper Mart, Mr. Saikat Basu, Chief Marketing & Sales Officer at OPIL discussed the mill’s latest innovations in tissue segment which includes Orient Bamboo Natura- a sustainable product line, carrier tissue paper designed for sanitary napkin segment and Ultrasoft Toilet. He also explains how customer preferences are moving from recycled to virgin categories.
Paper Mart: How would you describe the current market scenario for the tissue paper segment?
Saikat Basu: Tissue paper is one of the speciality grades in the paper segment, and enjoys a steep growth pattern in India as well as globally. Still at a nascent stage in its usage pattern, it’s a business of the new entrepreneurs and not a multi-generational conversion business as of date.
Mathematically, an expected growth rate of 22% in the tissue paper segment is enough to sustain the limited additional supply volume that has accrued over the past few months.
There is a clear preference shift of consumers from the recycled to the virgin tissue paper segment, which further catalyzes the adoption of additional virgin tissue supplies. Hence, the market scenario—though competitive—is healthy.
Lead times have improved for the customers, and basic quality parameters have improved for all manufacturers. Even recycled paper manufacturers are compelled to enhance their performance.
Prices were slightly subdued in late December and early January due to a sudden spurt of new capacities. But things have stabilized now as the customers have chosen the best mix of suppliers in terms of service, quality, and lead times. The initial turbulence has settled, with a slight upward trend from the end of February.
PM: What are the factors behind the rising growth of this segment?
SB: Rising disposable incomes, a shift towards disposable products, a growing middle-class segment, and surging tourism post-COVID are some of the factors driving the growth of the tissue paper segment. People are also becoming more aware of hygiene and sanitation issues and the significant role they play in public places, HoReCa and institutions.
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PM: Give a brief background about your paper mill(s) catering to the tissue paper segment along with the production capacities.
SB: Orient Paper & Industries Limited has been one of the first companies of the CK Birla Group and a leading company in the tissue paper manufacturing segment in India.
Since the launch of our first tissue machine in the 1990s, we’ve never looked back and focused all our energies on growing this segment in the subsequent years. Over the years, we introduced tissue machines 2 and 3, bringing our total capacity to 170 TPD (approximately 60,000 TPA). With a strong focus on innovation, we have designed and launched new hygiene variants to meet evolving market needs.
Established in 1965, our facility is strategically located on the west bank of the Sone River in Amlai, Shahdol District, Madhya Pradesh. We are continuously improving environmental and energy performance, striving to be the best in the industry. Alongside tissue paper, we manufacture writing, printing, industrial, and specialty papers.
At OPIL, we believe that good corporate governance is essential to achieving long-term success and enhancing stakeholder value. Our management is committed to manufacturing and marketing high-quality products that create sustainable value for all stakeholders.
In addition to complying with the regulatory framework, OPIL ensures the highest standards of ethical conduct. We believe that resources must be dynamically matched with a strong commitment to excellence through a team of dedicated people while ensuring a clean environment for our planet.
India’s disposable income is projected to grow at an 11.1% CAGR (2024-2029), outpacing the Asia-Pacific average. Higher income levels & urbanization will boost demand for tissue paper and hygiene products, especially in urban areas.
PM: What grades of tissue paper do you currently produce?
SB: We manufacture all variants, including napkins, serviettes, toilet rolls, kitchen towels, HRT and C-fold towels, facial tissue paper, and more. Additionally, we have also developed carrier tissue paper for the sanitary napkin segment and have launched a futuristic bamboo-based variant, ‘Orient Bamboo Natura’, which has napkins, toilet rolls, towels, and other categories. Bamboo is a highly sustainable product that falls under the grass category and does not affect forestation. Furthermore, we have recently launched the ultrasoft toilet category and the high wet-strength towel category, catering to evolving consumer needs.
PM: Can you describe the primary applications of the tissue paper segment manufactured by your company, and who are your key clients?
SB: Tissue paper is widely used in at-home applications for personal hygiene, including facial tissues, toilet rolls, and wet wipes, as well as for household cleaning with products like kitchen towels, napkins, and wipes.
In away-from-home settings, it plays a vital role in commercial hygiene and sanitation across hotels, offices, and restaurants, with products such as toilet paper rolls, napkins, and kitchen towels. Additionally, in the healthcare sector, it is essential for medical wipes, sanitary tissue paper, and disposable bed covers.
Our key customers include tissue converters across India and globally, ranging from large brands to small, single-conversion entrepreneurs. With a widespread service network, we cater to businesses of all sizes, ensuring quality and reliability in every product we deliver.
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PM: Shed light on your market footprint with regard to domestic consumption and exports.
SB: OPIL is one of India’s largest manufacturers and exporters of tissue paper, with customer and trade alliances with the UAE, the Philippines, Sri Lanka, Nepal, Ethiopia, Kenya, South Africa, Qatar, Australia, Mauritius, Portugal, the USA, and many more countries. It has a strong presence in all categories of tissue paper, notebooks, and writing and printing paper segments.
In the domestic arena, we enjoy a 35% market share of domestic tissue paper consumption, with a strong presence pan-India, especially in the North and South zones.
PM: What unique features or innovations set your tissue paper products and production processes apart from competitors?
SB: OPIL, operating with three machines, has a significant advantage over its competitors. With parallel production, demand fulfilment becomes more efficient and flexible, ensuring a steady supply of products even during peak periods. The lead times for OPIL are shorter and more consistent. The operational capacity is more moderate and distributed, reducing bottlenecks in workflow.
From a customer experience standpoint, the company is more reliable, as production disruptions do not halt the overall production output. Additionally, the risk management of the company is far superior to the competitors, as multiple machines offer better resilience against unexpected breakdowns or maintenance issues.
With the growing demand for eco-friendly tissue paper products, consumers are preferring biodegradable, compostable, and sustainably sourced options. We are the first company in South Asia to introduce virgin bamboo tissue papers, promoting environmentally conscious choices for consumers and businesses.
PM: How do you incorporate sustainability or eco-friendly practices into your production process?
SB: OPIL is using 25-35% bamboo as a raw material, which has antibacterial properties and high absorbency. We are the first company in South Asia to introduce virgin bamboo tissue papers, promoting environmentally conscious choices for consumers and businesses.
In terms of eco-efficiency commitment, transitioning to the Elemental Chlorine Free (ECF) bleaching process underscores our dedication to environmental sustainability, aligning our company with industry standards while improving pulp quality.
Further, in water stewardship, we have partnered with local communities and built over 1,440 water structures, capturing 15 billion litres of water and irrigating 13,551 acres. We are a leader in ‘water positivity’, with an impressive 86% water conservation rate.
For environmental upgradation, we have achieved a record-breaking result in agroforestry that includes planting on 19,570 acres of land and treating 5,784 acres of land to improve soil and moisture. Our outreach program has led to the complete economic transformation of 1089 villages.
PM: How do you envision the future demand and opportunities for the tissue paper segment in light of growing hygiene and sustainability trends?
SB: The rise in away-from-home tissue paper consumption is driving greater at-home usage, as consumers become accustomed to its convenience and hygiene benefits. This shift is increasing awareness and solidifying tissues as household essentials, fostering broader adoption across India.
India’s disposable income is projected to grow at an 11.1% CAGR (2024-2029), outpacing the Asia-Pacific average. Higher income levels & urbanization will boost demand for tissue paper and hygiene products, especially in urban areas.
Sustainability has emerged as a key consumer priority. According to Euromonitor 2023, one in every three Indian consumers actively seeks to have a positive environmental impact. With the growing demand for eco-friendly tissue paper products, consumers are preferring biodegradable, compostable, and sustainably sourced options.
Responding to these sustainability trends, brands are focusing on sustainable sourcing, eco-friendly packaging, and biodegradable materials. Sustainability-focused innovations such as bamboo-based, unbleached tissue papers will attract eco-conscious consumers. The government incentives for sustainable manufacturing may further accelerate the industry’s growth.
The Indian tissue paper industry is poised for growth, fuelled by economic expansion, hygiene awareness, and sustainability trends. Companies are prioritizing eco-friendly innovations and ethical sourcing that will lead in this evolving market.
Prices were slightly subdued in the tissue paper segment in late December and early January due to a sudden spurt of new capacities. But now, things have stabilized, with a slight upward trend from the end of February. Customers have chosen their best mix of suppliers in terms of service, quality, and lead times.
