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The industry has recorded a volume growth of CAGR of 5.47% over the last 3 years. Indian paper industry has a 1:1 correlation with the economy. With the expected GDP growth of 6.9% for FY05 and 7-8% for FY06 as per RBI, the paper sector is expected to record a similar growth rate.
The domestic per capita consumption is the lowest at 6kg compared to the South Asian and the world average of 11kgs and 53kgs respectively. The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is estimated to be lower at 6.15mn tons.
The demand for paper is influenced by various macro-economic factors like national economic growth, industrial production, promotional expenditure, population growth and the Government's allocation for the educational sector...
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