The pulp and paper industry consists of manufacturing enterprises that convert predominantly woody plant material into a wide variety of pulps, papers and paperboards.The Indian paper industry ranks 15th globally in terms of size, but accounts for only 2% of the world’s production. Paper consumption in India has reached 9 million tonnes per annum (m tpa) making India a market poised for major growth. 95% of the pulp and paper mills in India have a capacity of less than 50,000 tpa. India is the fastest growing pulp and paper market in the world with 6% demand growth. However, the industry is highly fragmented with a wide capacity range from 2 to 800 tonnes per day (tpd).

India has major demand drivers that are cause for a very positive outlook in the pulp and paper industry. These include 9.5% GDP growth, increasing literacy, growing consumerism and optimism and a will to expand by industry leaders. India is the fastest growing pulp and paper market in the world with 6% demand growth per annum. Many significant projects have started within the last 5 years, such as a new kraft mill and paper machine in Lalkua which started up in mid-2010. However, there are significant challenges facing the industry, the biggest of which is the lack of raw material. Wood and non-woody fibres are in short supply, with recycled fibre providing a significant volume as recovery and recycling systems are implemented. Government regulations and technical issues pose other significant obstacles for the industry