Pakistan not a huge market for India's paper mills | SupportBiz

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Pakistan not a huge market for India's paper mills

 
Pakistan, which reportedly consumes about four lakh tons of paper annually, is not a huge market for India’s paper manufacturers, according to a large Indian paper mill. Pakistan recently agreed to the import of newsprint from India and might allow imports of other kinds of paper by the year end, according to a news report.

“The intent to import different varieties of paper might be there but we have to wait and watch as to how this converts into actual trade,” said Aseem Bhatt, the head of marketing at Pudumjee Pulp & Paper Mills.

At four lakh tones a year, Pakistan is not a huge market, Bhatt said. India consumes around 10 million tons of paper annually, he said.

Indian paper mills manufacturing writing and printing paper will be the first to benefit, followed by makers of cardboard and packaging paper, when Pakistan begins to import from India, Bhatt said. Writing and printing paper is ‘an essential need’ in that country, the Business Line reported.

Paper imports from India ‘would be cheaper by at least 20 percent’ when compared to imports from Europe. Pakistani importers would also benefit from reduced transportation time, the Business Line report said.

Companies such as Pudumjee, which manufacture specialty paper including food packaging paper, are “second in line” with respect to benefiting from potential Pakistani imports, Bhatt said.

Pune-based Pudumjee Pulp & Paper Mills has a market cap of INR52 crore.

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