JK Paper Plans To Secure Plantations In Myanmar

JK Paper Ltd, India's leading paper company, plans to explore the possibility of developing tree plantations in Myanmar to ensure a steady supply of raw material.

“To ensure supply of raw material, we have done some initial work in Myanmar. If it succeeds, we will expand the scale of the project,” said Harsh Pati Singhania, managing director of JK Paper.

He was speaking in Mumbai on the sidelines of 55th Conference Federation of Paper Traders' Association of India.

The Indian paper industry bears the brunt of high wood and pulp prices, which serve as raw material. Currently, there is a gap of 1 million tonne between supply and demand. With the Myanmar plantations, JK Paper expects a sustainable supply of raw material to meet growing demand.

The paper industry is expected to surpass 20 million tonnes by 2020 from the current 15 million tonnes. The company will need an investment of Rs 90,000 crore by 2030 to meet the ever-growing demand, Singhania said.

“There is a notion or myth that we will go paperless. In fact, with digitisation and e-commerce, the demand for paper is poised to grow,” he added.

Singhania expects the topline in the rest of the current financial year to be in line with the first quarter results on lower domestic cost and growing demand.

He, however, declined to comment on the outlook for revenue and profit in the future.