Paperex: Industry navigates volatility, focuses on innovation

The 17th edition of Paperex commenced at Yashobhoomi (IICC), Dwarka, serving as a comprehensive platform for the global pulp, paper, packaging, and allied industries. Organised by Informa Markets in India, this year’s event built on a legacy of over three decades, gathering 675 exhibitors from 28 countries and welcoming more than 33,000 trade visitors.

The inaugural proceedings were led by a diverse coalition of industry leadership and government representation. Shripad Yesso Naik, union minister of state for power and minister of state for the Ministry of New and Renewable Energy, Government of India, addressed the gathering virtually, emphasising the sector's adaptability during periods of global financial stress. He highlighted the industry's success under the PAT scheme as evidence of its commitment to energy efficiency. With domestic demand rising at an annual rate of 7% to 8%, the minister projected a capacity expansion from 24-million tonnes to 32-million tonnes by 2030, reinforcing the sector's critical contribution to rural employment and long-term carbon neutrality strategies.

A central theme of the discourse was raw material security and policy reform. Pawan Agarwal, president of the Indian Paper Manufacturers Association (IPMA), pointed to the deregulation of bamboo transportation as a transformative policy shift. This decision has enabled mills to incorporate 25% to 50% bamboo into their wood-pulp mix, simultaneously strengthening supply chains and boosting local economies in the northeast. N Gopalratnam, chairman of Seshasayee Paper and Boards, noted that despite rising input costs, the industry now meets nearly 90% to 95% of its wood requirements through farm forestry and large-scale plantations, a level of self-reliance unmatched in many global markets.

However, industry leaders also acknowledged significant headwinds. Rahul Khanna, president of the Indian Newsprint Manufacturers Association, observed that the market has shifted from cyclical predictability to sustained volatility. He cited recent fluctuations and overseas dumping as key challenges, urging the sector to rely on technological advancement and the influx of young professionals to maintain competitiveness.

The recycled and agro-based segment presented its own set of critical challenges. Pramod Agarwal, president of the Indian Agro and Recycled Paper Mills Association, highlighted that approximately 200 of India's 800 mills remain non-operational due to policy and fiscal hurdles. He emphasised the sector's profound rural footprint, noting that each mill supports nearly 5,000 direct and indirect workers. However, a stark disparity in waste-paper recovery rates remains a bottleneck; India collects only about 50% of its domestic waste paper compared to 90% in developed economies. This gap necessitates the import of nearly 10-million tonnes of waste paper annually. Agarwal underscored the urgent need for policy support to utilise agricultural residues, specifically bagasse, sarkanda, wheat straw, and rice straw, transforming potential crop-burning hazards into economic assets for farmers and raw material for mills.

Despite these obstacles, the outlook remains focused on innovation and growth potential. Pavan Khaitan, president of the Indian Pulp and Paper Technical Association (IPPTA), described the industry as entering a phase defined by decarbonisation and circularity. He positioned India as a future leader in sustainable packaging, citing the rapid adoption of AI-enabled quality systems and barrier coatings across mills.

Adding a global dimension to the sustainability narrative, Mikael Forslund, president and CEO of Elof Hansson Group, Sweden, noted that the industry stands at a turning point where hygiene and packaging demands must balance with resource responsibility. He highlighted that innovations in clean-water technologies and recyclable composites are redefining value chains, with India’s rapid technology adoption catalysing this global transition.

The event also marks a significant organisational milestone. Peter Hall, president, IMEA, Informa Markets, noted that this is the first edition organised under Informa following the acquisition of Hyve India. This transition has strengthened the show's global scale, bringing together over 700 brands at a time when the sector is undergoing rapid transformation.

Yogesh Mudras, managing director of Informa Markets in India, reinforced this sentiment by pointing to the market's expansion capacity. With per capita consumption at 15 kg against a global average of 57 kg, and a market valuation projected to reach USD 16.64-billion by 2028, the sector shows immense promise. The integration of events like the New Trends and Technologies conference within Paperex aims to accelerate the joint ventures and technology transfers required to realise this potential.

As major entities such as JK Paper, TNPL, Trident Group, BILT Graphic Paper, APRIL Fibre Resource, Andhra Paper, Orient Paper, and West Coast Paper display their latest capabilities, the event underscores the industry's dual focus: navigating immediate market pressures while investing in a sustainable, fibre-secure future.