Overview of the Large Pulp and Paper Industry

The pulp and paper industry manufactures paper, pulp, board and other cellulose-based products. The steps of the process include pulping, papermaking and paper finishing. Pulping is based on semi-chemical or entirely chemical and mechanical methods. The wood used to make pulp contains three main components, i.e. cellulose fibres, lignin and hemicelluloses. In pulping, the bulk structure of the fibre source is broken down into constituent fibres. In chemical pulping, the process also includes degrading the lignin and hemicellulose into water-soluble molecules, which are washed away from cellulose fibres. Mechanical pulping methods include physically disintegrating the cellulose fibres apart. Finally, the chemical pulping process, which is the dominating method, accounts for about 70% of global pulp production. Papermaking involves several steps, including making a pulp slurry, pressing and drying. The appearance and properties of the final products are supplemented and enhanced by finishing treatments, which can be simple processes where the reel is cut into sheets or more complex procedures, such as coating or super-calendering. Packaging is growing worldwide, along with tissue papers and pulp for hygiene products. Although a relatively small market, the demand for pulp for textile applications is growing. According to data released by CPPRI in 2019-20, India has 861 paper mills, of which 526 are functional and have a total installed capacity of 27.15 MT. The following factors have led to the growth of India's Large Pulp and Paper Industry.

• Rising income levels and growing per capita expenditure
• Increasing Urbanisation:
• Spread of education along with an increase in literacy rate:
• Rising circulation of print materials like newspapers and magazines.

Benefits of starting a Large Pulp and Paper Industry

Pulp and paper industries are complex, consisting of procedures determined by the quality and type of paper required and raw material used and the prevailing management practice. Paper demand in India has seen gradual growth over the past decade. Many factors have led to an increase in per capita paper consumption of paper. The following are a few of the advantages associated with starting such units.

Demand: The rapidly growing urban population and the increased use of paper by individuals in everyday household activities like writing, packaging and cleaning. Coupled with the increase in disposable income of people, the changing lifestyle will also drive further demand for paper products.In addition to it, the emphasis on education and literacy has also increased the demand for paper.

Environment-friendly Substitute for plastic packaging: In the case of India, the increasing demand for paper is primarily driven by the increased use of eco-friendly substitutes like envelopes and paper bags for packaging after the ban on single-use plastic. There has been continued demand for biodegradable and quality packaging of FMCG products, textiles, organised retail, pharmaceuticals, e-commerce, and associated segments.

Diverse application: One of the largest sectors in India, the large pulp and paper industry has a wide variety of applications, such as office and catalogue paper, glossy paper, and tissue and paper-based packaging. This sector of the market is responsible for 13–15% of total wood consumption in the industry. Other sectors involving paper products are stationery, paper towels, napkins and tissue paper, which adds to this demand.

Licences and Authorisations required to start a Large Pulp and Paper Industry in India

The pulp and paper industry can fall into the risk category because of the use of a wide range of inflammable, reactive, corrosive, toxic, pathogenic, and mutagenic but not severe materials. The hazardous wastes of concern from the industry include wastewater treatment sludges, lime sludge and ash falling that need disposal. The large pulp and paper Industry is heavily polluting and is categorised as a red-category industry by Central Pollution Control Board (CPCB). The unit consumes a significant quantity of energy, water, and chemicals and generates effluents and solid waste. Therefore, a list of licences and authorisation must obtain before setting up a large Pulp and Paper industry which are as follows.

Factory’s Licence: The manufacturing plant must registeru/s 6 of the Factories Act. Documents required will depend upon the checklist issued by the state where the facility will be set up. However, standard documents needed are

• Duly filled form
• Application Fee
• Building plan
• List of Directors or Partners with their addresses.
• NOC or Resolution fromu/s 2(n) and 7 of the Factories Act.
• Copy of the electricity bill.
• copy of the rent agreement
• Flow chart of the manufacturing process.
• List of raw materials used.
• List of machinery.

Pollution NOC: almost all paper manufacturing units in the large pulp and paper industry fall under the Red Category list. Therefore, it must apply to the respective State Pollution Control Board (SPCB) or Pollution Control Committee for the pollution NOC, i.e. Consent to Establish (CTE) and Consent to Operate (CTO). The documents needed for pollution NOC are

• Duly filled application
• Signed Undertaking
• Site Plan or layout plan
• Detailed Project Report
• details of different processes/ point sources of effluent discharge and industrial waste that may be generated.
• Manufacturing processes like details of finished products, the capital cost of land, and building.
• Source of water, its required quantity, and water balance.
• Land documents such as rent /lease agreement
• Industry Registration Documents
• Consent fee (as applicable)
• Balanced Sheet by a CA
• Details of installed pollution control devices
• Copy of land-related documents
• Consent fee (as applicable)
• analysis report of the trade effluent by a recognised lab
• Copy of any environmental clearance (EC)
• Any other Document specified in the application

Additional Authorisations and Licences required for setting up A Large Pulp and Paper Industry

• Environment Clearance (if applicable)
• Company Registration
• Fire NOC
• Business Registration
• Trade licence
• CGWA NOC (for abstracting groundwater)
• Waste management authorisation/ Tie-up with a TSDF Operator

Market Overview of the Large Pulp and Paper Industry

India is the 15th biggest paper manufacturer in the world and is emerging as the fastest-growing market when it comes to consumption. India is posting a 10.6% growth in per capita paper consumption since 2021, as the Indian Paper and Pulp Market was valued at 11.48 billion USD in 2021. With the current trend, the industry is expected to reach 31.41 billion USD by 2029, at a CAGR of 13.4%. Paper consumption is likely to witness 6 to 7 per cent growth annually. It could reach 30 million tonnes by FY 2026-27, primarily driven by an emphasis on education and literacy coupled with increased organised retail, according to industry body IPMA. Today the per capita consumption in India stands at around 13 kilograms. This is marginally low compared to developing and developed countries with more than 70-80 kg consumption. According to government estimates, about 590 million Indians will be residing in cities by 2030 and up to 820 million by 2050, requiring a substantial amount of paper and paper products.

Scope of Large Pulp and Paper Industry

The paper industry has immense potential for growth in India as the per capita consumption globally is one of the lowest but gradually increasing. The domestic consumption of paper is over 16 million tons per annum. Over 2 million tons per annum are being imported from other nations. By 2025-26, domestic consumption is projected to surpass 23.50 million tons per annum under the baseline scenario, as per some projections.

Export Potential: India is one of the leading producers and exporters of paper products. India exports A4 copies, wood-free, MG varieties, and large-quality converted products like books, magazines, stationery items, calendars, children's playbooks and comics etc., to countries like the Middle East, Eastern Europe, South-eastern countries and the USA.

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