PAPER IMPORT & SALES

From Thailand
 Introduction

The history of paper dates back to the history of human culture

and civilization. The ancient Egyptians, Greeks and Romans used
a different kind of paper called `papyrus’. To-day’s kind of paper
was first developed and used by China and spread to other
countries. Growth of human population, need for transfer of
knowledge, education and information within the society at large
were forcing factors for innovations and notable increase on the
production of paper.

Modern paper making began in early 19th century in Europe. All

most all paper is manufactured using trees as primary source of
wood pulp. Paper manufacturing continues to be a concern in
modern times from an environmental perspective due to its use of
large number of trees, harsh chemicals, huge water consumption
resulting in ecological imbalances, pollution and contamination
risks.
 Overview of Paper Industry

The Indian paper industry has been historically divided on a

three dimensional matrix identified by size, grades
manufactured and raw material utilized. Generally, tariff rates
have protected smaller units utilizing “unconventional” raw
material. Over the years, the growth of various segments,
investments levels in specific segments, technological changes,
industry fragmentation and intensity of competition have been
significantly influenced by the Government tariff policy. The
present Excise duty on Paper is 12 %. The Government of India
from time to time has given some benefits to small industries in
order to protect them i.e. the first 3500 tones produced by a mill
is chargeable only @ 8 % and thereafter it is @ 12 %.
 Overview of Paper Industry

The three main grades of paper manufactured in India are :-

1. Newsprint
2. Writing and printing.
3. Industrial Variety ( Craft paper and Duplex Board )

Over 550 players currently populate the industry and the estimated
capacity is about 7.00 million Metric Tones Per Annum (MTPA).
Fragmentation is severe in the “industrial” (packaging) grades, which
rely on “unconventional” raw material such as waste paper and partly
agro residues. This division generally comprises of units with an
average size of about 10000 MTPA and contributes to 45% of the
output of paper and paper boards in the country. Although the other
divisions in the Indian paper industry are also fragmented by
international standards, the degree of fragmentation is less severe.
“Newsprint” till about 1995, was the sole preserve of large public
sector units and was well protected by high import tariff barriers.
Nevertheless, imports contributed to about 50% of the domestic
consumption. Since then, new domestic capacity with private
investment has been allowed to be created. This growth has relied
namely on De-inked waste paper as a source of raw material.
 Demand and Supply gap in Paper
Industry
Indian paper industry is the 15th largest in the world and provides
employment to 1.3mn people in the country contributing Rs.25bn to
the Government. The industry has recorded a volume growth of CAGR
of 5.47% over the last 3 years. In 2017-18, it recorded a volume
growth of 6%, in line with the GDP growth. Indian paper industry has a
1:1 correlation with the economy. The demand for paper is linked to
the GDP Growth. The government is planning to target a GDP Growth
of about 10% in 2-3 years. With this increase in the GDP growth the
paper sector is expected to record a similar growth rate.

The Indian paper industry has an installed capacity of 6.7mn tons

while, the effective capacity is estimated to be lower at 6.15mn tons.
The industry produced 5.26mn tons of paper in 2017-18. Newsprint
capacity in India is estimated at 1.12mn tons however, domestic
production is only 0.59mn tons, while consumption of newsprint is
1.1mn tons. Favorable demand - supply scenario to keep prices firm
 Basic Import Data

Total Value & Volume of Imports in India

 
Total Value $ 63,559,923
Total Quantity 88,277,671
Average price per unit $ 0.72
Average value per shipment $ 5,526
 
Top Suppliers
 
China $ 17,324,318
Indonesia $ 11,989,098
Sri Lanka $ 4,866,904
 Costing of Paper ( Q3 Price )
Item : Copy Paper,
Material : 100% wood pulp,
Size : A4, A3, 8.5x11, 8.5x14,
Base Weight : 80gsm, 75gsm, 70gsm,
Whiteness : 102-104%,
Packing : 500 sheets per ream, 5 reams per carton (box),

LOADING QUANTITY 

80gsm  8000REAMS (1600BOXES) IN 1X20FT CONTAINER WITH

PALLET
75gsm  8200REAMS (1640BOXES) IN 1X20FT CONTAINER WITH
PALLET 
70gsm  8400REAMS (1680BOXES) IN 1X20FT CONTAINER WITH
PALLET
 
80gsm : 0.99$ per ream 
75gsm : 0.89$ per ream
70gsm : 0.79$ per ream 
 Import Duty

Customs duty -10%

Cess - 0.125%
IGST -12%

Total duty - 24.49%

 Cost of the Project ( 70 GSM )

Particulars Quantity Amount (Rs.)

Company Registration 1 11,00,000
& Basic Investment
Refundable Deposit to 20 Containers 91,57,680
Manufacturer
20 Containers + Imp 1,14,00,395
First Purchase Duty
4 Months Purchase 80 Containers + Imp 4,56,01,580
( Before getting first Duty
payment )
10,000 Sq.Ft Storage 1 30,00,000
Shed
Man Power 15 * 5 Months 15,00,000
 Total 7,17,59,655

***** Local India transportation cost not included *****

 Average Price calculation

Average Pricing for 70 GSM Copy Paper

Unit Avg. Costing Sell To Dealer Sell To Shop

Per Ream Rs. 85 Rs. 150 Rs. 180
Per Box Rs. 425 Rs. 750 Rs. 900
Per 20 Ft Container Rs. 7,14,000 Rs. 12,60,000 Rs. 15,12,0000
Per 20 Containers Rs. 1,42,80,000 Rs. 2,52,00,000 Rs.
3,02,40,000

Telangana Embossed 70 GSM Copy Paper

Unit Avg. Cost Gov. Price

Per Ream Rs. 95 Rs. 250
Per Box Rs. 475 Rs. 1,250
Per 20 Ft Container Rs. 7,98,000 Rs. 21,00,000
Per 20 Containers Rs. 1,59,60,000 Rs. 4,20,00,000
Lowest Profit – 10% Highest Profit 100%