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
 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
First Purchase 20 Containers + Imp Duty 1,14,00,395
4 Months Purchase (
Before getting first 80 Containers + Imp Duty 4,56,01,580
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%