The $1.2-billion Swedish paper manufacturer Billerud is planning to double exports of soft pulp and medical packaging material to India over the next five years. The firm is in talks with a few paper manufacturers in the country for a possible tie-up to increase its share in the country’s paper market.
The estimated requirement for paper packaging in the medical segment is growing at about 6% and is close to 2,000 tonne per annum. India?s total paper consumption is likely to grow two-fold from seven million tonne to about 15 million tonne by 2015.
Billerud, as on date, supplies about 20,000 tonne of soft wood pulp, which is one-third of the raw material consumed by paper producers in India, and aims at doubling the figure over the next five years. India consumes about 60,000 tonne of soft wood pulp. The company currently supplies about 500 tonne of paper packaging for medical devices, which it plans to double by 2012.
?We are in talks with paper manufacturers here for a technology tie-up that would help us supply packaging material for industries such as medical devices manufacturers, cement and food retail chains,? chief executive officer of Billerud AB Per Lindberg told FE. The company has sales offices in nine countries and supplies raw material and finished paper to over 70 countries across the globe.
Poster-grade paper is being used for packing disposable syringes and gloves, said Pradeep Dhobale, president Indian Paper Manufacturers’ Association.
About the usage of paper bags in the cement industry, Dhobale said that the country?s cement consumption stood at about 75,000 tonne per annum. It, however, accounts for about 10% of cement packing bags.
?The potential is huge, provided paper bags can compete with jute and plastic bags by better value creation to consumers as well as manufacturers,? managing director KVM Packaging Vipin Malhotra added.