This report profiles India’s paper and paper products industry, discussing market trends and outlook through 2014 and beyond. The report also highlights leading players in the sector including Ballarpur Industries Ltd, Tamil Nadu Newsprint and Paper Ltd and Rainbow Papers Ltd. The paper industry in India has been in existence since ancient times, experiencing a paradigm change over the years. The existing paper mills in the country employ diverse technologies- from legacy to advanced methods. The Indian paper mills mainly use three types of raw material namely wood/chemical pulp, agro residues and recycled fibre to produce paper and paper products. While the demand for paper remained subdued in the developed world during 2009-12, the Indian paper and products sector saw a rapid growth. The sector saw consistent growth in consumption, in turn increasing production. This trend motivated the paper manufacturers in the country to move forward with capacity expansion and growth plans. After a rapid consumption growth experienced during the 2009-12 period, Indian paper industry experienced a lull in FY13. The rising raw material prices forced manufacturers to increase the prices of paper and paper products. However, the industry witnessed a demand revival in FY14-15. This together with decline in raw material prices brought relief to the manufacturers. The long term outlook for the Indian paper sector is stable because of existing low per capita paper consumption, rising literacy rate and a young population. Government support and technology upgrades bode well for the sector. Key Points: • During 2009-13, the value of paper and paper products production of Indian companies grew at a CAGR of 11%. After recording a peak y/y increase of 34.5% in FY11, the sector saw a subdued growth in the last three years. • India saw rapid growth in consumption of paper and paper products during 2006-11, growing at a CAGR of 9.3%, much higher than the average global growth rate of around 3%. However, after peaking in FY11, the demand decelerated during FY12 and FY13. The sector finally reported some demand recovery in FY14. • India experienced strong growth in production of paper and paper products during 2007-11, growing at a CAGR of 13% and yet it was not enough to meet demand. However, during the last two years in FY13-14, production has remained subdued. • The index of industrial production (IIP) recorded a decline of 0.1% in FY14. Paper and paper products industry recorded a growth of only 0.1% y/y. However, the industry saw a revival in FY15 with a y/y growth of 1.9% in 7MFY15.