Best Paper Stocks in India

(The stocks mentioned in the blog are as per Market Capitalization)

The paper industry holds a crucial position in driving the country's economic development. It serves critical roles across diverse sectors such as packaging, printing, FMCG, pharmaceuticals, healthcare and beyond.

As per the International Project Management Association (IPMA), it is expected that the consumption of papers in India will hit around 30 million tons by 2027. 

Paper Industry in India - A Brief Overview

India's first paper mill was established in Brahmapur in 1812. Since then, the industry has grown significantly in production capacity and technology. India now ranks as the world’s 12th major paper producer. The Indian paper industry is categorised into three segments based on raw materials: agro-based (utilising rice straw, wheat straw, biogases, jute, grasses, etc.), wood-based and recycled fibre or waste paper-based. 

India hosts over 800 paper mills, including 60 mills using agro residues, 25 mills using wood as raw material, and the remaining 715 mills based on recycled or waste paper. Furthermore, non-wood sectors contribute 70% to the country's paper and board production. It offers a wide range of paper varieties, from simple to sophisticated.

A report indicates that sales revenues in the Indian paper industry surged by a notable 45% in FY23, accompanied by increased sales volumes and higher production. The market is expected to achieve a CAGR of 6.6% until 2027.