Demand for paper will see an increase across sectors

Online shopping may be driving new demand for paper, but it's not alone. Paper demand will see an overall increase in India across sectors—education, fast moving consumer goods (FMCG) and healthcare.

Sanjay Singh, divisional chief executive, paperboards and speciality papers, ITC, says, "Modern lifestyles are synonymous with paper consumption.

All developed countries have 10-15 times per capita consumption of paper than India, so there's lot of potential for growth." Paper is basic to education and literacy campaigns. AS Mehta, president, JK Paper, points out that as India seeks to improve literacy rate from 70% levels to 90%, the 20% growth will accelerate demand for writing, printing and even newsprint paper. Jatinder Singh, chairman, Ruchira Papers, adds, "Assuming that each student uses 10 kg of paper a year, enrolment of one crore students alone will result in additional demand for one lakh tonnes of paper."

Besides, demand from FMCG, electronics, services sector, pharmaceuticals and ready-to-eat foods are driving use of paper, paperboards and packaging materials. Despite moves towards going paperless driven by technology, paper serves as the most reliable backup option for banks, insurance companies and hospitals, et al.

Niche demand also promotes usage. For instance, annual reports increased number of pages by almost 50% as regulators want details on compliance and governance, as well as financials. Often, shareholders insist on hard copies, says Mehta. Ereaders, though popular, lack retention power. A Nielsen survey found a preference for physical books over ebooks among UK readers.