Indian Paper Industry Enjoys It’s Moment Of Glory As Major Players Bag Big Export Orders
India’s paper industry is looking forward to a great season ahead, as major players from the industry have grabbed big export orders.
IFL Enterprises, a fast-growing operator in the paper industry, has received export orders totaling more than Rs 192 crore. According to an exchange filing, the latest order from Siddhesh Global would increase revenue as well as profit margins. Several firms, including IFL, are aiming to capitalise on the opportunity due to the solid expansion in the paper sector and increased demand for eco-friendly packaging and other related things.
As per the company’s statement on BSE, “The latest order marks a pivotal role in the growth journey. It is expected to further strengthen the industry's position and drive growth. It will contribute to sustained growth and also create value." Listed on the Bombay stock exchange, IFL has been exporting all kinds of paper and related items to South Asian and South African countries for the past three years.
IFL Enterprises shares have outperformed the market by more than 133 per cent in the last year. It has outperformed the sector by 127 per cent, catching the attention of investors.
Given the robust and expanding need for quality packaging of FMCG products, textiles, pharmaceuticals, e-commerce, and more, the paper sector has been largely apparent in the segments related to packaging paper in the previous two years. According to latest statistics, the Indian paper sector generated a trade surplus for the first time since independence in the fiscal years 2020-21 and 2021-22, with exports exceeding imports.
Ajay Lakhotia, Founder & CEO, StockGro said, "During FY 2020-21 and FY 2021-22, the Indian paper industry achieved a remarkable feat: our exports surpassed imports for the first time and were valued at approximately USD 3.25 billion. The recent announcement by IFL Enterprises, securing Rs 192 crore in export orders, underscores the global demand for Indian paper".
Lakhotia added, “We've been closely monitoring the sector. We're optimistic about the long-term performance of the industry, with reports suggesting a potential 5-7 per cent growth in the industry's volume by FY24. The paper sector is growing sustainably, presenting lucrative opportunities for traders and investors.”
Paper usage in India is expected to exceed 30 million tonnes by 2027, according to the International Project Management Association (IPMA). Paper is in high demand from industries such as FMCG and retail for innovative packaging solutions that lessen reliance on plastics. Paper stocks, like ready-to-eat and packaged foods, can benefit from increased e-commerce sales.
