Economic Analysis of Indian Paper Industry

5. Uncertainty about paper demand and price since computers, handle devices, and mobile phones would act as a substitute for paper.

There are three major issues Sappi must deal with. The first problem is the closing of other paper mills in the area. The Madison Mill, along with four other paper mills in Maine, have shut down over the past couple of years (Harlow, 2016). This is a result of better technology including laptops, tablets, email, instant messaging, and online shopping. People do not need paper for writing letters, printing assignments, or looking through catalogs anymore, causing the demand for paper to drop. Companies that still use paper for catalogs and magazines have start to buy paper from mills in other countries, such as Canada, which off

it can be drawn that production volume is high as it has increased 600% since the buying of new large multi-cavity moulds and machinery. Another indication of

The price would determine how big of a percentage impact a $.015 per pound premium on paper purchased from dealers would be over scrap paper purchased at loading docks. Using historical information for the spot prices of scrap paper, in the 1979 to 1980 timeframe, spot prices ranged from $20 to $60 per ton. The $.015 premium becomes more of an issue the cheaper paper is available for purchase at the loading dock. At a spot price of $20 per ton or $.01 per pound, the $.015 per pound premium is 150% of the spot price. At this level, management should be focusing on casual purchases at loading docks. At a spot price of $60 per ton or $.03 per pound, the $.015 premium is 50% of the spot price. Rationalizing the premium will depend on which method is used to compute the cost per bale. When using the original cost report formula, the purchased bales were still cheaper after adding the $.015 per pound premium at all spot prices between $20 and $60 per ton. The prices for purchased bales ranged from $9.12 to $15.12 while the prices for formed bales ranged from $10.41 to $19.41. The purchased bales were more expensive at all spot prices between $20 and $60 per ton when computing costs using the formula proposed by the General Manager. Using the alternate cost report formula, total costs ranged from $10.63 to $16.63 per formed bale and $11.79 to $17.79 per purchased bale. Calculations can be found on the attached

Song JH, (2009) states that “Many different materials are used for packaging including metals, glass, wood, paper or pulp, plastics or combinations of more than one material as composites” (p 364). What this means is that most of the packaging materials we use for packaging contain products that are very hard to de compose and end up in landfills. In order to achieve bio degradable packaging we should consider bioplastic polymers which “are generally still much higher than that of their traditional plastic counterparts” (364). Bioplastic polymers cost much more than regular polymers we use but, if we can help our planet and company become more environmental friendly, we should take that step and use bioplastic polymers for our

Due to this price increase and the low supply of seeds, companies like Kraft Heinz Co and Reckitt Benckiser, have been forced to raise the prices of their good, smaller companies with low consumers have been most affected by this situation.

* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of

Also, the market downturn in the paper industry may have a pressure on the price compared with its real value.

Currently Atlantic’s existing Ohio linerboard mill produces 780 tons per day of linerboard, which represents a mere 1.8% of the nation’s linerboard capacity. This is far below the 150,000 tons of linerboard that Atlantic purchases every year from its competitors. Consequently, with such a tight market, linerboard could either become unavailable or available at very expensive prices. If Atlantic pursues their acquisition strategy in purchasing the linerboard mills from Royal, this could help greatly in strengthening Atlantic’s linerboard capacity and ensure to retain their box plants profits. With Royal’s current Monticello mill producing kraft paper and linerboard, this would require $140.8 million to convert all of the mill’s kraft capacity to

The price of tea per kg increased by 43% to PKR408 in 2009. Black standard tea bags suffered the highest price increases in 2009, jumping by 46%. Tea prices increased on a global scale in 2009, as a result of poor harvests in Kenya, Sri Lanka and India, while the situation was exacerbated in Pakistan due to its rupee losing value against the US dollar.

While manufacturing papers we use wood pulp from trees, producing plastic requires the use of

In India, about 670 industries are completely reserved for very small companies, which means that the economy lose the benefits of scale, don’t get foreign investments and are unable to compete globally. In 2001, the average Indian clothing company had only 50 machines, compared to 500 in the typical Chinese plant. The same problem

As shown in Exhibit 13, the production capacity of major firms in china slightly exceeded 2 million units in 2002, this figure is expected to reach 3.5 million units by 2012 – as shown in Exhibit 14.

So ultimately company adopted alternate thinking of cutting prices involved and these measures were buying of manufacturing units near to the wholesalers and by franchising the production. Forward contracts were introduced to reduce supply chain costs and addition to all this wax coated paper had been replaced by BOPP paper to reduce cost.With entry of competitors like Britania, HUL and ITC Ltd the situation is getting more complex day by day for the Parle G. Any wrong decision from Parle can have daring consequences for their flagship product Parle G.

However, raw material such as cooking oil, eggs, etc increased since 2011 and this may affect the sales. For example, cooking oil price has increased of 33% and the price of eggs of 36%.