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  4. Multibagger IPO signs MoU as export activities augur well for paper industry

Multibagger IPO signs MoU as export activities augur well for paper industry

The government has launched several initiatives to promote the growth of the packaging industry, including the establishment of packaging parks and more.

Edited By: Nitin Kumar @Niitz1 New Delhi Updated on: October 15, 2023 11:58 IST
paper industry
Image Source : PEXELS A worker working in paper factory.

A strong and robust domestic demand, coupled with increasing exports has augured well for the paper industry. According to the International Project Management Association (IPMA), paper consumption in India will likely reach 30 million tons by 2027.

The innovative packaging solutions have seen a huge demand for a variety of papers. According to a PTI report that cited IPMA, more than 100 paper mills are expected to come under the energy efficiency scheme Perform Achieve and Trade (PAT) by next year as players are adopting technology to reduce their energy footprint.

The government has launched several initiatives to promote the growth of the packaging industry, including the establishment of packaging parks and more. These initiatives are expected to boost the activities in the domestic market and create jobs.

Amid rising demand for eco-friendly packaging solutions and other related items, IFL Enterprises, a dynamic player in the paper industry, has signed a strategic MoU with Australian multinational paper manufacture Charters Paper Pty Ltd.

The partnership will not just boost the geographical expansion, but also add about Rs 600 crores to the top line in the next 1.5 years and about Rs 70 crore to bottom line.

According to a PTI report, the paper industry's total volume in the current financial year is expected to rise 5-7 per cent, similar to the last fiscal. The operating margin will likely remain healthy at 18 to 19 per cent. 

The report said that the Indian paper industry had reported revenue growth of 30 per cent a year before in FY23.

Leading brokerage house Nuvama in a report said that the Indian paper industry for the first time post-independence reported a surplus trade in FY 2021 and 2022. The exports contributed greater than imports to the overall growth.

IFL Enterprises is a multibagger SME IPO. It has issued bonus shares on two occasions and also sub-divided the nominal value of equity shares once since listing in 2017.

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