Reports

Driving India’s growth engines – MSMEs and Infrastructure
Contributing around 29% to India's GDP and 49% to its exports, MSMEs are considered the
backbone of Indian economy. These power engines constitute over 95% of total enterprises of
Indian industries. Given their economic and social importance, India’s long term prospects are
directly linked to the growth and development of the MSME segment. These enterprises will
play a significant role in achieving the vision of a New India, by contributing significantly
towards employment generation, gender parity and exports. The MSME segment can also drive
India’s innovation and knowledge agenda, which would significantly improve the country’s
global competitive positioning. Similarly improving infrastructure is vital for the growth of the
Indian economy. Collaboration between Government and private sector will help India reach
global benchmarks for infrastructure across key parameters.
Keynote Speaker: Shri Nitin Jairam Gadkari, Hon’ble Minister of Road Transport & Highways
and MSME
Let’s Work to Lessen Imports and Increase Exports to Make India a $5 Trillion Economy: Shri
Nitin Gadkari
New Delhi, 20 December 2019: MSME and Transport Minister Nitin Gadkari said that India has
a great potential to be a $5 trillion economy and for this it must focus on several sectors
including auto, and also look at converting waste into wealth opportunities.
Speaking on the occasion of Centenary celebrations of ASSOCHAM, Hon’ble Minster of road
Transport & Highways and MSME Shri Nitin Gadkari congratulated the apex industry body for
its achievements and contribution to the Indian economy and the country. “I congratulate
ASSOCHAM on completing 100 years. You all know for a USD 5 trillion economy; we need to
decrease imports and focus on exports. Sector by sector we must focus to remove imports and
widen exports. Two new core aspects as a country we need to concentrate on as we move
towards a New India – one is conversion of knowledge into wealth and the other is Waste to
Wealth. I am sure you all will help achieve this for the country and economy. “
“We import coal but we have so much coal in the country, same with copper. For that we need
to remove obstacles for the mining industry for its growth and rely less on imports. We import
so much pulp and wood. We have to replace this, we can do it,” he added.
Shri Gadkari said that the auto sector in India has a big potential to become a global
manufacturing hub and the industry should grab this opportunity with both hands. “Country is
making rapid strides in e-vehicles. India has great capability of becoming a global hub for auto
manufacturing using new technologies mainly into electric and hydrogen fuel vehicles.”

$5 trillion would require India’s own growth model
The Indian economy's growth journey has been unconventional as compared to most. It bunked
the traditional development map of shifting workforce and economic contribution from
agriculture to the manufacturing sector. India shifted directly to services, charting its own
roadmap towards high growth. While the Indian government and industry are working towards
strengthening the manufacturing and agricultural sectors, the focus on services, especially
value addition, would continue to drive employment generation and economic activity.
Additionally, the country’s diverse population makes it imperative that the MSME sector
become the core of innovation, scale in partnership and service India, along with ‘Made in
India’. The journey towards becoming a developed economy necessitates addressing economic
and regulatory challenges that impede businesses. It is also important to improve the social and
environmental outcomes, such as education, healthcare, inclusiveness and sustainability.
Keynote Speaker: Smt. Nirmala Sitharaman, Hon’ble Minister of Finance and Corporate
Affairs
$5 Trillion Economy Very Much Within Our Reach: FM Nirmala Sitharaman
New Delhi, 20 December 2019: Finance Minister Nirmala Sitharaman today said that India is
very much in a position to be a $5 trillion economy in the next few years if we all shed off any
clouds of self-doubt that may have come up with regards to our achievements and just
remember that Indians have achieved big things in the past and even this goal too is very much
within our reach.
Speaking at the 100 years celebrations of ASSOCHAM and its annual conference in New Delhi’s
Vigyan Bhavan, the Honorable Finance Minister lauded ASSOCHAM for its contributions to the
country and its economy. “What could be a more moment of pride than ASSOCHAM completing
100 years of generating ideas, influencing policies and making a difference on the ground to the
country and its economy. This sort of engagement makes the policy making that much
meaningful. I wish you all several hundred more years in the service of this great country.
Members have been very active especially on speaking for the MSMEs. Now the time has come
to take another leap. I appeal to all to get out of any self-doubts with regards to our capacity to
achieve larger goals and contribute best to achieve the $5 trillion economy as envisioned by our
Honorable PM himself. PM earlier today stated his vision of that and how we can go about it.
We are led by a PM who in his last 5 years has shown conviction to change India’s systems,
make them transparent and have made decisions in cleaning banks and system and make them
responsive to industry needs.
The Finance Minister also enumerated steps and measures taken by the government in the
areas related to banks, liquidity, NBFCs, reduction in corporate tax, real estate, MSMEs, tax
collections etc. On MSMEs, the Finance Minister said that all help needed by the small
businesses is being provided by the government proactively. “Our government understands the
meaning of being in sync with the industry. Look at IBC and its trajectory and the changes that
we have made quickly in it as per the arising needs. This will help industry and businesses to
come out of difficult situations. We don’t want to close any business; we want trouble facing
businesses to revive and flourish. We have now made provision for a faceless interaction

between tax department and the tax payers to avoid any
difficulties for businesses. Businesses can now ignore any communication or document by tax
authorities which is without a DIN.”
“Banks are free to decide on their own. Liquidity problem was identified and worked upon by
the government. I spent time with the Reserve Bank of India and banks to establish where the
liquidity was getting locked up. The banks must pass on rate cut benefits and increase the
disbursal of loans to boost liquidity. The banks have been assured that they have to become
more professional in decision-making. Decisions must not be delayed for fear of vigilance later,”
she added.
Speaking on the occasion, Junaid Ahmed, World Bank, said that India has made huge progress
in several areas of the economy and general life and is very much poised to take the big leap
towards being a $5 trillion economy. “India has made huge progress in the areas of women
development and micro finance for them, tuberculosis eradication. If I were to invest, I would
invest in the women of India – they have had just a 1% delinquency rate in repaying the loans
availed via micro finance institutions. Transport, water and electricity are the areas which could
be big ones for India to achieve the $5 trillion economy mark.”

Unlocking New India’s potential
India's next phase of growth is dependent on innovation, agility and adaptability. The country is
credited with being one of the fastest growing economies in the world, which has been

elevated by pioneering reforms. The Government has
outlined an economic growth path towards becoming a $5 trillion economy. The country’s
economy stands on robust structural ground, which enables the emerging disruptive ideas and
newer ventures. As India works towards the $5 trillion target, it is led by a determined
Government, supported by strong fundamentals, a vibrant demography and the country’s
bountiful entrepreneurial spirit. While the economic situation is currently challenging, both
domestically and globally, it also presents an opportunity for the industry, especially the
MSMEs, to collaborate closely with the Government as partners in achieving the growth agenda
and helping India regain its position as ‘Sone ki Chidiya’.
Keynote Speaker: Shri Narendra Modi, Hon’ble Prime Minister of India
PM asks industry, banks to take fearless investment decisions at ASSOCHAM Conference

New Delhi, 20 December 2019: Assuring banks that their genuine commercial decisions would
not be subject to scrutiny, Prime Minister Mr. Narendra Modi today said at the ASSOCHAM
Annual Conference that the fearless decisions by bankers coupled with bold and courageous
investment commitments by corporate India would lay the foundation for India to become a $5
trillion economy.

"Let me assure bankers and corporate India from the ASSOCHAM platform that the old
weaknesses have been dealt with; so, take open decisions, make investments and spend
liberally. I assure you that there would be no scrutiny of genuine commercial decisions," said
the Prime Minister congratulating ASSOCHAM President, Mr. B.K. Goenka and the entire
chamber leadership on completing 100 years in the service of the nation.

Besides exhorting the banks to take fearless decisions, Mr. Modi also encouraged the industry
not to get excessively worried about the possible business failures. "Our government
appreciates that in a growing economy at times we have to accept failures of companies. It is
not as if our failures are because of our economic offences. Our government has provided for
exit routes for the promoters through Insolvency and Bankruptcy Code (IBC) which is proving to
be a friend of the industry."

In his speech full of wit to the packed audience of Members of Parliament, industry leaders,
diplomats, economists and young entrepreneurs, the Prime Minister said, "Today we can say
that the foundation of the country's banking system has been made so strong and transparent
that it can energise the aspiration to achieve the $5 trillion target."

He said India has already become one of the 10 top FDI destinations of the world. “For me the
term FDI also means, First Develop India.” He said 50 per cent of total FDI inflows in the last 20
years have been received in the last five years alone as the country has improved its global
competitiveness.

Mr. Modi further added that the country has emerged as having world's third largest startup
ecosystem.

Enumerating the landmark steps taken by his government in the last five and a half years, Mr.
Modi said, "Today there is a government which listens to the industry, meets their needs and
acts on their suggestions. Our government has worked day and night to complete work on GST
and we are improving upon it based on the feedback from the industry."

The Prime Minister said amidst all this, "I am aware of the kind of narrative being built around
the state of economy; but we must remember that the GDP in one quarter under the earlier
governments had dropped to 3.5 per cent while CPI inflation had reached 9.4 per cent. Such
ups and downs were seen earlier as well but the country has inherent strength to come out of it
stronger."

He said India's ranking among 190 countries in the global ease of doing business has been
improved substantially from 142 to now 63rd. "Is it a small thing?" Likewise, several provisions
in the Companies Act have been amended to the affect that they have been decriminalised. It
should be a great relief to the industry. Similarly, with regard to tax administration the entire
process of assessment has been made transparent, efficient and accountable.

"Based on this positivity we are marching towards the $5 trillion mark. In the years to come,
investments worth Rs 100 lakh crore on infrastructure would provide impetus to this march.
Besides, investments worth Rs 25 lakh crore on rural economy would contribute towards this
target. Likewise, Rs 3.5 lakh crore investment on providing drinking water to each household
would provide traction towards this goal.

In his centenary celebrations' address, the ASSOCHAM president said he has personally seen
how the Prime Minister gives a positive dimension to all challenges turning them into
opportunities. Mr. Goenka said, "Certain defining reforms like formalization of economy
through GST, and direction from the top for reforms in tax administration would infuse
confidence among the industry.”

ASSOCHAM Secretary General, Mr. Deepak Sood said the chamber would work as an active
partner of the government towards realizing the untapped potential of Indian economy, taking
advantage of a strong leadership of the Prime Minister. He said, “Even in the midst of the
ensuing budget session, senior ministers have found time and responded positively to listen to
the industry leaders, sharing the government perspective on its key policies.”

Report of Public Awareness Committee

Vision:
To promote awareness of the value of paper to general public and to
impress upon them that Paper manufacturing is not at all harmful to
environment and nature.
Mission:
To plan, execute, coordinate, and disseminate public awareness
campaigns about the importance of PAPER & PAPER DAY to Indian
citizens.
Goal:
To provide public awareness of Paper and its manufacturing process
and its usage also opportunities to make better living environment by
using paper and loving paper.
Our Team of Public Awareness Committee was appointed on 23 rd
September 2019 by FPTA under the Presidentship of Shri Chandra
Dev Chaudhary entrusted us with a huge responsibility as
enumerated above

My Team for 2019-2020
T.KISHAN SINGH -Convener
Shri .Bharat D.Shah-PTA Mumbai
Shri.P K Jain- PTA Delhi
Shri. V V D Ramesh -PTA-Vijayawada
Shri.Manish Agarwal -PTA Kanpur
Shri.Aseem Bordia-PTA Nagpur
Shri.Deepak-PTA Coimbatore
Shri. S Muthukaruppan -Shivakasi

T Kishan Singh,
Convenor of Committee for Public Awareness

Sri B. Deepak- Member (Special Invitee)
Sri Rajat Bose – Member
Sri Arvind Agarwal – Member
Sri Bharat D Shah – Member

We along with Managing Committee will strive our best to make
awareness among the general public about PAPER .

With Regards

Kishan Singh
Convener
Public Awareness Committee
FPTA-INDIA

Report of Taxation Committee

Respected President sh. Chandra Dev Chaudhary ji, Past President sh. Sajjan Goenka ji, General Secretary
Mr. Hiren Kariya and all the vice presidents on the dias, all past presidents and convenors of various
committees sitting off the dias, all the fellow paper traders; let me first greet and welcome each one of you
who have gathered today. For the confidence and trust that our president Mr. Chandra Dev Chaudhary and
Mr. Rajkumar Bindal have instilled in me by appointing me as the convenor of the Taxation Committee, I
extend my sincere thanks and hope that I try my best to prove worthy of this responsibility with utmost
commitment and sincerity and never ever disappoint anyone of you.
The aim of the Taxation Committee revolves around GST and as we consider the subject of GST, I would like
to say that we are all traders and if I break this word trader, then it gives us ‘tray’ plus ‘der’ (which is trail of
fear). And, fear has become the most prevailing thought and a core emotion among all the traders these
days for the taxation process.
The most burning issue today is the fear of GST. The fear of GST is in the mind of every businessman and
trader today or should I say that GST is being implemented by issuing new circulars & notifications every
day by intimidating us. In the last two and a half years, more than 400 circulars and notifications, as well as
amendments, have been implemented on GST.
We had already wasted a lot of time in the transition from VAT to GST, but due to these every day changes
on the polices of GST, we all along with our legal advisors have become so confused. We do not really know
whether to implement an old law or a new one. We are not sure which new rule to remember and which
one to apply. To avoid such circumstances, we have a humble request to the government to prepare an
come up with a definite formula that will not change every day or so frequently.
Since the day I have been appointed as the convenor of the Taxation Committee, I have been continuously
informing you about the new changes made in the GST rules by the government. In the last 105 days, and
have sent you more than three hundred updates, although some of my fellow members have protested
against it for sending them so many updates and that too at such a short frequency. They have even said
that they cannot read such big updates, and you please send a summary of the whole thing, otherwise we
will block your contact number.
My humble request to all those respected members in this matter is that, since the law is such a complex
process, here, if I just send you a summary of the entire GST update, then there can be many difficulties in
understanding it. Also, the summary which I send you all will be considered as a statement given by me,
not by the appropriate authority.
Even though I always send the link of the source pages of news together with the updates so that you
would never have any doubt on the originality of the information and you can always visit the source to get
more information on the same.
Under this, as there were many updates being sent to you, then due to protests from your end I tried to
reduce the number of updates to some extent. However, our respected Mr. Balasubramaniam ji, Mr.
Rajpurohit ji and Mr. Tapadia ji took the command of the various updates and kept on sending you the
same from time to time. And, I am thankful to them for all their guidance and assistance.

Page 2 of 2
Friends, if we leave out any of these updates, then it is our loss. My humble request to all my colleagues
and friends over here is that these updates have a summary in the headline, but if you want to understand
the new rule completely, then you to have to open that link and read the content in it to understand the
whole thing completely. You can also save it as per your convenience or check it anytime.
Following this, I had started sending some less important updates to a personal group which I had created,
instead of sending it to the primary official group.
However, here I felt a slight inconvenience in sending updates, as there are about one hundred and fifty
members in our official group, my personal number has not been saved by almost all the members. Only 30
or 35 members are able to read my personal message, as this is a broadcast group and a broadcast group
works only when you have saved the number of the person who has created the group, which is my
number. So, those who do not want such updates, they may not save my number, but if all of you do save
my number, then you will keep getting these updates personally also and never miss onto anything in the
future.
Now, we will discuss our present circumstances and the problems we all are facing.
In recent times, the government has made two important updates, the first update is about section 49A,
49B, and 88A, under which we first adjust the liability of IGST or ITC. And once we are done with it, we will
deal with CGST and SGST.
So many times, it happens that we have outstanding money in CGST or SGST, and yet we have to deposit
cash in another item. When our own money is left in our account, then why is money taken from us again.
Although Government always says “ONE NATION ONE TAX”
This is a huge atrocity done against all of us, which we have opposed to the government many times.
We have raised this issue in all the forums, whether written or verbal, but at present, we have not got any
relief in this matter.
I would like to say that it is our obligation to adjust the IGST at first, but after that for SGST and CGST, we
will not fully adjust the amount and instead, as per our convenience and needs, we will adjust both funds
partially to some extent. For this, you can go by manual adjustment, however, you should balance both
outstanding amounts so that you retain your system in a proper manner.
The second problem which we currently have is the provision of ITC taking up to 20% or say 120%, which
has now been brought down to 110%, under which we have to match with 2A for our ITC.
Under 2A, from the amount which is shown there, we are entitled to take 110% or 100% of the total value,
whichever is less.
Here, we once give money to the supplier, and the second time, according to this 110% requirement, we
have to again pay money to the government.
Under this, there are many traders whose purchases are from the supplier of quarterly returns fillers
instead of the monthly term, and they will file their returns in the fourth month, after which we will get the
ITC.

Page 3 of 2
This implies that for the first 3 months, we pay 90% of the ITC of the government. And when it shows in
our account in the fourth month, it will appear more and it will remain in our credit ledger because usually,
we businessmen never get a refund from the government. So, this will keep getting carry forwarded,
except with the adjustment of our GP, which will be used slowly. And this may even take a few years
because this process comes back every third or fourth month. In this way, our capital will continue to be
deposited with the government. So, how would we run our business?
We fully oppose this and we have also done so through our memorandum and requested the government
to remove this as soon as possible.
The government also has its own problems to deal with and this is why it is coming up with such new rules
& laws so that they can collect the maximum amount of tax.
In this episode, the government has shown crocodile tears and given us a system wherein a person who
will not file his returns for 2 months, his e-way-bill will be blocked. Neither he will be able to sell goods to
anyone or even buy them from anyone for a bill value of more than ₹ 50000.
However, the intention of the government is not clear here, or that the government does not want to
implement this in the right manner.
The government had first put the last date of this arrangement for June 22, but it was later extended to 22
August, after which the date of this arrangement was further extended to 22 November. However, this
system did not come into force on 22 November as well. And finally, this system came into force on 2
December but it is also completely flawed. Because the government has made a provision to implement
this system in such a way that a business person who does not file 3B for two consecutive return periods,
his e-way bill will be blocked.
3b is just a return to discharge tax liability, while our ITC is completed by matching 2A. 2A is made from
GSTR1. Here, if a person has not filed GSTR1 for 6 months and still continues to fill 3B, then his e-way bill
will not be blocked, but due to its non-matching with our 2A, the condition of 10% will continue to apply.
Thus, the government is not only enforcing the rules for its own benefits but it is making new rules and
putting the merchants into trouble every time.
In view of this type of discrepancy, I am requesting all of you brothers who are getting into trouble
somewhere, to file a protest letter to your respective Commissionerate. Although, a few days ago, the
government has raised the matter of blocking the e-way bill even if GSTR1 is not filled. Let’s see how long it
takes for it to be implemented.
At present, the government is going to introduce two new systems, the first is that of e-invoice, which will
be applicable to merchants with a turnover of above 100 crores. And with this, the government has come
up with another arrangement, wherein those with an annual turnover of more than 500 crores, will have to
apply the QR code to their bills. Although this QR code will be for B2C sales items rather than B2B, which
will probably not be applicable to most of us present here. However, having a new system in place by the
government will somehow put us in trouble.

Page 4 of 2
Though this system will come into effect from April 1, 2020, for a trial basis, the government will make this
arrangement applicable from January 1, 2020, and which is why they have kept this trial optional. But from
April 1 you will have to fill it mandatorily.
With this, the government has ended the process of filling the current return which is GSTR 1 and 3B, and
these two have been replaced with ANX1 and ANX2; the prototype of which is available on the
government’s official website, and from April 1, 2020, it will compulsorily be applicable to you.
Under this new system, the entire sales data has to be uploaded on the government portal by the 10th or
11 th of every month, after which your buyer merchant will have to accept all those purchases. In case there
is any discrepancy in any of them, such as incorrect GST number or if the calculation of the goods or the tax
rate or the tax amount is incorrect, then they can reject it. Also, in case of a sale of b2b, if it has been
shown in the b2c section or if a b2c has gone into the b2b section, or if any of its HSN code is incorrect,
then the buyer can reject your bill.
This way, you will have to correct the rejected sale by re-inspecting it and re-evaluating it properly and
ensure that you remove all the errors by the 20 th of the month and finally upload them again on the
government portal for your buyers to accept them.
If neither of you corrects it again or if the buyer does not accept or reject it, then such a sale will go into the
pending section, and the buyer will not get the ITC of a sale that goes into the pending section.
Only when a bill is accepted or re-accepted after rejecting it by the buyer, the buyer will get his ITC. This
means a new lacuna has been implemented in our purchase system, that we file the return first, then check
it to find if it is accepted or not. If it is rejected by the buyer, we have to make corrections in it and then
check, if it is re-accepted by the buyer. Hence, we leave all our important work and only spend time on the
government portal every day.
After this when the final figure will be created, we will have to discharge our tax liability payment on the
20th through ANX2. This means that we will have to leave our business from the 10th to the 20 th of every
month, and stay put on the government portal to do all such work.
Recently, the newspapers and news channels had left a new shigufa that the government is going to reduce
the tax slab for the convenience of we people, that is, the government's intention to reduce the slabs of
zero 5-12-18-28 to 3 was announced by them.
This implies that, according to the government data, to meet the decreasing tax amount, it is being talked
about applying 3 slabs of 8-18-28. This means that our paper which is currently 12%, can become 18%.
However, Hon'ble Finance Minister, Mrs. Sitaraman has also denied that there is any such thing from our
ministry but we are sure that there is something happening inside the ministry otherwise this kind of talks
would not have been doing the rounds.
Here, the chief refuses this to calm down the public and the officials under her are busy in their
proceedings. Even though there is no such decision is expected in the meeting of the GST Council on the
18th, but its arrangement has been put into the hearts of every individual, and in the coming months,
possibly this is going to be implemented.

Page 5 of 2
Apart from GST, our primary tax is the income tax. Today, the income tax which the government has kept
for the corporate world, under this the income tax rate has been reduced for those with a turnover of up to
400 crores.
The tax rate of companies with new manufacturing units has been reduced to 15%. We strongly appeal to
our government that as the partnership, proprietorship or even the LLP businesses who maybe are paying
more tax than the big corporate houses, why the government is not thinking about them.
Are we not the citizens of this country or do we not pay our tax to the government?
The government has been waiving off tax for farmers, giving subsidies to the farmers or even to the poor
category, and the only tax-paying group is the businessman class. And here, we are being looked upon as
thieves. Is it fair?
We have another demand from our government, that earlier the income tax was a direct tax and VAT was a
state-level local tax, so there was no matching ground between these two. But currently, GST is a central
tax form and the income tax is also a central tax form. When a very big amount of our GST is left for a
refund with the government or it gets carried forward, then why should we take the liability to pay the
income tax in advance? Why can we not adjust our income tax and GST among each other?
I request all of you to submit such a memorandum in your own city explaining all these issues. You can
submit it to the finance ministry, your income tax office, and to the GST office as well so that the
government comes under pressure and finally implements all these arrangements in a much better way.
I will always be eagerly waiting for all your valuable suggestions and ideas. And I will be very happy if I can
solve any of your problems, and I hope that you all can bring your problems to me as much as possible so
that I can pun in all the efforts to resolve them.
I thank all of you for hearing me out peacefully and choosing me for this important job. I will do my best to
live up to your expectations and work at my level best to prove worthy of this position.

Alok Kumar Gupta
Convener-Taxation Committee
+919810000505

Prospects of Indian Paper Industry in the coming decade

BY Dr. B. P. Thapiyal and Others

1. Paper – “Essential” for development and modern living.
Variety wise Production
 Packaging : 54%
 Writing & Printing : 35%
 News Print : 7%
 Specialty & Tissue : 4%
2. Growth Pattern of the industry
 Clusters of paper producing units have shown nearly 50% of growth.
 They contribute towards 50% to the total production
 Major clusters of paper producing units (330);
a. Gujarat (91),
b. Uttar Pradesh (85),
c. Tamil Nadu (67),
d. Maharashtra (50)
e. Punjab (23)
f. Bengal (14)
 The units in a cluster, produce very similar grades of paper.

3. Major Manufacturing Clusters – Variety wise shares
 Southern region –
Writing & Printing: – 33%, Kraft Paper- 42%, Duplex Board and Others: 15%,
Kraft Liner: 9%, News Print: 1%
Survey of 55 mills (2 Wood-based, 2 Agricultural Residue Based & 51 mills
based on Wastepaper)

 Gujarat Clusters –
Kraft Paper- 62%, Duplex Board and Others: 30%, Writing & Printing: – 4%,
Fluting & Test liner: 4%
Survey of 64 mills located in Vapi, Valsad & Mehsana.
 Uttar Pradesh- Kraft Paper- 67%, Writing & Printing: 14%, Duplex Board and
Others: 6%, News Print- 3%, Tissue- 1%
Survey of 45 mills in Muzaffarnagar and Meerut region

 Uttarakhand Cluster – Kraft Paper- 40%, Writing & Printing: 32%, Duplex
Board and Others:24%, Food Grade – 4%
Survey of 27 mills in Kashipur & Udham Singh Nagar
4. YoY Growth Study of different Clusters in Southern Region :
Year Production, Million

tons

YoY , % Growth

2018-19 1.78 1.95

5. FMCG, E-commerce, Publishing, and Pharma are major consumers of Paper
Products :
FMCG
 Primary use- packaging
 Products used: Container Boxes, Carton Board, FBB, Duplex Board.
 Push for Less plastic use is promoting use of paper based packaging products.
E- Commerce
 Primary Use :- Secondary and tertiary packaging needs
 Container board and carton board mainly used.
 One of the highest user of container board.
Publishing / Stationery
 Primary use in printing and writing.
Pharma
 Used for Secondary packaging and tertiary packaging.
 Primarily, FBB, Duplex and carton boards are used.
 Certain cases use Paper as primary packaging too.
Specialised Uses
 Hygiene Products like tissues and sanitary wipes.
 Market is predominantly clustered around urban locations.

6. Publication sector is affected due to rising popularity of digital books; increased
education budget to help offset a part of demand slump.
FMCG- 45% consumption driven by rural economy. Growth forecast revised on
account of lower consumption.
Pharma- Healthy growth due to growth in number of doctors, hospitals, and
increased insurance coverage. Government schemes like National Health
Protection Scheme and Pharma Vision 2020 is also supporting the sector
E- Commerce: 37 % Growth expected in the ecommerce market over the next few
years. Internet penetration risen from 35% in 2017 to 45% in 2019.

7. Majority of countries have observed degrowth in paper industry; China has
grown marginally while India has grown at a healthy rate:
Americas:- (Paper Industry -1%) : Canada is -2.4%, Maxico is +2.4% due to online
retail manufacturing
Europe : (Paper Industry -5%) : News Paper Readership – , Digitization +,
Ecommerce is +13%
Asia : (Paper Industry -0.5%)- Japan -0.5%, China- 0.2%, India +6.5%

8. Indian Industry is set to grow at a healthy pace of 4% p. a. in the coming years
whereas global market is expected to grow at a pace of merely 1%.
Per capita Paper Consumption. (as on sep -19)
Developed Countries – 200+ Kgs,
World Average- 57 Kgs
India – 13 Kgs
World avg CAGR (2017-2021) 1%
China’s CAGR (2017-2021) 3%
India’s CAGR (2017-2021) 3.3%

9. Paperboard, Industrial paper, and specialty papers to witness a growth of 6% in
the coming years

Growth in major paper consuming sectors is a positive sign for the industry-
FMCG – +10%

F&B – +21%
Pharma – +15%
Textile – +12%
10. Along with rising competition from digital news sources such as news bites apps,

social media channels and live streaming options-
11. News print segment to witness de- growth due to extensive imports and lower

print news readership..
12. Raw material availability remains a challenge compared to other countries where
manufacturers have private forest land’ lower rate of recycle adds to the
problems.
13. Planned investments from Chinese and Indonesian players with latest
technologies may put pricing pressure on the next existing players.
14. Interest rate in India is significantly higher than rest of the world; highest 10 yr
yield on government bond in India proves the fact.
Interest rate is directly proportional to bond yield; higher bond yield leads to higher
cost of debt:

(2019)
India 7.5%
China 3.1%
US 2.6%
UK 1.2%
Japan 0.0%
15. Lack of skilled manpower remains a challenge for manufacturing industry; NSDC
predicts India will need to add 109.73 mn people by 2022 to cater 24 crucial
sectors.
16. Stringent emissions controls, strict NGT, and complete ban of Single Use Plastic
by 2022 will help compliant players in the long run.
17. Uttar Pradesh majorly affected by strict pollution norms and industries have
been shut for non-compliance.

18. Indian Paper Industry is ripe for consolidation; top 3 players only contribute to
9% of Market share.
India remains a fragmented market compared to global counterparts with
various small players.
Indian Paper companies are smaller in market size compared to the International
players:-

(Market Cap USD Mn)
APP 16,000
International Paper 15,330
Smurfit Kappa 8.331
JK Paper 241
19. Multiple Factors will push the Industry towards consolidation in the near Future:
 High Capital Intensity
 Economies of scale
 Difficult technological up gradation
 Pressure due to Rising imports
 Expensive to be environmentally complaint.
 Advent of GST

VICE PRESIDEN‘S REPORT FOR THE YEAR 2019- 2020

A) Associations under my jurisdiction are
Paper and Allied Merchants Association , Coimbatore
Paper Traders Association, Kerala
Dindugul District Paper Merchants Welfare Association
Erode District Paper and Stationery Merchants Association
The Sivakasi Paper Merchants Association
Salem Paper and Allied Traders Association
B) Whether I have visited any of the association during quarter if not reasons
All the monthly Executive Meeting of my home association Coimbatore in Sep, Oct , Nov and
Dec 2019 were attended by me. I have given a brief about the FPTA,S 58 th AGM at Delhi in the
Committee. Apart from Coimbatore , I Visited Dindugul, Erode and Salem association and
interacted with the office-bearers and senior members. I am planning to visit Kerala and
Sivakasi in the last week of Jan 2020
C) What are the views of the Association be it on trade the function of FPTA, Government Polices
etc.,
All the Association in my jurisdiction are active they are happy that FPTA is functioning well and
they take part in all the activities of FPTA whether it is AGM , MC Meeting , International Tours,
Educational Course etc .,
Further I am planning a Mill to TNPL Unit II in the 3 rd week of Jan 2020 and few association in
my jurisdiction will join the visit. Dindugul Association is hosting a felicitation function on
19.01.20 Sunday at dindugul for my election as Vice President of FPTA. Past President Mr. C.
Balasubramanian will also accompany me to the function.

D) Whether I am in touch with the President and FPTA Secretariat regularly?
Yes , I am in regular touch with the FPTA Secretariat and also FPTA Past President Mr. A.
Natasan, Mr. Sekhar chandakh, MR. C. Balasubramanian and Mr. Venkat for the their guidance .
I also interact with Mr.Hiren karia FPTA secretary. Further I Participate in FPTA conference
calls. In fact I participated the con call on 22.12.19 from Malaysia./ further I am planning a MC
Meeting at FPTA at Coimbatore involving all association nearby in Feb 2020.
E) Whether I have attended the MC Meeting of FPTA held during the quarter
I attended the 1 st MC meeting of FPTA at Delhi and also will be attending II nd MC Meeting at
Pune
I have talked to all association under my Jurisdiction to participate in MC Meeting without fail.
F) What is your assessment with regard to the functioning of FPTA – WHEATHER YOU HAVE ANY
SUGGESTIONS WHICH WOULD GIVE A BOOST TO ITS WORKING

THE Affiliated associations should be active and strong. The must follow the Guidelines
recommended by the FPTA for the functioning of the association. They must send their monthly
report in Time. By this the federation will be strengthened
The FPTA President / secretary should spark personally to the President / Secretary of the Affiliated
Association at least once in a month
G) Any other suggestions
FPTA Vice – President should be give more role to play in the FPTA Being future leaders they
must be given the responsibilities of attendance in MC Meeting . sending the Reports,
Participated in FPTA Programmes as Then FPTA can function effectively with the input from
eight Vice – Presidents

Thanking You
R.Ravi
Vice – President FPTA 2019-2020

​Respected Member
Shri. Satyapal Gupta the Convener, Chambers (Assocham & FICCI) had attended the
meeting of ASSOCHAM celebrating 100 years of ASSOCHAM popularly known as
Knowledge Chamber…
I am enclosing herewith a publication which was released by Shri Narendra Modi,
Hon’ble Prime Minister of India "India moving forward: Journey towards a $
5 trillion economy".
ASSOCHAM celebrating 100 years. The stamp released by the Hon'ble Prime
Minister in the presence of Secretary of Post.
I am giving below the extracts of Hon'ble Prime Minister's speech as under:

 Prime Minister Narendra Modi said on Friday that the Indian economy had witnessed ‘ups and
downs’ in the past too and would pull through from the current situation stronger than before, as
he urged industry to invest freely, while promising that genuine commercial decisions would not be
penalised.
 Speaking at the centenary function of business chamber Assocham, Modi said he was aware of
discussions around the economy, but reminded industry leaders present that GDP growth rate had
fallen to as low as 3.5% in one quarter during the UPA government’s tenure as well. “In that era,
CPI headline inflation was at 9.4%. Where was CPI core inflation? 7.3%. WPI inflation had reached
5.2%. Fiscal deficit was (at) 5.6% of GDP,”
 India’s economic growth slumped to a six-year low of 4.5% in the July-September quarter and is
likely to grow around 5% in the ongoing fiscal year, against 6.8% last year.
 The prime minister also assured the banking and corporate sector that earlier weaknesses had
been addressed.
 “Therefore, take decisions freely, invest freely, and spend freely. I assure you that there will be
no unwarranted action in respect of right decisions or genuine commercial decisions,”
 The government also accepts failure in a growing economy,
 Sh. Modi said “All failures cannot be due to any financial crime. So, companies and their owners
must get a better ‘exit route’ and we have looked at this. The Insolvency and Bankruptcy Code is
helping many such companies that are facing failure,”
 He said the government would de-criminalise more provisions in the Companies Act and address
the inverted duty structure to reduce manufacturing costs. He also reiterated the government’s
$5 trillion GDP target by financial year 2024-25. “We have improved in global competitiveness and
… most investors are looking at India with belief, confidence and hope. Based on this positivity, we
are moving towards the $5 trillion economy target,”
 Sh. Modi also said the foundation of the banking sector was transparent and strong enough to
power the $5 trillion goal, recalling the weak banks the government had inherited and efforts to
return them to strength. “Thirteen banks have now returned to profit. Six banks have come out of

prompt corrective action (PCA) too. We have expedited the merger of banks. We have stopped any
interference in the commercial decisions taken by banks."
 “We are moving towards faceless tax administration to bring about transparency, efficiency and
accountability,” he said, adding that the government had cut corporate tax rates to the lowest
ever.
 Modi said labour reforms, the Insolvency and Bankruptcy Code and banking reforms, among others,
would safeguard capital and business.
 He said the government was encouraging states and efforts to double the economy were not
limited to Delhi. Many measures are being taken to encourage manufacturing and exports and
expand the Make in India initiative.
 Technology and defence manufacturing are being given priority and the country was making fast
progress in electronic manufacturing.
 He also said Indian industry was capable to compete with the rest of the world in global
markets.
Some of the highlights of the speeches are as under:
Hon'ble Finance Minister Smt. Nirmala Sitharaman: –

 Smt. Sitharaman appealed to India Inc to come out of “self-doubt" and unleash its
animal spirits while inviting it to enthusiastically bid for public sector enterprises such as BPCL
and Container Corporation of India under the disinvestment programme.
 The government has shown conviction to change India's system, take some tough decisions and
make sure it is responsive to the industry, Sitharaman said and added that the industry must put
the onus of growth on itself rather than looking to the government, given that macroeconomic
fundamentals remained strong.
 According to the minister, major steps taken in the past few years make India stand out in the
world and the industry is part of the change. “I would appeal to you, please get out of the mood of
self-doubt. Can we do it? Can India do it? Why this negative mood? Get out of this self-doubt,”
she said and emphasised that most of the macroeconomic indicators are strong.
 She said. “Disinvestments are happening and some of you should come up with bids. You should
look at prospects of growing your business by taking up some of these companies which are coming
on, which are essentially Indian companies. So, you must be the first bidders,”
 In response, Vedanta chairman Anil Agarwal said “I think they (government) can collect $1 trillion
(through divestment) on condition that no job losses happen…We should look at BPCL or any other
kind of asset… We are evaluating BPCL.” He added that Indian entrepreneurs will be interested in
the assets as long as the debt associated with the assets is reduced.
 The finance minister added that steps taken after the budget were bearing results, including the
corporate tax rate reduction, which was now being asked by partnership firms, cooperatives and
LLPs, and that it was working on clarifying the beneficiaries of the scheme under manufacturing.
“I think a lot of newer investments are taking place, people asking for a lot of clarity, because we

mentioned it is only for manufacturing, what constitutes manufacturing is also something we are
working on,”
 Smt. Sitharaman said the government does not want any business to close down and will keep
improving the Insolvency and Bankruptcy Code, as and when required, having already made several
changes to the code in order to facilitate the industry.
 She also assured the industry, “Faceless technology will also be introduced for GST. Whatever you
pay for the businesses that you do shall go to this faceless technology-driven system, so that you
ensure tax harassment shall be a thing of the past,”
 Smt. Sitharaman said banks were being given autonomy and confident decision making was being
encouraged. “There hasn't been interference in banks’ decision-making process by the
government… we have given them permission for them to be able to confidently take decisions, but
don't delay decisions for sense of fear,”
 In order to drive liquidity, the government has made sure bottom-most non-banking finance
companies also get aid, Sitharaman said, adding that it has been telling banks to increase lending
instead of earning from reverse repo by holding funds. She said 50 incomplete real estate
projects had been identified for funding.
Hon'ble Minister of Commerce and Industry Shri Piyush Goyal: –
 Shri Goyal asked the industry to flag the countries that are placing non-tariff barriers on Indian
exports and promised to take retaliatory action against such countries even as he assured the
industry that India is the best place to invest in.
 It’s the place where you get both — competitive edge and a huge domestic market aspiring for a
better quality of life,” Sh. Goyal adding that India needs to be more competitive and address
problems of the entire value chain, be it inverted duties, dumping, or unfair subsidies.
 He also pointed out that the industry and government need to work together to rejuvenate that
entrepreneurial spirit and find solutions to certain problems which are real. “The government will
have to play the role of an enabler and facilitator and end that harassment faced at the lower
ends,”.
 Sh. Goyal said India dropped out of the Regional Comprehensive Economic Partnership trade
agreement because it was turning out to be just an India-China FTA. “We desire to work with the
world on an equal and reciprocal terms.”
 He said “India has a glorious future and $5 trillion is doable and will be achieved,”. The
government has been doing a lot to support the start-up culture and encourage entrepreneurship.
 He said, “We (the industry and government) are very keen that we understand each other’s
position, be it litigation, regulatory certainty and predictability, and seamless compliances. We can
work together on these,”. The minister also suggested if automatic self-approvals can be looked at
to start and run businesses.
 Referring to the over 370 experts certified to do a boiler inspection anywhere, he said 11 private
sector organisations have been approved who can get their boiler inspected from anybody without
going to the government.

 For overall development, he suggested infrastructure and innovation along with inclusive growth,
and pondered if funds for corporate social responsibility can be used for research and
development.
Hon'ble Minister of Micro, Small and Medium Enterprises Shri Nitin Gadkari: –
 Shri Gadkari Said India must increase its share in global trade to 8-10% to become a $5 trillion
economy, the policy-making kept in mind import substitution for local industries to grow.
 He said that “The most important thing for the $5 trillion economy is the export-import balance,”.
China contributes around 17% to global trade while India’s contribution is 2.6%. “This is the best
opportunity for us to increase this to 8-10%. Today, costs in China are increasing, and they are
facing some difficulties. This is a blessing in disguise for us.
 Shri Gadkari said that “We need to identify sectors which can help boost exports, and we are
making a plan to see how we can reduce their import and increase exports, “The government has
already identified 25 such sectors.
 He said India was spending Rs 7 lakh crore every year on crude oil import and the country has the
potential to reduce this bill by Rs 2 lakh crore by shifting to alternative fuels including ethanol,
methanol, bio-CNG and electric vehicles. he will not allow driverless cars in India, which has a
shortage of 2.2 million drivers.
 Talking about the highways sector, Gadkari said projects worth Rs 15 lakh crore will be awarded in
five years of the government’s second term. “By March 2020, we will have awarded projects worth
Rs 2 lakh crore and next year (FY21) we will award projects worth Rs 3 lakh crore, and Rs 5 lakh
crore in the following year (FY22),”
 He said there was no dearth of government funds for investing in the highways sector and the
ministry’s asset monetisation programme was contributing significantly to the pool.
 Gadkari also said, “Without strengthening agriculture, tribal and backward areas, purchasing
power will not increase, without which investment will not come. Without investments, employment
potential will not increase.”

R. Ravichandran Vice President (Chennai) Mob. : 9841053397

(ESTD.1959)
FEDERATION OF PAPER TRADERS’ ASSOCIATIONS OF INDIA, Mumbai
REPORT OF VICE PRESIDENT FOR THE TERM ENDING
A. The Affiliated Associations Under my jurisdiction The Madras Paper Merchants’ Association, Chennai. The Karnataka Paper Merchants & Stationers Association, Bangalore. Madurai Paper Traders Association, Trichirapalli. Dis : Kagitha Vanigar Nala Sangam
B. I attended all the 3 Executive Committee Meeting and all the celebrations of get together programmes Deepavali, Christmas & New Year of my home Association MPMA, Chennai. Interacting regularly with Mr. Arulraj, Secretary of MPMA and shared the activities of FPTA. And on request of C. Balasubramanian, Convenor of consumer relations & Arbitration Committee (FPTA). We are planning to organise a post Budget Discussion and Consumer interaction meeting by 2nd week of Feb. compraising, All the FPTA MC Members of my Jurisdictions, MPMA managing committee, and Top people of Paper Allied Industries in Tamil Nadu.
C. Had Conversation with Mr. R. Balaji, Secretary of Madurai. Shri. Rajneeskumar, Secretary of Trichirapalli Mr. Ranjeet Jain, President of Karnataka and also planning to visit all the Three Association after our 2nd MC Meeting and before the consumer meet
to be conducted by 2nd week of Feb.
D. I participated in all the group discussions through conference call organised by our Hon. Secretary FPTA and being in touch with FPTA past presidents in Tamil Nadu.
E. I attended 1st MC Meeting held in Delhi and also attending the 2nd MC meeting to be held at Pune
on 4th & 5th Feb. 2020.
F. FPTA to guide us to develop Literacy for more use of paper, More awareness through Government agencies can be conducted through the affiliated Associations. h
Thanking you,
R. Ravichandran

REPORT OF THE CONVENER FOR INDUSTRY AFFAIRS COMMITTEE
FOR THE 2 ND MEETING OF THE MANAGING COMMITTEE BEING HELD

AT PUNE ON 4 TH -5 TH JANUARY 2020.

Season’s Greetings and Wishing YOU all a Very Happy New Year 2020.
I want to first thank Patron Members for electing me as a Managing Committee Member. I
also want to thank the President Shri Chandra Dev Chaudhary and Hon. Secretary Shri
Hiren Karia and all the Office Bearers and Managing Committee Members for nominating
me as the Convener – Industry Affairs in the 1 st Meeting of the Managing Committee held
at Delhi. Received the official communication from FPTA in September end regarding the
appointment.
To guide and support me in my activities, I have taken the following into my TEAM:
Shri Krishnendu Bhattacharjee, Kolkata ADVISOR
Shri Ravi Rathi, Hyderabad CO-CONVENER
Shri Padam Chand Jain, Delhi MEMBER
Shri Deepak Mittal, Bengaluru MEMBER (SPECIAL INVITEE)
FPTA had a meeting with the Printers Association at Delhi in Paper-Ex attended by
President Shri Chandra Dev Chaudhary, Hon. Secretary Shri Hiren Karia, Shri Shekar
Chandak, Shri Kapil Chaudhary, myself and few members of FPTA wherein it was
discussed how all stake holders of the paper industry can come together and fight with
the Government for the betterment of all. This meeting was organized by Shri Kapil
Chaudhary.
Secretary level meetings were done with various Secretary Generals of the Paper Industry
during Paper Ex. Myself and Hon. Secretary Shri Hiren Karia had a meeting with the
Secretary Generals of the Indian Paper Merchants Association Shri Rohit Pandit and Indian
Newsprint Paper Manufacturers Association Shri Vijay Kumar during the Paper Ex. We
discussed in length the future course of action with regard to Public Awareness Program
and involvement of the Industry into Paper Day Activities. IPMA, IARPMA and NPMA are
of the opinion that if there is Secretary General stationed at Delhi it will be helpful for
better coordination among various associations and also in proper representation to the
Government by FPTA. It was a fruitful meeting.
Have been regularly interacting with all the Secretary Generals and the Presidents of
various Associations for improving the image of FPTA and also to maintain cordial
relations with them and to exchange information of mutual interest. In regular contact
with the Hon. Secretary and the Secretariat and attending all the concalls of the FPTA till
now. Also, in contact with the President Shri Chandra Dev Chaudhary as and when
needed.
B.R. RAO
CONVENOR – INDUSTRY AFFAIRS

REPORT OF VICE PRESIDENT FOR THE

TERM/QUARTER ENDING

a. Names of the Affiliated Associations under my jurisdiction:
The Paper Traders’ Association, Mumbai
The Pune Paper Traders Association, Poona
Paper Merchants’ Association, Surat
Paper Traders Association, Nagpur

b. Whether you have visited any of the Associations during the
year, if not the reasons.
PUNE: Visited Pune Association on 27-09-19 along with our President
Shri Chandar Dev Chaudhary .
Nagpur: Will be visiting NagpurAssociation after 2 nd Mng. Com. Meeting
SURAT ; Will be visiting Surat Association after 2 nd Mng. Com. Meeting.

Members remember “Challenges are what make life interesting, overcoming
them makes life meaningful”

Mumbai: My Home Association.
Mumbai is having a young and vibrant Managing Committee and my role is
guiding the young team to achieve their targets. Our Association is regularly
keeping knowledge seminars for the benefit of Members.
Regularly in contact over Phone with Associations under my Jurisdiction.

Looking after day to day working of FPTA office along with Hon. Secretary /
Treasurer and Executive Secretary.
We at PTA Mumbai had in March organized an educational Seminar
On estate planning & will, & reading balance sheet on 23/11/2019
c. What are the views of the Associations be it on trade, the
functioning of FPTA, Government policies etc.
The associations under my jurisdiction are doing well and are active. They have
aligned themselves with FPTA. The common issues of the Association with
respect to the trade is that of bad debts, long credit terms and over dues.
GST and E-way bill has been streamlined.
The recent volatile situation in China has affected huge correction in prices and
has created panic situation among importers and hitting margins.

d. Whether you are in touch with the President and FPTA
Secretariat regularly.
I am in regular touch with the President and Secretary over phone and by mail

e. Whether you have attended the Managing Committee
Meeting of FPTA held during the Quarter and if not the
reasons.
I have attended both the AGM and First Managing Committee meeting at
Delhi
I will attending the Second Managing Committee at Poona and the following
have attend from my Jurisdiction Mumbai – 11 + 2 PP, Surat – 2, Nagpur-2,
Pune is host Association

f. What is your assessment with regard to the functioning of
FPTA – whether you have any suggestions which would give a
boost to its working.
Regular interaction between Secretariat and affiliated Associations and monthly
reports should be exchanged which will help in strengthening both FPTA and
affiliated Associations.
The President/Secretary of all the affiliated Association should circulate all the
information with their local members and send their feed back to FPTA
secretariat.
All Associations must be motivated to carry out the program of FPTA.
g. Any other suggestions.
All Associations to keep their Vice President informed about all their activities
and be the pillars of FPTA and work with the President to strength our
Federation.
Name and signature of the Vice – President:

Dhiraj D. Karia Vice
President, FPTA – Mumbai.

DATE – 01.01.2020
REPORT OF – Committee for Website and Social Media, at 2nd
Meeting of the Managing Committee, Pune – 04th 05 the January,
2020.
I thank the President Shri. Chandra Dev Chaudhary to appoint me with
the responsibility as convener of committee for Website & Social
Media for the year 2019-20 during the 1 st Meeting of Managing
Committee held at Delhi and confirmed our team.
Members of my Team: –
1. Shri. Mehul Mehta, Mumbai – Advisor
M/s. Ratilal P. Mehta & Co.
B-20 Royal Industrial Estate
5-B Naigaum Cross Road, Wadala
Mumbai 400 031
Tel: (022) 24161601 Mob: 9820322968
Email: mehul@rpmc.in

2. Shri. Ranjeet Jain, Bengaluru, Member
M/s. Mataji Papers
135, 1 st Floor, Sultanpet
Bengaluru 560 053
Tel: (080) 41223949
Mob: 9448476339
Email: matajipapersblr@gmail.com

Federation of Paper Traders' Associations of India (FPTA) with the FPTA India
Mobile App that seamlessly connects more than 6000 members across India. It’s
a simple to use app with appealing design to connect, do business and stay
updated with the happenings in the paper industry of India.

I request the members to give their advertisement & let their presence be felt at
national & international level.

We our team has mostly updated new data as per given record in Website &
App. If anything left do inform to update in respective social media. We updated
new version which indicates Green Colour as member downloaded app & in Red
Colour member has not downloaded APP. Hence request all members to
support us by informing their members to download APP.
FPTA INDIA APP IS ONE NATION ONE BUSINESS PLATFORM A BEGINGING TO
DEVELOP BUSINESS, DOWNLOAD APP TODAY AND DISCOVERS HOW IT’S
BENEFITS FOR YOU. FPTA INDIA APP AVAILABLE ON I PHONE & ON PLAY STORE.
I along with my team thank President Shri Chandra Dev Chaudhary & Hons
Secretary Shri Hiren Karia for their help & guidance.
ON BEHALF OF TEAM “WE WISH ALL MEMBERS A HAPPY & PROSPEROUS NEW
YEAR – 2020.

WITH REGARDS,
Nirmal Kuhad
CONVENER OF WEBSITE & SOCIAL MEDIA.

VICE PRESIDENT’S REPORT FOR THE YEAR 2019-20

By Subrata Sen
A) Associations under my jurisdiction which are :-
Kolkata, West Bengal & Bihar.
B) Whether I have visited any of the association during quarter, if not the reasons:-
I attended all the executive committee meetings of my home association CPTA on regular basis and
shared necessary FPTA information with the members of CPTA from time to time. I interacted over
telephone with two other associations – WBPTA & Patna Association, motivated them to celebrate
PAPER DAY in a bigger way during this year. I personally requested all these 3 associations to
attend our 2 nd MC meeting of FPTA in Pune with full strength.
C) What are the views of Association be it on trade, the functioning of FPTA, Government policies etc:-
I have not received any views/suggestion from any association on the functioning of FPTA. Some
common issues were discussed with them like long credit, bad debts and other related matters. I
received suggestion to organize seminar on GST at FPTA platform. On that basis, I am planning to
arrange a GST Seminar during February 2020 with the members of these 3 associations. Officers
from GST Bhawan will be the key-note speakers in the seminar
D) Whether I am in touch with the President and FPTA Secretariat regularly ?
Yes – I am in regular touch with the President and Secretariats of FPTA from time to time. Besides, I
am also in regular touch with some FPTA past presidents and Presidents of the affiliated associations
under my Jurisdiction. I participated in all the group discussions through conference call organized
by Mr. Hiren Karia, Hon. Secretary of FPTA and shared my opinion on different matters.

E) Whether I have attended the MC Meeting of FPTA held during the quarter :-
I attended 1 st M.C. meeting in Delhi and I shall attend 2 nd . MC meet at Pune on 4-5 January 2020.
E) What is my assessment with regard to this functioning of FPTA –
Whether I have any suggestions which would give a boost to it’s working-
FPTA can improve/develop its overall activities only when proper feedbacks from affiliated
associations are sent on any specific issue. Frequent exchange of information, some guideline on
international & domestic market may help the members of affiliated associations to a great extent.
FPTA should find out new associations who are not affiliated till now. In eastern region, there are
two associations in Siliguri & Guahati, both of them are unrepresented.
As GST is our burning issue, FPTA should organize seminar on this subject to educate our members.

F) Any other suggestions
During all the MC meetings, FPTA President should focus on the monthly report of all the affiliated
associations. We would be able to know the activity of the association through these report. All the
vice presidents should take the initiative. I have already requested the above 3 associations to mail
their activity report before 2 nd MC meeting.
Thank you
Subrata Sen
Vice President – FPTA
2019-20

Ref No: 060/FPTA/2019-20 19.12.2019
Report of Consumer Relations and Arbitration Committee presented to the 2nd
Managing Committee 2019-20 of FPTA at Pune on 4th and 5th Jan 2020.
It gives me immense pleasure to present before you the first report of the
Consumer Relations and Arbitration Committee of FPTA.
I was nominated as the convener of Consumer Relations and Arbitration
Committee of FPTA for the year 2019-20 in the first meeting of the Managing
Committee of FPTA on 23rd September 2019 at Delhi. In this connection I received a
letter from the secretariat on 27.9.19 requesting to select my own team with the consent
of members preferably from Managing Committee Members. Although I was in USA I
acknowledged immediately on 1.10.2019 and also selected my team. I took care to
select members representing all the four zones East, West, North and South. I talked to
all of them and taken their consent. The following are the members.
1. Mr. Priyesh Desai, Mumbai.
2. Mr. A. Muthuraman , Chennai.
3. Mr. Subash Saha , Kolkata.
4. Mr. Parmod Jain, Delhi.
5. Mr. Ranjeet Jain, Bangalore.
6. Mr. Vishnu Kant Rathi, Secunderabad.
7. Mr. Vikram Bajanka, Patna.
8. Mr. Saravana Kumar, Salem.
I have communicated the above list to FPTA on 03.10.19 and got the
confirmation of the FPTA President on 05.11.19.
On 13thOctober 2019 I Created a Whatsapp group " FPTA Con and Arb.
Committee 19-20 " and regularly posted all the relevant letters in the group.
Then on 14.10.19 I communicated to all the members about their nomination and
requested them to coordinate with their Jurisdiction associations which I communicated

to them. Care was taken so that the members can contact the nearby association which
allotting to them. The members were to organize Consumer Meet and Awareness
Programs on Arbitration in the respective association.
On 18th November 2019 I have sent copies of system of Arbitration followed by
the Madras Paper Merchants Association to all the Members and requested their inputs
to frame a common Procedure to be followed by all the 35 Affiliated Associations and
also reminded them to organize consumer meet. Further I also sent copies of the
procedure followed by " Redressal and Grievances Committee " of Pune Paper Traders
Association to all the Committee Members for Guidance and reference on 21st
November 2019.
As a follow up I wrote to all the Committee Members on 04.12.2019 again. I have
received inputs and reply from Mr.Priyesh Desai, Mr. A. Muthuraman, Mr. Saravana
Kumar, Mr. Subash Saha, Mr. V K Rathi and Mr. Ranjeet Jain. I thank them for their
response.
Mr.R.Ravi Vice-President FPTA have assured me that the Coimbatore
Association will be organizing on Awareness Programme on Arbitration in Jan 2020.
On 16th December 2019 I wrote to all the Vice-Presidents of FPTA to contact the
associations under their Jurisdiction for organizing Consumer Meet and Arbitration
Program.
After getting a feedback from all concerned and getting legal opinion from a
senior advocate I will be able to send a common format for all the associations in
Feb 2019.
I thank our FPTA President Shri.Chandra Dev Chanudhary, Hony. Secretary
Shri.Hiren Karia and all the members of FPTA for their continuous support and assure
you all of our committee's service.

With Warm Regards.

C.Balasubramanian
Convener – Con.Relations and Arbitration Committee.
Federation of Paper Traders Associations of India.

Report FPTA Chambers ASSOCHAM and FICCI.

I had attended most of the managing committee meeting and raised the following issues:

 GST :- I had requested that GST should be “One Chapter One Tax” and they have
also recommended to the GST Council vide their memorandum at serial Point No-
19. (Copy Enclosed)
 Secondly, we requested for the simplification for the GST Laws. The matter was well
taken and I hope some good result will come out in time to come.
 I had raised the issue of the reduction in Income tax of the Proprietorship Firm,
Partnership Firm and LLPs
 I had also sent the letter to Hon’ble Finance Minister. (Copy Enclosed)
 I had also taken up the matter regarding the Deposit Insurance Scheme to increase
the limit. (Copy Enclosed)
 On 20 th December 2019 ASSOCHAM is celebrating Centenary Year. The following
will participate in the deliberation:
I. It will be inaugurated by Shri Narendra Modi Ji, Hon’ble Prime Minister of
India. The theme of the Conference is ‘New India: Aspiring $5 Trillion
Economy’. The other Speakers are:
II. Smt. Nirmala Sitharaman, Hon’ble Minister of Finance and Corporate Affairs.
III. Shri Piyush Goyal, Hon’ble Minister of Railways and Commerce & Industry.
IV. Shri Nitin Gadkari, Hon’ble Minister of Road Transport & Highways and MSME.
V. Shri Ravi Shankar Prasad, Hon’ble Minister of Law and Justice, Communication and
Electronics & Information Technology.
VI. Smt. Smriti Zubin Irani, Hon’ble Minister of Textiles and Women & Child
Development.

The detailed note will be forwarded to you after the conference.
However, you can listen on DD TV of 20Th December 2019 10:00 AM.
I will also be sending an article on Prospects of Indian Paper Industry in the coming decades.

Satya Pal Gupta
Former President- FPTA
Email: ndco@narsinghdass.com

Prospects of Indian Paper Industry in the coming decade

BY Dr. B. P. Thapiyal and Others

1. Paper – “Essential” for development and modern living.
Variety wise Production
 Packaging : 54%
 Writing & Printing : 35%
 News Print : 7%
 Specialty & Tissue : 4%
2. Growth Pattern of the industry
 Clusters of paper producing units have shown nearly 50% of growth.
 They contribute towards 50% to the total production
 Major clusters of paper producing units (330);
a. Gujarat (91),
b. Uttar Pradesh (85),
c. Tamil Nadu (67),
d. Maharashtra (50)
e. Punjab (23)
f. Bengal (14)
 The units in a cluster, produce very similar grades of paper.

3. Major Manufacturing Clusters – Variety wise shares
 Southern region –
Writing & Printing: – 33%, Kraft Paper- 42%, Duplex Board and Others: 15%,
Kraft Liner: 9%, News Print: 1%
Survey of 55 mills (2 Wood-based, 2 Agricultural Residue Based & 51 mills
based on Wastepaper)

 Gujarat Clusters –
Kraft Paper- 62%, Duplex Board and Others: 30%, Writing & Printing: – 4%,
Fluting & Test liner: 4%
Survey of 64 mills located in Vapi, Valsad & Mehsana.
 Uttar Pradesh- Kraft Paper- 67%, Writing & Printing: 14%, Duplex Board and
Others: 6%, News Print- 3%, Tissue- 1%
Survey of 45 mills in Muzaffarnagar and Meerut region

 Uttarakhand Cluster – Kraft Paper- 40%, Writing & Printing: 32%, Duplex
Board and Others:24%, Food Grade – 4%
Survey of 27 mills in Kashipur & Udham Singh Nagar
4. YoY Growth Study of different Clusters in Southern Region :
Year Production, Million

tons

YoY , % Growth

2018-19 1.78 1.95

5. FMCG, E-commerce, Publishing, and Pharma are major consumers of Paper
Products :
FMCG
 Primary use- packaging
 Products used: Container Boxes, Carton Board, FBB, Duplex Board.
 Push for Less plastic use is promoting use of paper based packaging products.
E- Commerce
 Primary Use :- Secondary and tertiary packaging needs
 Container board and carton board mainly used.
 One of the highest user of container board.
Publishing / Stationery
 Primary use in printing and writing.
Pharma
 Used for Secondary packaging and tertiary packaging.
 Primarily, FBB, Duplex and carton boards are used.
 Certain cases use Paper as primary packaging too.
Specialised Uses
 Hygiene Products like tissues and sanitary wipes.
 Market is predominantly clustered around urban locations.

6. Publication sector is affected due to rising popularity of digital books; increased
education budget to help offset a part of demand slump.
FMCG- 45% consumption driven by rural economy. Growth forecast revised on
account of lower consumption.
Pharma- Healthy growth due to growth in number of doctors, hospitals, and
increased insurance coverage. Government schemes like National Health
Protection Scheme and Pharma Vision 2020 is also supporting the sector
E- Commerce: 37 % Growth expected in the ecommerce market over the next few
years. Internet penetration risen from 35% in 2017 to 45% in 2019.

7. Majority of countries have observed degrowth in paper industry; China has
grown marginally while India has grown at a healthy rate:
Americas:- (Paper Industry -1%) : Canada is -2.4%, Maxico is +2.4% due to online
retail manufacturing
Europe : (Paper Industry -5%) : News Paper Readership – , Digitization +,
Ecommerce is +13%
Asia : (Paper Industry -0.5%)- Japan -0.5%, China- 0.2%, India +6.5%

8. Indian Industry is set to grow at a healthy pace of 4% p. a. in the coming years
whereas global market is expected to grow at a pace of merely 1%.
Per capita Paper Consumption. (as on sep -19)
Developed Countries – 200+ Kgs,
World Average- 57 Kgs
India – 13 Kgs
World avg CAGR (2017-2021) 1%
China’s CAGR (2017-2021) 3%
India’s CAGR (2017-2021) 3.3%

9. Paperboard, Industrial paper, and specialty papers to witness a growth of 6% in
the coming years

Growth in major paper consuming sectors is a positive sign for the industry-
FMCG – +10%

F&B – +21%
Pharma – +15%
Textile – +12%
10. Along with rising competition from digital news sources such as news bites apps,

social media channels and live streaming options-
11. News print segment to witness de- growth due to extensive imports and lower

print news readership..
12. Raw material availability remains a challenge compared to other countries where
manufacturers have private forest land’ lower rate of recycle adds to the
problems.
13. Planned investments from Chinese and Indonesian players with latest
technologies may put pricing pressure on the next existing players.
14. Interest rate in India is significantly higher than rest of the world; highest 10 yr
yield on government bond in India proves the fact.
Interest rate is directly proportional to bond yield; higher bond yield leads to higher
cost of debt:

(2019)
India 7.5%
China 3.1%
US 2.6%
UK 1.2%
Japan 0.0%
15. Lack of skilled manpower remains a challenge for manufacturing industry; NSDC
predicts India will need to add 109.73 mn people by 2022 to cater 24 crucial
sectors.
16. Stringent emissions controls, strict NGT, and complete ban of Single Use Plastic
by 2022 will help compliant players in the long run.
17. Uttar Pradesh majorly affected by strict pollution norms and industries have
been shut for non-compliance.

18. Indian Paper Industry is ripe for consolidation; top 3 players only contribute to
9% of Market share.
India remains a fragmented market compared to global counterparts with
various small players.
Indian Paper companies are smaller in market size compared to the International
players:-

(Market Cap USD Mn)
APP 16,000
International Paper 15,330
Smurfit Kappa 8.331
JK Paper 241
19. Multiple Factors will push the Industry towards consolidation in the near Future:
 High Capital Intensity
 Economies of scale
 Difficult technological up gradation
 Pressure due to Rising imports
 Expensive to be environmentally complaint.
 Advent of GST

 

 

 

To, 
All Conveners of Sub Committees
 
Respected Sirs,
 
The 2nd Managing Committee Meeting to be held on 04th & 05th January 2020 under Paper Traders‘ Association, Pune.
 
We request you to please send activity report of your subcommittee, enable us to circulate amongst the members well in advance. 
 
Please do the needful at the earliest and oblige.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary