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ITC, a diversified conglomerate, is eager to expand its production capacity in paperboards, value-added paper, and packaging segments. However, the industry is facing concerns regarding the influx of cheap imports from China and Indonesia, which is posing a significant threat to the domestic industry. B Sumant, Executive Director of ITC Ltd, emphasized the need for anti-dumping measures by the government to protect the domestic industry. ITC is looking to increase its global shipments of value-added paper and paperboards by around 20% year-on-year next fiscal, with key overseas markets including the Middle East and Europe.
The company’s current production capacity is around 10.7 lakh tonnes per annum, with a total of four plants in Bhadrachalam, Coimbatore, Tribeni, and Bollaram. The Bhadrachalam plant, which is the largest, has been upgraded and is running at full capacity. ITC is now searching for a suitable location for its next capacity expansion, which will be similar in size to its Bhadrachalam operation.
The paper and paperboard industry in India has significant growth potential, driven by factors such as increasing per capita consumption, formalization, and the shift towards packaged products. ITC has invested heavily in research and development to create a diverse range of sustainable packaging solutions. However, the industry is currently facing challenges from dumping of low-priced products from China and Indonesia, as well as high wood prices.
ITC is a market leader in value-added paperboards and has been expanding its exports to multiple countries. The company is targeting to increase its exports to around 12,000 tonnes per month next fiscal, with a focus on plastic substitution grades. ITC’s largest export markets are the Middle East and Europe, with the company also starting to export to the US. The company is also exploring cutting-edge Industry 4.0 technology in paperboards to improve its efficiency.