Covid curbs hit disposable paper product industry

Vijay C Roy
Tribune News Service
Chandigarh, June 24

The Covid pandemic has hit the demand for disposable paper products. As the institutional segment such as hotels, restaurants, caterers, travel and tourism, offices and malls — which contribute bulk of the demand — were severely impacted due to restrictions imposed to contain the virus, the once thriving segment has performed poorly.

During the pre-Covid times, the industry was growing between 12 and 15%. The domestic tissue paper industry, including paper napkins, facial tissues, toilet tissue and paper towels, is estimated to be worth Rs 4,000 crore. The northern region accounts for around 40% of the market.

According to the industry, there are over 500 manufacturers and convertors, including MSMEs. The top 10-15 players account for about half the industry volumes.

Traders are of the view that amid the pandemic-driven lockdown, the sale of disposable paper products plunged. However, it’s difficult to quantify the numbers.

“The industry performed poorly as the institutional segment that accounts for bulk of the demand was badly hit. There was a sharp decline in sales as the demand in the rural areas is driven by events, functions and festivals and not by lifestyle adoption which is the main driver in urban areas,” said Manoj Pachisia and Neelam Pachisia, co-founders, Origami — a disposable paper product manufacturer.

“The emerging perception of hygiene has encouraged the usage of disposable personal care products, but individual demand is always lower than the institutional demand,” said Harmeet Singh, a Ludhiana-based trader. The North Indian market has a larger proportion of the demand driven by catering, festivals and events.

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