Indian paper manufacturers are expecting a positive outlook this year, after four years of a challenging business environment because of various measures adopted for improving their efficiencies.
Mills have invested around Rs 20,000 crore over the past four years in capacity expansion, green technology and energy efficiency to meet government norms. While some non-profitable plants have been shut, mills ramped up the capacities of efficient units. Coinciding with a marginal decline in raw material prices, the realignment of production facilities has started yielding results. Production costs have started moderating in the last few quarters.