Paper stock bags significant orders as industry turns buoyant amid rise in export activities


Image Source : PEXELS Paper production in a mill

The paper industryโ€™s fortune is linked to a number of economic indicators. According to the International Project Management Association (IPMA), paper consumption in India will likely reach 30 million tons by 2027. There is growing demand for a variety of papers from sectors such as FMCG and retail for innovative packaging solutions as they reduce dependency on plastics. Paper stocks can also benefit from rising e-commerce shopping as well as ready-to-eat and packaged foods.

With the quantum jump and an increase in demand for domestic requirements, IFL Enterprises, a dynamic player in the paper industry, has secured export orders worth over Rs 192 crore. According to an exchange filing, the latest order from Siddhesh Global will not only boost revenue but also contribute to profit margins.

Due to the robust growth in the paper market amid rising demand for eco-friendly packaging and other related items, several players, including IFL, are looking to capitalize on the opportunity.

“The latest order marks a pivotal role in the growth journey. It is expected to further strengthen the industry’s position and drive growth. It will contribute to sustained growth and also create value,” it said in a statement on BSE.

BSE-listed IFL has been exporting all kinds of paper and related items to South Asian and South African countries for the past three years.

IFL Enterprises shares have shown robust performance, gaining more than 133 per cent in the past year. It has outperformed the sector by 127 per cent, attracting investors’ attention.

Notably, the paper industry has been largely visible in the segments associated with packaging paper in the last two years, given the healthy and growing demand for quality packaging of FMCG products, textiles, pharmaceuticals, e-commerce, and more. According to Nuvama, in the financial years 2020โ€“21 and 2021โ€“22, the Indian paper industry has, for the first time post-independence, recorded a surplus trade, with exports being greater than imports.

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