Tuesday, February 25, 2014

INDIAN MARKET OF HANDMADE PAPER

Handmade paper market

The Indian handmade paper industry has been identified as one of the village industry and the industry has seen significant growth in last one decade because of improved demand not only on national level but at the international arena. As per estimates, there are nearly more than 450 handmade paper units scattered all over India producing nearly 50,000 tonnes of handmade paper & board. The Indian handmade paper industry had grown remarkably in the recent past wherein the production of handmade paper industry has reached to a turnover of Rs 250 crores.
Due to increased literacy, industrialization and modernization, the per capita consumption of the paper and paper board has increased remarkably from 4.5 kg in the year 2000 to nearly 6.5 kg in the recent past. This industry provides employment to about 10,000 people and most of them are situated in the rural areas.
Although, the per capita consumption of paper and paper board in India is low compared to the developed countries like US (350 kg), China (58 kgs), Japan (225 kgs) and world average 55 kgs however the total quantity of paper produced in India is quite significant with a total production of nearly 70 lakh tonnes per annum.
Indian handmade paper industry contributes to less than 0.5 % of the total country’s production of paper and paper board till the year 2005-06 and this share has recently increased to nearly 0.7% in the recent year since the production of handmade paper which was nearly 25,000 tonnes in the year 2005-06 now stands at nearly 50,000 tonnes. Although, the country is self sufficient in the manufacturing of handmade paper & board, however, a little quantity of specialty paper are imported.

Indian handmade Paper Production Cluster:

Kalpi – Uttar Pradesh
Sanganer – Jaipur Rajasthan
Kurukshetra – Haryana
Pune – Maharastra
Mehboob Nagar & Kareem Nagar – Andhra Pradesh
Karnataka
Tripura
Gujarat

Achievement of Handmade Paper Industry

In 1953 this industry was having 35 -40 units for production but today after half century hand made paper industry is having more than 3000 production units and increase of 35 times (1991 Rs 6 millions to Rs 210 millions in 1999-2000) recorded in hand made paper industry and its value added items. The  Handmade Paper Industry has provided gainful employment to around 18000 direct and indirect people today. Rural artisans are benefited through this industry.
The handmade paper units are scatter throughout the country with concentration most in the Kalapi (Jhansi, Uttar Pradesh), Sanganer (Rajasthan), Pune (Maharastra), Kurukshetra (Haryana), Mahaboobnagar (AndhraPradesh) and some clusters are in West Bengal. The production capacity of the units ranges from 50 kg to 700 kg per day. Kalapi is main cluster of  handmade paper production and its value added products. This cluster has more export oriented units. Today more than 60 production units are working. Registered institutions, co-operative societies, entrepreneurs and individual artisans are running their units. The capacity utilization of Handmade Paper Industry stands at 60-62 percent.

Before 1991, the industry was heavily dependent on captive market i.e. supply to State Govt. and Central Govt. departments against reservations.The shift started taking place in this scenario after 1991-92.
 There has also developed the non-captive market which can be classified into institutional and non-institutional. Institutional market demands bigger quantities while non-institutional smaller.  There are the eco-conscious buyers who purchase environment friendly produces like handmade paper and products for greeting cards, invitation cards, album, wedding cards etc. The market of carry bags is also growing steadily due to the ban on polythene bags.This changed situation has resulted into enhancement in capacity utilization, product diversification, culture of competitiveness, better management and market approach

Handmade Paper units growth in India:


Years
No. of working Units

Production Rs. lacs.
1953-54
40
5
1960-61
108
24
1970-71
176
81
1990-91
325
853
2000-01
2519
12101
2001-02
2641
22326
2005-2006
3260
53456


Market of Handmade Paper

The handmade paper industry has its own reputation for craft paper as well as its converted products. Some HMP products  have very god demand in the market like carry bags, albums, stationery items, gift items, packaging items, drawing papers, greeting cards, invitation cards, business cards, miscellaneous fancy and decorative items etc. The drawing paper produced by industry has a unique demand. The hand made paper industry is having a demand of 10,000 to 12,000 tones per year. The major consumers of handmade paper are, Govt. Offices, Hotel Industry, Publishers, Printing Press, Craftsmen, Export Agencies, etc. After survey in the potential consumes of handmade paper fallowing factors have came through this industry can increase its market demand for domestic market like Price, Shades/colors, Craftsmanship, Style, Trade visibility, Feasibility, Eco-friendliness etc

Handmade Paper Products

Paper Diaries,Paper Journals,Paper Envelopes,File Covers,Greeting Cards,Paper Books,Paper Notebooks,Invitation Cards,Paper Calendars,Letter Pads,Gift Wraps,Art Portfolios,Calligraphy Paper,Drawing Paper,Origami Papers,Pen Holders,Card Holders and Magazine Stand

Marketing of Handmade Paper

The marketing of handmade paper is different than any other goods and products. In spite of, so many qualities and attraction could not reach at the optimum level of its market share. Still in this global era the handmade paper industry does not have systematic and planned marketing strategies for its promotion at a wider level. The wide publicity about the use of handmade paper and its promotion activities will surely increase its acceptability and people habit to use it frequently. It has cyclical effect on the overall industry like acceptability increases its uses or demand which leads to more employment generation as well as increase in the income level of factors of production. The cost of production will  be decreases because at large level of production industry can obtain large production economies and technical up-gradation in the product and this  will certainly increases quality of product. In this present scenario customer are more quality conscious. Industry must know the customer's preferences, their perception about the products and its uses. In customer survey we have got few factors which influence the consumer's behavior for handmade paper products:

1. Quality of products
2. Price
3. Multiple uses
4. Availability
5. Durability
6. Advertisement and awareness
7. Substitute goods etc.

The handmade paper industry can produce variety of papers and its value added products but due to lack of awareness the demand of all varieties is not sufficient at various stages.  Many countries like Philippines, Japan, Korea etc are producing handmade paper in different varieties on the basis of colors, shades, thickness, smoothness, size etc. To the limited extent the people are recognizing this paper for eco-friendliness.



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