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German investment in Bengal to boost India's Paper & Pulp Inc |
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KOLKATA: Paper industry bigwigs said cheers to a "cost-effective" future as the Kalyani service workshop of GapCon GmbH, a subsidiary of the Irle Deuz based in Siegen, became officially operational on Tuesday. This is the first GapCon facility outside Europe and the country's industrialists are upbeat as this will significantly cut down expenses of bringing in foreign experts for technical advice and assembling and repair.
"The Indian paper industry has been dependent on various European original equipment manufacturers (OEM) for technical sustenance since the last 60 years. The industry has been devoid of any indigenous or foreign-organized OEM and infrastructure, which could be in a position not only to complement and provide services but also the requisite incentive for cost-effective investment options," said Ranajoy Chowdhury, MD, GapCon Engineering Pvt Ltd.
"This is primarily a service center with the capacity to make capital equipment. A clinching factor for selection of the spot at Kalyani was its proximity to a port. There are no reliable service centers in India so for assistance one needed to import expert help. Here, experts would be created by intensive training," said Wolfgang Wiertz, MD, Irle Duez. India was a natural choice as there is continuous growth in the paper industry while American and European paper industries are facing tough times, he added.
S K Bangur, chairman of West Coast Paper Mills, said: "This is a momentous occasion for the Indian paper industry. The cost of production has currently shot up. For the industry to survive, we need local providers. Even for technical support we have to bring in foreign experts and that costs a lot. With trained experts available in India, we will get much-needed cost advantage." He added: "In India, there are 700-800 paper units but most of them are primitive. Now with local resources, they would get a breath of life." Manish Goenka, whole-time director of Emami Paper exclaimed: "History has been made."
Several industrialists including Anil Kumar, executive director of the Punjab-based Shreyans Industries Ltd, and Pawan Agarwal, the joint MD of Uttarakhand-based Naini Group of Industries, were upbeat with the development. "The paper industry in India is fragmented. We have tried the Chinese model but al of us burnt our hands. Now with European expertise and local production the industry will get a cost-effective boost," Kumar pointed out.
"We are getting European quality at competitive rates. This is also a smart move on the Germans' part to choose India for its expansion. It is after all the world's fastest growing paper market." Rajesh Nath, the MD of German Engineering Federation, quantified the situation. "The Indian paper industry accounts for about 2.6% of the world's production. It is expected to see 7% growth during the next year according to experts. From the current turnover of about Rs 35000 crore, it is likely to touch Rs 60000 crore by 2025. As per industry estimates, paper consumption in India has now touched 13.10 million tons but per capita consumption stands at only 9.3kg vis-a-vis China's 42kg," he said, pointing at the growth opportunities.
Source : timesofindia.indiatimes.com
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