India Sourcing: Paper crafts 2017

India Sourcing: Paper crafts 2017 Sector highlights

Industry overview	Product features	Supplier survey
In 2016, India sent abroad approximately $226.9 million worth of office books, forms and other paper stationery, and packing containers. Adoption of online marketing among suppliers is widespread. There are more than 3,000 handmade paper companies in India.	Makers use paper made from recycled materials, bamboo and other plant-based fibers. More suppliers will adopt festive designs or decorative elements. Production is typically done in-house.	The majority of companies are optimistic of export sales rising in the next 12 months. Finding new markets is a major challenge for many suppliers. North America is the main target market of most companies.

India Sourcing: Paper crafts 2017 Suppliers & products

Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Home decor

Stationery

Packaging

India Sourcing: Paper crafts 2017 Industry overview

India paper craft exports	Competitive advantages	Challenges	Industry composition
In 2016, India sent abroad approximately $226.9 million worth of office books, forms and other paper stationery, and packing containers. The 2016 export value is up 9 percent from 2015. The US was the top single-country importer of the products.	India has lower labor costs than China. Adoption of online marketing among suppliers is widespread. The government has initiatives to grow the industry.	Domestic supply of paper is unable to meet local demand. Rising material costs are also threatening the industry’s competitiveness. Suppliers face a fierce competition with domestic and international suppliers.	There are more than 3,000 handmade paper units in India. Small companies, which have less than 15 employees, can produce up to 2,000 pieces monthly. Delhi, Rajasthan, Maharashtra, Gujarat and Tamil Nadu are among the production hubs for paper products.

Exports of notebooks, memo pads, diaries and office books sent overseas under HS code 4817 exceeded $6.4 million. The UK was the top destination, accounting for nearly $2.4 million of the export value. Thailand ranked second, with exports to the market amounting to about $1.7 million.

Competitive advantages

Handmade paper production does not require as large an investment as that required for paper mills. Additionally, makers of handmade paper do not need to spend as much for equipment maintenance.

The large number of working-age people in India is also a key advantage, making labor-related expenses relatively lower than those of China counterparts. In 2015, India had 860 million workers, according to the 2016 Regional Human Development Report of the United Nations Development Programme (UNDP). In 20150, the number of those aged 15 to 64 is expected to exceed 1 billion.

Widespread adoption of online marketing is another advantage of the industry. Many companies, even those operating on a small scale, have their own websites and use B2C and B2B platforms to connect with buyers. This has led to a production increase of up to 20 percent, according to an interviewed supplier.

Additionally, the government has initiatives aimed at growing the paper industry. The sector belongs to the 35 high-priority industries of India and receives subsidy from the government.

The Khadi and Village Industries Commission under the Ministry of Micro, Small and Medium Enterprises provides financial assistance to new entrepreneurs in the paper-making business. It also conducts buyer-seller meets and training seminars.

Challenges

While paper product exports increased in 2016, the industry is confronted by challenges such as rising limited supply of materials, rising material costs, finding new markets and price competition.

Paper craft makers use materials made of pulp from wood, recycled paper, and residues from the agriculture industry for its pulp needs. The domestic supply paper is currently unable to meet demand since the raw materials required for its production is limited. Paper suppliers using recycled wastepaper, for instance, use imports.

Due to the limited supply, suppliers of paper and related products are faced with high raw material costs. Imports of recycled wastepaper has risen in the past 12 months due to a supply shortage. Prices of domestically sourced cotton waste, which are recycled into paper, are also expected to increase with the recently imposed Goods and Services Tax.

To reduce costs, a number of paper craft suppliers import their material requirements from ASEAN member countries, as these are generally cheaper.

To secure raw material resources for the paper industry, Saurabh Bangur of the Indian Paper Manufacturers Association is proposing that the government allocates forest land for pulp wood plantations, The Hindu Business Line reported Aug. 12, 2017.

Amid high raw material costs, India makers are at a disadvantage compared to many paper-making countries in Asia. Competition in the local and international market is tough since many suppliers offer the similar designs.

Industry composition

India has more than 3,000 handmade paper units, including suppliers of papier mache and related products. The industry consists mostly of small and midsize operations.

Paper craft suppliers operating on a small scale have no more than 15 employees and can produce up to 2,000 pieces monthly. Their annual sales do not exceed $12,600.

Midsize suppliers can employ up to 80 workers and are capable of producing a maximum of 5,000 pieces per month. These companies generate up to $29,000 in sales each year.

Manufacturers with 150 employees can produce more than 15,000 pieces each month. The annual sales of these companies can exceed $78,000.

The states of Delhi, Rajasthan, Maharashtra, Gujarat and Tamil Nadu are among the major production hubs for paper crafts.

Supplier location map

The highlighted areas on the map show the locations of the head offices and factories of the paper craft suppliers featured in this report.

India Sourcing: Paper crafts 2017 Product features

Materials & designs	Manufacturing & QC	Pricing
Suppliers use paper made from recycled materials, as well as versions made from bamboo and other plant-based fibers. Designs mostly feature bold colors and intricate designs. Suppliers will be adopting more decorative and eco-friendly elements in upcoming models.	Production is semi-mechanized. The majority of production processes are typically done in-house. There are at least two people in a QC team.	Prices depend mainly on the size, material and design of the product. Intricate patterns push up the price of a product. Paper crafts with simple designs are priced less than $2.

Materials & designs

Paper crafts from India include holiday decor and home furnishings such as lanterns, lampshades, vases, photo frames and storage solutions. The industry also offers notebooks, greeting cards and other types of stationery, as well as gift bags and boxes.

Suppliers typically use manufacturing inputs found within the country. Besides wood pulp, sustainable inputs such as bamboo and banana leaf fibers are among the materials used to make paper. Agro-residue fibers, and recycled newspaper and textiles are also adopted.

Raw materials for papers are typically sourced from New Delhi, West Bengal, Uttar Pradesh, Maharashtra, Rajasthan, West Bengal, Odisha, Madhya Pradesh and Tamil Nadu, according to the Indian Paper Manufacturers Association and interviewed suppliers.

In terms of design, paper crafts from India often feature colorful traditional patterns or detailed artwork depicting Indian culture. Paisley and elephant motifs are popular.

Manufacturing & QC

Paper production in India is semi-mechanized.The steps, from material preparation to packaging of the final product, are mostly done in-house.

Production begins with converting the fibers into mush using pulping machines. The pulp is placed on top of a mold and deckle, which is a flat screen with a removable wooden frame. While immersed in water to make the material easy to work with, the pulp is spread evenly across the screen. The frame is then removed, and the sheet is transferred to a dry surface, pressed with a cloth and hung on a clothesline to dry.

Once the sheets are dry, these are sorted, trimmed, coated and crafted into various products for packaging, home decor and stationery.

Most companies have two employees focused on quality management. Many companies follow the AQL standard, which entails minimum acceptable number of defect products. Finished items are checked against client specifications and market requirements.

Pricing

Paper craft prices are determined by product size, material and design. Models using handmade paper with multiple colors and details tend to have a higher price than plain items.

Paper lanterns with simple designs and less than 14in height are available for less than $2. The selection between $2 and $4 includes multicolor models that areat least 14in tall. Higher up the price ladder are versions that can go up to 33in and feature more intricate designs.

Greeting cards made of photo paper with flower pressings are sold for less than $0.50. More colorful versions made with handmade paper and patterns are priced higher.

Gift wrapping paper with minimal or plain designs are available for less than $2 per 55x75cm sheet. Pieces offered above this quote feature handprinted nature-inspired patterns, typically using mulberry paper.

Models exceeding $6 are typically made with handmade paper with multicolor, handprinted patterns. Designs with patterns on both sides are also offered in this price range.

Price guide