CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Indian paper packaging sector to see 15% growth: CRISIL

By Anoop Agrawal

08:41, 14 December 2021

Perspective view of cardboard boxes thrown into the air for package, shipping and delivery with signs and labels in a beige background
Demand revival in the sector led by e-commerce and pharma – Photo: Shutterstock

Indian paper packaging industry is set to grow an estimated 15% by the end of this financial year ending March 2022, according to rating agency CRISIL Ratings report released on Tuesday.  

The agency sees a reversal of the previous year’s 8% decline owing to a strong revival in consumer spending amid the waning impact of Covid-19.

Capacity utilisation and operating performance of paper packaging makers would improve this year. That, combined with high price realisations and stable raw material prices, would help in improving their operating profitability, said the release.

Manufacturers could also resume capital expenditure to enhance capacity by up to 10% over the next fiscal year and the year thereafter, CRISIL added.

According to the agency, this spending will not impact the ‘stable’ credit profile of the manufacturers because of the better accruals due to improving operating performance, and well-managed balance sheets.

Safety-driven e-commerce 

“A stronger-than-anticipated growth in e-commerce sales due to increasing safety and hygiene consciousness, healthy double-digit growth in domestic pharmaceutical sales, and revival in consumer durable sales are driving demand for packaging paper,” said Anuj Sethi, senior director, CRISIL.

US100

15,948.40 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

Oil - Crude

75.78 Price
+0.870% 1D Chg, %
Long position overnight fee -0.0211%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.030

XRP/USD

0.61 Price
+0.920% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

37,238.65 Price
+0.410% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

The agency studied 43 paper packaging companies with aggregate revenue of INR160bn ($21.bn) or about 40% of the organised segment revenue.

Capacity utilisation of paper packaging players is seen rising to over 80% this fiscal from 65-70% in the last year, added Sethi. Increased sales volume and 6-7% higher realisations would convert to healthy growth in the current year.

The report also pointed out a slow but consistent recovery in apparel sales, which would also support revenue growth of the paper packaging industry.

CRISIL expects the operating profitability of packaging paper players to reach the pre-pandemic level of over 17% this year itself, compared with 15.5% last year, because of higher price realisations.

Read More: Australia’s CSL to acquire Swiss Vifor Pharma for .7bn

 

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading