Packaging has emerged as the fifth-largest sector in the Indian economy, playing a vital role in driving industrial progress and innovation. With annual growth rates ranging between 22 percent and 25 percent, the sector has positioned itself as a key hub for modern packaging solutions, thanks to rapid advancements in technology and improved infrastructure.
According to IBEF’s report titled “Flexible Packaging Market in India 2024–2028”, the Indian packaging market is expected to grow by nearly Rs. 1.35 lakh crore (~$15.6 billion) over the next five years. This expansion, projected at a CAGR of 12.7 percent, will largely be fueled by rising demand from the FMCG sector.
The Indian government’s supportive policies—such as allowing 100 percent foreign direct investment (FDI) via the automatic route—have significantly boosted international interest in the packaging industry. Between April 2000 and September 2024, the paper and pulp segment alone attracted FDI worth $1.74 billion, a clear sign of growing investor confidence in India’s packaging sector.
The future of the paper and packaging industry in India looks promising. Factors like a growing population, rising urbanisation, and higher disposable incomes are all contributing to greater demand. Additionally, the rapid rise of e-commerce is pushing up the need for efficient packaging, while increased focus on sustainability is encouraging companies to develop more eco-friendly solutions.
Initiatives such as “Make in India” and large-scale infrastructure development projects are expected to further stimulate manufacturing activity and improve logistics.
Here are some paper and packaging stocks to keep an eye on, as the industry gears up for a $15.6 billion growth opportunity by 2028, backed by a robust 12.7 percent CAGR:
Andhra Paper Limited
With a market cap of Rs. 1,558 crores, the stock moved up by around 2 percent on BSE to Rs. 78.9 on Tuesday. In Q4 FY25, the company reported around 12 percent YoY growth in its revenue from operations to Rs. 407.4 crores, while the net profit decreased by nearly 80 percent YoY to Rs. 7.85 crores.
In May 2024, Andhra Paper took a significant step toward expanding its tissue paper business by signing a Rs. 125 crore (roughly $14.4 million) agreement with Sweden-based Valmet AB for a tissue paper production line. This move came shortly after its Rs. 270 crore ($31.1 million) investment approval for installing a high-capacity machine—capable of producing 100 tons of tissue paper per day—at its Andhra Pradesh facility.
Andhra Paper Limited, a leading integrated paper and pulp manufacturer in India, is engaged in the business of producing a diverse range of high-quality paper products.
Mold-Tek Packaging Limited
With a market cap of Rs. 2,271 crores, the stock moved up by around 1.2 percent on BSE to Rs. 688.5 on Tuesday. In Q4 FY25, the company reported around 15 percent YoY growth in its revenue from operations to Rs. 203 crores, while the net profit decreased marginally by nearly 11 percent YoY to Rs. 16 crores, over the same period.
Back in January 2024, Mold-Tek Packaging expanded its operations by opening 3 new manufacturing units in Cheyyar (Tamil Nadu), Sultanpur (Telangana), and Panipat (Haryana), with an investment of Rs. 100 crores. These facilities are expected to add 5,500 tons to the company’s annual production capacity, helping it reach a total of 54,000 tons per year by FY25. Mold-Tek Packaging Limited is engaged in the manufacturing of injection-molded containers for lubes, paints, food and other products.
Pudumjee Paper Products Limited
With a market cap of Rs. 1,051 crores, the stock moved up by around 3 percent on BSE to Rs. 111.75 on Tuesday. In Q4 FY25, the company reported around 7.3 percent YoY decline in its revenue from operations to Rs. 190 crores, with the net profit decreasing by nearly 49 percent YoY to Rs. 19 crores, over the same period.
Pudumjee Paper Products Limited mainly belongs to the paper industry and operates in specialty paper segment for wrapping and food grade packaging paper, household and sanitary paper, and more.
TCPL Packaging Limited
With a market cap of Rs. 3,493 crores, the stock moved up by around 3 percent on BSE to Rs. 3,881.6 on Tuesday. In Q4 FY25, the company reported around 5 percent YoY growth in its revenue from operations to Rs. 422 crores, with the net profit increasing by nearly 31 percent YoY to Rs. 38 crores, over the same period. TCPL Packaging Limited is involved in the business of manufacturing printing packaging material, blown film and trading.
JK Paper Limited
With a market cap of Rs. 6,088.3 crores, the stock moved up by around 2 percent on BSE to Rs. 360.9 on Tuesday. In Q4 FY25, the company reported around 2 percent YoY decline in its revenue from operations to Rs. 1,690 crores, with the net profit decreasing by nearly 72 percent YoY to Rs. 77 crores, over the same period. JK Paper Limited is engaged in the manufacture of uncoated writing-printing and specialty papers, packaging boards, coated paper, corrugated boxes, and monocarton & labels.
Written by Shivani Singh
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