Nine Dragons is engaged in production of linerboard, high performance corrugating medium, coated duplex board, printing and writing paper. Its Dongguan base in China boasts of an annual capacity of 5.25 million tonnes (mt) in design production.
In its financial report for 2018-19, Nine Dragons admitted that 2018-19 was very challenging for China's packaging paperboard industry as well as for the company. Demand was tepid and prices remained depressed owing to Sino-US trade tensions.
By contrast, India offers an island of growth for the paper market when global market is experiencing de-growth. The country is the fastest growing paper market, driven by an aspirational middle class, urbanisation, rise in disposable income and constant exposure to international trends. With a per capita paper consumption of 13 kg, India heavily trails the global average of 57 kg, though the consumption is growing at the rate of 6-7 per cent year-on-year. The favourable metrics possibly explains Nine Dragons' planned entry into the India market.
Recently, a delegation of top Odisha government officials staged a roadshow at Guangzhou province in China. The promotional activity proved to be a roaring success with over 100 companies
“We have got queries from companies
in petrochemicals, food processing and electronics- they figure among our focus sectors listed in our latest Industrial policy statement. Out of our goal of drawing Rs 2.5 trillion investments in six focus sectors by 2025, we have already attracted Rs 2.4 trillion worth of investments”, said Jawale.
The state team to showcase Odish's investment strengths also organized a roadshow in Singapore.