Paper and Paperboards (PPBs)

Abstract

The paper industry in India is highly capital intensive and has grown rapidly in the past. Interesting to note that the number of pulp and paper units have increased from 17 in the early 1950's to 250 in 1985, and production of paper and paperboards from 1,35,000 tonnes in 1951 to 15,00,000 tonnes in 1985 - a ten fold increase in the production in 35 years. It is known that demand forecasts are prerequisite for planning of any industry's expansion; the paper industry is no exception to it. During the past, various methods of forecasting have been applied to the paper industry. This case provides an overview of the forecasts, made by these methods, which had led to distortions and created havoc in the paper industry.