Director Abiali Jani explains the advancing production strategies and changing consumer choices behind India’s buoyant market. Report by TWM Senior Editor Helen Morris.
“Our local Indian market is looking very promising”, Jani Sales Director Abiali Jani says from his office at the company’s tissue plant in Sarigam, north of Mumbai. “It has a consistent growth trajectory – the tissue industry in India is growing in double digits, driven by factors such as changing buying patterns and the growing influence of the younger population.”
Over the next decade, he says that India’s tissue paper market is projected to experience substantial growth, with a compound annual growth rate (CAGR) exceeding 12% during the forecast period. “This growth is primarily driven by the growing demand from institutional consumers such as hotels, restaurants, and hospitals,” he adds.
Established in 1979 as a trading company for Paper & Paper Board products, Jani Sales is a family-run business led by Saifee Jani and his sons Abiali, Abizer and Abilfazal. In June 2020, the company diversified into MG grades production with the start-up of its first jumbo reel on PM1 at its plant in Sarigam.
In October 2024, the company further expanded its tissue production capacity at its Sarigam mill to 18,000tpy, after starting up a Baosuo-supplied tissue machine. PM2 produces a range of 100% virgin pulp-based tissue products including facial tissues, paper napkins, toilet paper, and kitchen towels. An additional 18,000tpy of capacity has also been started up as part of the $10m project, with products varying in weight from 11.5g/m² to 42g/m², and they will cater to domestic and international markets.
With a combined annual capacity of 50,000MT, Jani Sales is now one of India’s largest producers for tissue (jumbo rolls) and MG paper, selling its products into over 10 countries across four continents.
It is the company’s second plant, with the first being an MG machine that produces 100MT/day of kraft and poster grades. “Together, these plants will achieve an annual production capacity of 50,000MT,” he says. “Our products are FSC and food-grade certified, and we are also planning to diversify further and invest in converting lines in the near future.”
With the recent addition of PM2, Jani adds that the business is now “poised to strengthen its position in the tissue paper market, producing high-quality products to meet growing demand both domestically and globally.”
How does the business plan to play its part towards that projected 12% CAGR for the decade? “As we approach the end of 2024, we are focusing on our converting lines. We are also hopeful that we can install a PM3 by the first quarter of 2026.”
Indian consumers, he adds, are increasingly environmentally conscious: “This is leading to a surge in demand for sustainable and eco-friendly tissue products, and this is a big potential area for our company. Responding to that surge in demand, manufacturers such as ourselves are developing products made from recycled materials and biodegradable ingredients.”
The Covid-19 pandemic “significantly impacted” tissue purchasing habits and consumer behaviour. India’s AfH market has “largely recovered” from the impact of the pandemic, which Jani says has been driven by the increasing demand from the hospitality, healthcare, and foodservice sectors. “With increased focus on health and hygiene following the outbreak of the pandemic, people have become more conscious of their tissue usage. This has resulted in a surge in demand for essential tissue products such as toilet paper, paper towels, and tissues. This increased demand has led to a shortage of these products in some areas, highlighting the need for manufacturers to ramp up production.”
Consumers are increasingly seeking hygienic and sustainable tissue products such as bamboo toilet paper and eco-friendly paper towels: “This shift in consumer preference is driving innovation in the tissue industry, with manufacturers developing new products that cater to these demands. Overall, the Covid-19 pandemic has had a significant impact on tissue buying habits and consumer behaviour, driving changes in demand, preferences, and habits.”
Previously, there was a gap in demand for tissue products in India: “This gap has now been filled. There were very few virgin tissue manufacturers, while recycled tissue manufacturing was much higher. Now, due to urbanisation and a shift in hygiene-based habits, virgin tissue requirements are on the rise. We expect that smaller units will see consolidation.”
The Indian tissue market is also witnessing a “significant shift” towards e-commerce and digital channels. Jani says this is driven by increasing internet penetration and the need for convenience. “Manufacturers are responding by developing online sales platforms and partnering with e-commerce companies.”
There is also a move towards green energy as it is “more sustainable and financially viable for plants”. The company is investing heavily in wind and solar energy to reduce its energy costs. “We are committed to reducing our environmental footprint and increasing sustainability. To achieve this, we have set several goals and plans in motion.
“We are leveraging digitalisation to improve efficiency and sustainability, and this includes implementing new technologies such as quality control systems to reduce raw material and drying energy savings.”
It is also committed to reducing plastic use in its operations: “This includes exploring alternative packaging materials, reducing plastic waste, and implementing recycling programmes,” he says. “We are working to optimise our supply chain to reduce carbon emissions and improve efficiency. This includes implementing sustainable logistics practices, reducing transportation costs, and improving inventory management. We are committed to continuous improvement and will continue to explore new ways to reduce our environmental footprint.”
There has been a significant shift in tissue prices post-pandemic: “The market experienced a substantial change, prompting numerous brands to prioritise personalisation which enhances the value of their products. This trend presents a promising future for the industry.”
As for the next few years, he concludes that as the company and sector are “heavily reliant on market pulp, pricing stability emerges as a crucial factor.” Yet the current global political and economic conditions make it “challenging to predict the market’s trajectory.”
