Ashwin J. Laddha, Managing Director and Chief Executive of the pioneering , explains the dramatic changes taking place in tissue consumption. Report by TWM Senior Editor Helen Morris.
For several decades, actualising India’s tissue potential has remained tantalising close. The country’s low tissue consumption per capita – 0.1kg compared to the global average of 6kg – has historically constrained its growth potential. Yet now in 2024, it is witnessing a transformative shift. With an ever-increasing number of the country’s 1,450,935,791 inhabitants having access to disposable income, urbanisation, and a post-Covid hygiene awareness have planted the seeds for robust market growth.
TWM first visited India’s tissue mills – including integrated pulp producer and tissue manufacturer Orient Paper Industries (OPIL) – almost a decade ago, in 2016. Back then, the question remained: when, not if, will tissue consumption take off among India’s then population of 1.25bn? Our Country Report discussed how top industry managers were preparing for that “momentous cultural change.” On meeting OPIL’s then Managing Director, Mr. ML Pachisia, at the company’s Kolkata site, Mr. Pachisia discussed the vast potential of India’s tissue industry, and how the business was rapidly responding to the changes.
Founded in 1936, OPIL is a part of the $3bn CK Birla Group and diversified into tissue production in 1997. It has since become a market leader, with an annual production capacity exceeding 100,000 tonnes and a presence in 15+ countries.
A 9,000tpy Toscotec-supplied tissue machine to produce a range of facial, toilet tissue, napkin, and towel grades was initially started up, with a second Toscotec-supplied Crescent former with a capacity of 16,000tpy later installed. At the time, Mr. Pachisia described how people “thought we were mad” to be investing in tissue: “And while it takes time, ever since we’ve been reaping the benefits,” he’d said.
To further cement the company’s presence in the tissue market a third tissue line – supplied by Valmet – has also been added.
Ashwin J. Laddha, OPIL Managing Director and Chief Executive, is at the forefront of this change, steering the company with a bold vision to seize emerging opportunities: “We anticipate 18-20% growth in the tissue segment by revitalising the entire value-chain ecosystem,” he says, speaking from his Kolkata office. “Our strategy involves engaging deeply with stakeholders, targeting micro-markets, and innovating specialty tissues to meet specific demands.”
The company has reimagined the business: “We’ve leveraged our rich 88-year-old heritage to pioneer advancements in the tissue industry. From early investments in Toscotec and Valmet machinery to producing India’s first high-quality virgin tissue, we’ve consistently set new benchmarks.”
Laddha says OPIL has “transformed from a product-centric to a solutions-driven organisation.” He adds: “Over 60% of our portfolio now consists of value-added products (VAP), reducing dependence on commodity offerings and shielding us from market volatility.”
This shift has been driven by investments in advanced technology, which he says has enabled the company to diversify its product range and optimise its product mix, including GSM gains: “While we have no plans to enter tissue converting, we are addressing broader market needs through innovative offerings.”
As an integrated pulp producer, digital transformation has also been a cornerstone of OPIL’s recent advancements. ”There is an extreme sense of urgency. We aim to make the whole business agile, that will be one of our USPs. In 2024, we upgraded our production units with state-of-the-art QCS and DCS systems, stabilised SAP-HANA infrastructure, and laid the groundwork for Integrated Control Systems (ICS) by FY25,” he says. “As an industry, pulp producers have technology that has a lot of competition and is much larger in total volume. We must look at the overall overheads, cost efficiencies, and economies of scale. That is how we’re using digital technology, partnering with the best companies in the world such as BTG. Here, we will be one of the first companies to have total migration towards closed loop systems in our category. This will give us our 100/150 basis point margin cover and will help with our efficiency. We have already started the journey here.”
On the sustainability front, OPIL has adopted Elemental Chlorine-Free (ECF) processes, upgraded pulp and digester capacities, and embarked on initiatives to make its Amlai unit water-positive. “Our virgin bamboo tissue—biodegradable, eco-friendly, and made with minimal chemicals—represents a significant innovation aligned with our commitment to sustainability.”
How is the demand for environmental-friendly tissue products and production? “I see that the main question is how much premium do we want to pay for sustainable products? Companies want to do this, but only if it doesn’t cost them. It’s only some places such as Scandinavia that are truly sustainable. In India, I think it’s a long way to go.”
Elsewhere, Laddha highlights the Orient Stars Converter Accreditation & Recognition (OSCAR) programme, which he says is “a game-changer” for India’s tissue market. “This first-of-its-kind initiative elevates 800+ tissue convertors to exclusive partners, offering them co-branding opportunities, training, and access to premium product lines.” Through OSCAR, OPIL has created a collaborative ecosystem, helping convertors transition from distributors to brand ambassadors. “It’s not just about selling products; it’s about knowledge sharing, strategy building, and fostering innovation in the tissue segment,” he adds.
OPIL the company’s agroforestry initiatives span 1.2m acres across 1,089 villages, benefiting 450,000 individuals. “We’ve empowered 90,000 smallholders through training and empowered 6,000 women entrepreneurs, with a target of 10,000,” Laddha says. “By promoting cash crops alongside eucalyptus plantations, OPIL is creating sustainable income opportunities for farmers. This isn’t just about ESG; it’s about building vibrant, self-sustaining communities.”
India’s tissue market is growing at 13.3% annually as per IPMA report, with the AfH segment dominating consumption. However, Laddha sees significant potential in the At-Home segment, particularly in kitchen towels and napkins. “Lifestyle changes, such as dual-income households and increased dining-out culture, are driving demand for new tissue categories,” he observes. “Our comprehensive mapping of the tissue value chain helps us cater to these evolving needs effectively.”
How will the business modernise its facilities in the short term? “Timing is not very favourable right now because of the global pulp pricing, but we are taking the right course and investing. At a macro level, in the hygiene category we are also solving a bigger need for society. Earlier using a tissue here in India was a luxury – even as recently as TWM’s last report in 2016. This contrasts to these post-Covid times where tissue use has very much become part of people’s routines and lifestyle. This change has been dramatic and fast. We are driving that change.”
India currently imports more tissue than it exports: when does he think the country’s potential will be realised? “Yes in India, the market size is currently around 7,000 tons per month for virgin tissues. And combined with recycled, it would be close to 15,000 tons per month.” The tissue market is growing at a rate of 13-15%, it’s growing very fast. Over the next two years there are also new players coming into the business and one aspect is that the domestic supply will increase, so India will become a net exporter as a country. But more importantly, this will accelerate growth.”
Looking ahead, Laddha says he envisions OPIL as “a leader in innovation, sustainability, and community impact. We aim to increase tissue’s share of our business from 45% to 55%, driven by capacity expansions and targeted investments.”
Despite challenges like global pulp pricing, OPIL remains focused on long-term goals. “Our legacy, coupled with a futuristic vision, positions us to shape the future of India’s tissue industry, creating value at every stage,” he adds.
