Supreme Paper Mills Ltd. is investing in 54,000 tonnes per year of premium unbleached kraft paper capacity as the Indian producer expands its exposure to paper-based packaging markets at home and overseas.

The new product range will cover basis weights from 50 to 120 g/m² and target applications including shopping bags, paper bags, envelopes, lamination, flexible paper tubes, and food and pharmaceutical packaging.

The investment comes as India’s kraft paper industry faces near-term pricing pressure from additional production capacity while producers continue to position themselves for longer-term growth in paper-based packaging.

Supreme Targets Higher-Value Kraft Applications

Rather than focusing exclusively on commodity kraft grades, Supreme Paper Mills plans to target applications requiring specific converting and paper-performance characteristics.

Samir Poddar, vice president of marketing and product development at Supreme Paper Mills, said the new grades are being developed with an emphasis on tensile strength, runnability, low odour and consistent quality.

These characteristics are particularly relevant where kraft paper must pass through downstream printing, bag-making, laminating and other converting operations.

“Rather than competing solely in the commodity segment, Supreme Paper Mills is focused on creating value through quality, consistency, product innovation, and customer-centric solutions,” Poddar said.

The company intends to build relationships with converters, packaging manufacturers and brand owners requiring more specialized kraft grades.

Supreme has not disclosed the investment value, equipment configuration or commissioning timetable associated with the 54,000-tonne capacity.

50–120 g/m² Range Broadens Packaging Exposure

The planned 50–120 g/m² portfolio gives Supreme access to several converting markets rather than concentrating production on conventional corrugated packaging grades.

Potential applications include lightweight paper bags and shopping bags as well as heavier packaging and industrial converting uses.

Food and pharmaceutical packaging are also among the markets being targeted, although specific suitability requirements will depend on the individual grade, converting process and intended packaging application.

The new kraft portfolio will complement Supreme Paper Mills’ existing production of writing and printing papers, bulky book paper, newsprint and lamination base paper.

This diversified product mix gives the company exposure to both established publication-paper markets and growing packaging applications.

Export Markets Part of Expansion Strategy

Supreme Paper Mills is also developing international markets for its paper products as it expands the premium kraft business.

The company identified Bangladesh, Sri Lanka, the Middle East, Africa, Southeast Asia and the United States among its target export markets.

Developing a wider geographic customer base could provide additional outlets for the new capacity as competition increases within India’s domestic kraft paper market.

The company has not disclosed what proportion of the 54,000-tonne capacity it expects to sell domestically versus internationally.

Indian Kraft Market Faces Capacity and Pricing Pressure

Supreme’s expansion comes at a mixed point for India’s kraft paper sector.

Growth in e-commerce, consumer goods, food and beverage, pharmaceutical and industrial packaging continues to support underlying demand for paper-based packaging materials.

At the same time, the addition of production capacity has increased competition and created pressure on kraft paper pricing.

That environment is encouraging some producers to differentiate through grade development rather than competing primarily on volume and price.

For Supreme Paper Mills, the strategy is to use the new capacity to move further into premium and application-specific kraft grades, while expanding its presence among both Indian and international converters.

Poddar said the company’s objective is to produce kraft papers offering strength, consistency and reliable converting performance.

The addition of 54,000 tonnes per year will strengthen packaging’s role within Supreme Paper Mills’ broader product portfolio as the company seeks to diversify beyond its traditional printing, writing and newsprint grades.

Last Updated on 27/08/2026 by Jota Machinery