Origami Tissues Pvt Ltd in Tissue and Hygiene (India)

ORIGAMI TISSUES PVT LTD IN TISSUE AND HYGIENE (INDIA) Euromonitor International August 2013

ORIGAMI TISSUES PVT LTD IN TISSUE AND HYGIENE (INDIA)

LIST OF CONTENTS AND TABLES Strategic Direction ................................................................................................................... ..... 1 Key Facts ..................................................................................................................................... 1 Summary 1 Summary 2

Origami Tissues Pvt Ltd: Key Facts ............................................................. 1 Origami Tissues Pvt Ltd: Operational Indicators .......................................... 1

Company Background ....................................................... ........................................................... 1 Production .............................................................. ................................................................. ..... 2 Summary 3

Origami Tissues Pvt Ltd: Production Statistics 2012 .................................... 2

Competitive Positioning ..................................................... ........................................................... 2 Summary 4

Origami Tissues Pvt Ltd: Competitive Position 2012 .................................... 3

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ORIGAMI TISSUES PVT LTD STRATEGIC DIRECTION 

The company’s strategic direction is to enhance operational efficiencies and productivity through improving production utilisation rates on a long-term basis: In September 2011, the company installed a second rewinder at its manufacturing facility in Amlai (Madhya Pradesh) to improve utilisation rates on a long-term basis. This will enhance annual prod uction capacity by 15,000 tonnes.

KEY FACTS Summary 1

Origami Tissues Pvt Ltd: Key Facts

Full name of company:

Origami Tissues Pvt Ltd

Address:

No.126/A, Sriranga Complex, Above Canara Bank, Ashwathnagar, Sanjay Nagar Road, Raj Mahal Vilas 2nd stage, Bangalore, India

Tel:

+91 (80) 2341 5489, 3051 5802

Fax:

+91 (80) 2341 6447

www:

http://origamiindia.com

Activities:

Manufacturer of napkins, pocket handkerchiefs, toilet paper, kitchen towels and boxed facial tissues

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Summary 2

Origami Tissues Pvt Ltd: Operational Indicators

Net volume sales Source:

2010

2011

2012

6,300 tonnes

6,600 tonnes

12,200 tonnes

Euromonitor International from company reports, company research, trade press, trade sources

COMPANY BACKGROUND 

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Origami Tissues Pvt Ltd is a privately held corporation, with the owners of Orient Paper & Industries Ltd controlling the majority stake in the enterprise (August 2012). Orient Paper & Industries Ltd is publicly listed on the Bombay and National Stock Exchanges with strong domestic presence in cement and raw paper manufacturing activities. The company has a strong horizontally diversified disposable paper product portfolio from napkins, kitchen towels and toilet rolls to boxed facial tissues. Orient Paper & Industries Ltd offers dual disposable paper brands Godya So Soft and Origami. The Godya So Soft brand is primarily focused on affluent and upper-middle-class households with preference towards higher-quality products and low price sensitivity. Finally, it has a strong institutional customer portfolio including hotels (KFC, Café Coffee Day), hospitals (Apollo, Fortis) and corporate businesses (Google, IBM and HP) along with housekeeping brands (ISS).


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South India is the l argest and fastest-growing market space for Origami Tissues Pvt Ltd. North India is the second bi ggest market with niche positioning across Western provinces such as Mumbai and Pune.

PRODUCTION 

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The company operates a stand-alone manufacturing facility at Amlai (Madhya Pradesh) with production capacity of 85,000 tonnes per annum (2011-2012). In 2011, it aggressively restructured the manufacturing facility with addition of production capacity of 15,000 tonnes per annum. In 2012, the company had export volume sales of 4,557 tonnes per year of disposable paper products with annual growth of 15%. China, the US, Europe, the Middle East and the Far East were the core export markets for Origami Tissues Pvt Ltd’s product portfolio in 2011-2012. In India, the company is one of the leading third party suppliers of tissue, toilet paper and napkins to private label ranges such as Caremate and More 110% for Big Bazaar and Aditya Birla Retail. The company is the third biggest tissue, napkin and toilet paper manufacturer in India. The majority of the business comes from the South India market, which accounted for 20 -22% of total volume sales across India in 2012. Further, strong presence across the South India disposable paper institutional market space with acquisition of a core customer base such as IBM, Google and HP has enhanced regional penetration and presence on a long -term basis.

Summary 3

Origami Tissues Pvt Ltd: Production Statistics 2012

Location

Brand

Annual production

Amlai

Godya So Soft and Origami

16,426 tonnes

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade interviews

COMPETITIVE POSITIONING 

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Origami Tissues Pvt Ltd is the third largest retail tissue manufacturer in India and had around 7% value share in 2012. The majority of sales come from the South India market, where the company is located. The company has steadily maintained its regional positioning across retail and institutional categories with aggressive expansion of its dual brand portfolio across Tier II and Tier III cities such as Mysore, Mangalore and many more. Furthermore, steady increase of paper production capacity by its parent corporation Orient Paper & Industries Ltd has improved volume sales on a regional basis. However, the company faces steep competitive pressures from low-cost substitutes like the Caremate, Clarus, More and Beeta brands in India retail, hampering sustainability on a medium- to long-term basis. Origami Tissues Pvt Ltd offers a dual brand po rtfolio with its brands Godya So Soft and Origami. The company is focused on an economy and premium customer base on a regional and national basis. Furthermore, it has a vertically diversified disposable paper product portfolio from kitchen towels, napkins, boxed facial tissue and many more categories, reducing the market risks.


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The company has mid-priced to premium market positioning across South and West India. It has a focused expansion strategy across affluent and u pper-middle-class households across the urban market space. Origami Tissues Pvt Ltd was an early mover into disposable paper products in India starting in 1995, although it h as a market-driven expansion and growth strategy primarily attributed to Orient Paper & Industries Ltd’s strong focus towards paper (raw material) and cement manufacturing business activities. This has slightly shifted with Origami Tissues Pvt Ltd aggressively expanding into niche institutional disposable paper markets such as housekeeping and chained hotels like KFC, CCD and many more.

Summary 4

Origami Tissues Pvt Ltd: Competitive Position 2012

Product type

Value share

Rank

Tissues

6.0%

3

Kitchen towels

8.1%

2

Paper tableware

13.8%

2

Boxed facial tissues

8.8%

3

Pocket handkerchiefs

0.9%

4

Toilet paper

4.3%

3

Tissue and hygiene

0.9%

12

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade interviews


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Origami Tissues Pvt Ltd in Tissue and Hygiene (India)

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