FICCI-KPMG-Report-13-FRAMES

54
The power of a billion: Realizing the Indian dream
“
Capacity rationalization by newsprint
manufacture across the globe is due
to continuous reduction of newsprint
consumption in North America and Europe
which is driven by penetration of new media.
Continuing trend of closure or capacity
rationalisation by newsprint manufacturer
may pose risk of newsprint supply in a longer
run for countries like India with high newsprint
consumption
“
- Mohit Jain
Director-Business and Commercial,
The Times of India Group
Magazines continue a sluggish growth
The magazine industry witnessed a growth rate of 1
percent in 2012 and was valued at INR 13 billion. As readers
demand more focused content, the demand for the general
content category continued to decline. The industry feels
that general content and news magazines is a fading
segment, whereas special interest magazines and niche
content magazines have good potential to be of interest to
readers with a monetisation potential in the long run.
Revenue share of magazines in print media
Industry experts believe that going forward, additional
requirements of newsprint will largely be fulfilled by import
of newsprint. To compete with the imported newsprint,
domestic newsprint manufacturing companies are not able
to increase prices leading to tremendous financial pressure
and no incentive for any manufacturer to add to existing
capacity. Industry anticipates that the newsprint prices will
be stable in 2013; however, if the rupee depreciates against
the dollar, landed costs may increase. Significant unused
capacity in the global newsprint supply chain due to the
declining consumption in the West has made newsprint
imports competitive and a major source of meeting
domestic newsprint needs.
Source: KPMG in India analysis
Newsprint price
© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Source: Crisil research
In 2012 newsprint prices were stable, giving some respite
to the publishers in a challenging year. Also the gap
between the imported newsprint price and the domestic
newsprint narrowed in the last quarter of 2012. The gap
noted in the earlier period was due to foreign currency
exchange fluctuation.