Indian paper and packaging board manufacturer JK Paper has reported a continuous decline in profit for the eighth consecutive quarter.

The company's consolidated net profit for the quarter ending 30 June saw a nearly 42% year-on-year drop to Rs812.3m ($9.3m). It reported gross revenues from operations of Rs14.71bn.

The company also disclosed its strategic move to acquire a 72% stake in Borkar Packaging for Rs2.35bn.

This acquisition comes at a time when domestic paper manufacturers, including JK Paper, are grappling with the dual challenge of escalating wood costs and competition from lower-priced imports.

JK Paper said: “Lower volume and sales realisation due to cheap imports with continued high wood cost have adversely impacted performance. Sirpur Paper Mills also had annual planned shut during the quarter.”

The company's net revenue from operations also witnessed a slight decline of 2.3% to Rs16.74bn while raw material costs surged by 9.2%, reported Reuters.

In response to the country's industry's concerns, India has initiated antidumping investigations into imports of paperboard from countries such as Indonesia, Chile, and China.

These imports have reportedly been affecting the local market, where paperboard is a crucial material for packaging consumer goods, pharmaceuticals, and electronics.

JK Paper's acquisition of Borkar Packaging is a strategic move to strengthen its position in the packaging sector. Borkar, which counts major consumer conglomerates such as Unilever and Nestlé among its clients, operates factories in eight locations across India.

With this acquisition, JK Paper aims to become one of the top three players in the folding cartons segment of the packaging industry.