SPIEF-2025: CPM Showcases Its Success for Building a Vertically Integrated Business

On June 19, at the St. Petersburg International Economic Forum (SPIEF), Inna Belousova, Managing Partner of Consolidated Paper Mills (CPM), gave a talk at the conference ’Consumer Industry 2.0: Cross-Industry Alliance for the New Economy’. The event was organized by the Council of the Eurasian Women’s Forum (EWF).

By bridging business, science and government, the conference focused on discussing strategies to achieve commodity independence, engineer products for future demand and create cross-sectoral alliances. It was expertly moderated by Alla Sbitneva, Executive Director, Corporate Business Development Department, Sberbank, who is a co-coordinator of the project of the EWF Council.

In her address, Inna Belousova shared CPM’s experience in building a vertically integrated structure for the pulp and paper sector. Leveraging this case study, she illustrated how these same dynamics apply to the current challenges within the consumer industry. Her presentation addressed the fundamental drivers of vertical integration in the consumer sector, examining global benchmarks and the quantifiable impact of the model.

The speaker began by highlighting how business models are shaped by three critical forces: history, company expertise, and market trends. Using CPM as a primary case study, she illustrated the company’s strategic evolution in the face of shifting industry challenges. Initially, the awareness of raw cellulose led to a focus on recycled paper processing, resulting in the launch of the first ’waste paper’ notebooks. But seeking new growth avenues, the Company gradually pivoted toward corrugated solutions, successfully scaling its operations in this segment. Eventually, the significant contraction in waste paper supply and rising prices prompted CPM to build its own procurement network. The Company’s transformation, however, was far from complete. Adapting to shifting market dynamics and external pressures, CPM is moving into finished packaging production to bolster its competitive position.

In her report, Inna Belousova pointed to CPM’s experience as proof that raw material access and processing autonomy are critical drivers of success for the industry. She expressed strong confidence that the consumer industry holds substantial, largely untapped potential, ranging from the development of ’smart,’ adaptive textiles to AI integration in design across fashion, furniture, and other product lines.

’Technology is built to provide safety and comfort rather than unnecessary complexity. In this regard, the consumer industry is emerging as a dominant leader, serving as the vital link in our interdisciplinary cooperation,’ Inna Belousova said.

She urged the industry to pursue deep integration—both internally and across broader economic sectors—emulating the business models of global market leaders (such as Inditex (Zara Home, Massimo Dutti, Bershka, Oysho, Pull & Bear, Stradivarius, Uterqüe), Lindex, Toray Industries) that are based on deep vertical integration ’from raw material to final product.’ Inna Belousova highlighted that CPM is on track to achieve a full circular economy model in 2026 and that other light industry players possess the same capacity. The speaker acknowledged that achieving full vertical integration requires both substantial financial commitment and support. ’This trajectory is inherently capital-intensive, requiring robust support, significant investment, and a refined regulatory framework. I hope we receive the necessary support, both from the government and internal collaboration’, concluded the CPM Managing Partner Inna Belousova.

For reference. The St. Petersburg International Economic Forum (SPIEF) is a premier global forum for addressing critical economic challenges impacting Russia, emerging markets, and the international community.