A high degree of water adsorption is a goal for some grades of paper, such as tissue, toweling and sanitary grades of paper. These grades of paper are designed for rapid adsorption of aqueous fluid. For most of other paper grades, a high level of water adsorption is not desired. Usually, in wrapping and packaging papers, wall paper, writing paper and printing paper, liquid penetration resistance is important. For making a paper that can resist wetting and penetration of aqueous liquid, SIZING is done. The level and the process of sizing depend on their end use. Liquid resistance can be achieved by either internal sizing or surface sizing. However, different sizing mechanisms are involved. In internal sizing, sizes are added to the pulp stock prior to the wet end of the paper machine. Internal sizing agents are usually amphoteric materials with both non-polar and polar groups in their structures. In surface sizing, sizes are applied to the dry or partially dried paper sheet at the size press or calendar stack. Surface sizing works at the size press or calendar stack. Water repellency may be one goal of surface sizing but the principal objectives of surface sizing are to improve surface strength, surface smoothness for printing and ink hold-out. Conventional surface sizing agents, such as animal glue and starch, achieve resistance to liquid penetration by filling the capillaries of paper. More recently, some synthetic polymers are being developed very fast to be applied as surface sizes. Market Survey The quest for increased productivity, as well as increasingly demanding final product quality specifications and a variety of environmental and economical pressures resulted in almost universal penetration of chemical applications to all paper and board grades. Chemical additives used in paper making can be divided into three groups – general (commodity) and two classes of specialty chemicals – process and functional. Process chemicals are used to optimize the production process by increasing machine speed, runnability, providing deposit control and reducing steam consumption. Retention aids, defoamers, fixative agents, biocides and defoamers/ antifoam additives are some typical examples of process chemicals. Functional chemicals directly affect paper quality and paper properties – color, water repellency, strength, printability, etc. Typical examples of such functional chemicals are dyes, coating binders, strength and sizing additives. Recent market survey shows that the production of rosin size is approximately about 6000 MT/annum in India. But the annual requirement is about 15000 MT of different types of specialty paper sizes. Due to introduction of several new paper sizes based on Styrene Maleic Anhydride (SMA), Styrene Acrylic Emulsion (SAE), Styrene Acrylic Acid (SAA), Polyurethane (PUR) and Ethylene Acrylic Acid (EAA) ,the demand is increasing 5% per annum. The major use of fortified rosin is in the field of Paper Industry as a Sizing Agent. The demand of fortified rosin directly depends on the Paper Industry. Paper industry in India is expected to see an average growth of 7 per cent during the next one year according to prediction by the Indian Pulp and Paper Technical Association (IPPTA). Currently, the Indian industry is accounts to about 2.5 per cent of the global production of paper. However the paper, paperboards and newsprint consumption in the country will also grow to 17 million tonnes from the current 12 million tonnes in the next five years. The global paper industry is forecast to maintain 6% yearly growth for the five-year period ending 2017 to exceed $255 billion. The industry is characterized by a high degree of fragmentation and is dominated by the Asia-Pacific region, which witnessed more than 40% growth rate in 2011, fuelled by a rising degree of urbanization, increasing levels of disposable income and improving consumer lifestyles. The Indian paper industry is one of the traditional industries of India consisting of over 500 units with an installed capacity (excluding newsprint) of over 7.5 mn tonne per annum. The capacity utilization in the industry has remained low at approximately 60% but has lately picked up. This owed partly to some 200 mills being small and many of which were sick. Effectively, only 321 mills are operational. ? Out of these, 172 mills make up for 54% of the market, with the top ten claiming a share of over 28%. The large segment consists of 21 large mills. The incidence of sickness is high in mills with less than 15,000 tonnes per annum capacity. India has become self-sufficient in paper Industry. The industry has been characterized as a priority sector for foreign collaborations. Foreign equity up to 51% is subject to automatic approval by the Reserve Bank. Foreign investment even up to 100% is permitted by Foreign Investments Promotion Board (FIPB) on case-to-case basis. The consumption of paper products is growing at a fast pace of around 6.5% and is expected to further go up in future. The world consumption of paper and paperboard is estimated at over 300 mn tonnes a year. The Indian production is about 2 to 3% of the global total. The overall value of the market is estimated at Rs 250 bn. In volume terms, the segment is presently estimated at over 6.9 mn tonnes. In addition to this, rise in literacy levels, growth of print media and higher government spending on the education sector will have a positive impact on paper industry in India which is likely to continue growing at 6-8 per cent.