At Ruchira Papers we are pleased to present our performance for FY18-19.
There are three principal messages that we wish to communicate.
One the Company reported record numbers (revenues output and profit).
Two the Company reported profitable growth in a challenging economy.
Three the record numbers were the result of a long-term priority in generatingmore from less.
These realities indicate the robustness of our business model and our competitivenessin a large and growing sector.
At Ruchira Papers the foundation for the record numbers that we reported during thelast financial year was laid a number of years ago reinforced through a number ofpriorities.
We resolved that we would utilise resources considered waste by conventional industry.
We would maximise the use of every possible resource - infrastructure equipmentpeople processes and finite fuels or resources.
We would keep extending the frontier when it came to quality product mix orvalue-addition.
We would fuse our technical knowledge with entrepreneurial capability to grow ourCompany.
We would enhance our environment- friendliness moderating our carbon footprint - aheadof the standards of the day.
We are pleased to report that our commitment to these fundamentals resulted in a profitgrowth every single year across the last decade.
Commitment to growth
In the last annual report the management had communicated its commitment to build alarge greenfield manufacturing facility.
The proposed facility to manufacture writing & printing paper at Chamkaur Sahib(Punjab) is expected to cover 185 acres for which the Company acquired 109 acres duringthe year under review. In view of the growing difficulty in aggregating land we considerthis contiguous purchase to be an achievement.
The Company intended to acquire balance 75 acres from the local panchayat but that didnot transpire due to technical and legal issues. In view of the delay in proceeding withthis large greenfield investment the Company focused on upgrading its existing facilitythrough the use of debt and internal accruals of FY19-20.
This underlines the management's commitment to grow the business in a sustainablemanner.
The result is that the Company will invest around H70 Crores in upgradation andmodernisation of its existing facilities at Kala Amb.
The capex will be directed at the upgradation of the writing & printing papermachines replacing the existing Press Part including size press. Following thisupgradation the Company will be empowered to manufacture surface-sized paper of a highersurface strength and stiffness required by publishers to print in four/five colours onthe latest highspeed printing machines. We believe that the manufacture of this varietywill enrich the Company's product mix and broad-base operations across a larger portfolio.
The Company also intends to strengthen its competitiveness in the notebook segment.Following the upgradation of the press section paper dryness in the third press willimprove and translate into enhanced manufacturing integrity. The Company also proposes toreplace the existing 5.6 MW turbine with a new 61 MW equivalent possessing superiormanufacturing efficiency and throughput but utilising the same steam quantity.
Building a responsible company
At Ruchira Papers our focus is not just to manufacture a larger quantity of paper butalso to enhance our environment responsibility. Today there is a greater premium on cleanmanufacturing processes with a moderate carbon footprint than ever before and your Companyis playing a deeper role in this area.
The Company achieved the guidelines/conditions specified in the Ministry of Environment& Forest charter ahead of the 31st December 2019 deadline. The Company made proactiveinvestments in line with the desired benchmarks related to water quality and recycling. Asa committed corporate citizen the Company intends to make further reductions in COD/BODlevels and improve the colour of discharged water following modifications and upgradationof the effluent treatment plant using the latest technologies. Besides the Company shallimprove the firing capacity of Black Liquor Solids to 250 TPD in the chemical recoveryplant which will generate additional power and steam from the chemical recovery plant andaddress increased pulp production.
At Ruchira Papers we are optimistic of our prospects on account of the increasinggovernment focus on the reduced use of plastic in everyday life. Over the last few yearsthis growing focus already translated into an enhanced utilisation of paper. As aforward-looking company that would minimise the seasonal nature of kraft paper theCompany plans to modify its kraft paper machine number one to manufacture cup stock paperstrengthening the topline bottomline and margins. This modification shall be completed bythe fourth quarter of FY19-20 its benefits accruing from the first quarter of FY20-21.
We must assure shareholders that this proposed upgradation and modification of existingfacilities will not affect our commitment to the implementation of our proposed greenfieldproject in Punjab. As soon as we get the panchayat land registered in Company's name themanagement will commence activities including seeking the necessary environmentalclearance for the large greenfield project.
The management of Ruchira Papers will continue to do what it has always done - focus ongenerating more from given resources strengthen the product mix enhance realisations andreinforce customer relationships on the back of superior product quality.
Given this commitment we are optimistic of generating higher output revenues andprofits during the current financial year strengthening our business sustainability.
Ruchira Papers Limited