The passion of Ruchira
We have often been asked 'What kind of a Company is Ruchira Papers?'
To say that we are a paper manufacturer does not indicate anything significant. In viewof this we decided that It would dedicate our overview this year on what we truly are andwhat drives us.
At Ruchira we are a governance-committed Company. We believe that governance is notperipheral to our existence but integral. In a world that is increasingly concerned withthe 'how' over the 'what' we believe that the quality of our governance is reflected inour integrity stakeholder focus strategic discipline functional consistency andrepeatability.
At Ruchira we possess a strategic clarity of where we are headed. We are not driven asmuch by the obsession to be the largest paper company in India as much as we are driven bythe zeal to be one of the best - in terms of quality customer respect realisations perkg and consumption of natural resources per unit of production.
Best over biggest
At Ruchira we believe that success is derived from the best at what we can do. This isof critical relevance in the capital-intensive paper sector marked by a perception thatscale is more important than scope. We believe that the most passionately run mid-sizedpaper company can deliver operating efficiencies better than a number of largercompetitors (as in our case). As an extension of this conviction we believe that a focuson passion-driven competence enhances asset utilisation revenues and profitabilityleading to a reinvestment cycle that enhances scale. This validates what we have alwaysbelieved: that passion generates scale and sustainability; not the other way around.
At Ruchira the technocrat promoters are engaged in running the Company. We engage withevery day issues and we engage with the strategic while we continue to inspireprofessionals who work with us. The result is that Ruchira is promoter-andprofessionally-driven The Company is adequately manned in senior positions that has helpedenhance specialisation capabilities growth and outperformance.
At Ruchira we believe that our business continuity is derived from a culture ofcompliances - with the laws of the land and listing authorities. At our Company we haveinstituted a robust commitment to statutory compliances through a team that owns thisresponsibility. These compliances are reported to respective authorities (whereapplicable) in terms of various forms/report filings well within the prescribed time.
At Ruchira we believe that in a business where the upside is vast there will alwaysbe a premium on corporate austerity accrual maximisation and reinvestment. Thisreinvestment makes it possible to invest in various debottleneckings/ modernisation andup-gradations which ultimately translated into an ability to generate more from the givenequipment comparable with some of the best productivity standards among peer companies.
More from less
At Ruchira we recognise that we are engaged in a business where realisations areoutside our control. What we have within our control is the management of equipmentprocesses and protocols that make it possible to get product manufacture right for thefirst time and every time. Over time this commitment has translated into the ability togenerate more from less-whether it is about increasing production capabilities from ourmanufacturing assets or generating a better yield from our raw material resources ormaximising the use of steam or enhancing per person productivity.
Punching above our weight
At Ruchira we represent an unusual combination - of a Company seeking to punchtechnologically above its weight when it comes to generating a higher throughput ormoderating costs lower than sectoral benchmarks but otherwise remaining cautious when itcomes to debt or debtor discipline. The result is that even as we have grown over theyears we have selected to under-borrow and remain adequately liquid through marketcycles.
Ongoing upgradation mode
At Ruchira because we are present in a capital-intensive business we recognise thatthere will always be a need to upgrade or modernise.
As a matter of prudence we initiate expansion programmes only when a large part of thedebt related to the previous debottlenecking/ upgradation/ modernisation has been repaid.Besides our capital expenditure is linked to projects with attractively short paybacksprotecting our medium-term profitability.
At Ruchira we are focused on revenue maximisation from our given equipment. The resultis that we are perpetually engaged in ascertaining the right product mix in response tomarketplace demands and developments. During the year under review the Company extendedto the manufacture of copier paper expected to enhance realisations of writing &printing paper strengthening our profitability.
No speculative positions
At Ruchira we see our role as an efficient convertor of resource or raw material intothe finished product.
This strategic clarity has translated into a few imperatives: investments in conversionefficiency lower material use high financial returns enhanced quality focus and thecomplete absence of any speculative positions on our raw materials or finished productsthat could potentially distract us from our organisational focus. The result of thisapproach is not just a consistent focus on the manufacture of paper of the highestquality; it is also a focus on selling as much as fast as we can resulting in a shortreceivables cycle that protects our liquidity across market cycles.
At Ruchira we believe that in a competitive business success is derived from anaggregation of moderate margins across process and products. In our integrated operationswhere one end product becomes the raw material for the other the overall impact isanything but moderate. This integration represents the heart of our sustainability.
Ruchira Papers Limited.