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West Coast Paper Mills Ltd.

BSE: 500444 Sector: Industrials
NSE: WSTCSTPAPR ISIN Code: INE976A01021
BSE 00:00 | 18 Apr 258.10 -5.05
(-1.92%)
OPEN

262.00

HIGH

262.00

LOW

255.30

NSE 00:00 | 18 Apr 256.95 -5.40
(-2.06%)
OPEN

262.35

HIGH

263.70

LOW

254.10

OPEN 262.00
PREVIOUS CLOSE 263.15
VOLUME 4352
52-Week high 414.55
52-Week low 224.00
P/E 5.35
Mkt Cap.(Rs cr) 1,705
Buy Price 256.10
Buy Qty 142.00
Sell Price 257.90
Sell Qty 10.00
OPEN 262.00
CLOSE 263.15
VOLUME 4352
52-Week high 414.55
52-Week low 224.00
P/E 5.35
Mkt Cap.(Rs cr) 1,705
Buy Price 256.10
Buy Qty 142.00
Sell Price 257.90
Sell Qty 10.00

West Coast Paper Mills Ltd. (WSTCSTPAPR) - Chairman Speech

Company chairman speech

THE WEST COAST PAPER MILLS LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT The financial year under review Trepresents an inflection point as we commissioned the largest capacity expansion in our existence, resulting in record revenues and profits in 2010-11. This expansion resulted in some distinctive positives for the Company: * For a number of decades, we were largely an India-focused paper company; we are now a relatively global company, reflected in our superior quality that matches some of the best product standards in the world and a growing global exposure in terms of our marketing presence * For a number of years, we made incremental improvements in our steam and power consumption. Following the expansion, our consumption ratios declined attractively, making us globally competitive. The result is reflected in our numbers: increase in average realisations in the writing and printing segment. Additionally, our copier product earned a premium and accounted for an attractive share in a competitive segment without any meaningful advertising budget within only two months of its launch. Industry outlook I see optimistic times ahead for the Indian paper industry for some good reasons: One, although India is growing, and paper consumption should increase in the normal run of things, a growing investment in the country's education sector will catalyse the offtake of writing and printing paper faster than the global average. Two, the next incremental major production capacity within the Indian industry is two to three years down the road even as paper consumption is growing, which should strengthen realisations and enable manufacturers to generate a reasonable return on their investment. Three, a growing dearth of waste paper is likely to affect the asset utilisation of a segment of the paper industry, resulting in probable decline in availability from that industry segment and increased realisations on the overall. Four, there is a growing shift in consumption from plastic-based products to paper products, benefiting the paper industry. Our response As a company that committed significant investments in capacity building in the last few years, our primary objective will be to maximise asset utilisation, to reduce operating costs and enrich our product mix. During the current financial year, we expect to sweat our assets to rated capacity and report an even better performance. For instance, we intend to raise our operational benchmark machine speed from 1,000 meters per minute to 1,200 metres per minute with corresponding productivity implications, among the highest such benchmarks in India. This will also be a time when we freeze our next round of expansion. The management is inclined to consider buying a second-hand international plant that will enable us to significantly increase production capacity at a relatively lower capex. The management will also seek to expand at a non- Dandeli location, following a review of available infrastructure. Overview: West Coast Paper Mills stands to benefit for decades, following significant investments already made in its capacity. The Company is attractively placed to derive sustainable benefits into the long-term on account of its utilities consumption being well below the prevailing national norms stipulated for the paper industry. This reinforced our environmental responsibility, leading to sustainability. Starting from 2011-12, the Company's social forestry scheme will begin to generate a larger quantum of raw material from within 250 km and from contracted farmers, reducing logistics costs. In view of these realities, I am optimistic that the Company will enhance value for its shareholders in a sustainable way over the coming years. S.K. Bangur Chairman