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bakırköy escortbahçeşehir escortşişli escort FY 2019 was a Watershed Year for BILT's Revival Roadmap; Started Servicing its Debt as per the Restructured Package || The Pulp and Paper Times

FY 2019 was a Watershed Year for BILT's Revival Roadmap; Started Servicing its Debt as per the Restructured Package

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Find the latest development & revival roadmap news of Ballarpur Industries Limited

FY 2019 was a Watershed Year for BILT's Revival Roadmap; Started Servicing its Debt as per the Restructured Package

Gurugram | 4 November 2019 | The Pulp and Paper Times: 

In the last five years, there have been consistent investments by leading players in the Paper Industry, and over INR 20,000 crore has been spent on capacity addition. This investment drive has brought in a sudden spurt of new capacity well in excess of the annual increase in domestic demand. Consequently, the capacity utilisation of much of the new equipment invested has been economically unviable.

“Business scenario in the last 5 to 6 years has put severe financial pressure on companies like BILT which had made sustained investments in capacity and technology. Consequently, we had to recalibrate our business plans internalizing a much longer gestation period for these new investments. As a result, BILT had to go through a very difficult phase over the last couple of years,” said Mr. B Hariharan (in above photo), Chairman & Executive Director of Avantha Group in its Annual report.

Mr. Hariharan feels optimistic in the report and further described that “I dare say FY 2019 was a watershed year for BILT's revival roadmap. Operationally, BILT is back on track on a new growth trajectory. It has already demonstrated its abilities to meet the obligations of the restructured financial plans for its principal entity,”

The Government of Telangana has been supportive in revival Kamalapuram pulp mill which has been shut since FY2014. 

“There have been several efforts to revive this entity, including the introduction of an outside investor. The Government of Telangana has agreed to provide INR 45 crore subsidy every year for a period of seven years. We expect a clear path to emerge in the first half of FY2020, with the facility focusing on paper grade pulp,” Mr. B Hariharan said.

“Operations at Sabah Forest Industries (SFI) have been affected for the last couple of years. The Company had already decided on exiting the business and was in talks with interested investors,” Report says.

Financial Highlights, FY2019

 Revenue from operations (net of excise) increased by 44.62% to  Rs.3,643 crore in FY2019.

 Operating profits (EBIDTA) grew by 92% to Rs.676 crore in FY2019.

 With continuous efforts at cost optimisation and value addition, operating margins (EBIDTA) increased

from 14% in FY2018 to 18.5% in FY2019. 

 Interest costs reduced by 7.9% in FY2019.

“Efforts at building a strong market position is well entrenched in the ethos of BILT. This is achieved by laying emphasis on two fronts. First, there is the stress on innovation to continuously develop new products as well as to improve the existing portfolio so as to offer a wider range of quality products. Across its product portfolio, BILT has set high quality standards — which have emerged as key differentiators in the competitive markets where it operates,” Mr. B Hariharan informed.

BILT's Operations in India

BILT's writing and printing paper manufacturing operations under its stepdown subsidiary Bilt Paper B.V. has four production units across India. These are: Ballarpur (Maharashtra), Bhigwan (Maharashtra), Sewa (Odisha) and Ashti (Maharashtra).

Unit: Ballarpur

Total paper production increased from 2,44,161 MT in FY2018 to 2,56,329 MT in FY2019. The new pulp mill at the facility produced 2,53,718 ADMT (Air Dry Metric Ton) of bleached pulp during FY2019. Some of the major actions taken for increased pulp production were:

 Revamping and commissioning of the Causticising Plant-II to handle additional liquor volume.

 Optimization of surfactants in the oxygen delignification process (ODL) to improve bleach-ability of pulp and maintain final pulp brightness at higher production rate.

 Pre-ODL press throughput enhancement by redesigning clearance between rolls.

 Improvement in uptime of the chipper by replacing chipper segments with a new design.

 Improvement in throughput of Wet Lap machine by redesigning of press rolls and optimization of press loads.

Unit: Bhigwan

Total paper production increased by 74.4% from 1,35,283 MT in FY2018 to 2,35,928 MT in FY2019. Continuing the focus on regular cost reduction, new indigenous vendors were developed for 'nano-particle size acrylic latex booster' for optimising the binder cost. This initiative contributed to reduction in the production cost.

Unit: Sewa

Unit Sewa during FY2019 had low productivity mostly attributed to plant & Machinery, acute IR issues and shortage of working capital. Working capital is being arranged. The mill utilised the opportunity to bring significant improvement in IR front by imposing 'NO WORK- NO PAY' policy. The mill is encountering some major maintenance issues with the Intake-well pipeline, Rewinders and A4 line.

Unit: Ashti

This Unit was severely affected during FY2019 due to shortage of working capital and high prevailing prices of market pulp. Even so,15,320 MT of copier paper produced at Ballarpur was converted at Ashti to service customers. The mill utilised the opportunity of forced downtime to focus on cutting down fixed costs and carrying out preventive maintenance activities.

Unit: Shree Gopal

This business focuses on specialized product categories such as watermarked bond paper, ledger paper, cartridge paper, envelope paper, super printing paper, matrix multipurpose paper and food packaging products (such as cup stock and paper straw). The assets of this business are directly under BILT at Unit Shree Gopal (Haryana).

Paper production increased by 45.5% from 46,990 MT in FY2018 to 68,372 MT in FY2019. The Unit undertook new product development and quality improvement initiatives that resulted in increased customer base, and enhanced servicing and satisfaction of existing customers.

Unit: Mysore

FY2019 was a promising year for Premier Tissues (India) Limited {PTIL}. The tissue paper market in India is on a growth path; and PTIL has used this opportunity to scale up its operations. PTIL recorded a turnover of ` 60 crore in FY2019 – a growth of 9% over FY2018. In fact, both the conversion business and the mill have seen their highest ever throughputs in FY2019. With infusion of further working capital, PTIL is pursuing higher growth plans for FY2020. To achieve this, it has expanded the existing product lines and is now converting aluminium foil, which adds the theme of disposable hygiene to its portfolio.

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