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Shree Ajit Pulp and Paper continues to invest in quality and cost reduction

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Shree Ajit Pulp and Paper's financial summary, Growth and Investment for FY 19-20

Shree Ajit Pulp and Paper continues to invest in quality and cost reduction

Reported  INR19.65 Cr. profit in FY19-20

Vapi | 2nd March 2021 | The Pulp and Paper Times:

The growth in the Indian paper industry is largely dependent on the rate of growth of the economy. The changing lifestyles of the people in India have also fostered growth in the packaging segment of the sector. Growing e -commerce space and increasing presence of the FMCG and packaged food industries have contributed to the growth in the sector. 

One of the top Kraft Paper manufacturers in India, Shree Ajit Pulp and Paper Limited (SAPPL) is witnessing a growth story. “We are proud that we built a sustainable company over the last 25 years and achieved many of our goals and aspirations. We are now even more motivated to scale SAPPL to newer heights and build an organization that will last ages,” said Mr. Gautam D. Shah, Chairman and Managing Director of SAPPL in the annual report for FY19-20.

He further added that the future of the Paper industry in general and Multilayer testliner and testliner Paper in particular is linked with the future of world economy. When the economy in general is on the down turn, the demand for SAPPL's products is also likely to fall. On the other hand, when the economy in general is on the up-cum, the demand for the products is likely to increase. We are having advantage over most of the other manufacturers as it is professionally managed and its operations are efficient, cost effective and highly competitive.

SAPPL established in the year 1995 manufacturing quality kraft paper in 1997 with annual production capacity of 16,500 TPA and initial turnover of around Rs. 10 crore. Due to  consistent efforts, continuous innovation, technological advancements, quality products and huge base of satisfied customers, at present we have annual production capacity of 1,08,000 TPA and turnover of Rs. 240.23 crore.

“The year of 2019-20 was extremely difficult for the economy as a whole due to weak global manufacturing, trade and demand. It is noteworthy however that, even in the midst of such challenging times, the Company persisted and continued to endeavor for Consistency. During the FY 2019-20 the Company achieved turnover of Rs. 240.23 crore and net profit of Rs. 19.65 crore,” Mr. Shah informed.


                     

Mr. Shah says that the investment in plant and machinery for improvement in quality and reduction in cost of production taken up during the previous year is continuing. 

The per capita paper consumption in India is still low compared with the world average. The low domestic per capita paper consumption also provides potential to the industry in the long term. We are keeping a close tab on overseas market to explore our products globally. Our participation at an International Paper Exhibition at Shanghai (PRC) in April 2019 had an overwhelming response and we shall endeavour to explore international market in future.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

SAPPL manufactures Multilayer Testliner and Testliner Paper from 80 to 350 GSM and 18 to 35 BF. This product is mainly used for making Corrugated Boxes, Duplex Cartons, Corrugated small e-flute etc. as packaging material. The Company is having two wind mills of total capacity of 2. 7 5 MW in Gujarat State, set up for captive consumption. These are in operation. The Company is having wheeling arrangement with GETCO and DGVCL whereby the set off is given to the Company for generation of electricity from the wind mills.

AN OVERVIEW:

The overall performance of the SAPPL during the year under report has been satisfactory in line with general economic conditions in the country. The revenue from operations of the Company has decreased by 10.86% to Rs. 24041.18 lakh during the year from Rs. 26,970.23 lakh in the previous year. The Profit before Tax has decreased to Rs. 2,310.16 lakh from Rs. 3,261.95 lakh and the Profit after Tax at Rs. 1965.05 lakh as compared to Rs. 2,312.86 lakh of the previous year. The profit before tax has decreased by 29.18% and profit after tax has decreased by 15.04%.

The profit for the year under review was Rs. 1,965.05 lakh as compared to Rs. 2,312.86 lakh in the previous year. The EPS has decreased to Rs. 36.68 against Rs. 43.18 in the previous year.


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