Satia's additional capacity of 100,000 MT to come into production by the end of Q3 FY22; Revenue increased by 53 percent in Q1

Satia's additional capacity of 100,000 MT to come into production by the end of Q3 FY22; Revenue increased by 53 percent in Q1

Ban on Single-Use Plastic items from July 1, 2022 will boost the demand of paper. 

Muktsar |14th Aug, 2021 | The Pulp and Paper Times:

One of the largest Wood and Agro based paper manufacturers in India with a fully integrated manufacturing facility comprising of upgraded paper machines, agro and wood pulping plant, chemical recovery and power generation plant – Satia Industries Ltd. (SIL) is all set to start commercially its proposed additional capacity of 1,00,000 MT by end of December 2021.

Release the Q1 results of FY22, Mr. R. K. Bhandari, Joint Managing Director said, ‘‘at the end of last quarter, the paper industry was expecting huge surge in demand from the expectation of reopening of educational institutions. But this expectation was impaired by the outbreak of 2nd wave of COVID-19 which brought along with it extended lockdowns and deceleration of economic activity. Whilst W&P paper industry was under stress and even the most established players were operating at lower capacity utilization, SIL emerged as a true leader with average capacity utilization of 124% % and higher price realization for Q1 FY22 thanks to its marketing strategy. 

Our ambitious INR 500 Crore expansion plan is progressing as expected. We expect the additional capacity of 100,000 MT to come into production by the end of Q3 FY22. A total of over INR 400 crore has been spent on the development of the new project, out of which INR 2500 crore is disbursed by the Banks and rest is financed from Internal Accruals.

Further, Table cutlery machines erection is complete and mechanical trials are going on and we expect to commercially start operations before end of current quarter. 

We are very confident that our capex plans, strategy of venturing into new high growth potential green products and investing in latest modern technologies promise to unlock great benefits for all our stakeholders in future. 

Our govt’s reassertion on 13th August 2021 to ban Single-Use Plastic items from July 1, 2022 will open new opportunities for the Paper industry as a whole and endorses our futuristic decision to enter into Cutlery segment well in time.”

Satia Industries’ total revenue from operations increased by 53% from INR 125 crore in Q1 FY21 to INR 191 crore in Q1 FY22 owing to higher capacity utilization of 124% against 87% in Q1FY21. Net profit stood at INR 21.99 Cr  in Q1 FY22, compared to ₹ 11.56 Cr in Q1 FY21.

Mr. R. K. Bhandari  further said the statement that, despite Covid restrictions, SIL’s business continues to see persistent traction from state textbook boards and open market. We have been able to record a further growth in SIL’s production level of 32627 MT in Q1 FY22 as compared to the production of 22809 MT in Q1 FY21.

In continuation of SIL’s robust order book status, as shared in SIL’s earlier quarterly updates, SIL has orders in hand for over 30 days.

SIL’s key product sold during the quarter was Maplitho Paper for State Text Book Board besides Snow White Paper, Super Snow-White Paper and more than doubled the share of Copier and Cup stock paper over the Q1FY21.

“The erection work of 4th paper machine is almost 85% complete. Our Multifuel, 75 ton steam per hour capacity, boiler has been commissioned and presently we are burning rice straw as fuel in this boiler which is cheaper by over 50% as compared to rice husk. This initiative of the company has gone a long way in curbing air pollution which would have been caused by burning of over 125,000-ton rice straw by farmers in their farms without any protection of Electrostatic precipitator,” Mr. Bhandari said.

Civil work of wood pulping plant is almost 80% complete, and it is expected to partly commence operations by end of September 2021. SIL has installed two Table cutlery machines with an annual capacity of 2000 tonnes. The erection and installation work is completed and commercial production will commence from Sept., 2021.

Zume, a US-based global brand, engaged in producing and outsourcing of moulded table cutlery products has agreed to share its patented customized designs with SIL for manufacturing and marketing packaging product as desired and demanded by the global market. The expected average realization will be higher by 40-50% as compared to local manufacturers’ market realization.

Web Title: Satia s additional capacity of 100 000 MT to come into production by the end of Q3 FY22 Revenue increased by 53 percent in Q1