TNPL's Profit After Tax (PAT) Jumped 37 percent in FY-19-20, Phase-I of MEP to be commissioned by May 2021

TNPL's Profit After Tax (PAT) Jumped 37 percent in FY-19-20, Phase-I of MEP to be commissioned by May 2021

Chennai | 20 November 2020 | The Pulp and Paper Times:

India is considered as the fastest-growing market for paper in the world with an average annual growth of 6%. The domestic consumption is expected to rise to 25 million tonnes by 2020-21. The slowdown and softening of demand during the current year resulted in reduction in sales volume. However Tamil nadu Newsprint And Papers Ltd. (TNPL) in comparison with past years achieved better sales realisations as well as production levels and improved efficiency across all areas of operation.

The Annual report of TNPL for FY 19-20 says that, as part of its growth plan, TNPL is implementing a Mill Expansion Plan (MEP) in the Unit II to take the mill capacity from 2,00,000 to 3,65,000 tpa. As part of the MEP, TNPL will be installing a modern Hardwood ECF pulp mill and a Paper Machine.

Report further informs that, Implementation of Phase 1 of the project comprising Pulp Mill and associated Recovery island, is in progress and is targeted for commissioning by May 2021. The systems being installed in this project will embrace latest technology with least environmental impact Towards this, the Mill will be installing a latest generation continuous cooking system, employing total collection and incineration of Non-condensable gases to make the mill odour free, reduce and recycle water to the maximum extent and energy-efficient Chemical Recovery Boiler and black liquor evaporators. These new technologies will further strengthen the company's ambition to maintain the leading position with thrust on water conservation and Environment protection. 

PERFORMANCE HIGHLIGHTS OF THE YEAR

Operations:

1. The Company’s turnover during the year 2019-20 is Rs. 3437.60 crore.

2. Profit before tax is Rs. 190.53 crore and Profit after tax Rs. 130.03 crore.

Printing and Writing Paper:

3. During the year the Paper production was 3,92,250 MT.

4. Achieved Paper sales of 3,78,022 MT during the FY 2019-20. Domestic Sales accounts for 81% and Exports at 19%.

Packaging Paper Board:

5. The packaging paper board plant production was 1,72,776 MT during the financial year 2019-20, equivalent to 86% of capacity.

6. The packaging paper board sales during the year 2019-20 was 1,71,785 MT. Domestic Sales accounts for 97%.

7. 3,30,358 tonnes of Hardwood, chemical Bagasse Pulp and Deinked Pulp were produced during the year.

8. The paper & pulp mill have implemented various water conservation projects and reduced the overall consumption of water to 35 KL/per ton of paper which is one of the lowest in paper industry.

PROJECTS UNDER IMPLEMENTATION

Mill Expansion Plan of TNPL Unit II:

As part of its growth plan, TNPL has embarked on a Mill Expansion Plan (MEP) to enhance the capacity of TNPL Unit II by 1,65,000 MT per annum, by installing a Paper Machine along with captive pulping facility, at an estimated capital outlay of Rs.2520 Crore. The formal Environment clearance for the project was received from the Ministry of Environment, Forest and Climate Change (MOEFCC), New Delhi, vide its order dated April 04, 2019. 

TNPL has proposed to implement the project in two phases as below:

• Under Phase 1, the HWP line with a capacity of 140,000 MT per annum with the following scope shall be set up 

• Under Phase 2, the Paper Machine of 165,000 MT/annum along with a Power plant shall be implemented following commissioning of Phase 1. The Phase 1 of the project will feature installation of a state-of-the-art chemical hardwood pulping along with chemical recovery facility and augmentation of service utilities viz., Captive power plant and Waste water treatment plant. The financial closure of Phase 1 of the project was achieved in October 2019. 

Towards implementation of Phase 1 of the project, the company has completed ordering of all the major, long delivery plant and machineries like Hardwood Pulp Mill, Chemical Recovery Boiler, Black liquor Evaporator, 20 MW Turbo Generator, Air Cooled Condenser, Lime Kiln, Recausticizing plant, etc. The Contractor for carrying out the civil construction works for the project, has been finalized.

The modern waste water treatment plant in TNPL Unit II enables utilization of the entire waste water generated from the mill to be used for irrigation in TNPL’s own lands to an extent of 575 acres. In the plantation area, drip irrigation method is deployed to raise more than 6 lakh trees, with various varieties of fruit bearing, flowering, avenue trees including some pulpwood species. Installation of additional sheeting facility in Unit II To cater to the sheet orders of the Paper boards, the company planned installation of an additional sheet cutter of capacity 100 tonnes/ day, at a capital outlay of Rs.10 Crore. A state of-the-art sheet cutting machine was ordered on M/s. Milltex, Italy. The sheet cutter was delivered in July 2019, as scheduled. The machine has since been erected and commissioned during October 2019. With this facility, the Unit II is able to cater to the growing sheeting demand of the market.

Conservation of Forest wood through eco-friendly Raw Material:

TNPL is built on the concept that environment should be protected for the benefit of present and future generations. TNPL has perfected the technology of manufacturing writing and printing paper from bagasse, an agricultural residue and consumes one million tons of bagasse per annum. The mill has used about 7,25,391 MT of depithed bagasse during the year as the primary raw material for production of 1,41,765 MT of bagasse pulp during the year 2019-20 has facilitated conservation of about 6.3 Lakh MT of pulpwood. 

Similarly, TNPL has produced 73,372 MT of Deinked pulp using waste paper as raw material thereby conserved about 3.2 Lakh MT of wood in the year 2019-20.

TNPL is sourcing wood through its Captive plantation and Farm Forestry model and also from Tamil Nadu Forest Plantation Corporation. The unit has raised pulp wood in 20,444 acres during 2019-20 totaling about 1,67,715 acres of land covering various parts of Tamil Nadu under through its Captive Plantations and Farm Forestry schemes. Further, pulpwood is certified by both Forest Stewardship Council Forest Management (FSC-FM) and Forest Stewardship Council Chain of Custody (FSC-COC) which ensures that paper manufacture from wood is managed socially and environmentally in a responsible way.

Web Title: TNPL s Profit After Tax PAT Jumped 37 percent in FY 19 20 Phase I of MEP to be commissioned by May 2021