Malu Paper Records 500% Jump in Net Profit Touching INR 7.42 Crore

Malu Paper Records 500% Jump in Net Profit Touching INR 7.42 Crore

Nagpur | 3rd November 2019 | The Pulp and Paper Times:

“The positive turn of events in the Indian paper industry in the current year due to changes in the international and domestic market, environment and industrial policies of the government have resulted in favourable changes, which will continue to impact the prospects of the company in years to follow,” said Mr. Punamchand Malu, Managing Director of Malu Paper Mills Ltd, in company's annual report of FY 18-19.

High demand trajectory and favourable condition on the domestic front have skyrocketed Malu Paper's profit by 500 percent. The Profit after Tax (PAT) of the current FY was INR 7.42 crore in comparison to the Rs. 1.45 crore in FY 2017-18. The PAT was higher by 508%.

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Malu Paper Mills Ltd has paper mills strategically located in Central India at Nagpur Maharashtra). The company is the largest Newsprint manufacturer of Central India with 49,500 TPA capacity and produces quality Newsprint with the recycling process. The company has a swing facility wherein it can change to Newsprint and Writing paper production at short notice.

In the FY 2018-19, the company produced 85,015 Mt of paper as against 91,766 Mt produced in FY 2017-18. In FY 2017-18 the company produced 51,474 Mt (56%) of Kraft paper and 40,292 Mt (44%) of Newsprint paper. In FY 2018-19, the company produced 39,171 Mt (46%) of Kraft paper and 45,844 Mt (54%) of Newsprint & Writing printing paper. 

“There was a change in the product mix in FY 2018-19 to take advantage of the market scenario. The company produced a higher quantity of low grammage (GSM), but higher value Newsprint & Writing Printing paper,” Mr. Malu informed.

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“Due to the implementation of strict parameters for the import of waste paper about 20% capacity of Chinese producers was impacted. The stringent enforcement of environmental norms forced many paper mills to shut down, old mills are phased out and certain specific areas are proposed to be shut down by 2019 end. This has resulted in China becoming importer from a major exporter of paper, paper board and Newsprint. The recycled paper market has become precarious and uncertain. There has been a steep decline in the share of imported waste paper in China from around 30% to 20% in last one year. As a result of this international waste paper prices especially for unsorted grades have seen steep fall. Due to the shortage of waste paper, there has been a sharp increase in the China's import of recycled pulp leading to firming up prices of the pulp in the international market,” Mr. Malu further said in the report. 

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