Orient Paper Reported a Record Profit of INR101 Cr. for FY18-19, Plans to Increase Pulping Capacity to 1,00,000 TPA

Orient Paper Reported a Record Profit of INR101 Cr. for FY18-19, Plans to Increase Pulping Capacity to 1,00,000 TPA

Bhubaneswar | 15 July 2019 | The Pulp and Paper Times:

Hygiene habit in India is turning profitable for Paper Mills. Increased consumption of Tissue paper is pampering more capacities in tissue production. “We intend to retain our leadership in India's tissue paper niche and plan to expand related capacity once our pulp mill expansion is close to completion,” said Mr. C.K. Birla, Chairman (In above picture) of Orient Paper & Industries Ltd during 83rd Annual General Meeting (AGM) for FY 18-19.  

After registering a record profit of INR 101.65 Cr. in FY 18-19, which is almost double to the previous year, Orient Paper is also determined to increase its pulping capacity to 1,00,000 TPA with a total capital outlay of Rs. 225 Cr. 

“Orient Paper is undertaking an expansion project at a cost of Rs. 225 cr to expand its pulping capacity and expects this investment to yield a ROCE of over 20%. This will also pave the way for further expansion of our Tissue paper production capacity. This project should get completed around the 4th quarter of 2020-21. Most of this investment is expected to be funded from internal accruals, and this expansion will also reduce coal consumption and power costs,” Mr Birla said in the Annual Report.

“When the total Indian tissue paper market was only 3000 tons a year, Orient commenced tissue paper production with an annual capacity of 10000 tons and has gradually expanded its tissue paper capacity to 50000 tons a year. When most industry observers felt that Indian tissue paper makes would, at best, remain, domestic players, Orient Paper embraced the challenge. We developed high strength towel grades (inter-fold, kitchen towel, bath tissue etc.), quality facial and toilet grades. We began to prospect and develop global markets to export 50% of our tissue paper output to a number of countries today with repeat business derived from happy customers,” Mr. Birla said.

Mr. Birla further described that “At Orient Paper, our efforts to 'enhance' made it possible to moderate operating costs, increase competitiveness and generate additional profits. We embarked on an ambitious plan a decade ago to enhance resource security and reduce resource procurement costs. Even as this approach looked particularly long-drawn and challenging, we kept the faith. A large portion of our major resource needs is now serviced from within a radius of 200 kms from our manufacturing plant. The result is a progressively lower delivered cost, enhancing our competitiveness and profitability. During the year under review, we enhanced efficiencies through debottlenecking initiatives, which translated into higher capacity utilisation and lower costs,”

Orient Paper is making a meaningful contribution to the promotion of a green environment through social forestry under which it has planted 1 crore trees in FY18-19 and intend to gradually increase this to 2 cr trees per year. 

Web Title: Orient Paper Reported a Record Profit of INR101 Cr for FY18 19 Plans to Increase Pulping Capacity to 1 00 000 TPA