Pudumjee Paper Products Drops The Relocation Plan of Its Manufacturing Facility

Pudumjee Paper Products drops the Relocation Plan of Its Manufacturing Facility to Mahad; Net Profit Dips by 12 Percent In FY 18-19

Pune | 27 December 2019 | The Pulp and Paper Times:

Having established itself as pioneers in Specialty Paper products and preferred supplier of quality products in India, Pudumjee Paper Products has dropped its plan for relocation of PM-1 and PM-2 to Mahad location in Maharashtra. The Company is poised for growth with its wide range of Products but progressive urbanization around the factory site restricts future growth prospects.

“Pudumjee Paper Products has already invested in large industrial site admeasuring about 75 acres at MIDC, Mahad in Maharashtra State which would offer future growth opportunities. The Company is examining options in regard to the manufacturing of new products besides the proposed relocation of existing machines from Pune to Mahad, evaluating market growth potential, and required high investment. Mahad location already offers State Government incentives corresponding to the capital expenditure,” as stated in the Annual report for FY 18-19.

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Talking exclusively to The Pulp and Paper Times, Dr. Ashok Kumar, Executive Director of Pudumjee Paper Products Ltd. said that “yes it was our plan to relocate the whole plant and machinery to the new site, but practically it's not possible for us as there are some issues, so we dropped the plan." 

The manufacturing capacity of Pudumjee is 60,000 MT per annum comprises of 2 state of the art fourdrinier specialty paper machines supplied from Voith Sulzer Germany which is updated from time to time with a current capacity of 38000 MT per annum and 2 Yankee Machines with a combined capacity of 22,000 MT per annum for production of crepe tissue products, M.G. Papers, and other specialty products. The paper machines, equipped with on-line quality control systems can produce a wide range of products from 17 gsm to 100 gsm basis weight, with an ability to go even higher.

The Company has two business divisions, namely, 'Paper Division' and 'Hygiene Division'. The Paper Division manufactures Specialty Papers and markets them throughout the country and exports small quantities. These products comply with special requirements of the customers for application in Packaging of Food products, those require oil and grease resistance, papers for industrial application, household, and personal hygiene application meeting requirements in daily life.

Performance in FY-18-19

During the year Pudumjee has achieved a turnover of INR 589.52 Crores (Previous year INR 506.23 Crores) resulting in EBIDTA at INR 40.83 Crores (Previous year INR 45.68 Crores) and a Net Profit after tax & other Comprehensive Income at INR 17.12 Crores (Previous year INR 19.51 Crores).

“The Company's turnover having an overall growth of 16% due to increased sales volume and price increase which could partly absorb the escalating Global Market pulp prices thus reducing EBIDTA by 10.6% & Profit by 12.3%. By the year-end, softening trend in pulp prices and judicious steps taken to optimize furnish mix by substituting partly with high-quality recycled fiber are, barring unforeseen circumstances, expected to improve the profitability,

“Worldwide Market Pulp availability during the FY 18-19 remained tight pushing up the pulp prices by about ` 1,000 - 12,000/- per M.T. This happened apparently due to changes in the policy in China restricting the import of Waste Paper thus increasing demand of Market Pulp. Its impact through an increase in our product prices could not be fully neutralized. Therefore, despite the increased output of paper, total contribution and profits were adversely affected,” Annual Report stated.

Pudumjee also undertook three other projects during FY 18-19- (i) up-gradation of coal-fired boiler from 30 T/hr to 35 T/hr steam generation to meet the demand for higher paper production (ii) PM-2 up-gradation by installing silent drives to increase machine speed and thus higher production in certain grades. (iii) Installation of size press on PM-1 to improve the quality of products and flexibility of switching over some products from PM-2 to PM-1.

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