Rama Pulp & Papers Proposes to Put One More Paper Machine to Increase the Capacity by 35 Percent

Rama Pulp & Papers Proposes to Put One More Paper Machine to Increase the Capacity by 35 Percent

Mumbai | 3 January 2020 | The Pulp and Paper Times: 

After registering a splendid 54% growth in net profit for the FY 18-19, Rama Pulp & Papers seems motivated to tap the market opportunities and it has decided to invest in one more new paper machine for increasing the production.

As per the annual report of the company (FY 18-19), the revenue of the company increased to Rs. 13761 lakhs from Rs 12047 Lakhs in the previous year registering a growth of 14.23% over the previous year. The Profit after tax for the year was Rs 378 Lakhs as compared to Rs 246 Lakhs during the previous year i.e. an increase of 53.69 % on account of increased profitability.

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“Looking to the surge in demand due to wider acceptability of the products of the company in domestic as well as global markets, we propose to put one more paper machine to increase the capacity by 35 % i.e. about 30 TPD. Further, the Company plans to bring down the cost of power by investing in the solar power plants as well as by installing an efficient boiler with a turbine,” Mr. Ramniklal Salgia, Director, Rama Pulp & Papers Ltd. said in a report.

In line with the growing demand, Rama Pulp & Papers had modernization and capacity enhancement program with the addition of sophisticated quality control Instruments leading to improvement in quality parameters. This has already led to an increase in production capacity from earlier 45 TPD to 60 TPD. Further increase in production capacity to 80 TPD is underway. This modernization has also brought huge energy savings in the form of reduced intake of steam due to an efficient condensation system.

During the year, the company also launched a new kraft Paper for Paper Bags, visualizing the growth in demand for Paper Bags due to global discouragement for the use of plastic bags. The fast-growing demand for this product is all set to put our Company remarkably on Global Business Map of environmentally friendly products. Prime Minister Modi has embarked upon a complete stoppage of one-time plastic use by 2nd October 2019. This movement of his will be a great boon for the Paper bags industry.

Mr. Salgia further added the  “Rama Pulp grew its Exports to countries like Saudi Arabia, Middle East, Turkey, Thailand, and China. Additionally, the company is also targeting to make inroads into Global leading laminate company's such as Formica, Wilson art, Gentas, and IKEA. The company also had stable business with leading brands in Domestic Markets like Marino Panels, Green Ply, Century Ply, Olympic laminates, etc.

“Our colour tissue product is being increasingly accepted in the global markets. The primary

markets for this product besides the domestic market are China, Hong Kong, Indonesia, Europe, USA, and South American countries. These products are supplied to Mega-stores in India and many overseas outlets of Wal-Mart and K-Mart,”

Amalgamation

The Board of Directors of the Company have approved the Scheme of Arrangement and amalgamation between Nath Pulp and Paper Mills Limited and Nath Industrial Chemicals Limited and Rama Pulp and Papers Limited and their respective Shareholders as per the provisions of Section 230 to 232 and other relevant provisions of the Companies Act, 2013 (“Scheme”) on 30.10.2017.

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