Several agile interventions helped ITC-PSPD fortify its clear leadership of the Value Added Paperboards (VAP) segment

-ITC- Paperboards, Paper & Packaging division reports total revenue INR 5619 Cr for FY-20-21 and PBT stands at INR 1099 Cr for the year ended on 31s march 2021 | Robust demand for Décor papers and lower imports from China | Sustaining position as the leading supplier of FSC-certified paper and paperboards in India

22nd July 2021 | The Pulp and Paper Times: 

Global demand for Paper & Paperboards in 2020 witnessed degrowth of 12% on account of the pandemic. The decline was sharper in Writing & Printing Paper and Newsprint segments due to reduced circulation of newspapers and closure of educational institutions and commercial establishments. End-user industry segments such as essential consumer goods, Pharmaceuticals, Food Service and e-Commerce are expected to drive demand for Paperboards going forward.

ITC-PSPD responded with agility ensuring expeditious commencement of operations ahead of competition, deployment of tactical interventions in the domestic market through introduction of new products, leveraging superior distribution infrastructure and capitalising on deep engagements with end-users & large convertors. Quick Service Centres (QSCs), strategically located proximal to large markets, also played a critical role in the swift resumption of operations and minimised supply discontinuity. These interventions helped your Company in fortifying its clear leadership of the VAP segment and in consolidating its preferred supplier position amongst leading end-use customers and brands. Robust growth in export volumes partially mitigated the drop in domestic demand. Recently, the Bhadrachalam unit augmented its VAP capacity by 45000 TPA which will further strengthen its market standing. The additional capacity is expected to be fully deployed in FY 2021-22.

In line with its pursuit of providing sustainable packaging solutions to customers, ITC-PSPD launched antifungal soap packaging paper designed to replace single use plastics. The Business scaled up its sustainable products portfolio comprising recyclable paperboards, ‘FiloPack’ and ‘FiloServe’ for the food delivery and food service segments respectively and biodegradable paperboards, ‘OmegaBev’ and ‘OmegaBarr’, which are alternatives to plastic coated containers, cups and other deep freeze applications. Your Company is actively engaged in developing suitable paper/paperboards as well as barrier-coated substrates that can replace single use plastics. Your Company is also a leading player in the eco-labelled products segment and premium recycled fibre-based boards space. Further, the Business has also developed antiviral paper for applications in pharma and education & stationery businesses which is in the process of commercialisation.

In FY 2020-21, the Specialty Papers segment delivered strong performance supported by robust demand for Décor papers and lower imports from China. Further, uninterrupted supply to pharma segment aided by an agile supply chain amidst disruptions in the industry helped in fortifying its market standing. During the year, the Director General of Trade Remedies initiated anti-dumping investigations on décor papers imported from China. Appropriate policy interventions to encourage higher level of import substitution will help realise the full potential of this sector.

ITC-PSPD continues to make structural interventions to reduce operating costs and dependence on imported pulp. Significant increase in in-house pulp production was achieved during the year through strategic interventions, Industry 4.0 initiatives and improved wood mix. Capacity utilisation of Bleached Chemical Thermo Mechanical Pulp mill (BCTMP) at the Bhadrachalam unit touched a record high. Initiatives such as bund plantation and scaling up plantations in new core catchment areas in Odisha (Malkangiri) and Chhattisgarh are expected to secure cost-effective access to fibre.

. In recent years, ITC-PSPD has made deep investments in Industry 4.0 technologies which have yielded substantial benefits in the form of higher process efficiencies, productivity enhancement, improved resource utilisation and cost reduction. Several initiatives anchored on AI/ML and advanced analytics are underway to drive structural advantages across the manufacturing and supply chain. 

The Industry 4.0 Centre of Excellence (CoE), established to build in-house capability in new technologies and for sustaining the benefits, is focusing on the development of new systems/platforms for archiving learnings and conducting structured and comprehensive training programmes for developing a critical mass in the Business.

                     

ITC has the distinction of being the first in India to have obtained the Forest Stewardship Council-Forest Management (FSC-FM) certification, which confirms compliance with the highest international benchmarks of plantation management across the dimensions of environmental responsibility, social benefit and economic viability. Till date, Company has received FSC-FM certification for close to 100,000 acres of plantations involving over 23,500 farmers. During the year, over 195,000 tonnes of FSC-certified wood were procured from these certified plantations. All four manufacturing units of the Business have obtained the FSC Chain of Custody certification and have complied with all the requirements during the year, thereby sustaining ITC’s position as the leading supplier of FSC-certified paper and paperboards in India.

The above views are taken from ITC’s annual report for FY 20-21