Orient Paper made significant strides by introducing multiple new product categories in WPP segment, and enhancing its presence in micro markets

Orient Paper made significant strides by introducing multiple new product categories in WPP segment, and enhancing its presence in micro markets

- Collaboration with the world's leading technology providers enabled Orient Paper to successfully develop the capabilities for producing a wide range of products, 
- Announcement of INR 475 cr. capex

- Planning to develop new products on Main Machine,Tissue paper machines and Specialty Paper Machine to enrich the OPM products basket
- Developed Cup stock paper-140 gsm successfully after conducting several R&D studies in lab
- In FY23, our WPP sales experienced a commendable growth rate of 9% compared to the previous fiscal year (FY'22)

The Pulp and Paper Times: 

For over eight decades, Orient Paper & Industries Limited (OPIL) has remained at the forefront of India's paper manufacturing industry, setting new benchmarks for product excellence, business ethics, and social responsibility. With a rich Group legacy, a diverse range of products, a global presence, and an unwavering commitment to purpose-driven business, OPIL continuously push boundaries and shape the future of the industry. 

In his message to shareholders, Mr Ashwin Laddha, MD & CEO at OPIL, said , “The financial year 2023 was a year of transformative actions for Orient Paper. A year of achieving financial turnaround guided by strong core values. A year of laying a solid foundation for a sustainable growth ecosystem and a year of demonstrating resilience with responsibility. FY 2022-23 will go down in the history of Orient Paper as a year dedicated to building a sustainable, scalable, and competitive business model by fostering agility and resilience throughout the ecosystem.

He further said, As we achieved record-breaking profits, we further committed to pursue significant investments in shaping our future. We dedicated our time, energy, and resources to redraw a growth path with sustainability as the core pillar and the ecosystem as our canvas.

“In FY 2022-23, we saw a healthy increase in both volume and margins, despite mounting uncertainties. In comparison to FY22, in FY 23 our revenue increased by a strong 61% to 943 Cr., and our EBITDA increased by 24 times. Continuing with our expansion mode, our CAPEX in FY23 was INR 130 Cr. and we are committed to a CAPEX of INR 475 Cr. in the times to come” He informed.

Mr Laddha added, “This strategic shift was accomplised by reimagining our product mix. Collaboration with the world's leading technology providers enabled us to successfully develop the capabilities for producing a wide range of products, notably rising up from 80 GSM to 140 GSM cup-stock for the first time ever.

In FY23, we launched six new products in the Tissue and WPP segments, unlocking value across the demand chain and creating new market opportunities for our partners. We also strengthened our R&D team and capabilities which has resulted in developing capabilities for launching 8 new products to our portfolio for the future”

Paving the way for Industry 4.0, we have actioned the implementation of a closed-loop AI-ML-based manufacturing and process excellence strategy. This transformation will exponentially enhance the company's agility and efficiency.

Opening doors to innovation for the WPP segment:

In the WPP segment, company made significant strides by introducing multiple new product categories and enhancing its presence in micro markets. These efforts have resulted in consistent strong order book positions and the ability to command premium pricing. In FY23, our WPP sales experienced a commendable growth rate of 9% compared to the previous fiscal year (FY'22). Furthermore, we successfully commercialised several new products, including cartridges, cup stock, pulp board, ice-cream paper and cover paper. This diversification expanded our product portfolio and contributed to our growth.

Reinforcing Responsibility

While adding numbers to the bottom line is important, it is equally important to consider the number of lives you empower and the amount of land you revitalize. Orient Paper is not only achieving global benchmarks in its business operations but also striving for global standards in ESG (Environmental, Social, and Governance) principles. By championing a unique ecosystem-led approach through our outreach programme in collaboration with several NGOs, FPOs, Micro-Finance companies and government agencies, we will be working towards positively impacting 1,089 villages and empowering 1,000 Self-Help Groups (SHGs) estimated to benefit over 10,000 women. Our actions will not only lead us to meet the targets set by the United Nations Sustainable Development Goals (SDGs) far ahead of the timelines but also set new benchmarks.

To reduce the ecosystem's carbon footprint and promote soil and water conservation, we have developed a roadmap with specific timelines to achieve a net carbon-negative status and a water-

Developed Cup stock paper-140 gsm successfully after conducting several R&D studies in lab to get the perfect premutation and combination for cup stock paper suitability and then manufactured on the main machine .This would be a good opportunity for productivity enhancement.

COMPANY’S PERFORMANCE
The year under review saw ~1.6x revenue growth effected by strengthening the core, developing robust supply chain to scale the business, identifying opportunities for unlocking its full potential, engaging with customers and the value chain to discover new opportunities for Value Added Products. Additionally, the company has started the foundational work to emerge as a Sustainability leader by having a 360-degree approach, starting from developing an innovative & exhaustive outreach program to embarking on its sustainable energy transition to laying the foundation for Orient to become a digital company over next 36 months to leverage the power
of AI&ML.

Our Company has achieved a significant milestone by commissioning our New Recovery boiler in FY’23, commercialized several new Value-Added Products, established robust supply chain partnerships, transitioned ~40% of power needs to grid, achieved highest ever direct plantations in local catchment area (6395 acres) and integrated ESG as a core element to fuel the next phase of our business strategy.

On the operations side, OPM has established strong partnerships with several tier-1 technology providers for enhancing efficiency, improving reliability of operations and building a roadmap for debottlenecking capacity. The outcome of our engagements led to creation of a detailed roadmap for d-bottlenecking & modernisation of our capacity which formed the basis of our announcement of INR 475 cr. capex in March’23. towards enhancing efficiency, improving reliability of operations, and de-bottlenecking capacity.

Future plan of action:
-Planning to develop new products on Main Machine,Tissue paper machines and Specialty Paper Machine
to enrich the OPM products basket.
-Planning for the development of laid paper as new product development.
-Planning to start the Eucalyptus peels in the raw material, furnish mix to develop the alternate source
of raw material.
-Research work will be continued to work out and implement other new emerging technologies for the
benefits of the pulp & paper industry.
-Upgradation of the pulp mill to enhance the pulp production capacity.
-Upgradation of the bleaching section from conventional bleaching to ECF bleaching to improve
the pulp quality.

PERFORMANCE FOR THE FY 2022-23
Our turnover for the year was higher at INR 942.96 crores compared to INR 585.65 crores last year. Our net profit after tax was INR 99.25 crores this year. We invested INR130 crores on capital projects during the year.

TISSUE: 
Tissue category continues to grow at a healthy rate of over 13%, this also attracts the attention of traders for imports at one end and domestic recycled tissue manufacturing on the other end.

In FY 22-23
- tissue sales grew by 15 % as compared to FY’22
- pricing vs competition in all micro markets remained 2% higher.
- onboarded 8 new customers.
- volumes with key customers grew by 53%.
- volumes in target micro markets grew by 9% in North, 28% in West and 32% in South.

WRITING & PRINTING:
In the W&P segment, the company added several new product categories and worked towards increasing its relevance in the micro markets which led to a consistently healthy order book position and realisation of premium pricing.

In FY’23:
- WPP sales grew by 9 % as compared to FY’22.
- pricing vs competition in all micro markets remained ~4 % higher.
- commercialised several new products like cartridge, cup stock, pulp board & cover paper.
- volumes with key customers grew by 37%.
- volumes in micro markets grew by 11% in East UP, Delhi-NCR, 14% in MP- CG region.
- added 8 new customers and 2 new markets for VAP.

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