Astron Paper faced challenges in exporting the finished goods due to volatile International market

Astron Paper faced challenges in exporting the finished goods due to volatile International market

-Sales volume and sales price could not be met out as compare to earlier years

The Pulp and Paper Times

Incorporated in 2010, Astron Paper and Board Mill Limited (APBML) is one of the largest recycled corrugated paper manufacturers in India. The company brings together three manufacturing units with four paper machines at three different and strategic locations in Gujarat, India with an industrial capacity of approximately 222 thousand tonnes annually.

Astron Paper has reported a net loss on account of market volatility and escalation over raw materials and ancillary material prices during the last financial year( FY 22-23), raw material prices were soaring very high as against Sales prices due to downtrend in the paper industry, demand for Kraft paper at international market is also volatile due to which we have faced challenges in exporting the finished goods so that sales volume and sales price could not be met out as compare to earlier years, underutilization in the production capacity because of Boiler modification and Turbine upgradation and adverse foreign currency fluctuations.

 “At Astron paper, we have firmly rooted ourselves in the Kraft Paper and packaging space and aspire to continue our strong growth momentum over the next couple of years and remain focused on growing operating and profitability margins. The government initiative on plastic ban will increase the demand of Kraft papers & we are confident that in upcoming period the demand for Kraft paper will be strong and increasing from new applications like Groceries, E-commerce for packaging and shipping. The rapid growth of e-commerce has further propelled the industry forward, as corrugated boxes and packaging materials are essential for shipping and delivery in the online retail sector. Factors such as population growth, urbanization, and evolving consumer preferences have contributed to this rising demand,” Said by Mr Kirit Patel Chairman & Managing Director of Astron Paper and Board Mill Limited in the annual report for FY 22-23

He further said, “India continued to be one of the fastest growing major economies of the world, despite economic volatility and high inflationary pressure in many advanced countries of the world, the Government of India's sustained focus on boosting the manufacturing, services and infrastructure sectors and RBI's prudent monetary policy to curb inflation have resulted in robust economic growth in FY 2022- 23.”

The report states that the domestic paper industry witnessed encouraging growth during the year, driven by rising demand for all types of paper products across various sectors such as education, FMCG, packaging, pharma and e-commerce. This momentum is expected to continue in the coming year as well. The paper industry has witnessed substantial growth over the years due to several factors. There is an increase in demand for paper products, including packaging materials, stationery, and specialty papers. Factors such as population growth, urbanization, and evolving consumer preferences have contributed to this rising demand.

Operational performance of Astron Paper:

During the financial year ended 31st march, 2023, your company has achieved on standalone basis an operational revenue of INR 39,473.39 lakhs as compared to INR 51,283.33 lakhs in the previous financial year and the loss after tax is INR 2,070.44 lakhs as compared to profit after tax of INR 868.30 lakhs in the previous financial year and on consolidated basis loss after tax of INR 2,394.67 lakhs as compared to profit after tax of INR 811.04 lakhs in the previous financial year.

During the Previous Financial, Astron Paper has gone into Boiler modification and Turbine upgradation. With the help of upgradation & modification there is huge savings in fuel cost as expected? Requirements of power units from Outsiders get reduced and due to modification, we are generating more units from turbine as well. Earlier steam generated from turbine was not utilized properly but now onwards it is utilized fullest & used in dryer for production of finished goods.
 

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