'Fiber to Container’: Astron Paper is aiming to improve and change wastepaper collection/recycling and recovery mechanism in India

'Fiber to Container’: Astron Paper is aiming to improve and change wastepaper collection/recycling and recovery mechanism in India

-    Total Revenues for FY 2021-22 was Rs 512.83 crores compared to Rs. 435.18 crores in the previous year.
-    Profit before Tax (PBT) for the FY 2021-2022 is Rs.13.93 crores as against Rs. 14.74 Crores which slightly dipped down by 5.50%.
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Ahmedabad | 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, is aiming to improve wastepaper recycling industry via backward integration by collecting waste paper from local vendors.

Describing more on APBML’s planning for waste paper, Mr Kirit Patel, Chairman & Managing Director said in the annual report of company for FY 21-22 that Astron Paper is aiming to improve and change wastepaper collection/recycling and recovery mechanism in India like other countries and want to make it organized business structure. Thus, company is also planning to start backward integration to fulfil its vision 'Fiber to Container' by taking sheds on lease at Odhav, Ahmedabad, Gujarat and Changodar, Ahmedabad, Gujarat for waste collection from local vendors, malls, industries etc. which will be ultimately used at our plants for Kraft Paper production purpose. With this, company will be able to control quality of local wastepaper, consistent supply chain, quantity, and pricing.
He further said, “Currently, Wastepaper recycling industry is working in an unorganised way. We aim to give structural changes to the industry at large following industry norms and applicable laws of the country. The Company also seek to develop in-house strategies like foreign paper mill; which can help us to convert fibre to containers. This will lead us to make all possible arrangements including forward and backword integration at one point of time.”

Astron Paper is also planning in the year 2022-2023 to modify the Boiler and replace the Turbine for improving the production efficiency. The Budgeted expense in this activity will be around INR 4 Crores. company has received the environment clearance certificate from Gujarat Pollution Control Board for setting up of 10 MW Captive Power Plant. However, considering the uncertainty in market due to pandemic the company has decided to take the decision of setting power plant in future at appropriate time.

On the financial front, Mr Patel says, that As we all know, our company continued to strive for stability, during the FY 2021-22, company has recorded performance by achieving highest total revenue of INR 512.83 Cr., increased by 18% as compared to the previous year and maintained revenue CAGR of 22.85%. However, the production and sales volume has declined by 15% as compared to previous year due to market challenges. This result is driven by our consistent efforts, continuous technological advancements, quality product and huge base of satisfied customers. We are constantly looking for growth opportunities in the manner most beneficial to all the Stakeholders.

Total Revenues for FY 2021-22 was Rs 512.83 crores compared to Rs. 435.18 crores in the previous year. During the year company has achieved sales volume of 136,287 tons as against 160,113 tons which is declined by 15%. The decline in the Sales volume is majorly because the demand for the product was unstable and second wave of COVID. In addition to it the competition has increased in the market whereby the market share of the got distributed. 

Profit before Tax (PBT) for the FY 2021-2022 is Rs.13.93 crores as against Rs. 14.74 Crores which slightly dipped down by 5.50%. Apparently, the reduction in the profit was mainly due to cost pressure faced by the company because of steep increase in the prices of its main raw material i.e. Waste Paper and Coal.

Astron Paper is going to constitute a separate Research and Development team, which will find new ways to replace banned plastic products and take care all possibilities of various other uses of packaging paper at large. By doing this, company is going to contribute in environment safety and maintenance.

On the Infrastructure front, Astron has invested diligently and consistently to establish some of the best production facilities in the industry. Currently we have four high-speed and high-quality production lines at three strategic locations in Gujarat, India.

The report stated that paper and paper board plays a vital role in the economic growth of our country and expected to grow in coming years due to increase in economic activities. Moreover, to combat pollution, Government of India has planned to ban single use plastic products effectively from 1st July 2022. With the ban on single-use plastic products, paper-based products will see bullish trend with increase in demand of products such as paper cups, paper bags, paper plates, etc. Also, consumer awareness regarding sustainability, use of eco-friendly products, replacement of plastic, booming e-commerce retail growth are big boosters for the demand of packaging paper and paper board. This will result in the boost of pulp and paper industry in near future

Recycled packaging paper was always the most significant part of Indian paper production The rise in demand for packaging papers in various end-use industries, such as food & beverages, building & construction, cosmetics & personal care, automotive, and consumer durables, e-commerce is a key factor that is projected to drive the growth of the packaging paper market across the globe. The packaging paper market is projected to grow from USD 15.6 billion in 2019 to USD 18.7 billion by 2025, recording a CAGR of 3.0% during the forecast period (Source Niir Project Consultancy Services (NPCS)). Major challenges confronting India's pulp and paper industry are high cost of production caused by inadequate availability and high cost of raw material, power cost and concentration of mills in one particular area. Wastepaper collection / recycling and recovery mechanism is not very strong in the country and largely in totally unorganised sector and recovery rate is very low at around 38%. Industry majorly absorbing this cost internally and not passing to the end users.
 

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