Kraft Paper demand to pick up in upcoming months, volatility in export market, customers' reluctance to increase price; Astron Paper reports INR 303 Cr revenue for 9 Months ended Dec. 22

Kraft Paper demand to pick up in upcoming months, volatility in export market, customers' reluctance to increase price; Astron Paper reports INR 303 Cr revenue for 9 Months ended Dec. 22

- Raw material prices are in the last 2 or 3 quarters soaring very high as against this, the Sales prices are to match up or increase.

- Challenges in exporting the finished goods recently due to freight prices and other constraints of Shipping Lines

- Demand for Kraft paper will be strong and increasing as the demand for kraft paper will be more in industries like Groceries, E-commerce for packaging, ceramics etc

Ahmedabad | 15th Feb 2023 | The Pulp and Paper Times

One of the largest recycled corrugated paper manufacturers in India, Astron Paper and Board Mill Limited (APBML) reported a total Revenue for the nine months ended were Rs. 303.19, down by 17.97% YOY vs Rs.369.62 crores reported in Corresponding Nine months ended December 31, 2021 in the previous year. The company has reported Net Profit/(Loss) after Tax of Rs. (22.56 Crores) in the 9 months ended December 31, 2022, as against profit after tax of Rs. 7.93 Crores in the 9 months ended December 31, 2021 in the previous year.

“In the current scenario, the raw material market, International and Domestic market for Waste Paper is highly volatile and un-predictable. Raw material prices are in the last 2 or 3 quarters soaring very high as against this the Sales prices are to match up or increase. Due to decline in regular exports, the sales volume and sales price what the company was getting in the earlier quarters, the same could not be meet out in the recent quarters. However, the company is hopefull to regain it’s position in export market as well. There is a reluctance from the customers of accepting any increase in the sales prices. Further, post Covid impact and the prevailing Russia-Ukraine War is also one of the a factor resulting in an increase in the shipping cost.” Astron Paper and Board Mill stated in its press note.

APBML admits that it is facing challenge in exporting the finished goods recently due to freight prices and other constraints of Shipping Lines. Morever, the demand for kraft paper at international market is also volatile. However, company’s dedicated Marketing team is geared up to focus on the targeted Market at domestic as well as International level.

APBML’s strategy is to increase export of finished goods to fetch the required sales price what it was earning when the fluctuation in export was there. To sustain in the competitive market and to overcome cost of raw material, shipping cost and other expenditure, increase in export sales will play a major role.

“Due to International downtrend in the paper industry sales price seems to be highly fluctuating in the local as well as global market and in order to compete the market, the Sales prices needs to be adjusted which can be done gradually. However, APBML is confident that in upcoming months the demand for Kraft paper will be strong and increasing as the demand for kraft paper will be more in industries like Groceries, E-commerce for packaging, ceramics etc.” the press note said. 

Astron Paper has carried out necessary upgradation and modification in the boiler and turbaine located at Halvad plant,with this upgradation, it will result in reduction of fuel cost, reduction in electricity and will enhance productivity, overall it will help us to maintain better environment.

“Considering the tough market conditions due to high input costs we are happy to share that we remain afloat in this tough unprecedented time too . This was possible with focus on enhancing our internal efficiency and marketing our products meritoriously,” the management says in the press note. 
 

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