Satia Industries plans to expand its production from the current level of 600 TPD to 700 TPD by modernizing PM-3

Satia Industries plans to expand its production from the current level of 600 TPD to 700 TPD by modernizing PM-3

-Modernization Based on PM 4 Success to Drive Over 16% Production Growth and Lower Energy Costs

The Pulp and Paper Times:

Satia Industries Limited (SIL), located in the District of Muktsar, is one of India’s leading Wood and Agro based paper manufacturers, with a completely integrated manufacturing setup with 4 paper machines, 100% in-house power generation. In FY22, the company added a 4th state of the art paper machinery to its production facilities with a capacity of 100,000 MTPA. With a diverse Capex program to modernize and scale up its capacities, SIL now has a total installed capacity of 2,19,000 MT in FY24.

SIL was able to achieve increased production volume of 2.14 lac tons and despite a reduction in sales realisation of almost 9% over the previous year; Satia Industries  achieved a topline of Rs. 1736 crore and an increased PAT of Rs. 211 cr against Rs.192.17 crores in the financial year 2022-23. 

“Our team is committed to maintain this healthy trend by way of adopting new technology both in paper and pulping, optimisation of various inputs, almost 100% shifting to rice straw as fuel, improving quality and introducing new varieties of Surface sized paper on PM4 and increasing our presence in Photocopier segment, thus broadening our customer base further,”

“Your company is also making plans to modernise PM 3 based on our experience of PM4 in the next financial year which shall lead to higher productivity and production along with cost reduction resulting from lower steam and energy requirement per ton of paper and better quality product. We plan to expand our production from existing level of 600 TPD to 700 TPD – a substantial increase of over 16 %.” Mr. Ajay Satia, Chairman Cum Managing Director of Satia Industries Limited said in the annual report for FY 23-24.

“Our key strategic investments, including the PM3 capacity expansion and the new recovery boiler for enhanced energy efficiency, are critical steps that will position us for robust growth in FY27. Backed by a healthy order book and a strong balance sheet, we are dedicated to maximizing stakeholder value for the long term.” Mr. Chirag Satia, ED, said during the financial results out for Q4 FY25.

He further added, that “During FY25, the Indian paper industry faced notable challenges, particularly the impact of elevated paper imports on our sales and overall margins. Despite this external pressure, Satia Industries successfully maintained stable volumes, a testament to our strong distribution network and institutional ties.

Satia Industries anticipates a rebound in margins in FY26 as pricing pressures subside and raw material costs stabilize.

Mr. Satia further stated that Industry is facing a tough time because of abnormal dumping of paper from ASEAN countries at zero duty with a massive 142% increase in imports from these countries alone. Poor availability and high prices of wood and prohibitive price increase in both soft and hard wood pulp prices is a big challenge to the industry. However, your company plans to meet this challenge by using more of agricultural residual based pulp and cheaper rice straw fuel and maintain our margins despite pressure on the product price as well.

Our Performance for FY 23-24 

Our Company recorded a turnover of Rs 17,208 Mn. Net Profit for the year 2023-24 stood at Rs 2,112 as against Rs 1,922 Mn in the previous year. SIL during the year prepaid term loans of Rs. 467 Mn over and above the repayment of Rs. 1,283 Mn

Developments at Satia Industries in FY23-24

During the fiscal year, our company successfully completed a comprehensive modernization of all six digesters, thereby finalizing our backward integration process. This significant achievement is expected to yield substantial benefits in the upcoming fiscal year through reduced steam consumption and enhanced wood pulping efficiency.

Capacity expansion

Satia Industries Limited has significantly invested in enhancing its wood pulping capacity from 160 to over 300 tonnes. With this, the company has reduced reliance on wheat straw pulp, optimized steam consumption, and achieved substantial cost savings. This backward integration has progressed significantly, with 50% completion in FY23.

The company has successfully implemented a new pulping process, enabling continuous production and reducing steam usage by 50%. Additionally, replacing wastepaper pulp with wood pulp has resulted in significant cost savings. Given the decline in international hardwood pulp prices, SIL is considering incorporating imported pulp into its operations.

These advancements have positioned SIL to supply 100% in-house wood pulp, enabling the production of higher quality Maplitho paper. This product expansion is expected to increase average grammage and optimize machine capacity utilization.

To further strengthen its operations, the company is installing a new soda recovery boiler and planning to upgrade its PM3 machine. These investments aim to enhance production capacity, optimize energy consumption, and drive overall profitability.
 

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