Genus Paper & Boards has undertaken a backward integration project for pulp production and plans to diversify into WPP, white, & cupboard

Genus Paper & Boards has undertaken a backward integration project for pulp production and plans to diversify into WPP, white, & cupboard 

-Genus Paper has taken proper steps to ensure the smooth continuation of operation in respond to any unexpected events in the future
-GPBL deviates itself from sole dependence on packaging and duplex
-GPBL use the virgin pulp and the best grades of recycled paper for our production in both the units situated at Moradabad and Muzaffarnagar

The Pulp and Paper Times

Incorporated in 1996, Genus Paper & Boards Limited (GPBL) is today one of India’s leading manufacturers of industrial Kraft Paper, Duplex Board & Writing and Printing Paper as well. An integral part of the Kailash Group, the Company has its business prominently into Kraft Paper, Duplex Board & Writing and Printing. It has two manufacturing facilities at Moradabad and Muzaffarnagar.

The Moradabad facility has two waste paper-based manufacturing plants of Kraft Paper within the factory premises. The Muzaffarnagar facility has three manufacturing lines comprising of one writing & printing paper, one duplex and one multi-paper product unit to produce speciality kraft papers, duplex boards, writing & printing paper and other speciality papers.

In his message to shareholders, Mr. Ishwar Chand Agarwal, Chairman of GPBL, stated in the annual report for FY 23-24 that type which includes folding cartons, corrugated boxes and other product types and by end-user industry such as food, beverage, healthcare, personal care and household care, hardware and electrical products and other end-user industries and the market studies shows the demand for paper and paperboard packaging products like folding cartons, corrugated boxes, and others, which are frequently used for packaging food and beverage products, such as juices, milk, and cereals. Over the last many quarters, the Kraft Packaging industry has faced challenges on excess supply front due to diversion of exports supply to domestic supply leading to pressure on Net sales realization coupled with increase in input costs.

“We, at Genus, are focusing more on upgrading our technologies and improving our machines which will further bring more value to the products to be ahead of our competitors in future and for this, we need to constantly upgrade it if, we have to move ahead of time. We use the virgin pulp and the best grades of recycled paper for our production in both the units situated at Moradabad and Muzaffarnagar, respectively. The Company has during the year commenced the production of writing and printing paper at one of its machine line which gave an edge to the Company by diversifying the product line,” Mr. Agarwal informed.

The Kraft Paper industry during last many quarters has witnessed a supply excess situation in India due to many internal and external factors beyond control. Genus Paper & Boards has taken up a project for backward integration for producing pulp for WPP products and improving the quality factor in other products too by invested in machinery for pulp making section and focused on automation. India is a growing country and if this kind of growth persists in the near future, then packaging and WPP will certainly have a huge requirement. 

“We are now in the process of implementing several new initiatives to further strengthen the Company and expand more. These are expected to result in significant additional improvements in the coming couple of years,

“You will be reassured to know that Genus Paper has taken proper steps to ensure the smooth continuation of operation in respond to any unexpected events in the future and took all possible cost control measures across the organisation, mainly to preserve liquidity. With these steps, the Company has emerged to meet its business commitments and financial obligations and further plans to diversify into writing/printing/white/cupboard, etc. to deviate itself from sole dependence on packaging and duplex,” Mr. Agarwal added.

Performance in FY 23-24

Genus Paper & Boards Limited has generated annual revenue of Rs. 651.03 Crores in FY24 against FY23 revenue of Rs. 655.12 Crores. The EBIDTA (Earnings before Interest, Tax, Depreciation and Amortization) stood at Rs. 56.16 Crores (Previous Year Rs. 24.25 Crores) and PAT (Profit after Tax) stood at Rs. 5.66 Crores (Previous Year Rs. (13.73) Crores) with EPS (Earning per Share) of Rs. 0.22 (Previous Year Rs. (0.53)) at the face value of Re. 1. In addition, in an increasingly eco-friendly world, sustainable packaging plays a vital role in reducing the environmental impact of packaging materials. It reduces waste through the use of biodegradable, recyclable and compostable materials contributing to the circular economy. Adopting sustainable packaging practices also increases customer loyalty, as customers are more likely to support businesses that share their environmental values. Acknowledgement The year under review witnessed various fluctuations in higher raw material costs, fuel (coal) costs, and reduction in Net Selling Rate (NSR). The global uncertainty impacted the demand-supply significantly resulting into reduced margins. However, some improvements in demand has been witnessed thereby firming up NSR in recent QY

FY 23-24 witnessed various fluctuations in higher raw material costs, fuel (coal) costs, and reduction in Net Selling Rate (NSR). The global uncertainty impacted the demand-supply significantly resulting into reduced margins. However, some improvements in demand has been witnessed thereby firming up NSR in recent QY.

GPBL would continue to focus on its key strengths to achieve healthy growth by further enhancement of quality. Though we enjoy premium in pricing compared to other market players, we hope to improve the sales realization further due to our thrust on quality and brand positioning. We are constantly looking for growth opportunities in the manner most beneficial to all Stakeholders.

The paper packaging industry experienced a good growth over the last decade, owing to substrate choice changes, new market expansion, ownership dynamics, and government initiatives to ban plastics and encouraging paper based products. Sustainability and environmental issues continue to be emphasized, and various innovations catering to paper and paper board packaging are expected to drive market growth in India.

The Indian Paper and Paperboard Packaging Market size is estimated at USD 12.87 billion in 2024, and is expected to reach USD 17.74 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).

“Paper-based packaging to preserve food products has advanced significantly in recent years. For example, corrugated board packaging for transporting fresh fruits and vegetables has become increasingly popular. The layers of the corrugated board need to bond at high temperatures to kill bacteria. The recyclability of grooved boards prevents repeated use, reducing cross-contamination” the annual report said.
 

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