Genus Paper hopes to improve sales realization and plans to diversify into writing, printing, white, and cupboard, focusing on quality and brand positioning

Genus Paper hopes to improve sales realization and plans to diversify into writing, printing, white, and cupboard, focusing on quality and brand positioning

-Genus Paper enjoys premium in pricing compared to other market players

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 and Duplex Board as well. GPBL has its business prominently into both Kraft Paper and Duplex Board. 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 two Kraft Paper and One Duplex Unit to produce specialty Kraft Paper and Duplex Board.

Genus Paper offers range of Kraft Papers varying from 60 GSM to 400 GSM and Duplex Board varying from 230 GSM to 450 GSM.

The market in India is majorly driven by the increasing demand for sustainable packaging solutions. In line with this, the rising awareness of the environmental impact of traditional packaging materials, such as plastic, is significantly contributing to the market growth. Furthermore, the growing demand for online shopping and shipping, which requires reliable and durable packaging, is positively influencing product demand. Apart from this, the escalating use of corrugated boxes for shipping and storage and the expansion of the e-commerce market in the country are catalyzing the market.

In his message to shareholders, Mr. Ishwar Chand Agarwal, Chairman- GPBL, said, The Indian Pulp and Paper Industry has seen a roller-coaster ride journey in the last three years. At present, it is difficult to comment on the percentage, the industry is growing, because the last two years were badly affected by the COVID-19 Pandemic followed by global impact of Ukraine war and uncertainty of China market. Over the years, the industry has upgraded itself by investing in clean and green technologies in order to meet the growing needs of consumers. The paper and paperboard packaging business experienced growth over the last decade, owing to changes in substrate choice, expansion of new markets, changing ownership dynamics, and government initiatives to ban plastic. 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.

He added further, “We focus and are in process on upgrading our technologies, improving our machines, and bringing more value-added products to be ahead of our competitors with an enhanced team in the future. We believe that "quality is king" and 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. We have invested in machinery for pulp making section and focused on automation. The government is totally focused on the removal of single use plastic, and that will certainly increase the volumes of packaging. India is a growing country as it has a mapping about 7-8% CAGR growth level. If that type of growth comes, packaging will certainly have a huge requirement. We are now in the process of implementing several new initiatives to further strengthen the Company. These are expected to result in significant additional improvements in the coming couple of years.”

“You will be reassured to know that your Company has taken steps to ensure smooth continuation of operation and to survive tough time and respond to any unexpected events in the future due to the unforeseen pandemic, your Company 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. The Company has plans to diversify into writing /printing/white/ cupboard etc. to deviate itself from sole dependence on packaging and duplex.” He said.

Performance in FY 22-23

GPBL has generated annual revenue of Rs. 655.12 Crores in FY23 against FY22 revenue of Rs. 439.89 Crores. The EBIDTA (Earnings before Interest, Tax, Depreciation and Amortization) stood at Rs. 24.25 Crores and PAT (Profit after Tax) stood at Rs. (13.73) Crores with EPS (Earning per Share) of Rs. (0.53) at the face value of Re. 1.

The year under review witnessed 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.

Genus Paper 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, GPBL hope to improve the sales realization further due to its thrust on quality and brand positioning. 
 

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