Mohit Paper Mills will achieve perfect point of cost of production after installation of evaporator and caustic soda plant

Mohit Paper Mills will achieve perfect point of cost of production after installation of evaporator and caustic soda plant 

- After installing the BE and caustic soda plant, Mohit Paper can utilized its optimum or maximum production capacity 
- Mohit Paper recorded decrease in sale (16.45%) (approx) due to reduce in the price of the paper in national market.
The Pulp and Paper Times

Mohit Paper Mills Limited (MPML) was incorporated in the year 1992, is engaged in manufacturing of various kinds of paper like writing printing paper (color and white), MG Poster paper, kraft paper and others various quality papers as required on customer demand. MPML is agro based paper manufacturing Company means that it use agriculture products like bagasse and other agriculture product etc. for manufacturing of paper and we also use imported waste paper for manufacturing of paper to increase quality and strength of the manufactured paper.

At present MPML is using higher production capacity of the installed manufacturing capacity. Mohit Paper sold paper in form of reels, sheets and other size as required or demand of the customers.

The Company is adopting all the means for reducing the cost of production for increase the profit in the coming years the Company will achieve perfect point of cost of production after installation of evaporator and casting soda plant. The Company's cost of production of paper is higher than other paper company because of our small production capacity and using agro product for manufacturing of paper, because of the price of agro products is based on availability of bagasse and other agriculture products in the market.

“We expect for better and bright future of the Company. Our strategic objectives are to build a sustainable organization that remains relevant to the agenda of our stakeholders and creating growth opportunities for the employee and increase the wealth of the company for our stakeholders and members,” The annual report of Mohit Paper for FY 23-24 said.

RESULTS OF OPERATIONS AND STATE OF COMPANY'S AFFAIRS

Mohit Paper’s management is committed to aegis of the Company in every situation and also committed to achieving its objectives and goals. Presently the Company engaged in single segment i.e. manufacturing of paper, the management of the Company always keeps keen eyes on every situation/transitions of the Company. The Company is moving fast to maximization the wealth of shareholders and stakeholders of the Company.

At present the production capacity of the Company is 130 MT/per day and the Company is utilized it"s maximum production capacity. In the previous financial year 2022-2023 the Board of Directors decided to install 150 TDS Boiler and Evaporator ("BE") in the production line and caustic soda plant, the purpose to install this BE and caustic soda plant to increase the production with existing production capacity. The idea behind to install BE is that to increase the production of steam, power and caustic soda lye and result of this increment in steam, power and caustic soda, the production will be increased within the existing production capacity. After installing the BE and caustic soda plant, the Company can utilized its optimum or maximum production capacity. The Board supposed that this BE and caustic soda plant will be in used during FY 2024-2025 and which will be a mile stone for the Company.

HIGHLIGHTS OF FINANCIAL PERFORMANCE FOR THE FINANCIAL YEAR 2023-2024.

During FY 2023-2024, MPML has turnover (Net) of Rs. 18562.61/- lakhs as against previous figure of Rs. 22,216.50/- lakhs, the Company recorded decrease in sale (16.45%) (approx) due to reduce in the price of the paper in national market.

The Company has recorded 27% (approx.) downfall in market price of paper in the year 2023-2024. Further, during the financial year 2023-2024, other income of the Company has been increased to Rs. 640.05 lakhs as against previous year income of Rs. 411.03 lakhs (i.e. increase by around 55.72% during the financial year 2023-2024. However, due to reduction in price of paper as mentioned above, total income has shown a downfall during the financial year 2023-2024. The total income during financial year 2023-2024 is at Rs. 19,202.66/- and previous year income of Rs. 22,627.53/-lakhs.

The report further stated that The pulp and paper market in India was valued at USD 14.75 billion in 2023 and is projected to reach USD 35.57 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030. The market is expected to peak at USD 19.1 billion by 2033. Among the various segments within the paper industry, the packaging sector has performed particularly well, driven by applications in the pharmaceutical and FMCG sectors and boosted by e-commerce growth.

However, the Indian paper industry has faced challenges. The volume growth for FY 2023-24 is anticipated to decline to a range of 2-5%, compared to approximately 7% in FY 2022-23. Additionally, industry revenues are projected to decrease by about 7-10% in FY 2023-24, reflecting a drop in realizations. The packaging paper segment, which accounts for over 60% of total demand, has experienced reduced realizations since the second quarter of FY 2023 due to softened input prices and increased competition. This trend is expected to continue into FY 2023-24.

About the domestic market report said that India, a significant player in the global paper industry, ranks as the fifth-largest producer worldwide with an annual production capacity of 26 million tonnes. The Indian paper sector is projected to grow at a compound annual growth rate (CAGR) of 6%, anticipated to reach 27 million tonnes by the fiscal year 2023-24. The domestic market is diverse, comprising several key segments. The packaging sector, which accounts for 40% of total paper consumption, is poised for robust growth with a CAGR forecasted between 6-8%. 
 

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