Nath Industries installs Online Coating Machine, set to launch gold rust, masking paper & protection paper by Early 2025

Nath Industries installs Online Coating Machine, set to launch gold rust, masking paper & protection paper by Early 2025

-The paper division has recorded total income of Rs. 267.82 Cr as against the turnover of Rs. 304.63 Cr recorded in previous year
-Other product produced by Company such as One Time Carbon Base Paper and print Transferring Base paper are already well accepted and moving in Global markets.
The Pulp and Paper Times

Manufacturer of variety of grades of papers such as Absorbent Kraft, Carbon Base, Poster, Napkin grade tissue, Gift Wrapping Tissue, Color Tissues, Masking Paper and Protection paper, paperboards like DTY, POY, Thermal paper and other speciality coated grades, Nath Industries Limited (NIL) achieved total income of Rs. 325.22 Cr in FY 23-24 as compared to Rs. 414.12 Cr recorded in previous year. The fall in turnover was because of lower utilization of capacities due to shutting downs of plants for Capacity Expansion, Modernization and Energy Saving Projects undertaken by the Company.

In FY 23-24, NIL has undertaken various projects with an outlay of Rs. 90 crores, consisting mainly of capacity expansion and cost reduction initiatives. The projects include the installation of a 2 MW co-generation power plant at Rama Paper, the installation of an efficient online coating machine with a capacity of 9000 TPD per annum, and the installation of a pulping street offering flexibility in the use of raw materials.

“For implementation of above projects, synchronization with existing set up, trial runs and addressing initial teething issues, the plants were required to shut down frequently which impacted the performance of the company. Revenue from operation was decreased from Rs. 414.12 Cr to Rs. 325.22 Cr. However, despite drop in turnover, under utilisation of its capacities, and under recovery of overheads, the company was able to record Profit Before Tax of Rs. 0.77 Cr as against Rs. 0.22 Cr recorded in previous year,” Management said in the annual report of NIL for FY 23-24.

The report further added, that the operations of Paper Divisions were also impacted due to continuation of war between Russia-Ukrain and freshly broken out war between Iran-Israel. The sanctions placed by United Nations and European Nations resulted in weak global demands which adversely impacted industries in India having exports. Similarly, the sanctions also resulted in short supply of few commodities, sudden increase in ocean freights, refusal by insurance companies to take risk exposure on middle east route disrupted the scheduled supplies which adversely impacted supply chain. It was a double whammy situation which also impacted operations as well as the margins. Further the measures taken across the world to control inflation also resulted in decrease in consumption which also led to reduction in demand. Increase in interest rates also further added to demand cycle adversely. Mismatch in supply and demand also resulted in pressure on margins.

Despite all these odds, NIL is profitable and generating profits because of its customised product offerings, flexibility in manufacturing profitable product mixes and ability to use different variety of raw material mix. Installation of co-generation power plant in Unit Rama Paper will substantially reduce the requirement of electricity from grid. Installation of 3.3 MW turbine will make electricity requirement from grid of Unit Nath Chemical virtually zero and it will have surplus steam and power which can be exported to paper division or exported to others as green energy.

The continuous efforts in research and developments in its customised paper product offerings have resulted in global demand for its paper. Company has accredited with “TWO STAR Export House” by the Directorate General of Foreign Trade in recognition of its export performance. Company is again honoured with “Export Excellence Award” Gold for FY 2020- 21 and Silver for FY 2021-22 in Multi Product (Non-MSME) category by Federation of Indian Export Organization, Western Region. Company is recipient of this award for 4 consecutive years.

PAPER DIVISION

Despite planned shutting downs of paper plants for installation of Co-generation power plant, installation of new coating machine, new pulping street and challenges in supply chain management because of on-going wars between Russia-Ukrain and Israel-Iran, the paper division has recorded total income of Rs. 267.82 Cr as against the turnover of Rs. 304.63 Cr recorded in previous year. The war posed challenges in the form of sudden increase in ocean freights, denial of marine and other insurance coverages by the insurance companies to some countries which resulted in postponement of despatch schedules. However things are normalized now and company is witnessing revival of demand in both domestic as well as overseas market.

PRODUCTS AND NEW PRODUCTS LAUNCH

Company’s existing products range of Absorbent Kraft , Bag Kraft ( Mac D) , MG White Tissue , Colour tissue and Gift Tissue are well established and has Global acceptance. This year company proposes to launch a niche grade in Absorbent kraft to be named as Diamond to fill in the space created by shifting of country’s few premiere producers to other areas. Good margins and an edge over quality along with vital growth is assured with our presence in this segment. Last year your company had successful launched the kraft for square bottom paper bags named as Mac D to support state’s ban on Single use Plastic movement. The Mac D Kraft/ Shoppers Bags Kraft are now well accepted.

Other product produced by Company such as One Time Carbon Base Paper and print Transferring Base paper are already well accepted and moving in Global markets. 

Unstoppable move and continuous Research & Development work in laboratory to evaluate and develop new products is scheduled to come out with new elite products like Gold Rust and Masking paper, Protection paper by this year end or early 2025, are slated only to bring higher revenue and reputation to the company.

MARKETING STRATEGIES 

Plans of action set to achieve specific business goals and objectives is all time vision for Company’s Marketing strategies to promote and channelise it’s policy to increase the sales and revenues and attain sustainable advantage in markets. Consistency in product’s quality and sales after service per excellence contribute an important role in expanding and retaining the market share. Company’s Marketing strategies are mainly based on following three steps –

➢ Product: We develop the products that meet customer /consumer needs.

➢ Price: prices are designed to balance revenue and affordability to meet level playing field.

➢ Promotion: Through strong and dedicated distribution network and other media partners.

The global paper industry is expected to grow at a compound annual growth rate (CAGR) of 3.80 % from 2024 to 2032. Increasing demand for paper packaging and other segments is expected to increase due to the growth of e-commerce as well as the other solutions. 

“We are on leading position in domestic market and more focused on expanding export markets for our products like Absorbent Kraft, White Tissue and Colour Tissues and M G Kraft from South East Asian countries, Middle East to Africa, Europe and South America and encash the maximum potential of industrial and commercial growth in these regions. Company’s products Absorbent Kraft and Gift wrap Tissues and their synergic components are heading to capture a sizable part of the phenomenal growth in international demand. The growth in demand of Laminates and Decorative laminates is estimated to USD 12.50 Billion between 2024 to 2028.,” The report said.
 

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