Nath Industries aims for 50% Paper Division Revenue from exports, undertook various expansions projects of INR 75 Cr in FY 2022- 23
Nath Industries aims for 50% paper division revenue from exports, undertook various expansion projects of INR 75 Cr in FY 2022- 23
- Consistency in product’s quality and service per excellence plays a vital role in expanding and securing the market share.
- under-utilization of capacities due to shutting down of plants for expansion resulted in lower recoveries of fixed overheads and impacted the profit margin in FY 22-23.
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) is aiming to increase its revenue stream by exporting to more foreign destination in the coming years.
The Annual Report of Nath Industries for FY 22-23, states that at present, the NIL is exporting in 22 counties and witnessing steady demand from the Export markets. The Company is engaged in the manufacturing of specialty paper viz Absorbent Kraft which is used in Laminates Industry, MacD which is used for paper bag manufacturing, Thermal Paper which is used in POS machines and also used wide application. All these segments are growing segment across the world which will in turn create demand for the papers manufactured by the company. Looking at the demand, the Company has set the target of achieving 50% revenue of paper division from the export market in next 5 years.
“Amid the uncertainties and weak global sentiments, NIL is glad to announce that the company undertook various expansion projects involving capital outlay of over 75 Cr in FY 2022- 23. The projects include installation of Co-generation Power Plant and installation of Pulping street in Unit Rama Paper, increasing the manufacturing capacity of Sulphuric Acid from 280 TPD to 500 TPD in unit Nath chemicals and installation of online coating paper machine in unit Nath paper. All the projects were progressing well as per the expected timelines in FY 2022-23. All the projects will be completed in Q2 of FY 2023-24.” The report said.
The expansion projects required shutting down of existing plant for replacement and synchronization with the existing set up in Q3 and Q4 of FY 2022-23 which resulted in under13 utilization of capacities. Despite that, the company achieved the total income of Rs. 414.12 Cr as against the turnover of Rs. 423.17 Cr in previous year. However, under-utilization of capacities due to shutting down of plants for expansion resulted in lower recoveries of fixed overheads and impacted the profit margin in FY 22-23.
Paper division was able to achieve total income of Rs. 304.63 Cr FY 2022-23. The share of export sales was Rs. 62.61 Cr. The company was able to maintain its share of exports of over 20 % in FY 22-23 despite weak global demand especially from European Countries. At present, the company is exporting its paper products to around 22 countries and demand graph is on continuous rise from the export market.
UNIT- RAMA PAPER
The company has invested over 24 Cr in setting up of co-generation power project which is being commissioned in FY 2023-24. The benefits and results of cogeneration power plant will start flowing from mid of FY 2023-24.
Since 2020 after a break out of covid-19 and thereafter several other global events, the paper industry depending on imported recycled waste paper witnessed high volatility in the prices and availability of imported raw materials. On various occasions, mismatches in demand and supply increased the prices of imported raw materials manifolds. To overcome the dependency on imported waste papers, the unit Rama paper has successfully completed installation of a new Pulping Street which offers flexibility in using variety of raw material mix which will reduce dependency on particular grade of imported waste paper. Based on the options and availability, company will able to choose right mix which will help in controlling the material cost.
Unit Rama Paper achieved turnover of Rs. 148.34 Cr as against the turnover of Rs. 133.41 Cr recorded in previous year because of its customized specialty paper portfolio. The share of export sales increased to Rs. 50.82Cr from Rs. 39.32 Cr and the unit is witnessing good demand from the export markets.
Effective Marketing strategy is an organization’s strong promotional channel to increase its sales and achieve sustainable competitive advantage within its markets. Consistency in product’s quality and service per excellence plays a vital role in expanding and securing the market share.
The annual growth in worldwide production of Paper and Paper boards is estimated at rate of 7.5% which means the Global demand for various paper and paper boards is likely to achieve the target of USD 245 billion by 2027.
Along with leading position in domestic market. Company has expanded it’s export markets of Absorbent Kraft, White Tissue and Colour Tissues and M G Kraft from South East Asian countries to Europe and South America. The new markets recently added to this segment are Egypt, Guatemala, Argentina, Brazil and Mexico.
Company’s leading product Absorbent Kraft and it’s synergic products are set to crack the phenomenal growing demand of Building Decorative Material in international market and have it’s maximum share. The growth in demand of High-Pressure Laminates and Commercial Decorative laminates is estimated to USD 11.75 Billion between 2023 to 2028.
Continuous innovations and R&D works to upgrade and improve the quality of products do contribute a lot to secure the new market spaces. It is matter of pleasure to state that a large and well-knit distribution network in the country and overseas locations build concrete foundation for marketing company’s products.
UNIT -NATH PAPER
Despite all the adverse global scenario your Company’s Unit-Nath Paper has produced 28,957 MT of Core Board and Thermal Paper 2943 MT.
Unit Nath Paper has achieved total income of Rs. 156.29 Crores by selling 28,648 MT of Core Board and 2,919 MT of Thermal Grade Paper.
During the year, various measures were undertaken by NIL to enhance product efficiency & production capacity. Company has commissioned new coating machine (double side coating). This will enhance the present capacity of production of thermal paper from 300 mt per month to 600 mt per month. The new coating machine will provide a double-edge benefit to the company, i.e by reducing the chemical consumption and by enhancing the production capacity. Further existing coater may be used making chromo or calendar paper, which may further enhance the profitability of the company in the coming years.
Nath Industries’ capital investment will help in reducing power consumption and increase in the production capacity of the Thermal paper in the coming years. Company’s 1 MW solar power on OPEX model has become operational during the current financial year. Company could generate 1.90 million kwh from solar power. This measure has helped the company to reduce energy costs.
Web Title: Nath Industries aims for 50% Paper Division Revenue from exports, undertook various expansions projects of INR 75 Cr in FY 2022- 23