Rising wood costs, and lower paper prices decrease West Coast Paper Mills’s turnover by Rs. 178 Crores in FY 23-24

Rising wood costs, and lower paper prices decrease West Coast Paper Mills’s turnover by Rs. 178 Crores in FY 23-24

-WCPML is continuously working by phase wise investment at Paper Division, Dandeli for improving paper quality, produce new speciality products and reduction of usage of steam, power, chemical, water and also minimize the breakdown of machines.

The Pulp and Paper Times

West Coast Paper Mills Ltd. (WCPML), the leading entity of the SK Bangur Group, is headquartered in Kolkata and serves as the vanguard of industrial endeavours. Since its inception in 1955, WCPML has been operating a state-of-the-art manufacturing facility (Paper Division) in Dandeli, Karnataka, boasting a production capacity of 320,000 metric tonnes per annum. With a self-sustained pulp capacity of 255,000 MTPA and a captive power generation capability of 74.8 megawatts, WCPML ensures operational independence. Its products reach across India through an extensive network of dealerships.

Paper and paperboard division of West Coast Paper Mills Ltd., a key player in the Indian paper sector, manufactures quality paper branded as WESCO. The company’s diverse portfolio, including office stationery, premium printing goods, and value-added products, contributed to 93% of its revenue in FY24.

The production of Paper and Paperboard was 303766 MT (95 % capacity utilization) during the year against 314919 MT in the last year (98% capacity utilization) i.e., lower by 11153 MT. The Sale of Paper and Paperboard was 304950 MT during the year against 310349 MT in the last year i.e., lower by 5399 MT. Turnover during the year was Rs. 2427 Crores as against Rs. 2605 Crores in the last year, i.e., lower by Rs. 178 Crores. The Operating EBITDA margin was 25.91 % during the year.

In paper and paper board segment, WCPML experienced a significant year-on-year production decrease of approximately 3.54%. Production volume stood at 303766 tonnes in FY2024 from 314919 tonnes in FY2023. In the past year, the Company faced challenges including increased wood costs, lower paper prices due to market conditions, and a major crash at Dandeli in Q3. Moving forward, WCPML priority is enhancing operational efficiency by refining product mix and trimming manufacturing costs, which will bolster its financial performance. This significant improvement positions West Coast Paper Mills favourably in the industry, empowering to capture a larger market share and expand customer base.

WCPML is continuously working by phase wise investment at Paper Division, Dandeli for improving paper quality, produce new speciality products and reduction of usage of steam, power, chemical, water and also minimize the breakdown of machines.

West Coast Paper Mills observed a moderate year-on-year sales volume decrease of approximately 1.74 %, with volumes totalling 310,349 tonnes in FY2023, we saw a slight decrease to 304,950 tonnes in FY2024. Last year, the Company faced challenges with rising wood costs, lower paper prices due to market conditions, and a major breakdown at Dandeli in Q3, leading to a slight performance downturn. Looking ahead, focus is on improving operational efficiency by optimizing product mix and cutting manufacturing costs to enhance financial performance.

Export of Paper and Paperboard during the year was 2297 MT worth Rs. 18 Crores (FOB) as against 2204 MT worth Rs. 18 Crores (FOB) in the last year.
 

Web Title: Rising wood costs, and lower paper prices decrease West Coast Paper Mills’s turnover by Rs. 178 Crores in FY 23-24