Subam Papers is expected to reach a production capacity of over 1,000 metric TPD by the fourth quarter of FY 2025–26 and has established a business in packaging-related activities

Subam Papers is expected to reach a production capacity of over 1,000 metric TPD by the fourth quarter of FY 2025–26 and has established a business in packaging-related activities

- The current expansion plan includes Expanding PM1 (Duplex Board) to 150 MTPD, PM-2, (Kraft Paper) to 400 TPD and Expanding PM-3 (Multi grade paper) to 350 TPD and cone board machine 100 TPD

The Pulp and Paper Times

Subam Papers limited (SPL) is engaged in the manufacturing of Paper and Paper Product and is a packaging solution providing company. Subam started its journey in the year 2004 with manufacturing of paper cones and later expanded the product base by adding Duplex board and Kraft paper in its portfolio. The company is not like the traditional paper manufacturers, wherein the Company does not manufacture the products from wood pulp but instead uses wastepaper as raw material. SPL aims to preserve mother nature and tends to drive the Company on the principle of recycling. The Company leverages wastepaper as the primary raw material in the production of Kraft Paper and Duplex Board.

SPL features an infrastructure facility, supported by a dedicated team of professionals, focused on the production of Kraft Paper and Duplex Board to meet customer demands promptly. With the capability to manufacture and supply Kraft Paper and Duplex Boards in various shades, SPL’s products offer GSM ranging from 120 to 300, Busting Factor of 16 to 35, and Deckle sizes from 2,000 MM to 4,400 MM and with reel diameters up to 1,400 MM. Furthermore, the Company maintain a substantial raw material storage facility to ensure ample reserves, enabling consistent production of high-quality products for the packaging industry.

“We are dedicated to sustainability, using recycled paper in the production of Kraft Paper and Duplex Board. This not only reduces waste but also underscores our commitment to environmental responsibility. To further minimize our environmental impact, we harness renewable energy through our own wind and solar power installations. Our wind energy infrastructure includes two windmills: with a capacity of 850 KW each totalling approximately 1.7 MW. Additionally, we operate a solar plant with a capacity of 14 MW. These renewable energy sources enable our manufacturing facilities to significantly reduce their carbon footprint, aligning with our goal of sustainable and eco-friendly operations,” Mr. T.Balakumar, Managing Director of Subam Papers Limited said in the annual report for FY 24-25.

Mr. Balakumar further stated that, over the years, the consolidated production capacity has grown substantially and is expected to reach more than 1,000 Metric tons per day by fourth quarter of FY 2025-2026 after our current capacity expansion is completed. Our Company has the capability to manufacture and supply Kraft Papers and Duplex Boards in different shades and sizes as per the client specifications thus serving the diverse industrial packaging needs.

The current expansion plan includes Expanding PM1 (Duplex Board) to 150 MTPD, PM-2, (Kraft Paper) to 400 TPD and Expanding PM-3 (Multi grade paper) to 350 TPD and cone board machine 100 TPD

“The products we manufacture are used in various industries, including automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, printing and more, where packaging is indispensable. Paper products play a pivotal role in packaging across sectors, from biscuit wrappers to marriage invitations, showcasing the versatility and significance of our offerings across diverse industries. Our approach entails a shift from solely focusing on paper manufacturing to incorporating value-added paper products and packaging solutions like corrugated boxes, paper cones, paper tubes and paper cores manufactured by our Subsidiaries and Group Companies. By diversifying our offerings, we aim to cater to the evolving needs of our clientele and enhance,” he said.

During the year under review, the Company has established a business of packaging related activities which includes manufacture of carton box and corrugated box and other containers made up of paper and paper product and in this regard, has entered into LLP agreement with M/s. Nellai Subam Packaging LLP.

On a consolidated basis, the total income of SPL for FY 2025 was Rs. 54618.00 Lakhs, increased by 9.83% over the previous year’s total income of Rs. 49,728.14 Lakhs. However, the Profit after tax decreased from Rs. 2825.81 Lakhs during the previous year to Rs. 2687.64 Lakhs during FY 2025 as a result of increase in input cost of materials.
As an ISO 9001:2015 and FSC Recycled certified organization, SPL follows a strong Quality Management System. The Company ensures top-quality materials, workmanship, schedules, and public service, meeting all project standards. The Company focuses on quality control upholds high safety and environmental standards, consistently meeting client expectations. The FSC Recycled certification of the Company, shows SPL’s commitment to sustainability by using 100% recycled materials. SPL’s success is due to understanding customer needs, offering cost-effective and consistent quality products, adhering to delivery schedules, being flexible with sizes, and providing responsive customer service. The Company has a well-trained team dedicated to meeting special quality requirements.

SPL uses wastepaper as its primary raw material for paper manufacturing which has significant environmental benefits. Recycling one ton of paper extends far beyond waste reduction, making a substantial contribution to environmental conservation. By opting to recycle, the Company collectively saves the equivalent of 17 trees, thereby conserving precious forests and promoting biodiversity. Furthermore, the conservation of 7,000 gallons of water and the sparing of 380 gallons of oil highlight the resource efficiency achieved through recycling. Notably, reducing landfill space by 3.3 cubic yards eases the burden on waste disposal systems, while the energy savings of 4,000 kilowatts underscore the inherent efficiency and sustainability of recycling processes.

SPL has invested in water pumping stations and connecting pipelines, which are fully operational, ensuring efficient water distribution throughout the facility. Moreover, our strategic location offers a distinct advantage, with the Thamirabarani River situated within a mere 6 km proximity. Renowned for its extensive catchment area and the receipt of both South-west Monsoon and North-east Monsoon rains, this river serves as a reliable water source for our operations.

Manufacturing of odor free paper 

The demand for odor-free paper is on the rise, driven by heightened public awareness, particularly in the realm of food product packaging and carry bag consumption. With our advanced ETP technology, our company is well positioned to meet this growing demand while simultaneously demonstrating our commitment to environmental responsibility. By investing in modern ETP infrastructure, we not only ensure compliance with regulatory standards but have also set a new benchmark for sustainability within the industry. This strategic initiative aligns with the company's vision of delivering high-quality paper products that meet the evolving needs of consumers and contribute to a healthier environment.

Industry Overview 

Packaging currently stands as the fifth largest sector in the Indian economy, reflecting its pivotal role in driving industrial growth and innovation. With an annual growth rate of 10-12%, the industry has become a preferred hub for packaging solutions, bolstered by advancements in technology and infrastructure. Notably, the industry boasts a robust structural framework, comprising over 900 paper units with an installed capacity of nearly Twenty Three Million tons.

In response to global sustainability imperatives, the packaging industry in India is undergoing a paradigm shift towards eco-friendly practices and materials. Government initiatives aimed at minimizing plastic packaging and promoting sustainable manufacturing methods are driving industry-wide transformation. Additionally, the industry's focus on food safety and quality aligns with the burgeoning food processing sector, amplifying demand for innovative packaging solutions. 

The expansion of the middle class, enhancements in supply chain infrastructure, and the rise of e commerce platforms are primary factors driving the packaging industry's growth trajectory. Furthermore, the increasing market size of packed food products, projected to reach US$ 3.4 billion by 2027, underscores the industry's pivotal role in supporting diverse sectors. As the industry continues to evolve, leveraging technological innovations and sustainable practices, it is poised to contribute significantly to India's economic landscape. Investments/ Developments.
 

Web Title: Subam Papers is expected to reach a production capacity of over 1,000 metric TPD by the fourth quarter of FY 2025–26 and has established a business in packaging-related activities