Kuantum Papers achieved record paper sales volumes of 1,60,845 metric tonnes in FY 24–25; revenue stood at Rs. 1,113 crores; closed-loop automation through Project Nirmaan

Kuantum Papers achieved record paper sales volumes of 1,60,845 metric tonnes in FY 24–25; revenue stood at Rs. 1,113 crores; closed-loop automation through Project Nirmaan

- The Company achieved its highest-ever finished paper production of 160,861 MT, surpassing the previous year’s 153,058 MT.
- Mill upgradation and expansion project is is expected to increase the total paper production capacity from 450 TPD to 675 TPD by March 2026

The Pulp and Paper Times

Kuantum Papers limited (KPL) is an eco-conscious and purpose-driven paper manufacturer, established in 1980 in Saila Khurd, district Hoshiarpur, Punjab.

In financial year 2024–25, Kuantum Papers delivered a steady operational performance despite a challenging external environment. The Company maintained consistent production levels throughout the year, supported by its integrated manufacturing model and strong focus on efficiency. While revenues were impacted by weaker market prices and higher input costs, Kuantum protected its core margins through disciplined cost controls, process improvements, and effective use of local raw materials.

The Company achieved its highest-ever finished paper production of 160,861 MT, surpassing the previous year’s 153,058 MT. This milestone was enabled by strong process stability and fullcapacity operation of all paper machines. Both wheat straw and hardwood pulp mills operated at optimal levels, ensuring sustainable and cost-effective pulp production. The installation of Twin Roll Presses (TRPs) in both pulp lines significantly improved washing efficiency, reduced chemical consumption, and enhanced fibre yield—contributing to both cost reduction and environmental performance.

“Kuantum Papers continues to draw strength from its core capabilities, which help us stay steady and competitive in a dynamic business environment. Our fully backward integrated manufacturing operations ensure consistent product quality, efficient cost management, and reliable supply across product categories. With a wide range of products in writing & printing, copier and specialty papers, we are well equipped to serve diverse needs across education, publishing, office stationery, and packaging segments. Our long-standing pan-India dealer network plays a crucial role in sustaining sales volumes and adapting to evolving market conditions,

“Operational efficiency is another pillar we are continuously reinforcing. Investments in automation, process upgrades, and digital technologies have improved productivity, reduced downtime, and optimised resource use across our plants. Digital transformation has strengthened our ability to manage production with greater precision and speed, enhancing our cost competitiveness. Our disciplined approach to execution, market responsiveness, and focus on quality continues to drive consistent performance and long-term value creation,” Mr. Jagesh Kumar Khaitan, Chairman- Kuantum Papers Limited stated in the annual report for FY 24-25.

Mr. Jagesh further stated that, the year (24-25) brought several headwinds for the paper industry, including high raw material costs, changes in global pulp prices, energy cost pressures, and stiff competition from imports. Despite these, Kuantum Papers stayed focused on ensuring operational stability and efficiency. We maintained steady production by closely managing our costs, improving our supply chain, and utilising digital tools to enhance process efficiency. Our strong focus on integrated manufacturing, cost control, and strategic decisions helped us safeguard our core performance.

The Indian paper industry continues to experience cost pressures due to high raw material prices, volatile global pulp markets and increasing competition from cheaper imports from China and ASEAN nations. Nevertheless, demand for writing and printing paper remains steady, buoyed by the education sector—one of the industry’s key growth drivers.
“With a large and expanding student population, the development of educational infrastructure and rising demand for textbooks, notebooks and exam sheets, paper continues to play a crucial role in this sector. The ongoing implementation of the National Educational Policy (NEP), which includes curriculum reforms across several Indian states, is also expected to increase the demand for high-quality writing and printing paper. Furthermore, government programmes focused on education and skill development, along with increased expenditure on school materials and publishing, are set to drive consistent demand,” Mr. Pavan Khaitan, Vice Chairman & Managing Director- Kuantum Papers Limited, stated in the annual report for FY 24-25.

Resilient Financials and Operational Excellence

Mr Khaitan further stated about KPL’s Operational Excellence, and says, In FY 2024–25, we maintained a stable financial performance despite a softer pricing environment. Our revenue stood at Rs. 1,113 crores, and we delivered an EBITDA of Rs. 249 crores, achieving a healthy EBITDA margin of 22.4%. Net profit for the year was Rs. 115 crores. A strong focus on cost control, particularly in raw material procurement, energy savings and overall operational efficiency, helped us sustain profitability while continuing to invest in our mill upgradation and expansion project. With a total outlay of H735 crore, we have already issued purchase orders for this project and several large-scale initiatives under execution.

On the operational front, we achieved record paper sales volumes of 1,60,845 metric tonnes, with production running at high-capacity levels throughout the financial year. We made significant progress in improving energy, water and chemical efficiency, and increased the use of biomass in our boiler operations. With steady advancement in the adoption of digital tools and process upgrades, we further improved productivity, enhanced product quality and strengthened operational resilience.

Charting the Next Chapter

As we look to the future, we remain focused on growing from strength to strength. Our ongoing mill upgradation and expansion project is progressing well and is expected to increase the total paper production capacity from 450 TPD to 675 TPD by March 2026. This includes the modernisation of all four paper machines, expansion of the pulp mill and addition of a new coating plant for specialty paper grades. These upgrades are expected to enhance efficiency, diversify product portfolio and quality and scale our operations.

In alignment with its strategic vision for sustainable growth and operational excellence, Kuantum Papers Ltd. has embarked on a transformative capital expenditure program of Rs. 73,500 Lakhs. This comprehensive initiative is focused on modernizing existing infrastructure, expanding production capacities, integrating advanced technologies, and strengthening environmental and digital capabilities to future-proof operations.

The capital investment plan includes the modernization of all four paper machines, equipping them with state-of-the-art technologies to enhance productivity, energy efficiency, and product quality. To diversify its product portfolio and cater to evolving customer needs, the Company is establishing new converting and offline coating facilities, enabling entry into high-growth coated, flexible packaging base, and other specialty paper segments.

KPL is actively integrating AI into its core operations through advanced platforms such as dataPARC, KPI Dashboards and Model Predictive Control (MPC) Systems. These tools replicate real-time process behaviours across areas such as pulp line optimisation, paper machine dynamics and boiler steam efficiency, merging physical operations with virtual intelligence to build a more efficient mill. 

In line with our vision of ‘Kuantum for Earth,’ we are on track to reduce fresh water consumption to below 30 m³ per tonne of paper by 2027 and aim to approach near-zero freshwater intake for core operational processes. We also plan to develop the CPC capacity to 1 crore clones per annum and expand our plantation coverage to 5000 hectares over the next 2-3 years.

KPL’s Social Farm Forestry Programme is a cornerstone of our long term vision for a greener, more sustainable tomorrow. By the end of FY 2024-25, nearly 12,500 acres of land had been brought under this initiative, positively impacting 15,000 farmers. We also enhanced the capacity of our in-house Clonal Propagation Centre (CPC) to 40 L saplings a year. These high-yield, low-maintenance clonal saplings provide a secondary source of income to the farmers and also secure wood raw material supply for the future.

‘Project Nirmaan’, implemented in collaboration with BTG and Kuantum’s business excellence team, marks a significant leap in our digitalisation journey. The project focuses on streamlining core manufacturing functions while building a strong digital foundation for sustainable growth. By aligning people, processes, and technology platforms, it is driving significant improvements in product quality and overall equipment efficiency.

Closed-loop Automation through Project Nirmaan 

Building on this digital infrastructure, Project Nirmaan has facilitated the implementation of closed-loop automation powered by AI-based predictive tools and Advanced Process Control (APC) systems. These cutting-edge technologies have been strategically deployed across critical units, including the boiler and pulp and paper sections, to bring greater stability, accuracy and foresight in operations. The APC systems enable predictive maintenance by identifying potential failures before they occur, support virtual modelling for process simulation and provide real-time optimization capabilities to ensure efficiency and quality. Together, these advancements have not only reduced variability but have also laid the groundwork for a smarter, more responsive manufacturing environment.
 

Published at : May 16, 2026 07:54 AM (IST)

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