The Pulp and Paper Times
Manufacturer of variety o-+f 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. 432.55.22 Cr in FY 24-25 as compared to Rs. 325.22 Cr recorded in previous year, witnessing an increase of total income by 33 %.
Installation of co-generation power plant in Unit Rama Paper, 3.3 MW Turbine in Unit Nath Paper and 1 MW Solar power plant in Unit Nath Paper has substantially reduced Power and Fuel cost during the year. Power and Fuel cost incurred during the year came down from Rs 47.66 Crores to Rs 35.42 Crores despite the increase in turnover by 32.25 %. Ratio of Power and fuel cost to Sales has come down to 8.34% during the year from 14.85% recorded in previous year. The benefit of reduced Power and Fuel Cost is likely to remain continue in ensuing years.
The performance of paper division in second half was subdued because sluggish demand and increased import from China intensified the competition. It adversely resulted in price pressure and squeezing profit margins. As per the report of Indian Paper Manufacturers Association, only 550 out of 900 mills were operational during the year. However, because of the diversified and specialty paper portfolio of the company, wide network of dealers across the globe and exports to over 22 countries, the impact is not severe.
Unit Rama Paper has developed the new grade in absorbent kraft named Platinum which is used for high grade laminates. The product will be launched during the current year.
The new coating machine installed in Unit Nath Paper is established and the production of thermal paper is increased substantially. Unit Nath Paper is poised to achieve 4,500 MT during the year.
The Company has further proposed to install 2 MW solar power plant as a measure of green energy in Unit Nath Paper in coming year which will also reduce the dependency as well as power cost from the grid.
PRODUCTS AND NEW PRODUCTS LAUNCH
Company has already niche range such as Absorbent Kraft, Bag Kraft. The addition of Padding Paper and Platinum grade of Absorbent Kraft replacing 100% virgin kraft will prove to be another mile stone, While MG White Tissue, Colour Tissue and Gift Wrap Tissue are well established and has Global acceptance along with One time Carbon Base Paper. This year the company will add new range of Sublimation Base Paper, Masking Paper to MG range of papers, which will add up the new classified markets and generate extra revenue. Additional revenue as profits and an edge over quality along with vital growth is assured for these products in the time to come. Last year Nath Industries had successful launched the kraft for square bottom paper bags Kraft 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 in the markets.
Innovation, valuations, and 24x7 R & D to develop new products is unstoppable work in Mills Laboratory. The come out with new elite products is slated only to fetch higher revenue and reputation to the company.
Action Plans:
The annual report of Nath Industries for FY 24-25 stated, that plans set to achieve business goals and objectives is all time large vision for Company’s strategic approach to channelise it’s Marketing and promotion of products. Policy bound expanded and dedicated nationwide dealers network generates consistent and committed business volumes flawlessly. In Order to increase the sales, revenues and sustainable advantage of markets potential, we recently developed and introduced few more synergic products to our existing range to Gift wrap grades of Tissue paper and Laminates grades of Kraft Paper. Consistency in product’s quality and prompt sales after service contribute a vital role in retaining the market share.
According to Grand View research-The global paper industry is expected to grow at 2.5% -3.5% (CAGR) 2025 to 2030. While India Paper Industry growth is predicted to 5.5% -6.5% CAGR by Research and Markets during 2025-2030 and more particularly the Laminates Industry’s growth in India during next five years is estimated to an excited rate of 10%-12% CAGR. More exciting and encouraging news is that market Pundits are forecasting the growth in Tissue export business at 12%-15% CAGR.
Increasing demand for Laminates and tissue paper and packaging is expected to increase due to the growth of e-commerce as well as the other B2B and B2 C platforms.
Nath Industries is on leading position in domestic market and more focused on expanding export markets for its 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.
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