Pudumjee Paper intends to develop new varieties addressing applications for stronger paper bags and cupcakes; Plans 68,000 MT Mahad Specialty Paper Facility within 5 years

Pudumjee Paper intends to develop new varieties addressing applications for stronger paper bags and cupcakes; Plans 68,000 MT Mahad Specialty Paper Facility within 5 years

- Pudumjee has improved its performance with respect to revenue generation this year (FY 24-25) which is at Rs. 809 crores (Rs.785 crores in the last year).

The Pulp and Paper Times

The Indian speciality paper sector presents opportunities to enhance efficiency, moderate costs, widen product variety, improve quality, and strengthen environmental sustainability. Over the last decade, advances in technology have boosted manufacturing automation and resource utilization. A key growth driver has been the gradual replacement of single-use plastics in packaging, a global trend likely to catalyse the offtake of speciality paper.

Pudumjee Paper Products Ltd. (PPPL) is strategically placed to leverage this opportunity by focusing on customised, niche paper products instead of mass volume manufacturing. Its production facility comprises four dedicated paper machines and a specialised coating machine that produces food-grade and specialty papers with superior barrier properties. The Company has developed and patented an innovative heat-sealable paper, offering features like wet strength and oil resistance, an effective alternative to plastic wrappers, with exports to Middle East and Europe.

Pudumjee has improved its performance with respect to revenue generation this year( FY 24-25) which is at Rs. 809 crores (Rs.785 crores in the last year). This achievement is a result of higher production by about 5% and improved revenue of Hygiene Products Division by about 6%. In the backdrop of reduction in the net selling prices of paper by about 2% on an average, the EBIDTA margin has marginally reduced to 18% (last year 19%).

“As a forward-looking manufacturer, we are engaged in a research-led initiative to manufacture speciality packaging paper variants to reduce humankind’s dependence on single use plastic. We recognise that the road ahead may be long and warrant proactive investments; we are encouraged by the fact that the green solid bag-cum-wrap alternatives we had developed in the past have grown in market acceptance - from 12 tonnes per month not too long ago to a maximum of 500 tonnes per month today.

The company intends to sustain its research spending with the objective to develop new varieties addressing applications for stronger paper bags and cupcakes; this initiative is being extended to cover alternatives for single use plastic. This is an attractive segment that has been and is growing significantly recently and will continue to grow in future.” Mr. Arun Jatia, Chairman- Pudumjee Paper Products Limited stated in the annual report for FY 24-25.

The Company has received clearance from Maharashtra Pollution Control Board (MPCB) for setting up a 68000 MT of Specialty Paper manufacturing facility in 5 years time at Mahad at a cost of about Rs.1350 crores, subject to applicable approvals and permissions. The Company is currently in active discussion with the machinery manufacturers after which the relevant details of the project will be finalized.

PPPL intends to leverage its financial comfort, build additional capacity and climb into the next orbit. The company is presently working with an installed capacity that is considered inadequate, given the increase in downstream consumption in India (the company’s principal market) and a global movement away from polymer products to environment-friendly speciality paper alternatives.

“For the long-term, the company is planning to invest in a greenfield capacity. The company possesses attractive credentials: it had INR 230 Cr cash & equivalents on its books at the close of the last financial year; it enjoyed enduring relationships with customers seeking to buy a larger quantity from the company. The company acquired about 75 acres of land in Mahad for this second manufacturing facility which has necessary infrastructure for a green field project. It has received no objection certificate from the regulatory authorities for putting up the project in 5 years. The company is currently engaged in selection of machinery.” Mr. Jatia stated.

He further added, another initiative that we took during the last financial year was the commissioning of 15.4 MW of solar energy. When commissioned around the end of the first half of the current financial year, the generated power will deliver a financial saving when compared with the price we pay for drawing from the state electricity grid. Besides, the green energy that we generate will appeal to customers who seek to buy products manufactured with green resources, enhancing the integrity of their supply chain.

“For many products manufactured by our Company, there is adequate international competition. Some international companies possess larger manufacturing capacities with multiple locations across many countries. Some of these companies are integrated that means they have their own pulp manufacturing capacities, updated and contemporary manufacturing technologies which deliver superior products quality and cheaper prices at times. Also, the excess capacity owned by some of these companies particularly from some Asian countries makes them aggressive international players.

At Pudumjee, we will need to increase our manufacturing capacity, improve technology by installing latest paper machines with reasonable capacity which are benchmarked to the global quality and cost. Due to larger volume of speciality papers to market and upgraded quality, we will ensure that we continue to remain relevant to the customers with growing requirements.” Dr. Ashok Kumar, ED at Pudumjee Paper said in the annual report.

The Company’s marketing strategy is driven by a focused team aligned with evolving market dynamics. By integrating CRM systems, automation tools, and data analytics, Pudumjee has reinforced its marketing through wider targeted outreach, higher customer retention, and improved customer outcomes. This synergy between brand-building and agile marketing has strengthened Pudumjee’s relevance in a competitive marketplace.

OUTLOOK

Pudumjee will continue optimising capacity utilization while proceeding with establishing a greenfield facility at the Mahad site, subject to regulatory clearances. The Company aims to diversify its product portfolio by expanding specialty paper grades focused on food packaging, pharmaceuticals, and decorative applications. It will maintain ongoing investments in automation, quality control, and digitalization to improve operational efficiency and product quality. Pudumjee intends to enhance eco-friendly product offerings, continue using renewable raw materials, and implementing energy-efficient manufacturing processes. The Company seeks to strengthen its presence in the domestic and international markets by leveraging innovation and operational excellence.

In 2025-26, the Company aims to enhance procurement capabilities by continuing to achieving zero shortages of raw and packing materials. This will be accomplished through strengthening the planning cycle with more detailed data from the sales team, rigorous monthly production planning, and improving supply chain coordination to anticipate and prevent potential disruptions. These measures are expected to boost operational efficiency and ensure better service delivery, sustaining business growth.

Pudumjee aims to strengthen its position as a trusted paper and hygiene products solutions brand by refining its market presence and expanding its product line with innovative offerings. The Company will enhance digital outreach through increased investment in online marketing, SEO, and e-commerce.

With a continued focus on customer centricity, company will leverage CRM insights for personalised engagement and improved retention. Operational efficiency, sustainability, and innovation will remain key priorities driven by R&D, responsible sourcing, cost optimization, and impactful CSR initiatives to support communities and reduce environmental impact.

Pudumjee will persist in developing new paper grades and varieties tailored to emerging applications. The Company remains committed to using a diverse range of fibres while maintaining high quality standards. It continues to leverage its logistical advantage by sourcing fibres through nearby ports. Efforts are underway to identify suitable equipment and vendors for its upcoming 75-acre manufacturing facility in Mahad, with a focus on determining the optimal phase-wise expansion plan and investment scope.
 

Published at : Jun 06, 2026 08:07 AM (IST)

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