- Acquisition of a second-hand 1,65,000 MTPA paper machine from the USA, and a chlorine dioxide (ClO₂) plant, which is expected to improve operational efficiency.
The Pulp and Paper Times
Ruchira Papers Limited (RPL) manufactures and markets kraft paper and printing & writing paper (WPP), catering to both domestic and international markets. Its manufacturing facility is in Kala Amb, Himachal Pradesh, with a total installed capacity of 1,18,800 MTPA for kraft paper and 60,000 MTPA for WPP, as on March 31, 2026. It also has a captive co-generation power plant of 8.1 MW, catering to the power requirements of its WPP plant.
RPL has a diversified product portfolio comprising kraft paper and WPP. In the WPP plant, the company manufactures a diverse set of products including premium invitation and wedding card paper branded as ‘Mogra’, copier paper, and white paper used for notebooks and stationery applications, cup stock paper, primarily used in the manufacturing of paper cups. It also manufactures industrial grade paper.
According to ICRA Rating, In FY2026, the company’s revenue declined marginally by 1.4% to Rs. 655 crore due to pricing pressures in the WPP segment arising from the continued influx of cheaper imports and a 36-day planned shutdown of the WPP plant in Q3 FY2026 for capacity enhancement and machinery modernisation. RPL’s WPP realisations declined by around 4% YoY and production declined by nearly 3,000 MT YoY in FY2026. Conversely, kraft paper realisations improved by around 2% YoY and the production increased by around 4,000 MT, supported by healthy demand levels.
Enhanced capacity in the WPP segment and continued demand are likely to result in healthy revenue growth for the company in FY2027. RPL’s OPM declined to 12.3% in FY2026 from 16.1% in FY2025, owing to lower WPP realisations, an unfavourable product mix due to the lower contribution from the relatively higher-margin WPP segment, and higher wheat straw costs. Going forward, better product mix, with the likely scaleup in WPP volumes, operating leverage benefits and efficiency gains from modernisation initiatives are expected to support margin recovery.
The company undertook a sizeable debt-funded capex programme of Rs. 235-240 crore during FY2025-FY2026 towards the WPP capacity expansion, acquisition of a second-hand 1,65,000 MTPA paper machine from the USA, and a chlorine dioxide (ClO₂) plant, which is expected to improve operational efficiency. While the acquired paper machine is currently nonoperational, it provides an opportunity for future capacity expansion.
Successful ramp-up of recently enhanced WPP capacity remains crucial for recovery in margins – The company has undertaken significant capacity expansion at its WPP plant, which is expected to increase to 90,000 MTPA over the medium term from 60,000 MT in FY2026. The ramp up in capacity is expected to be gradual to around 72,000 MT in FY2027 and 78,000 MT by FY2028. Healthy utilisation of the enhanced capacity and scale-up of operations, along with an improvement in realisations, remain crucial for growth prospects and margin recovery.
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