The BE and caustic soda plant marks a key milestone for Mohit Paper Mills, enabling full utilization of installed capacity and enhancing overall production efficiency

The BE and caustic soda plant marks a key milestone for Mohit Paper Mills, enabling full utilization of installed capacity and enhancing overall production efficiency

The Pulp and Paper Times

Mohit Paper Mills Limited (MPML)  was incorporated in 1992 and listed on BSE Ltd., continues to pursue its mission of delivering quality paper products while maintaining a strong focus on sustainability, operational efficiency, and stakeholder value. The Company is engaged in the manufacturing of a broad spectrum of paper products including white and colored writing and printing paper, MG poster paper, kraft paper, and other customized varieties to meet the evolving market demands.

MPML follows an agro-based manufacturing model, using renewable raw materials such as bagasse and other agricultural residues, supplemented with imported waste paper. This approach supports our environmental objectives while ensuring high product quality and strength. Our paper is sold in multiple formats including reels, sheets, and other sizes as per customer specifications, catering to both domestic and export markets.

In FY' 2024-25, Mohit Paper continued to operate at a high level of capacity utilization. Despite ongoing challenges such as input cost volatility and limited scale compared to large industry players, the Company remained focused on long-term cost optimization and technological upgradation. Agrobased inputs, while sustainable, are subject to seasonal and market-based price fluctuations, which continue to impact overall cost structures.

As part of its ongoing capital investment program, the Company has completed the installation of the evaporator and caustic soda recovery plant. These strategic additions are expected to enhance operational efficiency by reducing chemical consumption, improving energy utilization, and lowering overall production costs- ultimately supporting stronger margins in the coming financial years.

Looking ahead, the Company remains committed to its strategic priorities of sustainable growth, operational excellence, and value creation for shareholders. MPML aim to further strengthen our market presence, explore new product opportunities, and invest in cleaner technologies that enhance competitiveness and reduce the environmental footprint. With these initiatives in place, the Company is confident in building a future-ready organization that delivers consistent performance and long-term value to all stakeholders.

RESULTS OF OPERATIONS AND STATE OF COMPANY'S AFFAIRS

The management of the Company remains unwavering in its commitment to driving the Company's growth and achieving its long-term strategic objectives. The Company continues to focus on its core segment-paper manufacturing and consistently works to enhance operational efficiency, strengthen market position, and maximize shareholder value.

As of FY' 2024-25, MPML's installed production capacity stands at 130 metric tons per day (MT/day), thus utilizing this capacity to its full potential. In the previous FY' 2023-24, the Board of Directors approved the installation of a 150 TDS Boiler and Evaporator (BE), alongside a caustic soda recovery plant, to further enhance production capabilities within the existing capacity. The primary objective behind this initiative was to improve steam generation, power efficiency, and caustic soda recovery, which are critical to the paper production process.

The installation of the BE and caustic soda plant is expected to increase operational efficiency by optimizing energy usage and chemical recovery, enabling the Company to maximize its existing production capacity. These strategic investments are designed to further strengthen our cost competitiveness and operational sustainability. The Company has made significant progress in these initiatives as the BE and caustic soda plant were successfully commissioned during FY 2023-2024. This milestone marks a key achievement for the Company as it allows to fully leverage the installed capacity and improve overall production efficiency.

Highlights of Financial Performance for the Financial Year 2024–2025

During the FY' 2024-25, Mohit Paper recorded a net revenue of Rs. 18,020.62 lakhs as compared to Rs. 18,562.61 lakhs in the previous year. This reflects a change in sales performance, primarily influenced by the prevailing market conditions, including fluctuations in paper prices.

In FY' 2024-25, the Company continued to face challenges with the market price of paper and a reduction in paper prices had a significant impact on the Company's revenue.
Additionally, the other income of the Company increased to Rs. 654.52 lakhs from Rs. 640.05 lakhs in the previous year, reflecting an improvement driven by strategic initiatives. This represents an increase of approximately 2.26% over the previous year.

Despite the increase in other income, the reduction in paper prices impacted the overall financial performance. As a result, the total income for FY' 2024-25 stands at Rs. 18675.15 lakhs, compared to Rs. 19,202.66 lakhs for FY' 2023-24.
 

Published at : Jun 27, 2026 07:38 AM (IST)

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